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Alien Technology® Acquires Quatrotec To Drive Expansion In RFID Transportation Markets

May 23, 2005, Morgan Hill, CA - Strengthening its position in the transportation sector, Alien Technology today announced it has acquired Quatrotec, a leading specialty integration services and project management firm focused on commercial aviation and other transportation markets. Quatrotec will operate as a wholly owned subsidiary reporting to Robert J. McKinley, Vice President, Business Development for transportation markets at Alien. Mr. McKinley was formerly Director of Security and Airport Systems at San Francisco International Airport.

"The acquisition of Quatrotec is a major strategic step for Alien into the transportation market, complementing our strong RFID product offerings in baggage tags and readers with unsurpassed domain expertise and specialized implementation skills," said Stav Prodromou, CEO, Alien Technology Corporation. "Based on our collaborations with Quatrotec on projects to date, we believe the merging of Alien and Quatrotec capabilities will provide superior expertise, resources and value to customers and partners in the rapidly growing markets for RFID in the transportation sector."

The market for RFID in transportation is projected to grow rapidly in the next three years. Venture Data Corporation predicts that the market for RFID systems for air transportation & airports alone will reach $236.4 million in 2008. In acquiring Quatrotec, Alien has expanded its ability to address air, sea, ground and homeland security-related RFID applications of any scope and scale. Serving the air transportation industry for more than 20 years in projects ranging from $1 million to well over $200 million, Quatrotec possesses particular design and implementation expertise in such highly specialized areas as airport security systems, baggage handling systems, passenger services and terminal operations. Quatrotec's principals Dominic Della Maggiora, Scott Ure, and Matthew Connelly, will continue to lead the former Quatrotec team as Alien's new subsidiary.  

"RFID is one of the most compelling technologies available to the transportation sector today, leading to enhanced operational efficiencies, improved security, cost savings and increased customer satisfaction," said Bob McKinley, Vice President of Transportation Business Development. "Alien is strongly committed to the transportation market and has the products, management and assets to help drive widespread RFID usage. We're pleased to add Quatrotec's capabilities as an integral part of this dynamic effort, and look forward to bringing new synergies and value to our customer engagements." 

Quatrotec is widely recognized for their innovation, effective execution and timely completion of major projects around the world.  Quatrotec's development and design concepts for In-Line Explosive Detection Systems have been adopted as the 'best of breed' standards for deployment of these systems.  Quatrotec is recognized as a leading innovator in the rapidly evolving field of RFID system integration into complex conveyance systems within the air transportation industry.

About Alien Technology
Alien Technology provides UHF Radio Frequency Identification (RFID) products and services to customers in retail, consumer goods, manufacturing, defense, transportation and logistics, pharmaceuticals and other industries. Organizations use Alien's RFID products and services to improve the effectiveness, efficiency and security of their supply chains, logistics and asset tracking operations. Alien's products include RFID tags, RFID readers and related training and professional services. Alien's patented Fluidic Self Assembly (FSA) technology and related proprietary manufacturing processes are designed to enable the manufacture of high volume, low cost RFID tags.

Alien was founded in 1994. The company's facilities include: its corporate headquarters in Morgan Hill, CA; an RFID tag manufacturing facility in Fargo, ND; the Alien RFID Solutions Center, in the Dayton, Ohio area, and sales offices in the US, Europe and Asia. Alien is a member of EPCglobal. More information about Alien is available at www.alientechnology.com.

Alien, Alien Technology, the Alien logo, Squiggle and FSA, are trademarks or registered trademarks of Alien Technology Corporation in the United States and other countries. Copyright 2007 Alien Technology Corporation. All rights reserved.

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