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RFID contract from Chinese metal detector manufacturer

Advanced ID : 31 October, 2008  (Application Story)
Chinese security equipment supplier to use RFID products from Advanced ID in its range of detectors and transportation security devices
Advanced ID Corporation has received an order valued at approximately US$1.6 million for RFID products from Shenzhen Xinyuantong Electronics. The one year contract requires Advanced ID's new Chinese subsidiary to supply proprietary RFID technology and integration services for use within Shenzhen metal detectors.

Founded in 2000, Shenzhen is a provider of homeland security technology in China. The company has established itself as the number one supplier in the Walk-through metal detector segment. Through substantial investment in research and development since its formation, Shenzhen has developed 21 different variants of security products, including various metal detectors, intelligent digital X-ray detection systems, and innovative security devices for use in the transportation and entertainment industries, government agencies and other high profile locations.

Commenting on the first new contract secured by Advanced ID since the formation of its subsidiary in China and the subsequent acquisition of DDCT, Dan Finch, the Company's President and Chief Executive Officer, stated: "We are pleased to report firm orders that provide visibility for our financial performance in 2009 and our ability to successfully deliver on our strategy for market penetration of China, despite the concern regarding a global economic slowdown. Through our aggressive but cost conscious efforts in China, we anticipate making additional contract announcements in the near future that will further reinforce the execution of our growth strategy, the promise of our world class RFID technology, and the progress being made toward reaching profitability in 2009."

Advanced ID's subsidiary in China, Advanced ID Asia Pacific Ltd, was established in Hong Kong in June 2008, and augmented by its parent company's September 2008 acquisition of mainland China-based RFID manufacturer, Shenzhen DDCT Technology Co., LTD ("DDCT"). A leader of new generation RFID technology in China, DDCT specializes in development, production, and sales of RFID/UHF hardware, including UHF readers, and antenna tags throughout Asia. The combination of these operations in China affords Advanced ID with a significant presence to offer RFID solutions for a myriad of applications in the tire, homeland security, retail, healthcare, manufacturing and other industries.

As part of Advanced ID's corporate developments in China, its management has completed several international business trips to ensure a smooth transition and the establishment of regional strategies. Following the most recent visit, Advanced ID Chairman Seymour Kazimirski commented, "We are ramping up our capacity for a major increase in production of our proprietary RFID technologies. With both Company-owned and outsourced facilities, we are presently in the process of manufacturing in China and Thailand our own RFID tags in compliance with both the Automotive Industry Action Group guidelines to support our tire market initiatives and with global standards for all other applications.
"It is important to note that China is a focal point of our international expansion and represents a market in which we see great potential. A primary catalyst in China is the government's support of RFID and the encouragement of investment in and use of this technology for security measures including the prevention of identity theft, for personal identification, product identification and quality control.
"While I was in China, I reviewed the Company-owned facility, which came to us through the DDCT acquisition and is now our manufacturer of record. At this facility, we will manufacture RFID tags for all major original equipment tire manufacturers which will be totally compliant and ready for delivery to customers around the world in early 2009. This timing is coincident with the target dates set by all tire manufacturers. In anticipation of this and through the international RFID tire tag distribution channels that we have in place, we are pleased to have already provided quotes for millions of tire tags that will be manufactured by Advanced ID Asia Pacific.

"We believe that significant and important strides have been made toward creating a self-sufficient, low cost manufacturer with proprietary technology to drive profit margins. Advanced ID is now well positioned to react in a timely manner to capitalize on RFID technology adoption and market demand in China as well as anywhere in the world."

"In anticipation of the formal commencement of our manufacturing facility, the Board of Directors of Advanced ID and the Company's executive management will be in China in November to conduct a press conference. It is expected that nearly 200 guests will be in attendance, including government officials, industry executives, supply chain representatives, trade and business media, and all of our regional employees. Further to our visit, we will be conducting for internal purposes a series of meetings and seminars for sales training, best practice manufacturing techniques, and operational coordination pertaining to all of our products manufactured in China and elsewhere."
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