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Alien Technology Selects Fargo, North Dakota for Manufacturing Site

Morgan Hill, CA. Alien Technology announced today that it has selected the North Dakota State University Research and Technology Park in as the site for the planned expansion of its manufacturing operations. North Dakota was selected over several alternative sites based on Alien's successful joint development technology programs with the Center for Nanoscale Science and Engineering (CNSE) at NDSU, the state's capable and stable workforce, and North Dakota's business-friendly economic development environment.

"We have been delighted with the relationships we have developed in North Dakota. The program with NDSU was initiated with funding sponsored by Senator Byron Dorgan. NDSU has proven to be a great resource for us," said Stav Prodromou, CEO of Alien. "Proactive leadership from Senator Dorgan and Governor John Hoeven was instrumental in moving North Dakota to the top of our list. Their support, and similarly strong support from NDSU President Joe Chapman and State Senator Tony Grindberg led to the selection of a site at The Research and Technology Park at NDSU. We look forward to building on the foundation that we have established over the past two years with NDSU to establish an advanced manufacturing technology center."

Alien Technology is a leading producer of Radio Frequency Identification (RFID) products. RFID is useful in a variety of applications including logistics operations, national security, and anti-counterfeiting. Wal*Mart has announced that it has chosen RFID to help it manage and track products as they are shipped to their stores, and many others are expected to follow their lead.

Alien has a unique advanced manufacturing method that allows it to make RFID labels in very high volumes and at very low cost. Alien plans to install equipment capable of manufacturing billions of these labels per year in the North Dakota plant.

A formal announcement and further details about Alien's Fargo-based manufacturing technology center will be made at the conclusion of a detailed planning phase that is in progress.

Alien is privately held. Significant investors include CMEA, New Enterprise Associates, Rho Management, Sevin-Rosen Funds, Adams Street Partners, Avery Dennison, and UPM-Kymmene. More information can be found on the Company's Web site at www.alientechnology.com.

About Alien Technology
Alien Technology Corporation provides Radio Frequency Identification (RFID) products for global customers in government, retail, manufacturing, pharmaceuticals, transportation, and other industries. Using its proprietary manufacturing process, Fluidic Self Assembly (FSA®), Alien manufactures EPC tags in high-volumes and at low cost. The company provides a family of RFID readers for a variety of applications including supply chain management, logistics, and anti-counterfeiting, to improve inventory management and reduce operating costs. Alien is an active member of EPCglobal. More information about Alien Technology Corporation can be found on the Company's website at www.alientechnology.com.

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