Power Paper & Graphic Solutions International Announce General Availability of the PowerID System

TEL AVIV, Israel and BURR RIDGE, Ill.--Nov. 2, 2004--

PowerID(TM) Smart Label System Provides Greatly Improved Reliability and Reading Distance of up to 20 Meters (60 Feet) for Supply Chain Management, Transport and Logistics Applications

Power Paper Ltd., a leading provider of next-generation printable microelectronic devices, and Graphic Solutions, International, a global ISO QS9000-Certified custom print house specializing in printed circuitry and RFID antennas, announced today that the PowerID(TM) System, a high performance, low-cost, turnkey RFID system that vastly improves the reliability of remote monitoring, processing, and transmitting data in the supply chain and other environments, is now available.

Designed to provide Fortune 500 companies with the tools to comply with the recent RFID mandates from the leading US retailers and government offices, the PowerID(TM) System contains UHF-based, battery-assisted backscatter labels, readers and system software that integrates into and complements existing enterprise software. PowerID's battery-assisted backscatter labels (also called semi-passive or semi-active) combine the best features of both active tags and passive backscatter labels, providing superior reliability and reading distances of up to 20 meters (60 feet) in tough RF environments for supply chain and asset management, transport and logistics applications, and works in progress production environments.

In recent demonstrations and pilots at leading CPG manufacturers and retailers in the United States and in Europe, the PowerID(TM) System consistently outperformed traditional passive RFID labels. In hostile RF environments, including metal containers filled with fragrance liquid, aluminum cartons, canned foods, and a variety of liquids, oils and detergent products, PowerID(TM) achieved 100% reading reliability at vastly extended ranges. PowerID(TM) also solves the problem of reading labels set at different angles and sandwiched between crates.

"We are very excited to reach this stage. We have worked hard and partnered with leaders in the industry to perfect the PowerID(TM) System and we are now reaping the reward," said Shalom Daskal, CEO of Power Paper. "Our PowerID team has just returned from demonstrations and pilots in the U.S. and Europe with unprecedented success. Time after time, PowerID(TM) demonstrated superior reliability and achieved reading distances far beyond those attained by other UHF devices."

The PowerID(TM) System utilizes new integrated circuits that implement the iP-X(TM) free running over-the-air protocol, a robust and fast anti-collision protocol. The chips are frequency independent and can be used for RF coupled applications from 300 MHz to 2.45 GHz. The ICs were designed by EM Microelectronic, the world's leading manufacturer of RFID ICs, and iPico, a leading developer of high performance UHF and Dual Frequency RFID technologies. These custom chips have the same air interface as the standard EM4222 UHF chips sold by EM Microelectronic.

Power Paper recently announced the opening of its North American offices for PowerID, based in Burr Ridge, IL.

"By consistently demonstrating 100% readability in challenging environments, and the ability to read through liquids and metals during numerous performance demonstrations to Fortune 100 companies, we have provided a battery assisted RFID product that surpasses all passive systems that are on the market today," said Don Alexander, Printed Battery and RFID Product Manager at Graphic Solutions International, LLC. "Whether packaging is paper or metallic, or the contents are dry goods or oil, every supply chain manager wants reliable, consistent data transmission. With PowerID(TM) the potential to achieve these objectives, even in harsh RF environments, can be a reality. When you have to be sure to read RF problematic products, PowerID(TM) is the answer."

About Power Paper

Power Paper Ltd., founded in 1997, is a leading developer of next-generation, printable micro-powered devices and technologies. The Company's core technology -- thin and flexible, environment-friendly, printable energy cells -- is being integrated into a host of applications. The two primary markets in which Power Paper operates are the skincare market, where it offers PowerCosmetics microelectronic patches that provide immediate rejuvenating effects and/or unparalleled delivery of active ingredients; and the radio frequency identification (RFID) market, where it offers PowerID battery-assisted RFID label systems for superior asset tracking in supply chain and manufacturing environments. Power Paper also offers battery and product production line to authorized manufacturers through its PowerInks division. Power Paper's technologies, production processes and product designs are protected by over 50 patents worldwide. For more information, please visit www.powerpaper.com

About Graphic Solutions, International

Graphic Solutions, International opened its doors in 1985 and is a National and International, ISO and QS9000-Certified custom print house specializing in pressure sensitive labels, aluminum nameplates and polycarbonate panels. GSI also manufactures electro-luminescent lamps (EL), RFID antennas, printed circuitry and thin flexible batteries for micro-electronics. Its label and polycarbonate overlay constructions are recognized by both UL and CSA standards and its aluminum nameplates meet military requirements. GSI also provides a variety of security label options including security thread. For more information please visit www.graphicsolutionsinc.com.