Checkpoint Systems Becomes Technology Partner In METRO Future Store Initiative

Checkpoint Systems, Inc. (NYSE: CKP), a leading provider of product identification and shrink management solutions worldwide, announced it has provided METRO Group's Future Store initiative with a prototype dual frequency Electronic Article Surveillance (EAS)/Radio Frequency Identification (RFID) technology system which combines both standard frequencies for EAS and RFID in a single system. The METRO Group Future Store initiative is a cooperative effort between METRO Group and more than 40 partner companies from the information technology and consumer goods industries to test a range of new technologies, including RFID, in a live environment.

Earlier this year, Metro Group announced it would begin using RFID technology throughout its entire process chain, and that by November 2004 approximately 100 suppliers will affix RFID tags to their pallets and transport packages for delivery to ten central warehouses and approximately 250 stores within the METRO Group's sales divisions.

"Checkpoint is a new and important partner to The Metro Group," said Dr Gerd Wolfram, IT strategy, IT buying and development service METRO Group. "Checkpoint possesses deep expertise in RF technology and provides RFID solutions that combine logistic data with an effective security solution. With Checkpoint's dual frequency antenna, it is possible for the first time to realize RFID and EAS in one system only."

Checkpoint's dual frequency system, which paves the way for retailers to migrate to an RFID-rich in-store environment, was installed in METRO Group's specially constructed "store of the future" in Rheinberg, Germany, where RFID testing (amongst other new technologies) is being conducted in a real-world setting.

In addition to the prototype dual frequency system, Checkpoint is contributing a number of technology solutions to METRO Group's Future Store Initiative including a point-of-sale solution with a reminder function if you forget to detach the hard tag, and dual frequency hard tags and smart detacher that checks information on the hard tag and opens it only after the transaction is completed.

"Our partnership with METRO Group's Future Store Initiative allows us to contribute our deep knowledge of the ways in which retailers worldwide can prepare for the eventual transition to an RFID-rich in-store environment" said Dave Shoemaker, Group Vice President - Strategic Marketing at Checkpoint Systems, Inc. "Our specialized dual frequency system, which reads both EAS and RFID tags, was developed specifically to help retailers avoid many of the pain points of switching technologies. We're confident that the system's testing in the Future Store Initiative will demonstrate the value it will provide to the retail world as RFID in a retail setting becomes more commonplace."

To support expanding presence in the RFID world, Checkpoint added an RFID label production line to its factory in Germany earlier this year.

About the METRO Group
The METRO Group is the world's fifth-largest retailing group. With its powerful brands, the METRO Group operates successfully in 28 different countries around the world - at over 2,300 locations and with almost 240,000 employees. In 2003, the company achieved net sales of $53.6 billion.

The METRO Group's six sales divisions operate independently on the market with their own specific sales concepts: Metro/Makro Cash & Carry, the world's market leader in self-service wholesaling, Real hypermarkets, Extra supermarkets, Media Market and Saturn, the leading consumer electronics centers in Europe, Praktiker home improvement and DIY centers, and the department stores of Galeria Kaufhof.

About METRO Group's Future Store Initiative
The METRO Group Future Store Initiative is a cooperation project between METRO Group, SAP, Intel and IBM as well as other partner companies from the information technology and consumer goods industries. Its objective is to promote innovations in retailing on a national and international level. The initiative shall be understood as a platform for technical and process-related developments and innovations in retailing. Within the METRO Group Future Store Initiative, technologies and technical systems are tested and further developed in practice. In the long run, the initiative is aimed at setting standards for retailing that can be implemented on an international scale.

About Checkpoint Systems, Inc.
Checkpoint Systems, Inc., is a multinational manufacturer and marketer of technology-driven solutions for retail security, labeling, and merchandising. Checkpoint is the leading provider of radio frequency-based shrink management solutions to the $1 trillion global retail industry, including over half of the world's top 200 largest global retailers. In addition to its shrink management capabilities, Checkpoint's end-to-end supply chain technology helps apparel and consumer product manufacturers and retailers brand, track and secure goods worldwide. Checkpoint has a presence in more than 50 countries and a global network of 29 service bureaus located in the world's apparel manufacturing capitals.

A founding member of the MIT Auto-ID Center, Checkpoint's technology solutions include digital RF/EAS and RFID systems, RF source tagging, barcode labeling systems, EAS, handheld labeling systems, and retail merchandising systems. For additional information, visit Checkpoint Systems' web site located at www.checkpointsystems.com.