November 22, 2006 15:15 ET

IPICO To Deploy SmartCore Paper Reel Tracking Solution Within Mondi

IPICO to roll out new SmartCore tracking solution to provide visibility and improve efficiency in the global paper market

BURLINGTON, ONTARIO--(CCNMatthews - Nov. 22, 2006) - IPICO Inc. (TSX VENTURE:RFD) -

In the paper industry, there is a strong need for an identification system to carry the identification code of a specific paper roll throughout its life cycle. Following several years of development and a successful pilot, IPICO Inc. announced today it has entered into an agreement with Mondi Technology Ventures ("Mondi"), a subsidiary of the Anglo American Group, to roll out the SmartCore tracking solution using IPICO's proprietary IP-X™ Dual Frequency ("DF") RFID technology at Mondi's March plant in the United Kingdom. The deployment is underway and IPICO is targeting successful completion by the end of this year.

The successful SmartCore pilot at Mondi has proven SmartCore to be the first RFID solution that provides a complete logistics solution for paper rolls, covering all sizes of rolls and the complete mission profile from paper through corrugated plant.

"Mondi is looking forward to the implementation of this technology at its March plant and sees exciting potential for the deployment of this application," remarked Mike Clarke, Business Leader, Mondi RFID Solutions, the unit responsible for managing the joint development effort. More than 40 plants in Mondi's Corrugated and Bag divisions currently use paper reels.

Pursuant to the agreement between IPICO and Mondi, Mondi has transferred all of its rights to the intellectual property and process that the parties created to IPICO. Mondi studied the business case for using RFID to track paper reels within its supply chain and expects that the full roll-out of the SmartCore solution will have a significant return on investment, in addition to improvements in quality control that it expects to receive by enabling its paper rolls with IPICO's Dual Frequency tags as part of the SmartCore solution.

The paper industry consumes hundreds of millions of paper rolls annually. Given the complexity of the global supply chain, the industry can benefit enormously from IPICO's DF IP-X™ technology, which provides complete visibility of paper roll stock throughout the entire logistics chain. IPICO expects fast adoption of this solution by the global paper market resulting in substantial annual recurring revenue for IPICO. IPICO is also currently developing relationships with key system integrators in the United States, Canada, Europe, the United Kingdom and China.

For background information on paper roll tracking, go to www.ipico.com.

ABOUT IPICO: IPICO Inc. is an RFID solution supplier with operations in the USA, South Africa, Europe, Asia and Australia. IPICO produces smart labels and tags based on the IP-XTM communication protocol. IPICO's low interference readers comply with regulatory requirements in major geographical regions, and allow for multi-reader rollout in close proximity. The IPICO DIMITM middleware platform manages applications in large-scale, distributed systems, while the DIMITM data and connectivity architecture allows for effective device management, data switching and data security. IPICO's low cost RFID products excel at long read range, fast multi-read anti-collision and high thru-beam read-speeds of dynamic tag populations. These products are used to optimize the management of items, people, animals and processes within the logistic supply chain and other values chains.

For further information, go to www.ipico.com.

ABOUT MONDI: The Mondi Group was founded in 1967 by Anglo American plc. Mondi operates in over 46 countries and is principally involved in the manufacture of business paper, packaging papers, converted packaging and newsprint. Mondi saw the benefits of IPICO's robust Dual Frequency technology after Anglo started using it in its mines in South Africa to track miners and assets underground in very harsh conditions. Mondi was an early and later stage strategic investor in IPICO. Mondi is currently the second largest shareholder in IPICO behind the Brookfield Technology Fund Inc.

For further information, go to www.mondipackaging.com.

This news release contains certain forward-looking statements pertaining to future anticipated projected plans, performance and developments, as well as other statements relating to future operations and results. Any statements in this news release that are not statements of historical fact may be considered to be forward-looking statements. Written words such as "may", "will", "expect", "believe", "anticipate", "estimate", "intends", "goal", "objective", "seek", "attempt", or variations of these or similar words, identify forward-looking statements. These statements by their nature are estimates of future results only and involve substantial risks and uncertainties, including those detailed from time to time. There can be no assurance that actual results will not differ materially from expectations. Such forward-looking statements include statements regarding IPICO's strategic focus, near-term and long-term outlook, anticipated financial performance, benefits and synergies of the proposed agreement with Mondi, the growth of the market for IPICO's products and the SmartCore Solution. Actual results could differ materially from those contained in the forward-looking statements and are based on current expectations that involve a number of risks and uncertainties, including, but not limited to, the reaction of customers to the SmartCore Solution; the reaction by competitors to the proposed SmartCore Solution and the potential for increased pricing pressure by such customers and competitors; diversion of management attention from other business concerns due to the proposed alliance; undisclosed or unanticipated liabilities and risks resulting from the proposed alliance; our ability to sell multi-product solutions; the effects of a longer sales cycle as we increase our focus on large customers; market acceptance and adoption of our products and services; our ability to enhance the quality and scalability of our products to meet the needs of the customers; our ability to retain key personnel and hire new leaders to support our business; and general industry trends, general economic factors and capital market conditions. These and other risks may be detailed from time to time in IPICO's periodic reports filed on SEDAR (www.sedar.com), including, but not limited to its latest Information Circular found under Anitech Enterprises Inc. (which became IPICO INC. upon its name change).

The TSX Venture Exchange does not accept responsibility for the adequacy or the accuracy of this release.

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