NXP to supply smart label ICs to METRO Group

UCODE G2XL RFID chips chosen because they deliver best-in-class performance

for supply chain management applications

Eindhoven, Netherlands, March 5th, 2008 – NXP Semiconductors today announced that leading international retailing company METRO Group has selected smart labels using NXP’s UCODE G2XL RFID chips without user memory for supply chain management. The retailer will use UPM Raflatac RFID tags powered by UCODE G2XL chips on pallet level in its operational RFID rollout of Metro Cash & Carry wholesale stores in Germany. The chips have been chosen for their breakthrough performance over the entire UHF frequency range, and will also be used in METRO Group’s case- level trial in Germany.

“Together with the European EPC Competence Center (EECC), we thoroughly tested the NXP UCODE G2XL chips in supply chain management scenarios, and we welcome the lean version of the chips,” said Dr. Gerd Wolfram, managing director of MGI METRO Group Information Technology. “This product without user memory absolutely fits our strategy of using EDI and EPC standards. Moreover we found that transponders using the NXP chips delivered best-in-class performance, providing the best sensitivity on a very broad variety of materials.”

Dr. Wolfram added, “Item-level tags using the NXP UCODE G2XL chips also demonstrated the best performance when used in close proximity to each other – a key requirement for several applications. We’ve been particularly pleased with the support and insight we’ve gained through the NXP Reference Design Center in Austria, an outstanding facility that has enabled us to evaluate and optimize our RFID solutions, by recreating real-world scenarios.”

“With unsurpassed UHF performance in real-world environments, the NXP UCODE G2XM and G2XL chips are steadily gaining momentum with companies throughout the supply chain,” said Steve Owen, vice president, sales and marketing, Identification, NXP Semiconductors. “We are extremely pleased to see METRO Group, a leader in international retail, actively implementing smart tags and labels based on our industry-leading UCODE G2XL devices, for both pallet-level and case-level tagging.”

The NXP UCODE G2XM and G2XL are specifically designed for easy inlay assembly and high volume / yield assembly lines. The sensitivity of the ICs allows for broadband antenna designs allowing inlets to cover the complete UHF band from 840 to 960 MHz. Both the UCODE G2XM and the UCODE G2XL are certified according to EPCglobal Class 1 Generation 2 Version 1.0.9 and conform to EPCglobal Class 1 Generation 2 Version 1.1.0."

NXP has been ranked at the top of the RFID Transponder IC Vendor Matrix, the most recent evaluation of IC vendors serving the RFID market worldwide, released by ABI Research in December 2007.

About NXP Semiconductors

NXP is a top 10 semiconductor company founded by Philips more than 50 years ago. Headquartered in Europe, the company has 37,000 employees working in more than 20 countries and posted sales of EUR 5 billion in 2006. NXP creates semiconductors, system solutions and software that deliver better sensory experiences in mobile phones, personal media players, TVs, set-top boxes, identification applications, cars and a wide range of other electronic devices. News from NXP is located at www.nxp.com.