Feature Rfid Ltd. (Otc: Rfdl) - The Smart Buy In Rfid Technology

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FEATURERFID LTD. (OTC: RFDL) - THE SMART BUY IN RFID TECHNOLOGYRFID, Ltd.Helping Public Organizations and PrivateCompanies Embrace The Future of Auto IDCompany OverviewRFID, Ltd.Stock Information:Name: RFID Ltd.Symbol: (OTC: RFDL)Status: Strong BuyTotal Shares Outstanding:26,070,069Total Shares In Float:1,672,870RFID, Ltd. is a leadingindependent systems integratorthatspecializesinradiofrequency identification (RFID).More specifically, the companyfocuses on compliance casestudies, implementation andvalue-added scalability solutionsfor small-to-medium sizedsuppliers that are required tocomply with private and publicsector mandates by entities suchas Wal-Mart and the DepartmentofDefense(DoD).Thetechnology basically tracksobjects, people and animals fromone destination to another andcan act as well, as a warningsystem.Examplemarketsegmentswhere RFID is being rolled-outThis research report by AlexanderPerry Corporation (RIA) couldchange your life. For moreinformation, contact JonasOlmsted, Investor Relations at(303) 663-9519 or visitwww.RFID-LTD.com.and evaluated for use include: Air industry: Items, Assets,conveyances, vehicles, people(air baggage) Animal,farming, research,libraries, archiving, leisure,manufacturing, financial &other: Animals, people andthings (livestock (tracking cowsand pets) and food traceability inthefaceofnewlaws,bioterrorism, avian flu, BSE,fraud with subsidies etc.) Consumergoods & retail:Items, assets, conveyances,vehicles Conveyances/other, freight Healthcare/pharmaceuticals:People, assets, conveyances,vehicles Military: Assets, consumables,conveyances, vehicles Pallet/case

FEATURERFID LTD. (OTC: RFDL) - THE SMART BUY IN RFID TECHNOLOGY Passengertransport&automotive: Vehicles, premisesand computer access, ticketing,assets (mobil speedpass, tollcollection systems, car clickers,passports in the face of newterrorism resulting in new laws) Postal& courier: Assets,consumables,conveyances,vehicles Prison (correctional facility) &parole service: People Smart cards: Payment key fobs Smarttickets: Banknotes/secure docs Smart & Secure Tradelanes:Intermodal containers Ubiquitous Sensor NetworksUSN: For warning of naturaldisasters, military and otherpurposesWhy RFID?Real ThreatsA senior executive of a Fortune 50company has stated, "If an act ofterrorism were committed using one ofour containers, we believe it would be acompany-ending event."TheDubaiPortsWorldcontroversy has highlighted thefragility of our global supplychains and some of their weakestlinks. Despite all the mediaattention, the real issue is notabout the ports or who managesthem, but rather the end-to-endjourney of goods and the people,processes and technology thatconduct, manage and protectglobal trade. As we explore thesestrategic issues, the extent ofRFID's ability to help secure thissupply chain and fuel growthandinnovationforitsparticipants is only nowbeginning to be realized.In recent decades, the perfectstorm of globalization hasopened up the free flow of trade,capital, people and knowledgeacross developed and emergingmarkets. Businesses have accessto global markets from which tosource their goods and services,and to export their finishedproducts in order to growrevenues, reduce costs and2improve performance. Theworld stage provides theopportunity to gain economiesof scale, competitive advantageand the differentiation needed toproduce the steady incrementalgrowth required by capitalmarkets.However, the price of admissionto this world market is forbusinesses to tackle increasinglycomplex issues as compliance,collaboration, communicationsand competition. In terms ofcompliance, businesses mustabide by an expanding numberof regulations and mandatesfrom a governance, industry andprivacy perspective. A typicalsupplier,importingfromoverseas, may have to deal withSarbanes-Oxley (SOX), theCustoms-TradePartnershipAgainst Terrorism (C-TPAT) andpossiblyboththeU.S.Department of Defense andvarious retailer RFID mandates.Section 404 of SOX requirescompanies to have controls inplace to protect against adverse,preventable events, includingthose within their supply chains,that could impact their value. CTPAT requires companies to takeresponsibility for the security oftheir own supply chains. WhileC-TPAT is voluntary, theconsensus is that it may wellbecome mandatory in the nearfuture.In light of this increasinglycomplex supply chain andregulatoryenvironment,businesses today are even morepressed to ensure they balancetheagilityneededforcompetitive advantage andoperational efficiency with theassurance needed for the safetyand security of their shipments.

FEATUREGlobalization, decentralization,outsourcing and the Internethave, in effect, created a dividebetween agility and assurance.Businesses are operating withincreased agility, yet theirsecuritymechanismsareoutdated. Too often, security hasbeen an afterthought layered ontop of new and existingapplications and processes.The nature and magnitude ofthreats to the supply chain havealso changed. Today's supplychains face ever-increasingdisruptive threats such as theft,diversion and counterfeiting,along with the unpredictableacts of governments, portoperators and other entities intheir supply chains, plusextreme acts of nature (such asHurricane Katrina) or, worsestill, terrorism. As an example tohighlight the magnitude of thesethreats, the World HealthOrganization (WHO) estimatesthat 5 to 10 percent of the world'spharmaceuticals are counterfeit.The economic impact of thiscounterfeiting is estimated at 1billion to 12 billion. The biggerpicture across all global trade isthat product counterfeiting nowaccounts for 5 to 10 percent, orroughly 350 billion. In additionto counterfeiting, theft anddiversions alone affect 1 to 3percent of all goods in thesupply chain.Throughout history, the militaryhas had to respond and adapt tonew threats and continuallytransform itself to deal with new,asymmetric threats as it hasmoved from fighting a wellknown opponent to being readyfor an attack that can occuralmost randomly, at any timeand any place, and against anyRFID LTD. (OTC: RFDL) - THE SMART BUY IN RFID TECHNOLOGYtarget. Today's businesses mustalso redefine their securityposture to mitigate these risksand ensure business continuityfor their global supply chains.To ignore these risks andimperatives would be too costlyfor both the United States andindividual corporations. A recentwar-game scenario estimatedthat closing the nation's ports foras few as 12 days would lead to a60-day container backlog and acost to the economy ofapproximately 58billion.What's more, the impact on anindividual company can beequally devastating. A seniorexecutive of a Fortune 50company has stated, "If an act ofterrorism were committed usingone of our containers, we believeit would be a company-endingevent."Keeping The World In OrderThe extent of RFID's ability to helpsecure supply chains and personnel,and fuel growth and innovation for itsparticipants, is only now beginning to berealized.As an enabling technology, RFIDoffers tremendous potential tohelp address these challenges.While much attention in the pastseveral years has focused onRFID's application for supplychain efficiency and support forDoD and retailer mandates, itcan actually play an equallyimportant role in helping raisethe security posture of nations,governments and businesses.RFID can help provide the endto-end visibility we need forgoods and assets movingthrough the supply chain, aswell as the identification and,hence, authorization, we need tokeep the good guys in and thebad guys out.An investment in RFID can, thus,serve two purposes: as abusiness accelerator in terms ofsupply chain efficiency and as anenabler for improved security.*3

FEATURERFID LTD. (OTC: RFDL) - THE SMART BUY IN RFID TECHNOLOGYThe TechnologyAutomatic identification, or autoID for short, is the broad termgiven to a host of technologiesthat are used to help machinesidentifyobjects.Autoidentification is often coupledwith automatic data capture.That is, companies want toidentifyitems,captureinformation about them andsomehow get the data into acomputerwithouthavingemployees type it in. The aim ofmost auto-ID systems is toincrease efficiency, reduce dataentry errors and free up staff toperform more value-addedfunctions, such as providingcustomer service.There is a host of technologiesthat fall under the auto-IDumbrella. These include barcodes, smart cards, voicerecognition, some biometric4technologies (retinal scans, forinstance), optical characterrecognition (OCR) and RFID.RFID, is a generic term fortechnologies that use radiowaves to automatically identifypeople or objects. There areseveral methods of identification,but the most common is to storea serial number that identifies aperson or object, and perhapsotherinformation,onamicrochip that is attached to anantenna (the chip and theantenna together are called anRFID transponder or an RFIDtag).The antenna enables the chip totransmittheidentificationinformation to a reader. Thereader converts the radio wavesreflected back from the RFID taginto digital information that canthen be passed on to computersthat can make use of it.RFID is a proven technologythat's been around since at leastthe 1970s. Up to now, it's beentoo expensive and too limited tobe practical for many commercialapplications. But as tags aremade less expensively, they cansolve many of the problemsassociated with bar codes. Radiowaves travel through most nonmetallic materials, so they can beembedded in packaging orencased in protective plastic forweatherproofing and greaterdurability. And tags havemicrochips that can store aunique serial number for everyproduct manufactured aroundthe world. Today, thousands ofcompanies around the world useRFID.International standards havebeen adopted for some veryspecific applications, such as fortracking animals and for smartcards, which require encryption

FEATURERFID LTD. (OTC: RFDL) - THE SMART BUY IN RFID TECHNOLOGYto keep data secure. Many otherstandards initiatives are underway. As the technology becomesstandardized, it will be usedmore and more to track goods inthe supply chain. The aim is toreduce administrative error,labor costs associated withscanning bar codes, internaltheft, errors in shipping goodsand overall inventory levels.There are many consumerbenefits. Greater efficiency in thesupply chain will reduce costsandimproveefficiencies.Companies will pass some ofthese savings on to consumers totry to gain market share from lessefficient competitors. RFID couldbe used by retailers to expeditereturns and by manufacturers tomanage warrantee claims andimprove after-sales support ofitems such as computers andDVD players. RFID could alsoreduce the counterfeiting ofpharmaceutical drugs and insurethe integrity of productspurchased by consumers. AndRFID could be used to secure thefood supply and preventterroristsfromsneakingweapons of mass destructioninto a country through shippingcontainers.The RFID MarketBarcodes and the first RFIDdevice were invented during thesame period around the late1940's. Since that time, barcodesquickly proliferated throughevery sector of society. There aremany schools of thought as towhether RFID technology willreplace barcodes as it gainsmomentum. They each havetheir pros and cons. In the least,the two technologies will morethan likely coexist for manyyears. Though given mentionedeconomic, technological andsocietal forces, the picture forRFID is shaping up as follows:Revenue in the RFID marketfor retail totaled 400 million in2004, and estimates put thetechnology at about 4.2 billionby 2011 61% of US companies willevaluate, pilot or implementRFID technology this year, with8% in full deployment Theaverage annual RFIDbudget is estimated at 550,000,reaching 770,000 by 2007 23% of companies polled arepiloting RFID technology, while38% plan to evaluate RFIDtechnology in the next two years By 2015, 1.3 million people areestimated to be working in theRFID industry Frost & Sullivan predicts thatRFID technology revenues willexceed 7 billion by 2008 Forrester Research estimatesRFIDsetupcostsofapproximately 9 million perlocation IDC approximates up to twothirds of corporations using orconsidering use of RFIDtechnology will spend 2 billionutilizing outside consultants toaccomplish their goals associatedwith RFID In a recent Accenture survey,more than half of US-basedrespondentswereundermandate to implement RFID asof the date of article publication IDTechEXisforecastingaggregate sales growth for allaspects of the RFID industry to 5

FEATURERFID LTD. (OTC: RFDL) - THE SMART BUY IN RFID TECHNOLOGYhit 7 billion by 2007, and nearlyquadrupling to 27 billion in2015.In looking at this cross-section ofstatistical data by those thatfollow the industry, there is aconsistent view in the overallsuccess of the market well up to2015. As technical problems areslowly being overcome at thepreviously little-used UHFfrequency to tag 30 billion palletsand cases a year, the market foritem level RFID tagging ofmedicines, baggage, animals,books and tickets is suggested togrow strongly in value.In 2008, it is estimated that 6.8billion tags will be sold for theseapplications as well as 15.3billion tags for pallets and cases.ThemarketforRFIDinterrogators or tag readers isexpected to reach 1.14 billion in2008 for EPC interrogators and 750 million in the same year forother interrogators, such as thosefor Near Field Communication.Forecasts by territorial regionshow that by 2010, 48% of RFID6Big Growth Projections forthe RFID MarketAt 2016, the value of the total RFIDmarket including systems andservices will rocket to 26.23Bnfrom 2.71Bn in 2006. This includesmany new markets that are beingcreated, such as the market forReal Time Location Systems usingactive RFID, which will itself bemore than 6B in 2016tags by volume will be sold inEast Asia, followed by 32% toNorth America. The forecast forchipless RFID tags, whichcontain no silicon chip, in theform of smart tickets and cards,and semi-passive and active tagsare expected to represent 15% ofthe market by 2010, rising to 55%in 2013 as sub-five cent tagsbecome ubiquitous.Cumulative sales of RFID tagsfor 60 years until the beginningof 2006 total 2.4 billion, with 600million tags being sold in 2005alone. In 2006, IDTechEx expect1.3 billion tags to be sold, with500 million RFID smart labels forpallet and case level tagging butthe majority into a range ofdiverse markets from baggageand passports to contactlesspayment cards and drugs. At2016, IDTechEx sees the value ofthe total market includingsystems and services to rocket to 26.23Bn from 2.71Bn in 2006.This includes many new marketsthat are being created, such asthe market for Real TimeLocation Systems using activeRFID, which will itself be morethan 6B in 2016.Such growth will be driven bythe tagging of high volumeitems, notably consumer goods,drugs and postal packages at therequest of retailers, militaryforces and postal authorities and

FEATUREfor legal reasons. In these cases,the primary benefits sought willbe broader and include cost,increased sales, improved safety,reduced crime and improvedcustomer service.A key factor and barrier togrowth for RFID is reduction ofcost. RFID tags have not reachedthe nickel per tag price pointpartly out of manufacturer'hesitancy, since lower-pricedtags may be less capable thanhigher-priced ones. "We've beentalking about the mythical 5-centprice point for years. Is itpossible? Yes. But it may notnecessarily be the type of tagyou're looking for," says VentureDevelopment's Mike Liard. Theupshot of the lack of enthusiasmfor pursuing 5-cent tags is theemployment of current tags ltaneously improve RFIDtechnology and reduce costs atabout 5 percent to 10 percentannually.Experts expect RFID tags to beembedded in everyday items,while their non-line-of-sightcapability can thwart theft andforgery by facilitating thegatheringoflocationinformation without individualhandling.Thereisalsoconfidence among experts thatan "Internet of things," in whichnearly all conceivable items arenetworked together, will befacilitated by RFID technology.This would allow the instantidentification of all products byanyone anywhere. Researchersexpect everyday objects tofeature RFID via gmanufacture, instead of onsticky tags.RFID LTD. (OTC: RFDL) - THE SMART BUY IN RFID TECHNOLOGYMIT mechanical engineeringprofessor Sanjay Sarma believesRFIDtechnologieswillproliferate when productionvolume hits a tipping point,reducing costs enough toencourage RFID tagging ofeveryday objects. Sarma says,"The question now is the tippingpoint. When do you get to thepercentage that causes you tosay, 'I'm going to put the taginside the corrugate?' In the nextyear, we could see it happen."Why Is It Good for RFID,Ltd.?It is good because it is mandatedby the Private and Public Sector.RFID Ltd. focuses its effort onthe Private Sector, Public Sectorand Special Projects.In High DemandRFID, Ltd. provides expert integrationand management services to companiesand organizations adopting RFIDtechnologies.Private SectorRetailers like Wal-Mart, Target,Metro, Tesco, Albertson's andBest Buy are setting RFIDspecifications and guidelines.Suppliers are asked to meet thesespecs as initiatives are rolled outacrosstheUSandinternationally. Businesses arerequesting solutions to track andmanage a variety of assets andproducts in their warehousesand storage facilities. Frombundles of lumber to rolls oftextiles to employees. At any given time, a typicalretail store has 6% - 8% out-ofstock resulting in sales losses ofabout 4%. Wal-mart estimates that a 1%improvement in their out-ofstock situation will result in over 1 billion in additional sales peryear. At any given time, a typicalretailer does not know thelocation of up to 20-30% of theirmerchandise.7

FEATURERFID LTD. (OTC: RFDL) - THE SMART BUY IN RFID TECHNOLOGYWal-Mart's mandate requires it'ssuppliers to use RFID to identifypallet & case shipments. WalMart has 30,000 suppliers thatship to it's 90 U.S. distributioncenters throughout the UnitedStates. Wal-Mart can and hashistorically mandated that thesesuppliers hit a 30 seconddelivery window to ensure thatthe Wal-Mart trucks can getsome 50 million shipping palletsdelivered to the Wal-Mart storeson time.Public SectorAt nearly twice the size of theworld's largest corporation (WalMart), logistics is an obviousconcern for the 450 billion ayear U.S. DoD. To continue toimprove its internal logisticsoperations, the DoD is turning toRFID technology and mandatingit'simplementationtoapproximately 46,000 suppliers.RFID Ltd. is SBA HUBZonecertified and listed with theDepartment of Defense as avendor of choice.Within the realm of supply chainvisibility, perhaps the bestexample to date is the U.S.Department of Defense's InTransitVisibilitynetwork.Established in 1994, this hassince become the world's largestRFID network. Today, thenetworktracksordnance,medical supplies and food across8more than 50 countries and morethan 750 nodes in the supplychain,includingairports,seaports and rail terminals. Itsecures 350,000 conveyances and25,000 containers daily. Not tomention internal HomelandSecurity mandates to the willhave sweeping effects on thepersonal identification side.Across the pond, China will berolling out nearly 3 billionpersonal ID cards using RFIDtechnology in the next fouryears.Special ProjectsRFID Ltd. integrates both withcustom systems and packagedEnterprise Resource PlanningGovernment ApprovedRFID Ltd. is SBA HUBZone certified andlisted with the Department of Defense asa vendor of choice.

FEATURE(ERP) systems. Given the impactERP systems have had over thepast decade, interoperabilitywith ERP packages is a keycomponent of the company'sstrategy. Within the ERP marketSAP (an application that allows acompany to close the loopbetweenacquiringdata,converting it to meaningfulinformation, and automating allassociated transactions andprocesses) has the largestfootprint and the most robustback end products for RFIDintegration. Accordingly themain ERP focus has revolvedaround SAP. On the forefront ofautomation, an example of thisfor RFID Ltd. is the use of VIPcards in clubs to tailorinformation to the client for amore interactive responsiveexperience.RFID, Ltd. - Nuts & BoltsThe ProductRFID, Ltd.'s Black Box RFID solution provides the entirety ofwhat is needed to comply withan RFID mandate includinghardware, software, middleware,implementation and knowledgetransfer.Black Box RFID integrates andenhances existing businessRFID LTD. (OTC: RFDL) - THE SMART BUY IN RFID TECHNOLOGYsystems, whether it is SAP,Glovia, Oracle or another ERPsystem,anEPC-compliantsolution can be delivered fullyfor RFID mandate complianceneeds.The Methodology RFIDLtd. performs CaseStudies, the first step of anyproject that involves heorganization. The detailed business case isthe road map to the second stepof implementation. A selfcontained pilot application isbuilt to test the theories put forthin the business case. RFID Ltd. conducts the piloton customer site as opposed tolab for scaling purposes with thegoal of a more seamlessintegration. RFID, Ltd. offers an auditdesignedtofacilitateimplementation efforts andreduce costs associated with anRFID compliance effort. An RFID implementation willintroduce a substantial amountof new hardware, software andprocesses to an organization,infiltrating many departmentsand benefiting many employeeswho will be the ultimate "enduser". RFID training is mandatory.The Black BoxRFID, Ltd.'s Black Box RFID solutionprovides the entirety of what is neededto comply with an RFID mentationandknowledge transfer.

FEATURERFID LTD. (OTC: RFDL) - THE SMART BUY IN RFID TECHNOLOGY Finally, RFID Ltd. providesproduct support in the form ofoutsourcing which for manycompanies can be a dauntingtask to handle internally.in the world. Partners include:IBM;Hewlett-Packard;Microsoft; Symbol; RFID4U;SimplyRFID.com;EPCSolutions; BlueStar; and Zebra.The Management TeamIn July 2005, RFID Ltd. acquiredPackaged RFID, Inc., whichdevelops RFID technology forretail and defense sectors, with afocus on RFID integration forsmall to medium-sized retail andgovernment suppliers that arerequired to comply with U.SGovernmentandRetailermandates. Packaged RFID is awholly owned subsidiary of thecompany.RFID Ltd. has over 50 years oftechnology and supply chainexperience, with an emphasis onunderstanding the businessobjectives and strategic directionof small-to-medium sized DoDandWal-Martsuppliers.Management executives offerbrand name exposure over theprivate and public sectors inbusinesses such as Dell, Alcoa,Caterpillar, Nestle, Danone,Coca-Cola, Accenture, Fujitsu,DIRECTV, Verizon Wireless,ConocoPhillips,3Com,ExxonMobil, Department ofDefense and Congressionaladvisory services.The Partners and SubsidiariesRFID, Ltd. is proud to work withthe finest technology companiesRecent Notable Quotesand HeadlinesAsreportedbyJournal/May Conference:RFID"My point of view is that we'realready way behind in theimplementation [of RFID], and Partners & SubsidiariesRFID, Ltd. is proud to work with the finest technology companies in the world including IBM, Hewlett-Packard, Microsoft, Symbol,RFID4U, SimplyRFID.com, EPC Solutions, BlueStar and Zebra.10

FEATURERFID LTD. (OTC: RFDL) - THE SMART BUY IN RFID TECHNOLOGYwe need to pick up the pacedramatically," said Jim Noble,vice president and CIO of AltriaGroup, the parent company ofboth Kraft and Philip Morris. Dick Cantwell, vice presidentand head of RFID at Procter &Gamble (P&G), described howP&G tracked Fusion razorsduringtheproduct'sintroduction at some 400 RFIDenabled stores. According toCantwell, P&G enjoyed a 20percent "sales lift" because thecompany and its retail partnerscould use RFID tracking data tomake sure the promotionaldisplays were out on the retailfloor on time. He said the salesincrease more than paid for thetagging of the promotional. Alan Estevez, assistant deputyundersecretary of supply chainintegrationfortheU.S.Department of Defense, spokeabout the benefits the Marinesare getting from using RFID totrack material in Iraq. He saidRFID has helped the militarybranch cut the value of inventoryin the supply chain from 127million to 70 million. Averagedelivery times, meanwhile, havedropped from 28 days to just 16days.Hagen Wenzek, leader of theglobal electronics team at theIBM Institute for Business Value,a unit of IBM BusinessConsulting Services. Wenzekmentioned that over the pastyear or so, he has seen a changein the way people view RFID. "Ayear ago," he said, "RFID was thehot topic and people werestruggling to find an applicationfor it. Now, they are looking at abusiness problem and seeingRFID as one tool in their toolboxthat might solve that problem." Walgreento Use TaggedDisplays: Walgreen says theGoliath system will be installedin all 5,000 stores by the first halfof 2007, as per the recent chainwide agreement.Sales AdvantagesProctor & Gamble enjoyed a 20-percent"sales lift" because its retail partnersused RFID tracking data to make surepromotional displays were out on theretail floor on time.An independent study by theUniversity of Arkansas findsthat, on average, the use ofElectronic Product Code (EPC)technologies at 10 Wal-Martstores reduces out-of-stocks by16%, proving for the first timethat RFID could have an impacton this long-standing bane ofretailers. Boeing WantsParts Tagged DreamlinerAvery Dennison Sells Gen 2 Tags for7.9 Cents, representing a reduction incost of purchase to buyer. 11

FEATURERFID LTD. (OTC: RFDL) - THE SMART BUY IN RFID TECHNOLOGY Target, Wal-Mart Share EPCdata. The two retailers launch apilot with 13 manufacturers toshare data in a standardizedformat, paving the way forgreater collaboration over theEPC global network.Chase's credit card divisionbecomes the first credit cardissuer to offer MasterCard andVisa cards embedded with RFIDtags, which consumers can use to ConclusionIn a burgeoning RFID market,RFID Ltd. is well positioned forexceptional growth. The RFIDmarket is predicted to quadrupleSourcesSources for statistical information andcommentary: Standard & Poors,IDTechEx, IDG News Service,Consultant-News.com,Frost&Sullivan, AMR Research, ForresterResearch, RFID Journal, *VP/GM ofworldwideenterprisesecurityinitiatives within Unisys' StrategicProgram Office.make cashless paymentsRFID-enabled terminals.atTheFederalAviationAdministration (FAA) announcesit will allow passive tags to beused on airplanes, paving theway for the tagging of parts,baggage and cargo. 12by 2015. Including contracts inhouse, revenue estimates forRFID Ltd. for 2006 are upwardsto 7 million, approximately 40%of which is expected from WalMart suppliers. Projected growthfor the next 3 years is anticipatedto be at 35% compoundaggregate growth. The barriers toentry are becoming less and thepotentialforconsiderableopportunity in this market canmake a difference to the upsidewith one contract.

FEATURESection 17(b) Disclosures for RFID, Ltd.In accordance with the provisions of Section17(b) of the Securities Act of 1933, which readsas follows (for the sake of completeness,Section 17(b) is quoted in its entirety) it ishereby disclosed that:RFID LTD. (OTC: RFDL) - THE SMART BUY IN RFID TECHNOLOGYIt shall be unlawful for any person, by the useof any means or instruments of transportationor communication in interstate commerce orby the use of the mails, to publish, givepublicity to, or circulate any notice, circular,advertisement, newspaper, article, letter,investment service, or communication which,though not purporting to offer a security forsale, describes such security for aconsideration received or to be received,directly or indirectly, from an issuer,underwriter, or dealer, without fully disclosingthe receipt, whether past or prospective, ofsuch consideration and the amount thereof.of this report, Third Party provided a budgetin an amount up to One Million Dollars( 1,000,000.00). Third Party and its affiliatesand Alexander Perry Corporation and itsaffiliates may receive additional revenue, theamount of which cannot be determined to anydegree of certainty, from the sales of RFID,Ltd. common stock that they hold or may lateracquire in their securities portfolios.Currently, Third Party and its affiliates hold941,720 shares of RFID, Ltd. common stock.They may from time to time buy or sell sharesin RFID Ltd. Currently, Alexander PerryCorporation and its affiliates hold no shares ofRFID, Ltd. common stock. No additionalrevenue will be paid by Third Party to anyother third party. Neither Third Party,Alexander Perry Corporation nor theiraffiliates make any commitment to update thisdisclosure or otherwise to notify any personupon increasing or decreasing their positions.Alexander Perry Corporation, in considerationfor their Registered Investment Advisoryservices which include, but are not limited to,publishing the information herein contained,received or will receive from third partiesknown as Hoss Capital, LLC and TechnologyPartners LLC (herein referred to collectively asthe "Third Party") which are affiliates of RFID,Ltd., the issuer herein described, the sum ofTen Thousand Dollars ( 10,000.00). This stockprofile should be viewed as an advertisement.In order to enhance public awareness of RFID,Ltd. and its securities through the distributionThe author of this report is a registeredinvestment advisor, but this publication, itspublisher, and its editor are not registeredinvestment advisors nor do they purport toprovide a complete analysis of any company'sfinancial position, including the financialposition of RFID, Ltd. This publication doesnot constitute an offer to buy or sell securities.Neither this publication, its publisher nor itseditor purpor

RFID technology this year, with 8% in full deployment The average annual RFID budget is estimated at 550,000, reaching 770,000 by 2007 23% of companies polled are piloting RFID technology, while 38% plan to evaluate RFID technology in the next two years By 2015, 1.3 million people are estimated to be working in the RFID industry

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