REWE Group pilots RFID with UPM Rafsec Gen 2 inlays

The German retailer REWE has started an extensive pallet-level RFID pilot at its Norderstedt distribution center in Germany. The UHF Gen 2 inlays used in the pilot are provided by UPM Rafsec, a leading RFID tag and inlay manufacturer known for low-cost, high-quality products. Following RFID mandates from major global retailers, REWE Group has itself decided to begin implementing RFID and is the first to use the latest Gen 2 technology.

Through RFID implementation REWE aims to strengthen its competitive advantage and market position by optimizing the joint supply chain with its suppliers. There will be up to 30 suppliers involved in the pilot's first phase. In order to help them access quality RFID labels at a competitive pricing of 23 euro cents each, REWE decided to bundle the projected need to one supplier.

REWE's partners will have easy access to a label pool via the REWE RFID intranet where they can order the labels. The offer will be valid for five months starting from 15 December and ending 15 May 2006. There will be two different label types available, a standard 4x6" label and the UPM Rafsec FlagTag™.

In comprehensive RFID labelling tests at REWE distribution center, UPM Rafsec FlagTag™ UHF tags demonstrated excellent readability to guarantee outstandingly reliable pallet labelling throughout the entire supply chain. The UPM Rafsec FlagTag™, developed together with SATO, is a universal solution for tagging pallets with problematic content (fluids, metal, glass, etc.). The part of the label that contains the UHF tag is folded so that it sticks out vertically from the pallet surface to create free-air performance from the tag perspective.

For more information, please contact:
Mr Marcus Vaenerberg,
Vice President Sales, UPM Rafsec, tel. +358 204 168 133

Press department, REWE Group, presse@rewe.de

UPM Rafsec
Communications
December 1, 2005

About REWE Group
The REWE Group is one of the biggest European retailers with more than 11,500 shops and 195,000 full-time employees. The Group unites four large business units under one roof: its core business is food retailing (retail and wholesale), specialist stores, travel and tourism and foreign operations. REWE's core business, earning more than 33.86 billion euros, achieves more than 80 per cent of the Group's total sales, which exceed 40 billion euros.

About UPM Rafsec
UPM Rafsec (www.rafsec.com) is a world leading RFID tag manufacturer and pioneer of the EPC standard, specialized in cost-efficient high-volume production. Headquartered in Finland, the company has the broadest and most comprehensive in-house know-how and capabilities for RFID tag design and manufacturing. Together with Raflatac, UPM Rafsec forms the Labelstock Business of UPM, one of the leading global forest products companies with annual sales of EUR 10 billion and stocks listed on the Helsinki and New York stock exchanges. Raflatac is a global supplier of paper-based and filmic pressure sensitive labelstock.