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Alien Technology® Showcases Seamless RFID In-Store Inventory Tracking at NRF 2006

RFID Technology Leader To Feature Real-Time Item Level Tracking and Limited-Time Free RFID Reader Promotion

January 12, 2006, Morgan Hill, CA – Alien Technology Corporation today announced it will demonstrate the use of its RFID technology for Real-Time Inventory Tracking and Control at the 95th Annual NRF Convention & EXPO, Booth #1779, January 15 through 18, at the Jacob Javits Center, New York City. Alien will also showcase its new EPC Class I Gen2-complaint ALR-9800 Enterprise RFID Reader and launch a limited-time program enabling customers to acquire Alien Gen2-compliant RFID readers for free with the purchase of Alien RFID SquiggleT tags.

Technology demonstration — real-time item-level tracking
Advanced technology demonstrations at the Alien booth will include a live demonstration of seamless item-level tracking in a retail environment using RFID tags and shelf readers. In the demonstration, items removed from store shelves trigger automatic inventory updates to a central database, while items replaced on shelves are automatically recorded as additional inventory. Featuring the enterprise-ready Alien ALR-9800 Reader, and applicable to any retail environment, the demonstration highlights how RFID can be employed throughout a store-from backroom to shelf to checkout-to ensure accurate inventory and enable real-time control.

Alien ALR-9800 Reader features and functions will also be demonstrated. Introduced in August 2005 and Gen 2 certified by EPC Global in September 2005, the Alien ALR-9800 is an advanced RFID reader offering enterprise-scalable architecture, superior dense reader management capacities in retail environments, and high performance read capability.

Limited time promotion — FREE Gen2-compliant RFID readers
Alien will also highlight a three-month promotion, ending on March 31, 2006, that enables customers to acquire Gen2-compliant Alien readers for free by purchasing Alien RFID Squiggle tags. Companies that buy 100,000 Alien RFID Squiggle tags before or on March 31, 2006 will receive a free Alien ALR-9780 Reader. Each additional 100,000 tags entitles the customer to an additional free ALR-9780. Additional elements of the program include a special-price upgrade to the Alien ALR-9800 Reader, special-priced developers kit and technical support, and discounts on Alien Academy RFID training. In addition, any customer trading in a non-Alien UHF RFID reader is entitled to a $500 credit towards the purchase of a new Alien ALR-9780 or ALR-9800. More details on the limited time offers are available at www.alientechnology.com/reader_promo/

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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