Supply Chain Technology

RFID Monthly

Technology Research
February 2008

Reik Read
rread@rwbaird.com
414.298.1030

Robb Timme
rtimme@rwbaird.com
414.298.1762

Samantha DeLay
sdelay@rwbaird.com
414.298.6215
Table of Contents

(Use the links below to navigate. To return, click on page header in the upper left corner.)

Key RFID Developments ................................................................................................................................................ 1

RFID Trends and Commentary......................................................................................................................................... 2

RFID Hardware News and Comment ................................................................................................................................. 3

RFID Software and Service News ..................................................................................................................................... 5

RFID Briefs ................................................................................................................................................................. 6

RFID Case Study: Griva ............................................................................................................................................... 12

RFID Stock Index and Comment .................................................................................................................................... 14

Table of Key RFID Providers ......................................................................................................................................... 16

Comparable RFID Valuation .......................................................................................................................................... 17

Glossary of RFID Terms ............................................................................................................................................... 20

Baird’s RFID Contacts ................................................................................................................................................. 25

(Please refer to Appendix – Important Disclosures and Analyst Certification on page 23.)
Key RFID Developments

Encouraging level of innovation. We are regularly seeing greater numbers of innovative market-specific RFID applications in a wide variety of
areas, including: entertainment, event management, construction, chemicals, automotive, textiles, office management, mining, contactless
payment, animal tracking, government and many others. While many of these pilots are in very early stages or are small, we believe the growing
number confirms strong interest in RFID as a tool for improving business operations, and will provide the basis for increased growth potential as
many of these pilots expand. We highlight several of these applications in the “Briefs” section.

Privacy remains an important issue. We continue advocate that the industry address RFID related privacy issues before legislative action
potentially impedes the technology. Many in the industry continue to believe that privacy is not a key issue, and are ignoring the increases in state
legislative action that could hamper adoption. The latest is from the State Legislature in California, where the Senate voted to pass SB 31 by a 36
to 3 margin on January 30. Recall, SB31, originally proposed in December 2006, makes it a crime to skim personal information housed on RFID
chips, tags or cards. We certainly agree with protecting privacy, and believe the industry needs to demonstrate how the technology addresses
security. We look for the industry to promote increased education of state and federal legislators, their staffs and privacy advocates so that
legislative actions are informed.

Metro update. Metro’s pallet level deployment is showing good progress, and the retailer continues to expand the number of RFID pilots. In the
Metro and Real Hyperstore deployment in Germany, we understand that Metro is seeing roughly 40% of pallets received with tags from roughly
180 suppliers. Recall, tagging began in October. Metro reports already seeing benefit, and believes early case level tests were “successful” in
providing increased visibility. Further, in addition to the Galeria Kaufhof pilot, Metro is also planning to go live with a deep freeze (-100F/-240C)
distribution center pilot.

Automotive increasingly in the news. This past month we have seen an unusually high level of information flow from the automotive industry,
including Ford leveraging RFID for a smart truck application in the construction industry, Land Rover using active RFID for part tracability and end
product location, and Chrysler finally expanding use of RFID for production line maintenance applications. Given the high asset content in the
automotive market, and the need for automakers to enhance productivity, we expect to see increased closed loop RFID usage.

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Robert W. Baird & Co. February 2008 Page 1
RFID Trends and Commentary
As we reach the mid-point of the first quarter, we are encouraged with
the increasing number of innovative market-specific RFID applications
seen each week in a wide variety of areas, including: entertainment,
event management, construction, chemicals, automotive, textiles, office
management, mining, contactless payment, animal tracking,
government and many others. While many of these pilots are in very
early stages or are small, we have a positive outlook on three fronts.
First, the growing number of pilots confirms the strong interest in RFID
as a tool for improving business operations, and will provide the basis
for increased growth potential as many of these pilots expand as a
result of a proven ROI. As we have noted in past editions, we are
already seeing some modest expansion from many of these pilots.
Second, it is not only the number of pilots that we view as important,
but the wide range of applications in differing markets. This again
serves as confirmation that RFID has real value as a technology tool.
We expect increased standards development in several individual
markets will help enable greater usage over time. Third, we are seeing
usage of many different types of RFID technology, including passive at
LF, HF and UHF as well as active.
The overall passive market remains small, and many end users and
traditional resellers suggest they will not make significant investments
until they see greater market momentum, which we believe will come
as a result of expansion of these types of pilots. We expect some
expansion of the more advanced pilots to occur in 2008. As we have
indicated in previous editions, we believe that 90% of the market is
composed of a wide range of asset tracking and closed loop pilot
programs, with the remaining 10% coming from supply chain
applications, both compliance and non-compliance.
In the Gen 2 UHF market, we see apparel, aviation, Pharma,
DVD/Books and compliance as key long-term markets. Many of the
vendors are today developing solutions in one or more of these areas.
In terms of overall opportunity today, we estimate less than 15% of
revenue is generated in these areas. However, these markets create a
strong long-term opportunity given that each has large and new volume
RFID Monthly
Robert W. Baird & Co. February 2008
created each year, the products are relatively valuable, local closed
loop solutions can add great value, and each as a complex supply
chain with a need for increased track and traceability. These factors are
conducive towards item level tagging, and several statistics illustrate
the long-term potential in each of these markets.
With respect to apparel and shoes, roughly 24B items are produced
worldwide each year. Airlines transport between 2.5B-3.5B pieces of
luggage globally, with 75% coming internationally. In the U.S., over 2B
bottles/vials of drugs are dispensed each year in the pharmaceutical
supply chain, and 7.1B DVDs are shipped each year. Books also
represent a strong opportunity with over 4.1B total books on shelves
today worldwide. We see increased solution development and
expanding pilots in each of these markets over the next year. The most
likely deployments will come in international aviation. We expect that
apparel will see expanded closed loop pilots with greater scale.
Pharma and DVD’s have the most complexities and the longest road to
achieving an ROI, and we anticipate expanded, but still modest pilot
activity over the next year. Pharma will likely take the most time given
the lack of catalyst as we expect the California e-pedigree mandate will
be pushed out to 2011 from 2009.
With respect to active and semi-passive, we are seeing good traction in
automotive, healthcare and transportation and logistics. We expect to
see increased focus particularly on healthcare given the strong
opportunity and increasing solutions development. We have indicated
in the past that our view is most hospitals (rightly) tend to direct capital
spending towards medical equipment to serve their diagnostic patient
needs, with IT spending tending to be more limited. However, we
believe many of the RFID asset tracking solutions are reaching
capability where hospitals can see the capability at a lower cost, and
perhaps realizing through investment in improved asset tracking
solutions they can allocate their capital more efficiently in the long-run
(i.e., not spend on redundant assets and instead spend more on
important diagnostic equipment).
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 RFID Hardware News and Comment
With respect to hardware and solutions news, the obvious take away is
that many vendors are introducing Sam’s Club compliance solutions.
We believe many of these solutions will be relatively easy for end users
to adopt given the considerable development effort in the past several
years from the original Wal-Mart and DoD mandates, and most recently
the Metro mandate, which began last October. Many of the other
introductions a focused on a wider array of generally more ruggedized
manufacturing and logistics opportunities.
Tags & Readers
Avery Dennison introduced a new tag called the AD-908. The Gen 2
tag is designed for challenging tagging environments and comes
enclosed in a case that is impact-resistant and blocks UV rays. The
case may be applied to the asset using a bolt or rivet.
UPM Raflatac released a new tag for near-metal applications called the
Hammer. The tag is available in wet-inlay, dry-inlay and paper-faced
formats. The tag has a read range of up to 4 feet and can be placed in
a plastic enclosure for container and cage applications.
RSI ID introduced a new tag designed specifically for bag-tagging
applications at airports. The Gen 2 RSI Blade tag uses NXP UCODE
G2XL and G2XM integrated circuits. As a result, the tags are
orientation-neutral, which allows bag-tags to be read at any angle,
eliminating one of the major problems with the current barcode
technology.
Confidex introduced a new Gen 2 tag designed specifically for use on
wood pallets. The tag, called the Confidex Pino, is durable and can be
inserted into the wood pallet, as opposed to placed on the surface.
This addresses problems that include the wood warping and a variety
of surface damage that can impair the tag. The company also
announced that Hub Télécom, a subsidiary of Aéroports de Paris, is
using the tag to track wooden pallets used by a retailer and a food
company.
RFID Monthly
Robert W. Baird & Co. February 2008
GE Healthcare has partnered with CenTrak to provide a battery-only
powered RTLS solution for hospital settings. Because each reader is
powered by batteries, the installation and set-up time is significantly
reduced from six months to one week. The battery power capability
substantially reduces the need for wires, which requires electrical
expertise and can interrupt operations as each room has readers
installed. The new system, called the DualTrak, has room-level
visibility using Centrak’s GEN2IR technology and 900MHz radio
frequency communications.
iDTRONIC introduced a new mobile reader, the Compact Flash Reader
14443 A/B, which is best suited for PDAs and pocket PCs. The HF
reader has a range of roughly 4-6 centimeters, weighs approximately
17 grams, can be plugged into a flash drive and interacts with
Microsoft’s CE and Mobile 5 operating systems. An external antenna
can be used to increase the read range. The reader supports the
following tags: NXP Mifare MF1S50, MF1S70, Desfire and Ultralight,
Sony’s Felica transponder, several 14443 B tags and the STM 176
transponder.
iDTRONIC also introduced a new long range HF reader designed for
logistics and tracking purposes. The reader, called the Ezscan LRM
interacts with ISO 15693 transponders (Infineon my-d, Tag-it, NXP I-
Code and Legic Advant ATC chipsets), can connect to USB interfaces
and has four antennas.
Systems and Solutions
Lowry Computer announced the availability of packages designed to
help suppliers meet retail RFID mandates, called Retail Quick Comply
Kits. In light of recent announcements from Sam’s Club, Metro and
others, Lowry has bundled a hardware and software application suited
for those in need of a rapid compliance solution.
Similarly, Domino ISG introduced three packages aimed at providing
compliance solutions for Sam’s Club suppliers. The most basic
package, Compliance 1st, provides the essential hardware and software
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 RFID Hardware News and Comment

for businesses to manually apply RFID labels. This package includes

printers supplied by Zebra Technologies and epcSolutions’
RFIDTagManager. The second package, Compliance NextSteps,
provides suppliers with an inline automated label application system.
The most sophisticated package uses HIDE-Pack technology to
integrate the RFID label into the product packaging.

SATO America also announced the availability of a low-cost package

geared toward suppliers under Sam’s Club new pallet-tagging
mandate. The kit, which includes one SATO GL408e UHF printer, one
Label Gallery 2 TruePro, a labeling software solution, one roll of 4x6
AD-222 RFID labels and one roll of T101A standard wax ribbons. The
solution allows suppliers to begin tagging pallets quickly, which will be
necessary to avoid the $2.00 per pallet charge that Sam’s Club will levy
for pallets that do not contain an RFID tag into specified distribution
centers.

RF Code released an active RFID hardware and software package

designed to help IT centers track inventory and servers. Because of
the increasing number of hardware tools and movable assets within IT
centers, taking inventory and locating assets has become a more
important task. RF Code’s active solution with software allows
managers to track metal-based assets like unused servers
continuously.

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Robert W. Baird & Co. February 2008 Page 4
 RFID Software and Service News

Wavetrend Technologies introduced a new tracking application that

offers more complete end-to-end coverage than predecessors. The
solution, called GlobalEyes, uses a combination of active RFID, GRPS,
GMS, Zigbee and SATCOM GPS to continuously monitor the location
and status of asset via a web-based program and mobile readers. The
system is targeted at cargo tracking applications, as well as mining,
vehicle manufacturing, and rail car tracking applications.

AeroScout introduced MobileView 4.0, the next generation of its asset

tracking software. Version 4.0 has the ability to process inputs from
AeroScout’s active RFID technology, read through Cisco’s wireless
data ports, passive RFID tags per a partnership with Reva Systems
and ultra wideband frequency, through a partnership with Time
Domain. MobileView 4.0 also has a web interface that allows users to
monitor and track assets from anywhere, additional, industry-specific
plug-ins and an alert system to notify users of backlogs or delays. As
mentioned above, both Reva Systems and Time Domain have
partnered with AeroScout this month to provide an integrated
active/passive technology. In order to have MobileView 4.0
interoperable with passive readers, Reva Systems has incorporated the
software suite onto its Tag Acquisition Processor appliance. As part of
its partnership with Time Domain, AeroScout’s readers can now
interpret readers from Time Domain’s dual mode (UWB & Wi-Fi) tags,
allowing the data to be incorporated into the MobileView 4.0

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Robert W. Baird & Co. February 2008 Page 5
 RFID Briefs
Standards, Industry Policy, and Government
We continue to be advocates that the industry address RFID related
privacy issues before legislative action potentially derails the
technology. Many in the industry continue to believe that privacy is not
a key issue, and are ignoring the increases in state legislative action
that could hamper adoption.
The latest is from the State Legislature in California, which voted to
pass SB 31 by a 36 to 3 margin on January 30. Recall, we have
reported that since December 2006, California has been considering to
make it a crime to skim personal information housed on RFID chips,
tags or cards. Specifically, the SB 31 provides “…that a person or entity
that intentionally remotely reads or attempts to remotely read a
person’s identification document…using radio waves without his or her
knowledge and prior consent…shall be punished by imprisonment…for
up to one year, a fine of not more than $1,500, or both…” The bill will
now move to the California Assembly. Wisconsin has a similar piece of
legislation already on its books.
We do not have any issue with the concept of the government
protecting privacy, but we believe many of these legislative acts are
undertaken with only partial knowledge of the technology, its
capabilities, related standards and security features. The industry
needs to devote more time and resource towards educating state and
federal legislators, their staffs, relevant government agencies and
privacy advocates on how privacy is being actively addressed. It is the
right thing to do, and it is simply good politics. If nothing is done, the
industry will have missed an opportunity to participate in the process
before potentially unnecessary laws are written that begin to impede or
prevent the use of RFID.
Metro Update
We had a chance to see Gerd Wolfram, of Metro’s MGI unit, present
recently and came away with the clear impression that the retailer
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Robert W. Baird & Co. February 2008
continues to view RFID strategically and plans further pilot expansion.
The following represent our key take aways from the presentation.
First, the pallet level rollout continues at the Metro and Real stores in
Germany. Metro is seeing roughly 40% of pallets received with tags,
either at distribution centers or directly at the stores, from roughly 180
suppliers. Metro has in excess of 1,000 suppliers. Metro is already
seeing benefit, but has not quantified any ROI. Recall, Metro began
requiring pallet level shipments in October.
Second, the Galeria Kaufhof implementation continues to progress.
The pilot is still with one store within the Men’s department that
features tracking over 120,000 items per year. Metro indicated that
employees are adapting well to the system, but that the holiday season
was difficult as employees in many cases reverted back to old
processes. We view this as a good lesson learned. Metro indicated that
the largest challenge was filtering the high number of unwanted tag
reads in such a close environment. We believe Reva’s tag acquisition
processor system served as a key component is solving this problem.
Third, Metro is also planning to go live in the near-term with a full
distribution center (DC) that is a deep freeze unit (-100F/-240C). All
incoming pallets will have transponders for tracking into the facility and
the high racks will have transponders to confirm bin locations. The DC
is roughly 105,000 square feet, receives over 135,000 pallets per year
and has 11,000 bin locations. Metro will use 15 RFID enabled forklift
trucks, 30 fixed readers (75 antenna) and three printers to track goods
in the warehouse. Project planning began last spring.
Fourth, the company is progressing towards case level tagging, having
viewed their early tests as “successful”. We take this to mean that
RFID, while below 100% reads, is providing Metro with a level of
visibility that is better than what exists today.
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 RFID Briefs
DVD Pilot Update
The DVD industry and the EPCglobal Media and Entertainment
Committee accomplished several meaningful milestones in 2007 and
are contemplating future steps in 2008. In 2007, the committee
completed important tag design and placement standards, and
completed a small pilot that began in September and tagged roughly
15,000 individual DVDs. Our understanding is that many members
believe that they are “directionally” getting good value, including better
analytics and possible sales lift, from use of the technology, but there
remain technological, cost and end customer educational issues to
confront.
The group is currently assessing whether or not to proceed with a
larger U.S. based pilot that would last four to six months and include
the major studios, key manufacturers and several larger retailers. We
believe that an end of the Hollywood writers strike will be helpful in
allowing such a pilot to proceed. From an equipment view, we believe
tag development to meet the new industry standard will be a factor in
improved performance. We also believe that mobile reader products
will see advancement in 2008 a result of second generation reader
silicon. These mobile readers will likely be an important component of
any RFID solution for the DVD market.
Passive RFID Applications
We understand that Chrysler is planning to expand its use of passive
RFID for tracking of automotive body carriers for maintenance
purposes. Chrysler has been running a pilot at its Warren Truck Plant
since 2004. By using RFID, Chrysler increased the level of automation
to where carriers could be reliably and accurately tracked to determine
when each carrier needed to be taken off the line for maintenance. This
system reduced the labor costs and line shutdowns, and achieved a
payback in just less than four months, or an ROI of 354%. The success
of the system has prompted Chrysler to plan implementation of three
additional plants during 2008.
RFID Monthly
Robert W. Baird & Co. February 2008
The Ford Motor Company has introduced new versions of its F-150
truck, F-Series Super Duty truck and its E-Series vans that have
several new technology systems, including a built-in RFID inventory
management system. The new vehicles have ruggedized, weather-
proof RFID reader provided by ThingMagic and encased by DEWALT
and come with ruggedized ThingMagic tags, allowing drivers to locate
and track the status of certain parts, particularly high-asset value
pieces. The system also includes a Ford Works Solutions Tool Link
from DEWALT that is designed to address loss prevention. In addition
to the RFID system, the vehicles also have an in-dash computer
developed by Magneti Marelli that operates on Windows Auto, a
navigation system provided by Garmin and Ford’s Crew Chief program
that enables fleet management.
Advanced ID Corporation announced that it has partnered with Patch
Rubber Company to produce a retro-fit tire tracking solution. Advanced
ID plans to combine its Gen 2 Tire Tag with Patch Rubber’s products in
order to have its tags stay affixed to the tag for the life of the tire. Also
part of the system is Advanced ID’s UHF 500 series reader. The
tracking system is expected to improve monitoring of the life of the tire
for tires currently in use, and to prevent counterfeiting and track
inventory for stock tires.
Alien Technologies announced the results of a tagging solution at
Diakinsis, the largest third party logistics company in Greece. As part of
the program, Alien’s Gen 2 M tags were placed under the floor to guide
forklifts to the appropriate location, based on its cargo. Also, each shelf
space was tagged using a specially-encased Alien Squiggle, which was
designed to reduce interference from the metal shelving. Also each
pallet was tagged and read using fork-lift mounted readers and mobile
readers. The program at the 320,000 square foot food service
distribution facility facility, began as a pilot in June of 2006 and was
fully rolled out in November of 2007 and tracks roughly 350,000 pallets
annually. Alien reports that benefits are encouraging, including a 30%
improvement of time required to place pallets on racks, a 25%
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 RFID Briefs
reduction in overtime and a decrease in shipment errors by 80%.
Acsis has introduced an out-of-the-box solution designed for
pharmaceutical companies and distributors facing e-Pedigree
compliance. The solution, called PharmaTrak 2.0, includes the ability
to serialize products, cases and pallets, generates e-Pedigree
documentation, and is scalable between manufacturing, distribution
and sales facilities. The solution incorporates RFID and barcode
equipment and the corresponding support systems. The system is
designed for use with SAP systems.
Vue Technology announced that New Balance has used its software to
implement an item-level tracking system running from the distribution
center to the company’s factory store. The solution included Avery
Dennison tags and Motorola’s mobile and fixed RFID readers. New
Balance achieved over 99.5% accuracy in tracking the tagged assets,
enabling it to have better visibility over asset location, shipment timing,
inventory planning and security.
Magellan introduced a tracking application designed for laboratory
slides. Using the company’s Phase Jitter Module and StackTag
technology, hospitals and laboratories can individually tag specimen
slides, including those containing DNA, for archival and tracking
purposes. Specimens often must be stored by facilities for an
extended period of time, up to years, and slides frequently move
between facilities. The StackTag, operating at 13.56MHz, allows item-
level tracking of up to 1,000 slides, despite close proximity or contact.
UPM Raflatac announced that its HF tags will be used for access
control at the downhill skiing World Cup in Italy. Each person with
clearance to go in secure areas at the event, including athletes, trainers
and members of the press, will be given an HF tag that interacts with
handheld readers. The tag’s serial number will correspond to personal
information, allowing organizers to better identify cleared individuals.
Mobile Aspects announced that its iRISupply tracking system will be
installed at Rush University Medical Center’s Center for Congenital and
RFID Monthly
Robert W. Baird & Co. February 2008
Structural Heart Disease. The Center will use the iRISupply cabinet to
track and record data on implantable devices, including internal cardiac
defibrillators. Due to the cost of the devices, the center needed a
tracking solution for security purposes, for location purposes and to
more accurately bill for the use of the devices.
Active RFID Applications
In addition to the several passive applications in automotive, we are
seeing active usage as well. Land Rover is using active RFID/RTLS
from Savi Technologies and WhereNet to increase supply chain and
production process efficiency at its Solihull, England plant. The entire
site is 308 acres, with a 600,000 square feet assembly facility that
produces roughly 150,000 vehicles each year. Land Rover is seeing
strong ROI from its early implementations and is expanding use of the
technology. At this point the Savi and WhereNet systems are stand-
alone and do not communicate.
The Savi system is a new active RFID pilot with Land Rover at Solihull
along with 18 key suppliers. The project is designed to improve the
efficiency of operations and to enhance communication and timing with
suppliers. Key points of improvement are expected from reduced line
disruptions, fewer part losses and less time in the part location process.
The project uses Savi’s active technology to track stillages from
departure at the supplier to receipt at the Land Rover facility. Stillages
are steel conveyances that carry key automotive parts, including moon
roofs, bumpers, front grills and vehicle bodies. At each transaction read
point, part information is captured and location or exception alerts are
sent to relevant supply/logistics personnel via PDAs or smart phones.
This program is funded in part by a grant from the U.K Government via
the University of Warwick.
The Solihull facility has also been using WhereNet’s real-time locating
system to enable a part replenishment system since 2002, and a
Vehicle Tracking and Management System (VTMS) since January
2007. The PRM system allows line operators to request parts on a
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 RFID Briefs
wireless Kanban basis. As parts are needed, operators signal
replenishment through a push button mechanism that enables a
wireless message to be sent to the logistics system. The VTMS system
enhances visibility into finished vehicle location. As each new vehicle
comes off the production line, an active transmitter is attached to
enable easy location on the 308 acre facility. Previously, Land Rover
personnel spent substantial amounts of time locating vehicles for post
production verification, testing and shipment. In addition to a time
consuming and expensive process, the lack of inventory visibility had
negative impacts on production as vehicles were not brought through
the quality assurance process on a timely basis. The initial system
provided a one-year payback by allowing cars to be shipped more
quickly and improving the order-to-cash cycle time.
AeroScout, in conjunction with reseller Tematik of Turkey, reported that
myTECHNIC has selected AeroScout’s active-RFID solution.
myTECHNIC is a maintenance and repair company servicing airplanes
and is building a new, lean operation that incorporates active RFID.
The company will track parts in an effort to improve efficiency on both
the shop floor an in inventory tracking and parts orders. The system
will use AeroScout tags, Cisco wireless access points and AeroScout’s
MobileView visibility software.
Savi Networks announced that the Department of Defense has
extended its contract with the company for active RFID tracking
solutions and has increased the contract ceiling. The increase was
made by the US Army’s Information Technology group, the E-
Commerce group and Commercial Contracting Center. The contract
will now be in effect until January 31, 2009 and can have a maximum
value of $483 million, an increase of $60 million from the prior amount.
Contactless Payment Solutions
Office Depot appears to be rolling out a contactless payment option.
ViVO contactless payment scanners have recently been added to
several stores in the past several months. While the number of
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Robert W. Baird & Co. February 2008
contactless transactions remains small, we see growing momentum
given visibility at CVS, McDonalds and Mobil. Visa is also profiling
contactless payment in its TV commercials.
Partnerships / Orders
Precision Dynamics Corporation announced a partnership with
Gateway Ticketing Solutions, which produces ticketing hardware and
software for public transit systems, amusement parks, and attractions.
Through the partnership, PDC will market its RFID-enabled wristbands,
which are capable of conducting cashless transactions, through
Gateway’s customers. Gateway will also integrate a plug-and-play
RFID system into its hardware ticketing operations.
Savi Technology announced that it has signed a partnership agreement
with AVAANA for marketing and sales efforts in India. ARVAANA, an
Indian technology integrator, will sell Savi’s active RFID products and
software, with an emphasis on both government and commercial
clients.
Corporate News
Avery Dennison reported on their January 29 conference call that it
saw a 3x increase in inlay production during 2007 versus 2006.
Management also indicated that they expect Avery’s RFID segment to
generate $50M in revenue during 2008. Avery’s RFID revenue is
almost exclusively generated from inlay/tag sales, and the company
only sells a very modest amount of RFID printers (assume $1M). If we
assume the Marks and Spencer portion is roughly $12M-$15M, or
about 175M-200M IP-X based tags, then Avery’s forecast implies the
remaining $34M-$37M will be generated by roughly 475M-550M Gen 2
tags. We expect Avery will see most traction in aviation and apparel.
While Avery’s stated price is $0.079 per inlay, we are assuming $0.075
in our calculations given likely discounts for volume. We are hearing of
some inlays, including all providers, selling for as low as $0.06 each in
quantities over 1M units.
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 RFID Briefs
NCR indicated that they took a write-down of $5M for RFID related
software assets. The company made a small acquisition in 2005 to
bolster its RFID asset and inventory tracking capability for supply chain
compliance applications. Given the longer duration than expected for
that market to gain momentum, NCR believed it was necessary to
assign a more appropriate value to those assets. NCR’s CEO, Bill Nuti,
has indicated NCR still remains a player in RFID, but that incremental
investments will not be made until they see more traction in the retail
supply chain.
Intermec hosted its i-Comm partner conference in Orlando during late
January and our brief observation from attending is that the end user
and reseller partner interest level in RFID is very good. Intermec
dedicated roughly 20% of its daily breakout sessions towards RFID,
and each was very well attended, including the last session of the
conference. Most of these sessions demonstrated existing applications
of RFID.
Intermec announced that it has hired Raymond Cronin as VP and
General Manager of its RFID business. Prior to joining Intermec, Mr.
Cronin was the founder and CEO of Azimuth Systems, a company
specializing in wireless LAN test equipment. Cronin will report to
Intermec CEO, Pat Byrne.
Intermec also announced that Toppan Printing Company of Tokyo has
entered into the company’s Rapid Start licensing program. Toppan has
an additional royalty license that will allow it and its customers to use
Intermec’s patented technology. Toppan is the largest printing and
communications companies in the world.
EM Microelectronics announced that the company has achieved a
milestone by selling 250 million EM4X22 UHF chips, a majority of which
were for item-level use and tagging high-end garments. The company
highlighted most of these tags would be for Marks & Spencer and its
use to track all clothing at its stores. The chips are based on IPICO’s
IP-X read only technology, and produced by EM Mirco; inlays are
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Robert W. Baird & Co. February 2008
produced by Avery Dennison. EM and IPICO are developing IP-X
based Gen 2 products.
Unisys announced that it won a contract to design, produce and
integrate the new RFID-based ID and license plate system for the
Western Hemisphere Travel Initiative. Under the new initiative the US,
Canada, Mexico and Bermuda will issue RFID-enabled passports or
drivers licenses that will contain a code and an image of the holder.
With the system, border agents will be able to more securely identify
travels as the code connects to a system providing the agent with
biometric information and a photo confirmation. The first year of the
contract is valued at $37.2 million, with four, one-year options available.
The total value of the contract if the options are exercised is $62
million.
WJ Communications provided an updated estimate of its 2007 revenue
and earnings. Recall, the company provided an early estimate shortly
after the end of the year. WJ Communications now expects revenue to
be in the range of $10.5-$10.6 million, above its previous estimate of
$10.2-$10.5 million. The increased estimate appears to be due to the
resumption of a previously delayed customer order. In addition to
being profitable on a non-GAAP basis, the company now expects to
generate approximately $3.5 million in cash, up from its previous
estimate of $3.3 million.
Reva Systems opened an office in Tokyo to serve as the company’s
Asia Pacific headquarters. The new facility will include engineering
capabilities, business development, sales and marketing personnel and
customer support services.
Intelleflex announced that its RFID products are now available for use
and purchase in South Korea. The expansion follows the growth of
RFID pilots and programs in South Korea. Recall, Intelleflex also
expanded operations into EMEA in 2007.
Impinj announced that it received an additional $14 million of funding
Page 10
 RFID Briefs

from the following technology companies: Inventec Appliances
Corporation, LS Industrial Systems, Samsung Ventures America and
YFY Group. The company has now received $110 million in private
funding. We view this funding as more strategic given each of the
players extends Impinj’s partner network in Asian tags, industrial
equipment and NFC. We also understand that Impinj is looking at
options with respect to its non-RFID Aeon intellectual property.
IPICO announced its intent to hold an initial public offering for the
Toronto Stock Exchange. The offering is being underwritten by
Wellington West Capital Markets and syndicate will includes Desjardins
Securities. The number of shares and the price per share will be
determined when the securities are priced.
Axcess International announced that its Dot micro-wireless technology
was open for developers. The company announced that no royalty fee
would be used, but that registered third-party developers could use the
technology to create enterprise solutions. Recall, Axcess’ Dot
technology revolves around battery-powered microcomputers that are
used in tracking and counting applications; the microprocessors can
also be paired with sensing technologies.
Manhattan Associates reported 4Q07 and 2007 financial results.
Fourth quarter revenue increased 12% to $85 million, or 10% without
the impact of foreign currency exchange benefits. The company noted
that service revenue increased 14% while license revenue declined
2%. Pro forma operating income increased 1% over the prior year’s
quarter while adjusted EPS increased 19% to $0.37.
assessment on February 21. To learn more about the event, visit
www.idtechex.com/USA.
The 2008 DoD RFID Summit will be held February 26-27 at the Hyatt
Regency Crystal City in Arlington, VA. This year's event will focus on
RFID implementation and provide workshops on RFID education for
DoD personnel and the supply base. Learn about the latest emerging
RFID technologies and best practices. Visit with both RFID and UID
vendors in the exhibit hall. To learn more, visit
www.DoDRFIDsummit.com.
RFIDJournal Live! will be held April 16-April 18 at the Venetian in Las
Vegas. This event is one of the key RFID shows of the year and will
provide an overview for investors and end users. The event features
several industry tracks, including retail/CPG, healthcare/pharma,
defense/aerospace, manufacturing and transportation/logistics. The
conference will also feature eight pre-conference seminars. We expect
a wide array of exhibitors and industry participants. Robert W. Baird &
Co. will be presenting at this event. To learn more, visit
www.rfidjournal.com/live/.
RFID Monthly
To receive RFID Monthly, please send us an e-mail at
rread@rwbaird.com. There is no charge for the publication.

Upcoming Events
IDTechEx will host the Smart Labels USA Conference and exhibition in
Boston on February 19-21. The event will feature user experiences and
implementation case studies as well as an assessment of all RFID
technologies. The conference is expected to feature an overview of
upcoming industry orders, where the RFID profits lie and
opportunities. The event will feature an investor forum on February 19,
an overview of end-user experiences on February 20 and a technology

RFID Monthly
Robert W. Baird & Co. February 2008 Page 11
RFID Case Study: Griva
Overview
Textile manufacturers continually look for innovative ways to streamline
their processes and manage inventory and production given the
specialized and competitive environment. They rely on automated
manufacturing systems to increase profitability and maintain the lowest
possible logistical costs during manufacturing.
One such manufacturer is Griva S.p.A. Based in Torino, Italy, Griva is
one of the world’s leading high-volume textile manufacturers and
produces more than 300,000 rolls of fabric each year. It distributes 500
rolls of fabric, equal to 20,000 meters, each day. Its textiles are used
for upholstery and drapery and sent to leading European retailers.
Griva also produces fabric for the “Hello Kitty” line of sheets and
pillows.
In addition to a wide variety of products, the traceability challenge is
amplified as the fabric rolls undergo multiple treatment processes as
they move through Griva’s operations. Fabric is woven and then rolled
on to cardboard cores. These rolled cores move to various operations
are unrolled and re-rolled several times as they undergo repeated
processing, including exposure to high temperatures, water and high
humidity, and chemicals used in the dying process. In addition to these
processes, the fabric and the core rolls are subjected to machine
cutting and sizing, transporting, and shrink wrapping.
With high diversity among its fabrics and associated operations, Griva
must maintain accurate inventory control to ensure proper processing,
beginning with the initial raw thread material to woven fabric, storage
and distribution of the fabric rolls. Given the high value of the products,
their associated bulk and weight, any processing and shipping errors
are often costly.
For years, Griva used a traditional bar coding system to track its fabric
rolls through its operational process. However, the bar code system
was not accurate given the mechanical and environmental stresses
RFID Monthly
Robert W. Baird & Co. February 2008
placed on the bar codes lead to an approximate 10% read rate failure,
which compromised Griva’s ability to accurately track its products. So
when Griva was ready to open its new automated warehouse in 2006,
it elected to use RFID due to its durability and automation capability to
help solve its fabric roll tracing dilemma.
Implementation
Griva partnered with Italian RFID integrator Simet, who implemented a
complete RFID textile tracking solution 18 months ago. Griva places a
Gen 2 EPC-complaint RFID tag on each roll by the operator when the
fabric is wrapped on the cardboard cylinder roll support. There are five
reader points to track the product at key points from manufacturing to
shipping; these include the initial weighing station, on the conveyor
between production operations and to the warehouse, in the picking
location and at final wrapping just before shipment. Griva also has a
separate reader station for manual packaging done on an exception
basis.
Simet began the process with Alien Gen 1 products, but converted to
the Gen 2 solution using the Alien ALR-8800 reader product and
squiggle tags. Each tag supports global operation at 860 to 960 MHz
and is compliant with the European Telecommunications Standards
Institute (ETSI) EN 302-208 specification. Each tag is durable enough
to withstand Griva’s harsh manufacturing operations.
Simit also built a reader-to-ERP interface using a middleware
application that interfaces with Griva’s existing software systems and
with the Alien Reader Protocol, which controls the readers. This step
provided a full solution offering that ran side-by-side for an initial six
month period with Griva’s existing bar code system. By comparing the
results from the bar code system to those from the RFID solution, Griva
and its implementation team concluded that RFID offered greater
automation and increased tacking accuracy.
Page 12
RFID Case Study: Griva
Benefits and Next Steps
With RFID, Griva can efficiently track rolls in the production process
and that are wrapped and ready for delivery, which saves time and also
provides its customers with the most accurate information about the
finished fabric.

The RFID tags also allow Griva to sort its fabrics automatically in the
warehouse. By associating ID information to each roll, such as product
type, weight, and diameter, the roll can move efficiently through
operations and the warehouse to its next checkpoint. By having
readers at various checkpoints, automated systems and human
operators can decide instantly whether a roll should be processed
further, moved into a storage facility or prepared for immediate shipping
to a customer. As a result of the enhanced efficiency to the process,
Griva was able to ship 600 rolls per day in two eight hour shifts versus
only 400 rolls per day in two ten hour shifts.

In the ending stages, the automated system uses the RFID tag
information to determine final packaging and the most cost-effective
transportation options for each roll on an automated basis. Using the
fabric’s weight and destination information, warehouse operators can
build customized shipping boxes and prepare each roll for its final
distribution and transport by designated carriers. This process
previously contained a significant amount of manual steps.

These logistical efficiencies in the warehouse have given Griva an ROI

on its RFID system of 30% by reducing expenses, using less time, and
improving customer satisfaction with finished products. The next phase
of the project will include installing more readers in the warehouse, so
the operators can check inventory counts overnight. Griva may also
implement portable readers in the warehouse to account for rolls
outside of the typical conveyor process and to enhance exception
reporting.

RFID Monthly
Robert W. Baird & Co. February 2008 Page 13
RFID Stock Index and Comment

RFID and Major Stock Indices

140

130
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110 RFID Index

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NASDAQ
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On February 12, Baird’s RFID Index increased 1.77% versus January 15, 2008. The index outperformed both the S&P 500 (-1.92%)
and the NASDAQ (-3.39%). Of companies under Baird Supply Chain Technology coverage, ScanSource (+35.34%), Intermec
(+18.22%), Avery Dennison (+4.53%) and NCR (+4.38%) outperformed all thee indices. Note, ScanSource, Intermec and Avery’s
earnings reports exceeded analyst’s expectations. Zebra Technologies (-1.90%) underperformed the RFID Index, but outperformed
the NASDAQ and the S&P 500. Stocks that outperformed the indices included Digital Angel (+20.07%) and Sun Microsystems
(+12.82%). Big movers that underperformed the indices included ID Systems (-22.83%), Motorola (-18.38%), Sirit (-18.18%),
Infineon (-15.59%), and WJ Communications (-14.08%).

RFID Monthly
Robert W. Baird & Co. February 2008 Page 14
RFID Stock Index Table

2/12/08 % change 52 week

Company Name Ticker Price vs. Last Month vs. Last Year High Low
3M MMM 77.18 2.86% 3.22% 97.00 72.05
Accenture ACN 33.50 4.63% -9.64% 44.03 31.91
Atmel ATML 3.41 5.28% -37.89% 6.08 2.83
Avery Dennison AVY 48.35 4.53% -26.50% 68.98 44.06
Axcess AXSI 1.30 7.69% -7.89% 1.96 0.91
Brady Corporation BRC 31.52 -4.82% -13.37% 44.46 28.40
Cisco CSCO 25.85 -8.57% -14.24% 34.24 21.77
Digital Angel DIGA 0.55 20.07% -74.05% 1.89 0.41
IBM IBM 101.83 5.04% 8.13% 121.46 88.77
ID Systems IDSY 9.90 -22.83% -51.31% 16.63 7.50
Infineon IFX 9.88 -15.59% -48.04% 18.74 7.89
Intel INTC 22.69 -8.18% -2.23% 27.99 18.05
Intermec IN 19.32 18.22% -8.68% 30.16 17.53
Motorola MOT 14.31 -18.38% -39.29% 19.68 9.43
NCR Corporation NCR 21.69 4.38% 1.05% 29.01 15.07
Philips PHG 39.30 -2.52% -1.95% 45.90 34.91
Printronix PTNX 15.95 0.00% 27.40% 16.25 11.02
SAP SAP 48.85 -0.66% 2.56% 59.86 43.00
ScanSource SCSC 26.06 35.34% 20.54% 39.50 22.61
Sirit SI.TO 0.22 -18.18% -25.00% 0.41 0.17
STMicroelectronics STM 12.29 -3.58% -38.06% 20.84 11.39
Sun Microsystems SUNW 14.98 12.82% 167.83% 26.04 14.20
Texas Instruments TXN 29.72 2.86% -1.89% 39.63 28.00
UPM Rafsec UPM 17.91 -7.61% -37.66% 27.08 16.35
Verichip CHIP 2.24 2.68% NA 10.62 1.76
WJ Communications WJCI 0.71 -14.08% -60.90% 2.00 0.40
Zebra Technologies ZBRA 31.07 -1.90% -23.78% 42.50 27.50
RFID Index 774.81 1.77% -7.76% 822.24 685.58
S&P 500 1476.65 -1.92% -7.02% 1576.09 1270.05
NASDAQ 2581.66 -3.39% -6.46% 2861.51 2202.54

RFID Monthly
Robert W. Baird & Co. February 2008 Page 15
Table of Key RFID Providers

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3M Company MMM X X X X Nashua NSHA X
AbeTech Private X NCR Corporation NCR X X
Accenture ACN X OATSystems, Inc. Private X
Acsis Private X X Odin Private X
Aeroscout Private X X X X Omron Corporation OMRNF.PK X X
Alien Private X X X Oracle ORCL X X X
Ambient ID Private X Panatrack, Inc. Private X X
Applied Wireless Private X NXP NXP X
AssetPulse Private X X Power ID Private X X X
Atmel ATML X PLITEK Private X
Avery Dennison AVY X Precision Dynamics Private X X
Axcess AXSI X X X Printronix Private X
Brady Corp BRC X X Provia Software Inc. Private X
BlueStar Private X Red Prairie Private X X
Blue Vector Private X X X Reva Systems Private X
Checkpoint Systems Inc. CKP X X X RF Code Private X X X
CIM Bar Code Private X RF Technologies Private X X
Cisco CSCO X Rfid, Inc. Private X X
Computer Sciences Corp. CSC X RFID Global Solution Private X X
Confidex Private X RFTechnologies Private X X X
Danaher (Accu-Sort) DHR X RSI ID Technologies Private X X X
Datalogic DAL X X Rush Tracking Systems Private X
Dover (Datamax) DOV X SAP SAP X X
Digital Angel DOC X X Sato Japan X X
Domino-ISG Private X SAVR Communications Private X
Ekahau Private X X X X X Lockheed (Savi) LMT X X X X X
EM Microelectronic Marin UHR.DE X ScanSource Inc. SCSC X
Feig Electronic Private X X Siemens SI X X
Fluensee Private X X SimplyRFID Private X X
Globe Ranger Private X Sirit SI.TSX X
Goliath Solutions Private X X SkyeTek Private X
Hewlett-Packard HPQ X Sovereign Tracking Sys. Private X X X X
ASSA-ABLOY (HID) ASSA X X STMicroelectronics STM X X
HK Systems Private X Sun Microsystems SUNW X X
IBM IBM X X System Concepts, Inc. Private X X
ID Systems IDSY X X X Tagsys Private X X X X X
Identec Solutions Private X X X X Texas Instruments TXN X X
Impinj Inc. Private X X ThingMagic Private X
Infineon IFX X Toppan Printing 7911 X X X
Intel Corporation INTC X X Toshiba TEC Japan X X
Intelleflex Private X X X Roper (TransCore) ROP X X X
Intermec IN X X X X TrenStar Inc. Private X X
IPICO RFD.TSX X X X Tyco (Sensormatic) TYC X X X
Lexmark LXK X UPM Raflatac UPM X
Lowry Computer Private X X X X Venture Private X
Kennedy Group Private X X X X Verichip CHIP X X
Magellan Technology Private X X X Verisign VRSN X X X
Manhattan Associates MANH X X Vue Technology Private X X
MARKEM Private X X Wavetrend Private X X X X
Miles Technologies Private X WJ Communications WJCI X
Moore Wallace RRD X Xterprise Private X X
Motorola (Symbol) MOT X X Zebra Technologies ZBRA X X X X X

RFID Monthly
Robert W. Baird & Co. February 2008 Page 16
Comparable RFID Valuation
COMPARABLE RFID VALUATION
Analysis of Selected Ratios and Current Market Multiples
(in millions, except per share amounts)

Price Market
Fiscal Latest Per Share Value of Enterprise Book 52 Week Price
(1) (2) (3)
Ticker Company Year End Quarter Shares 2/12/2008 Equity Debt Value Value Low High

Wireless Infrastructure:
RIMM Research In Motion Ltd. 2/28/2008 11/30/2007 557.6 $94.47 $52,677.7 7.5 $51,408.3 3057.0185 $42.93 $137.01
GRMN Garmin 12/31/2008 12/31/2007 216.1 $66.13 14,290.6 0.6 13,583.8 1920.6142 $50.01 $125.68
ELMG EMS Technology (LXE) 12/31/2008 12/31/2007 15.3 $26.92 412.6 13.7 304.5 224.36735 $18.00 $33.23
NVTL Novatel Wireless Inc. 12/31/2008 12/31/2007 29.7 $14.21 422.6 0.4 337.3 167.56495 $11.61 $29.14
IDSY ID Systems Inc. 12/31/2008 12/31/2007 11.3 $7.62 86.1 0.1 21.1 77.422803 $7.53 $16.63

IT Solutions/Software:
ACN Accenture Ltd. 8/31/2008 11/30/2007 595.9 $34.16 $20,356.7 8.5 $18,502.6 2063.3324 $31.91 $44.03
IBM International Business Machines Corp. 12/31/2008 12/31/2007 1506.5 $105.14 158,391.6 35,274.0 164,006.3 18555.2 $88.77 $121.46
MANH Manhattan Associates Inc. 12/31/2008 12/31/2007 27.6 $22.61 624.3 0.0 500.4 219.14573 $21.31 $31.63
SAP SAP AG 12/31/2008 12/31/2007 1218.3 $47.97 58,441.2 34.5 53,401.3 7995.0518 $43.00 $59.86
SUNW Sun Microsystems Inc. 6/30/2008 12/31/2007 883.5 $16.81 14,851.6 1,274.0 11,154.5 6636.162 $14.20 $26.68
UIS Unisys Corp. 12/31/2008 12/31/2007 345.4 $4.11 1,419.6 1,262.7 1,877.3 -2.171402 $3.04 $9.70
VRSN Verisign 12/31/2008 12/31/2007 243.8 $35.32 8,612.6 1,265.3 7,813.1 2521.2092 $23.78 $41.96

Data Capture:
ZBRA Zebra Technologies Corp. 12/31/2008 12/31/2007 68.8 $30.18 $2,077.3 0.0 $1,754.0 939.04611 $27.50 $42.50
IN Intermec, Inc. 12/31/2008 12/31/2007 60.3 $22.74 1,371.6 100.0 1,221.7 425.5295 $17.53 $30.16
AVY Avery Dennison 12/31/2008 12/31/2007 98.3 $50.14 4,929.4 2,255.8 7,112.5 1825.696 $44.06 $68.98
BRC Brady Corp. 7/31/2008 10/31/2007 54.1 $29.30 1,585.9 500.0 1,906.4 891.01225 $28.40 $44.46
CKP Checkpoint Systems Inc. 12/31/2008 12/31/2007 39.3 $23.76 933.3 16.5 790.0 505.4997 $18.40 $30.50
PTNX Printronix Inc. 3/31/2008 12/31/2007 6.7 $15.95 106.5 0.0 77.4 72.257179 $11.02 $16.25

Components/Semi-Conductors:
IFX Infineon Technologies AG 9/30/2008 12/31/2007 749.7 $8.31 $6,230.2 2,732.2 $7,591.2 7003.8993 $7.89 $18.74
PHG Koninklijke Philips Electronics NV 12/31/2008 12/31/2007 1106.9 $37.70 41,729.9 5,194.3 32,596.7 30430.669 $34.91 $45.90
STM STMicroelectronics NV 12/31/2008 12/31/2007 897.4 $11.56 10,373.9 2,220.0 9,805.2 8896.0283 $11.39 $20.84
WJCI WJ Communications 12/31/2008 12/31/2007 67.3 $0.64 43.1 0.0 18.7 23.035341 $0.40 $2.00
CHIP Verichip 12/31/2008 12/31/2007 3.5 $2.10 7.4 14.0 25.9 10.926395 $1.76 $10.62
TXN Texas Instruments Inc. 12/31/2008 12/31/2007 1450.0 $30.16 43,732.9 0.0 37,587.3 11662.467 $28.00 $39.63
Networking/Telecom
INTC Intel Corporation 12/31/2008 12/31/2007 5766.0 $20.68 $119,240.9 2,122.0 $107,468.2 39309.405 $18.05 $27.99
MOT Motorola Inc. 12/31/2008 12/31/2007 2397.4 $11.57 27,737.9 4,323.0 22,146.4 15640.17 $9.43 $19.90
CSCO Cisco Systems Inc. 7/31/2008 10/31/2007 6100.0 $23.52 143,472.0 6,851.0 127,287.6 31480.002 $21.77 $34.24
NOK Nokia Oyj 12/31/2008 12/31/2007 3965.7 $36.13 143,281.8 1,860.4 123,651.7 20451.059 $20.77 $42.22
QCOM Qualcomm Inc. 9/30/2008 12/31/2007 1646.0 $41.86 68,901.6 283.0 61,121.9 15835.001 $35.17 $47.72
ERIC LM Ericsson 12/31/2008 12/31/2007 1588.1 $20.45 32,477.2 4,215.1 27,779.5 18490.138 $19.48 $43.41

(1) Information Provided by Capital IQ and Factset.

(2) Excludes options
(3) Net debt equals total debt (including capital leases) plus preferred stock at book value plus minority interest minus cash and short term investments
(4) Book value equals total shareholders' equity less preferred stock at book value
** Incomplete metrics as a result of recent IPO

RFID Monthly
Robert W. Baird & Co. February 2008 Page 17
Comparable RFID Valuation

COMPARABLE RFID VALUATION

Analysis of Selected Ratios and Current Market Multiples
(in millions, except per share amounts)
* Cap Cap
Latest Twelve Month Results Latest Twelve Month Margins
Net Gross Net Gross Net Debt to: EBIT to:
Ticker Company (1) Sales Profit (2) EBITDA EBIT Income (3) Profit (2) EBITDA EBIT Income (3) Total Cap. EBITDA Int

Wireless Infrastructure:
RIMM Research In Motion Ltd. $5,057.1 $2,510.9 $1,643.9 $1,482.8 $631.6 49.7% 32.5% 29.3% 12.5% 0% 0.5% NA
GRMN Garmin $2,574.5 $1,258.7 $880.8 $830.1 $514.1 48.9% 34.2% 32.2% 20.0% 0% 0.1% 2,338.2
ELMG EMS Technology (LXE) $284.2 $29.5 $6.4 $6.4 $15.8 10.4% 2.3% 2.3% 5.6% 5% 43.4% 11.5
NVTL Novatel Wireless Inc. $388.9 $116.1 $5.9 -$2.1 $0.4 29.8% 1.5% -0.5% 0.1% 0% 0.6% 842.1
IDSY ID Systems Inc. $17.3 $7.9 -$6.9 -$7.4 -$1.6 45.8% -40.0% -43.0% -9.4% 0% NA (495.7)

IT Solutions/Software:
ACN Accenture Ltd. $22,388.4 $6,314.3 $2,989.1 $2,805.2 $1,243.1 28.2% 13.4% 12.5% 5.6% 0% 0.3% 110.8
IBM International Business Machines Corp. $98,786.0 $36,530.0 $18,967.0 $14,964.0 $9,416.0 37.0% 19.2% 15.1% 9.5% 33% 186.0% 15.6
MANH Manhattan Associates Inc. $337.4 $176.4 $61.3 $47.7 $19.3 52.3% 18.2% 14.1% 5.7% 0% 0.0% 90.8
SAP SAP AG $14,960.8 $10,020.6 $4,554.7 $4,175.0 $2,469.7 67.0% 30.4% 27.9% 16.5% 0% 0.8% NA
SUNW Sun Microsystems Inc. $13,952.0 $6,587.0 $1,850.0 $1,049.0 $473.0 47.2% 13.3% 7.5% 3.4% 15% 68.9% NA
UIS Unisys Corp. $5,652.5 $1,319.3 $512.3 $131.8 -$278.7 23.3% 9.1% 2.3% -4.9% 107% 487.9% 1.7
VRSN Verisign $1,496.3 $959.0 $358.0 $120.3 $378.0 64.1% 23.9% 8.0% 25.3% 0% 353.4% NA

Data Capture:
ZBRA Zebra Technologies Corp. $844.6 $393.7 $196.0 $172.1 $69.6 46.6% 23.2% 20.4% 8.2% 0% 0.0% 1,593.4
IN Intermec, Inc. $849.2 $361.0 $46.1 $34.4 $35.0 42.5% 5.4% 4.1% 4.1% 19% 216.9% 0.0
AVY Avery Dennison $6,307.8 $1,863.7 $817.5 $582.9 $352.5 29.5% 13.0% 9.2% 5.6% 23% 310.1% 5.5
BRC Brady Corp. $1,410.5 $680.6 $247.2 $192.1 $109.4 48.3% 17.5% 13.6% 7.8% 35% 202.2% 7.7
CKP Checkpoint Systems Inc. $787.8 $333.0 $94.0 $75.2 $35.0 42.3% 11.9% 9.5% 4.4% 2% 17.5% 44.1
PTNX Printronix Inc. $127.5 $50.1 $8.9 $4.9 $2.9 39.3% 7.0% 3.8% 2.3% 0% 0.0% 8.4

Components/Semi-Conductors:
IFX Infineon Technologies AG $10,451.6 $1,370.2 $639.3 -$1,191.2 -$473.5 13.1% 6.1% -11.4% -4.5% 22% 169.1% (28.1)
PHG Koninklijke Philips Electronics NV $39,125.8 $13,389.5 $3,047.2 $2,302.9 $1,212.8 34.2% 7.8% 5.9% 3.1% 12% 170.5% 7.7
STM STMicroelectronics NV $10,001.0 $3,544.0 $2,214.0 $801.0 $782.0 35.4% 22.1% 8.0% 7.8% 17% 99.8% 18.2
WJCI WJ Communications $44.6 $21.7 -$5.5 -$9.5 -$8.4 48.6% -12.2% -21.2% -18.8% 0% NA (121.3)
CHIP Verichip $23.7 $15.5 -$6.4 -$8.9 -$6.7 65.4% -27.1% -37.6% -28.4% 38% NA** (5.9)
TXN Texas Instruments Inc. $13,835.0 $7,314.0 $4,559.0 $3,489.0 $2,638.0 52.9% 33.0% 25.2% 19.1% 0% 0.0% 1,744.5
Networking/Telecom
INTC Intel Corporation $38,334.0 $20,001.0 $13,643.0 $8,845.0 $5,044.0 52.2% 35.6% 23.1% 13.2% 5% 16.0% 324.0
MOT Motorola Inc. $36,622.0 $10,179.0 $2,111.0 $1,271.0 $3,261.0 27.8% 5.8% 3.5% 8.9% 14% 204.8% 16.6
CSCO Cisco Systems Inc. $37,684.0 $23,789.0 $10,951.0 $9,350.0 $7,333.0 63.1% 29.1% 24.8% 19.5% 17% 57.8% 24.7
NOK Nokia Oyj $74,560.0 $26,585.7 $11,681.8 $10,101.7 $5,682.6 35.7% 15.7% 13.5% 7.6% 1% 15.9% 0.1
QCOM Qualcomm Inc. $9,292.0 $6,462.0 $4,159.0 $3,759.0 $3,303.0 69.5% 44.8% 40.5% 35.5% 1% 6.8% 234.9
ERIC LM Ericsson $29,082.5 $8,730.0 $5,021.7 $5,021.7 $3,841.1 30.0% 17.3% 17.3% 13.2% 10% 63.5% 19.1

Mean 42.8% 13.8% 8.7% 6.5% 12.2%

Median 45.6% 13.4% 9.5% 5.7% 3.6%
High 69.5% 44.8% 40.5% 35.5% 106.5%
Low 10.4% -40.0% -43.0% -28.4% 0.0%
(1) Information Provided by Capital IQ.
(2) Before depreciation and amortization.
(3) Represents income from continuing operations before extraordinary items.
* Numbers not available as systems are still in the process of being updated following earnings reports.
** Incomplete metrics as a result of recent IPO

RFID Monthly
Robert W. Baird & Co. February 2008 Page 18
Comparable RFID Valuation
COMPARABLE RFID VALUATION
Analysis of Selected Ratios and Current Market Multiples
(in millions, except per share amounts)

LTM Cal. Year Ended 2006 Cal. Year Ended 2007 Price to:
Growth PEG Net Book Dividend
(1) (2) (2) (2)
Ticker Company EPS P/E EPS P/E EPS P/E Rate Ratio Sales EBITDA EBIT Net Inc Value Yield

Wireless Infrastructure:
RIMM Research In Motion Ltd. $1.87 50.6x $0.97 97.2x $2.11 44.7x 34.0% 1.3 21.0 32.0x 35.5x 83.4x 17.2 0.0%
GRMN Garmin $3.32 19.9 $2.35 28.1 $3.59 18.4 21.5% 0.9 11.4 16.2 17.2 27.8 7.4 1.3%
ELMG EMS Technology (LXE) $1.22 22.1 $0.81 33.2 $1.13 23.9 NA NA 14.0 64.5 64.5 26.1 1.8 0.0%
NVTL Novatel Wireless Inc. $0.96 14.8 $0.01 1,421.0 $1.18 12.1 15.0% 0.8 3.6 71.6 (201.3) 954.1 2.5 0.0%
IDSY ID Systems Inc. -$0.66 (11.5) $0.11 69.3 -$0.29 (26.0) 17.0% (1.5) 10.9 (12.5) (11.6) -53.3 1.1 0.0%

IT Solutions/Software:
ACN Accenture Ltd. $2.11 16.2x $1.73 19.7x $2.11 16.2x 13.9% 1.2 3.2x 6.8x 7.3x 16.4 9.9 0.0%
IBM International Business Machines Corp. $7.24 14.5 $6.06 17.3 $7.13 14.7 11.1% 1.3 4.3 8.4 10.6x 16.8 8.5 0.9%
MANH Manhattan Associates Inc. $1.13 20.0 $1.08 20.9 $1.30 17.4 15.0% 1.2 3.5 10.2 13.1 32.3 2.8 0.0%
SAP SAP AG $2.33 20.6 $2.01 23.9 $2.19 21.9 14.0% 1.6 5.8 12.8 14.0 23.7 7.3 0.7%
SUNW Sun Microsystems Inc. $0.87 19.3 -$0.08 (210.1) $0.82 20.4 8.3% 2.5 2.3 8.0 14.2 31.4 2.2 0.0%
UIS Unisys Corp. -$0.23 (17.9) -$0.81 (5.1) -$0.23 (17.9) 8.3% (2.1) 1.1 2.8 10.8 -5.1 -653.8 0.0%
VRSN Verisign -$0.59 (59.9) $0.96 36.8 $1.02 34.6 18.0% 1.9 9.0 24.1 71.6 22.8 3.4 0.0%

Data Capture:
ZBRA Zebra Technologies Corp. $1.45 20.8x $1.56 19.3x $1.64 18.5x 15.7% 1.2 5.3x 10.6x 12.1x 29.8 2.2 0.0%
IN Intermec, Inc. $0.40 56.9 $0.38 59.8 $0.40 56.9 19.5% 2.9 3.8 29.8 39.9 39.2 3.2 0.0%
AVY Avery Dennison $3.07 16.3 $3.78 13.3 $3.91 12.8 10.5% 1.2 2.6 6.0 8.5 14.0 2.7 2.5%
BRC Brady Corp. $2.03 14.4 $2.04 14.4 $2.16 13.6 12.3% 1.1 2.3 6.4 8.3 14.5 1.8 2.0%
CKP Checkpoint Systems Inc. $1.29 18.4 $1.00 23.8 $1.37 17.4 17.0% 1.0 2.8 9.9 12.4 26.7 1.8 0.0%
PTNX Printronix Inc. $0.66 24.2 -$0.77 (20.7) NA NA NA NA 2.1 NA NA 37.0 1.5 0.0%

Components/Semi-Conductors:
IFX Infineon Technologies AG -$1.62 -5.1x -$0.51 -16.4x -$1.02 -8.1x 8.0% (1.0) 4.5x 9.7x -5.2x -13.2 0.9 0.0%
PHG Koninklijke Philips Electronics NV $6.15 6.1 $1.09 34.6 $5.21 7.2 24.7% 0.3 3.1 13.7 18.1 34.4 1.4 1.7%
STM STMicroelectronics NV -$0.54 (21.4) $0.83 13.9 $0.77 15.0 15.0% 1.0 2.9 4.7 13.0 13.3 1.2 0.7%
WJCI WJ Communications -$0.14 (4.6) -$0.13 (4.9) -$0.11 (6.1) NA NA 2.0 (7.9) (4.6) -5.1 1.9 0.0%
CHIP Verichip -$1.35 (1.6) -$1.21 (1.7) -$1.30 (1.6) NA NA 0.5 (1.1) (0.8) -1.1 0.7 0.0%
TXN Texas Instruments Inc. $1.83 16.5 $1.69 17.8 $1.83 16.5 17.8% 0.9 6.0 9.6 12.5 16.6 3.7 0.4%
Networking/Telecom
INTC Intel Corporation $1.18 17.5x $0.86 24.0x $1.18 17.5x 16.3% 1.1 6.0x 8.7x 13.5 23.6 3.0 0.7%
MOT Motorola Inc. -$0.04 (289.3) $1.19 9.7 $0.24 48.2 9.6% 5.0 2.7 13.1 21.8 8.5 1.8 1.1%
CSCO Cisco Systems Inc. $1.29 18.2 $1.20 19.6 $1.43 16.5 13.4% 1.2 6.0 13.1 15.3 19.6 4.6 0.0%
NOK Nokia Oyj $2.67 13.5 $1.27 28.4 $2.01 18.0 12.5% 1.4 5.4 12.3 14.2 25.2 7.0 2.7%
QCOM Qualcomm Inc. $2.03 20.6 $1.73 24.2 $2.03 20.6 19.4% 1.1 10.7 16.6 18.3 20.9 4.4 0.6%
ERIC LM Ericsson $2.12 9.6 $2.24 9.1 $2.03 10.1 10.0% 1.0 3.7 6.5 6.5 8.5 1.8 0.0%

Mean 0.9x 60.7x 15.6x 15.3% 1.1x 5.4x 14.0x 8.6x 49.6 (18.8) 0.5%
Median 16.3 19.7 16.5 15.0% 1.1 3.8 9.9 13.0 21.8 2.4 0.0%
High 56.9 1,421.0 56.9 34.0% 5.0 21.0 71.6 71.6 954.1 17.2 2.7%
Low (289.3) (210.1) (26.0) 8.0% (2.1) 0.5 (12.5) (201.3) (53.3) (653.8) 0.0%
(1) Information Provided by Capital IQ.
(2) Based on mean Multex estimates. EPS estimates are calendarized for comparison purposes.
(3) Cal. Year Ended 2004 P/E divided my Multex's estimated mean five year growth rate.
* Numbers not available as systems are still in the process of being updated following earnings reports.
** Incomplete metrics as a result of recent IPO

RFID Monthly
Robert W. Baird & Co. February 2008 Page 19
Glossary of RFID Terms
Active RFID Tag – The tag has an internal power source (i.e., a battery), which
allows for significantly longer read ranges. Primarily used to track large, high-
value assets such as intermodal shipping containers. Active tags are
significantly larger and more expensive ($25-$250 per unit) than passive tags.
Air Interface – The communication protocol between the tag and reader.
Passive tags at UHF are standardized around the Generation 2 protocol; HF is
seeking a similar standard. Some active tags are increasingly communicating
with standardized Wi-Fi networks (IEEE 802.11x), however, active continues to
see several proprietary air interface protocols.
Antenna – Attached to chips on tags and an integral part of a reader; antennas
are devices that send and receive radio frequency (electromagnetic) energy.
Anti-Collision – A component of the air-interface protocol that prevents tag
data from multiple tags in the read area from interfering (colliding) with each
other. Also prevents multiple readers in close proximity from interfering with
each other. This is a key component to the Generation 2 standard.
Battery Assisted Passive (also semi-passive) – Passive tags that offer a
small battery to boost signal strength, or improve tag sensor capability. The
battery generally goes into sleep mode until required. Referred to as Class 3
products; a standard is expected in early 2008.
Class 0 – Class 0 refers to a proprietary air interface protocol for passive UHF
tags. Class 0 is read only, while a subsequent protocol, Class 0 Plus, offers
read/write capability. This protocol is largely obsolete with Gen 2.
Class 1 – Class 1 refers to a proprietary air interface protocol for passive UHF
tags. Class 1 offers read/write capability. Class This protocol is largely obsolete
with Gen 2.
Closed Loop Solution – Set of readers and tags intended for a particular
application having specific, well defined start and end point. Generally seen in
tracking work in process or reverse logistics operations.
DoD Mandate – A mandate to all 43,000+ DoD suppliers, announced in June
of 2003, to employ RFID. The DoD issued a timetable specifying when RFID
will be required (by products into specified DoD depots). The timetable has
been somewhat fluid given DoD budget dollars are focused on existing
operations in Iraq and Afghanistan.
Dual Di-Pole – A tag that essentially has two antennas, reducing the sensitivity
to orientation and increasing read capability.
Electronic Product Codes (EPC) – The code that resides on an RFID tag that
is unique to each product. The code contains manufacturer and product
RFID Monthly
Robert W. Baird & Co. February 2008
information as well as an individualized serial number. EPCs are maintained by
EPCglobal.
Encode and Apply – A step up from “Slap and Ship,” where labels are
encoded and applied on a more automated basis. Slightly more capital
intensive, but more operationally efficient than slap and ship.
Encoder – Device that transmits and writes data on to an RFID tag. Used
extensively in printers and label applicators for product shipments. Encoders
are generally RFID reader modules developed for a printing or other encoding
application.
Environmental Factors – Typically discussed with respect to UHF products,
which can be affected by many factors including the presence of metal, liquids,
significant reader activity, other RF “noise,” etc. These factors require process
controls in terms of tag and reader placement. Readers also need proper
adjustment for a given environment.
EPC Global – The body responsible for RFID standards creation; formed
originally as a joint venture between the Uniform Code Council (UCC) and the
Electronic Article Numbering Association (EAN). EPC Global is responsible for
RFID standards development and for promoting vertical RFID solution
development.
EPC Network – Developed by the Auto-ID center, this Internet-based system
allows supply chain participants to retrieve data associated with an EPC
through the Internet. The network remains in an emerging phase, and is
administered by EPC Global.
Fluidic Self Assembly (FSA) – A proprietary process developed to rapidly
attach chips to straps. The process uses a fluid bath to place small chips on a
substrate for strap attachment. This process continues to be developed.
Generation 2 – The RFID air interface standard for supply chain shipments
using UHF. The Gen 2 standard was approved in December 2004 by EPC
Global, and has since received international approval by ISO as 18000-6C.
EPCglobal is working to create a similar standard for HF.
High Frequency (HF) RFID – RFID products that use the 13.56MHz band,
which is not regulated by any government. This frequency generally allows
read ranges of 4-8 feet, and is not affected by environmental factors such as
liquid due to magnetic coupling. The existing ISO 15963 standard is different
from the Gen 2 protocol. We expect a new EPC-based standard by the end of
2007. HF has historically be used in contactless payment and item level
tracking applications.
Page 20
Glossary of RFID Terms
Hybrid (semi-active) RFID Tag – Tag that incorporates a smaller internal
power supply, which is triggered by reader action. After interrogation, the tag
resumes a passive stance.
ISO – International Organization for Standardization is a network of the national
standards institutes of 148 countries, on the basis of one member per country,
with a Central Secretariat in Geneva, Switzerland, that coordinates the system.
ISO is not government affiliated. EPC Global is an ISO member and has
received ISO approval for the Generation 2 standard.
Kill Command – A code within the RFID tag that once activated will
permanently disable the tag. Intended to limit consumer tracking after purchase
for privacy protection.
Low Frequency (LF) RFID – RFID products that use the 125Kz band.
Products that use this frequency are generally smaller and cheaper as read
ranges are short, typically less than 12 inches. Security access and control and
contactless payment are typical applications.
Mandate Requirements – Primarily refers to an edict put in place by retailers,
most notably Metro, Wal-Mart and the DoD, requiring that certain types of
shipments (mostly deliveries at the case and pallet level) use RFID for tracking
purposes. The Metro mandate is the only one that imposes a charge for non-
compliance.
Metro Mandate – German based retailer that is piloting Gen 2 based RFID at
229 German based stores. Suppliers are required to tag all pallets by October
1, 2007 or face a charge of approximately 2 euros per pallet. Case level
tagging is expected in 2008. Metro, the worlds 5th largest retailer, operates
roughly 2,400 stores in Europe and Asia.
Middleware – A specific class of software that offers several levels of
functionality. Middleware acts as a data filter, eliminating duplicate reads so
that the host system maintains accurate records and is not inundated with
excessive data. Middleware also ensures that the RFID data formatting “maps
up” with the host system data structure.
Optional User Memory – Additional bits memory available on a tag that can
be used by any member of the supply chain as they see fit (i.e., routing
information). Intended to allow for increased tracking efficiency.
Parallel Integrated Chip Assembly (PICA) – A proprietary process developed
by Symbol (Motorola) to rapidly assemble chips to tags. The process uses
small punches to extract a chip from the wafer and attach the chip to the tag
antenna using a single motion. The process remains in test stages, and
RFID Monthly
Robert W. Baird & Co. February 2008
Motorola no longer produces tags.
Passive RFID Tag – A tag that receives its power supply from the reader upon
interrogation. Used primarily in supply chain applications, these tags tend to be
small in size and relatively inexpensive compared to active tags.
Pilots – Testing done by companies seeking RFID solutions, primarily for
supply chain applications. Consumer product companies under mandate
requirements are seeking ways to increase the value add to themselves in
addition to meeting mandate compliance, which requires evaluation of
equipment and internal business processes.
Portal – A door or other point in a facility surrounded by fixed RFID readers to
identify and track the flow of product. Dock doors are a typical example.
Reader – Also known as an interrogator. Typically a network-based device and
antenna configuration, which reads the information contained on an RFID tag.
In passive operations, the reader supplies the tag with power. Readers can be
fixed position for dock door or other portal applications, or embedded into
mobile computing devices for in store or exception reporting requirements.
Rollout – When pilots provide sufficient evidence of a strong return on
investment, companies are expected to deploy (rollout) the technology into
greater parts of their internal operations or external supply chain partners. This
process is expected to result in significant growth for the RFID industry.
Slap and Ship – Refers to placing an RFID tagged bar code label on products
immediately before shipment. The process is typically done on an exception
basis for products requiring compliance labeling. Slap and Ship is not labor
efficient and allows virtually no incremental value add to the supplier; however,
the up-front capital investment is small.
Strap – Component of a tag or inlay that connects the microchip to the
antenna. The purpose of the strap is largely to make the manufacturing process
of antenna attachment easier and faster.
Tag – Also referred to as transponder or transponder tag, which is typically
affixed to an item for tracking purposes. Composed of a semi-conductor chip
and antenna held together in a substrate. Each tag has a manufacturer
installed unique identification number as well as additional few bits to many
kilobits of incremental memory. Passive tags receive energy from the reader,
while active tags have an internal power supply.
Page 21
Glossary of RFID Terms
UID – Unique Identification is a DoD based numbering scheme to identify a
broad range of high-value assets. RFID is not necessarily required, but is
preferred in many UID applications. UID applications typically require more
than 256 bits of memory.

Ultra High Frequency (UHF) RFID – RFID products that use the 868MHz to
950MHz frequency band, which is regulated by governments. This frequency
allows read ranges of 8-30 feet (2x-4x of HF), but can be heavily affected by
environmental factors, including liquids and metals.

Wal-Mart Mandate – Wal-Mart mandated that its top 600 suppliers ship
products with Gen 2 RFID tags identifying each pallet and case to up to 1,400
stores by the end of 2007. As part of this program, Wal-Mart continues to
conduct pilots to determine ROI.
Write Once Read Many (WORM) – Used to describe an RFID tag that allows
only one set of data to be written on to it. Typically used in applications where
security is a concern.

RFID Monthly
Robert W. Baird & Co. February 2008 Page 22
Appendix – Important Disclosures and Analyst Certification
Robert W. Baird & Co. and/or its affiliates expect to receive or intend to seek investment banking related compensation from the company or
companies mentioned in this report within the next three months.
Investment Ratings: Outperform (O) - Expected to outperform on a total return, risk-adjusted basis the broader U.S. equity market over the
next 12 months. Neutral (N) - Expected to perform in line with the broader U.S. equity market over the next 12 months. Underperform (U) -
Expected to underperform on a total return, risk-adjusted basis the broader U.S. equity market over the next 12 months.
Risk Ratings: L - Lower Risk - Higher-quality companies for investors seeking capital appreciation or income with an emphasis on safety.
Company characteristics may include: stable earnings, conservative balance sheets, and an established history of revenue and earnings. A -
Average Risk - Growth situations for investors seeking capital appreciation with an emphasis on safety. Company characteristics may include:
moderate volatility, modest balance-sheet leverage, and stable patterns of revenue and earnings. H - Higher Risk - Higher-growth situations
appropriate for investors seeking capital appreciation with the acceptance of risk. Company characteristics may include: higher balance-sheet
leverage, dynamic business environments, and higher levels of earnings and price volatility. S - Speculative Risk - High-growth situations
appropriate only for investors willing to accept a high degree of volatility and risk. Company characteristics may include: unpredictable
earnings, small capitalization, aggressive growth strategies, rapidly changing market dynamics, high leverage, extreme price volatility and
unknown competitive challenges.
Valuation, Ratings and Risks: The recommendation and price target contained within this report are based on a time horizon of 12 months
but there is no guarantee the objective will be achieved within the specified time horizon. Price targets are determined by a subjective review
of fundamental and/or quantitative factors of the issuer, its industry, and the security type. A variety of methods may be used to determine the
value of a security including, but not limited to, discounted cash flow, earnings multiples, peer group comparisons, and sum of the parts.
Overall market risk, interest rate risk, and general economic risks impact all securities. Specific information regarding the price target and
recommendation is provided in the text of our most recent research report.
Distribution of Investment Ratings: Distribution of Investment Ratings: As of January 31, 2008, Baird U.S. Equity Research covered 513
companies, with 49% rated Outperform, 49% rated Neutral and 2% rated Underperform. Within these rating categories, 13% of Outperform-
rated, 9% of Neutral-rated, and 29% of Underperform-rated companies have compensated Baird for investment banking services in the past 12
months and/or Baird managed or co-managed a public offering of securities for these companies in the past 12 months.
Analyst Compensation: Analyst compensation is based on: 1) The correlation between the analyst’s recommendations and stock price
performance; 2) Ratings and direct feedback from our investing clients, our sales force and from independent rating services; and 3) The
analyst’s productivity, including the quality of the analyst’s research and the analyst’s contribution to the growth and development of our overall
research effort. This compensation criteria and actual compensation is reviewed and approved on an annual basis by Baird’s Research
Oversight Committee.
Analyst compensation is derived from all revenue sources of the firm, including revenues from investment banking. Baird does not
compensate research analysts based on specific investment banking transactions.
A complete listing of all companies covered by Baird U.S. Equity Research and applicable research disclosures can be accessed at
http://www.rwbaird.com/researchdisclosure/. You can also call 1-800-792-2473 or write: Robert W. Baird & Co., Equity Research, 24th Floor,
777 E. Wisconsin Avenue, Milwaukee, WI 53202.

RFID Monthly
Robert W. Baird & Co. February 2008 Page 23
Appendix – Important Disclosures and Analyst Certification
Analyst Certification
The senior research analyst(s) certifies that the views expressed in this research report and/or financial model accurately reflect such senior
analyst's personal views about the subject securities or issuers and that no part of his or her compensation was, is, or will be directly or
indirectly related to the specific recommendations or views contained in the research report.

Disclaimers
Baird prohibits analysts from owning stock in companies they cover.
This is not a complete analysis of every material fact regarding any company, industry or security. The opinions expressed here reflect our
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guarantee the accuracy.
ADDITIONAL INFORMATION ON COMPANIES MENTIONED HEREIN IS AVAILABLE UPON REQUEST
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Copyright 2008 Robert W. Baird & Co. Incorporated

Other Disclosures
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This report is for distribution into the United Kingdom only to persons who fall within Article 19 or Article 49(2) of the Financial Services and
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RFID Monthly
Robert W. Baird & Co. February 2008 Page 24
Baird’s RFID Contacts
Research Investment Banking
Reik W. Read Tom Lange
rread@rwbaird.com tlange@rwbaird.com
414.298.1030 813.273.8248

Robb Timme Tre Mischka

rtimme@rwbaird.com tmischka@rwbaird.com
414.298.1762 813.273.8208

Samantha DeLay Michael Bruns

sdelay@rwbaird.com mbruns@rwbaird.com
414.298.6215 312.609.5486

Ben Brown
bbrown@rwbaird.com
414.298.7013

RFID Monthly
Robert W. Baird & Co. February 2008 Page 25
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