Lemmi Fashion Selects Checkpoint Systems RFID Hangtags

Children's clothing producer goes with RFID tags for inventory managment, supply chain accuracy

THOROFARE, N.J.--(BUSINESS WIRE)--April 26, 2006--Checkpoint Systems, Inc. (NYSE: CKP), one of the largest manufacturers and marketers of RF and RFID based solutions for security, identification, tracking and merchandising applications in the world, today announced they were chosen by Lemmi Fashion, a Fritzlar, Germany-based producer of children's apparel, to supply the company and its strategic partners with RFID (radio frequency identification) hangtags. The RFID consumables will be used as part of a strategic initiative to help improve Lemmi's speed to market, inventory management, and order accuracy.

Checkpoint Systems is supplying Lemmi's manufacturing partners in Asia and Europe with Performa(R) 13.56 MHz RFID-enabled hangtags. The hangtags, which include a visible version of the RFID tag and a traditional bar code, contain data such as article number, size, and color.

The tagging process begins when Lemmi's partners apply Performa RFID-enabled garment tags to items at their production sites. The goods are recorded when they are shipped from the manufacturer to Lemmi's distribution center (DC), and upon receipt at the DC. Movements within the DC are also recorded, and Lemmi reads the RFID tags a final time at the shipping area to confirm that all items required for the shipment have been packed.

As specialists in custom fit clothing for children in the European and Asian markets, Lemmi offers approximately 250-280 styles per season, and about 1 million garments per year. The company differentiates itself from other manufacturers by its high number of seasonal SKUs and short production runs. Tight control of a complex inventory assortment is an important part of its strategy.

"Because of our small lots and multiple product offerings, we needed to find an RFID tagging provider that could satisfy our unique performance and production requirements," said Gotz Pfeifferling, CIO of Lemmi Fashion. "Checkpoint's experience, responsiveness and ability to deliver a high quality RFID tag at a reasonable price have enabled us to dramatically improve our business processes."

"Lemmi's business has been built on world-class customer service and reliable delivery," said Saleem Miyan, Checkpoint Vice President and General Manager of Global RFID & Emerging Technologies. "Lemmi's commitment to improving business processes that are tightly aligned with its position as an innovative technology leader, demonstrates their understanding of how RFID can drive value for a company, its suppliers and customers. The value is real, measurable, and sustainable."

Since becoming fully operational with its RFID system in mid-2005, Lemmi has benefited tremendously through improvements to its supply chain visibility. Lemmi has also experienced improved item-level visibility to better manage its inventory mix. The company reports all RFID-supported processes are now completed more quickly and accurately, which drives expenses out of operations.

About Checkpoint Systems Inc.

Founded in 1969, Checkpoint Systems, Inc. is one of the largest manufacturers and marketers of RF and RFID based solutions for security, identification, tracking and merchandising applications in the world. With a presence in more than 80 countries and a network of more than 25 service bureaus worldwide, the company is the global leader for scalable, sure-performing UHF and HF, EPC and ISO based RFID consumable products and services.

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