SOURCE: VeriSign, Inc.

March 12, 2007 12:00 ET

VeriSign, Alien Technologies, and E. Smith Consulting Team Awarded United States Air Force RFID Pilot Contract

New Pilot Program Launched to Track and to Manage Medical Supply Assets for Air Force Surgeon General's Office

MOUNTAIN VIEW, CA and DAYTON, OH -- (MARKET WIRE) -- March 12, 2007 -- VeriSign, Inc. (NASDAQ: VRSN), the leading provider of digital infrastructure for the networked world, Alien Technology Corporation, and E. Smith Consulting LCC, a woman-owned small business, today announced that the team has been awarded a contract to manage an innovative Radio Frequency Identification (RFID) pilot with the U.S. Air Force Surgeon General's office. Based at Wright Patterson Medical Center (WPMC), this pilot program will test the ability to improve process efficiencies and patient care services by utilizing passive RFID technology to better manage and to track important patient movement items (PMI) and medical devices within an Air Force medical facility.

"This program is an important building block that the DoD can leverage as it continues to pursue Total Asset Visibility (TAV) strategies," said Doug Natal, VeriSign vice president. "The continued expansion of RFID projects by the Department of Defense is consistent with what we're seeing across a number of industries as we help leaders deploy the technology and reap the benefits of much more efficient asset management."

Based on the results of the U.S. Air Force pilot, the DoD expects to evaluate potential benefits that would positively impact inventory, asset, and supply chain management. These benefits may include:

--  Improvements in caregiver access to clean, calibrated critical patient
    movement items and medical devices;
--  Improved efficiencies in locating and maintaining this equipment;
--  Reduced inventory requirements due to improved visibility into medical
    equipment location and status.
This pilot presents a unique opportunity to prove the value of an emerging technology within a hospital environment and to form the foundation for future deployment models across the DoD Medical support network. Once deployment expands to additional locations, visibility of the DoD's medical device inventory will generate value for centralized decision making.

"We are delighted at the opportunity to collaborate with the Air Force and industry leaders to validate the inherent benefits of passive RFID within the hospital setting," said Susan Pearson, vice president of alliances for Alien Technology. "The RFID Solutions Center in Dayton, Ohio is ideally suited to stage, to test, and to optimize this system prior to the live hospital test, ensuring seamless integration to hospital operations."

This is the second Department of Defense (DoD) RFID contract award that VeriSign has been a part of. VeriSign was also awarded a blanket purchase agreement (BPA) by the U.S. Department of Defense (DoD) under the Group 4-Electronic Product Code (EPC) Technical Engineering Services portion of DoD's Passive RFID EPC-1 program. The company's experience also includes more than 50 RFID-enablement projects, many of these done on behalf of consumer goods manufacturers responding to Wal-Mart's RFID mandate.

According to market research firm, INPUT, the Department of Defense is the largest adopter of RFID [in the public sector] to date. The firm has forecasted that the DoD total RFID budget is expected to grow from $115 million in FY 2006 to $215 million in FY 2011(1).

VeriSign provides comprehensive RFID Consulting services to the public sector, consumer goods, retail and healthcare industries, helping leaders in these markets leverage RFID data to drive more effective promotion management, new product introduction and improved inventory management. In addition, through the recent acquisition of inCode Telecom Group, Inc., VeriSign has expanded its set of RFID offerings to include several solutions targeted at the Manufacturing and Distribution sectors. With regulatory compliance issues and asset management becoming of increasing importance in multiple industries, more and more organizations are looking to VeriSign's Enterprise Solutions group to offer a single point of expertise for RFID technologies, products, and services.

About VeriSign

VeriSign, Inc. (NASDAQ: VRSN), operates digital infrastructure services that enable and protect billions of interactions every day across the world's voice and data networks. Additional news and information about the company is available at

More information about VeriSign's solutions for government markets is available at

About the RFID Solutions Center

The RFID Solutions Center Dayton, a division of Alien Technology Corporation, is dedicated to driving RFID technology innovation and adoption of RFID solutions worldwide through collaboration with RFID end-users, key participants in the RFID industry, and academic institutions focused on RFID research and application. Infrastructure and equipment at the center enable technical services and applications engineering teams to simulate key stages in "real world" supply chains, and work closely with RFID customers to evaluate, design, specify, and deploy RFID systems. The center's simulated environment, which includes shipping dock doors, material handling equipment and conveyors, shipping stations, a store backroom and a retail store floor, offers a comprehensive engineering laboratory and educational RFID environment. More information regarding the RFID Solutions Center is available at

About Alien Technology

Alien Technology™ provides UHF Radio Frequency Identification (RFID) products and services to customers in retail, consumer goods, manufacturing, defense, transportation and logistics, pharmaceuticals and other industries. Organizations use Alien's RFID products and services to improve the effectiveness, efficiency and security of their supply chains, logistics and asset tracking operations. Alien's products include RFID tags, RFID readers and related training and professional services. Alien's patented Fluidic Self Assembly (FSA™) technology and related proprietary manufacturing processes are designed to enable the manufacture of high volume, low cost RFID tags.

Alien™ was founded in l994. The company's facilities include: its corporate headquarters in Morgan Hill, CA; an RFID tag manufacturing facility in Fargo, ND; the Alien RFID Solutions Center, in the Dayton, Ohio area, and sales offices in the US, Europe and Asia. Alien is a member of EPCGlobal. More information about Alien is available at Alien, Alien Technology and FSA are trademarks or registered trademarks of Alien Technology Corporation in the U.S. and other countries.

About E. Smith Consulting, LLC

E. Smith Consulting is a woman-owned small business that provides subject matter expertise in the healthcare marketplace to support customers in management consulting, information technology, and supply chain industries. Specific expertise in defense and veterans' healthcare and state and local healthcare issues are brought to companies looking to support these clients. The company is located in Leesburg, Virginia and was founded in 2001.


VeriSign and other trademarks, service marks and logos are registered or unregistered marks of VeriSign, Inc. and its subsidiaries in the United States and in foreign countries. Copyright © 2007 VeriSign, Inc. All rights reserved.

Forward-Looking Statement

Statements in this announcement other than historical data and information constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve risks and uncertainties that could cause VeriSign's actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, the uncertainty of future revenue and profitability and potential fluctuations in quarterly operating results due to such factors as the risk that VeriSign's announced strategic relationships, including the relationship described herein, may not result in additional products, services, customers, profits or revenues; and increased competition and pricing pressures. More information about potential factors that could affect the company's business and financial results is included in VeriSign's filings with the Securities and Exchange Commission, including in the company's Annual Report on Form 10-K for the year ended December 31, 2005 and quarterly reports on Form 10-Q. VeriSign undertakes no obligation to update any of the forward-looking statements after the date of this press release.

(1) INPUT TargetView, by James Krouse, July 24, 2006.