(Asia Pacific, March 1, 2007) - Asia Pacific, March 1, 2007 -Checkpoint Systems Inc. (NYSE: CKP), a leading manufacturer and marketer of RF- and RFID-based solutions for identification, tracking, security and merchandising applications, today announced a strategic agreement with RENO - part of the HR group, Europe's second-largest shoe retailer. The agreement includes a forward-looking source tagging programme and installation of 700 branches across six countries with NDRF-based (New Digital Radio Frequency) goods tagging systems with integrated customer frequency measurement. Roll-out is to be completed by the end of May. "Not only should NDRF goods tagging help us to effectively reduce losses, it should also further improve the shopping experience for the customer," explains Hans-Werner Königs, Divisional Manager of Organisation and Goods Control at RENO.

Positive effect on sales figures
Since 1992 the company has been tagging goods with electromagnetic (EM) technology at the manufacturing stage - in all product and price categories. "RENO is one of the forerunners of source tagging in the shoe retail trade," says Hans-Werner Königs. "We soon recognised that there are many advantages of effective goods tagging. After all every item that's stolen has a direct effect on a company's operating result."

In addition, this has also had a positive effect on RENO's sales. Tags can be integrated into the shoes, so they can be displayed in pairs or in boxes for customers to select from, without the risk of being shoplifted. This means that employees do not have to collect the second shoe from the store and are available to assist the customer throughout the selection procedure. Furthermore, customers can browse around RENO freely and the company meets the consumers' highest requirements in terms of product and shopping experience. Pallets containing 62 individually tagged cases largely containing RFID unfriendly materials (such as cans, liquids and metal lined items) were simultaneously transported at warehouse speeds through 36 adjacent loading dock doors. Some 4.5 million individual reads were recorded over the course of the trials.

Larger aisle width and simpler deactivation
Switching from EM to NDRF technology, RENO wants to further optimise both its market presence and its operational processes. "To be successful in the shoe retail trade the goods have to be presented in the right way. As well as displaying shoes in pairs and in boxes, an open shop construction is also particularly important," says Königs. With NDRF, the current aisle widths in the branches could be increased from 90 cm to 1.80 m and a more customer friendly entrance introduced. Further improvements in the business process include simpler deactivation of the tagged goods at the point of sale. The cashier transaction is sped up while it guarantees that no customer will leave the store with a tag that accidentally remains activated, thereby triggering a false alarm.

CheckNet ensures a swift supply of tags
The roll-out of the NDRF tagging systems for the 700 branches in Germany, Austria, Switzerland, Slovakia, Czech Republic and Hungary started at the beginning of 2007. By the end of May Checkpoint will have enabled the installation and commissioning of the new systems. In future, millions of tags for Reno will also be provided via CheckNet, Checkpoint's service and tagging platform. The order process can be activated through a direct interface. The wafer-thin RF tags 615, which were designed especially for shoes, will then be supplied to the production locations predominantly in Asia.

Besides the direct advantages associated with Reno's switch to NDRF technology, the company also wants to prepare itself for the future. "From a strategic point of view, as any other retailer, we 'dream' of fully automatic goods and date tracking - from the supplier to the branch. What's more, we'd like to make work processes as simple as possible for our staff working in the branches. We believe that RFID is the most suitable system for this. By opting for RF we have already set the course for the future," explains Königs.

About Checkpoint Systems Inc.
Checkpoint Systems Inc. is the global leader in shrink management solutions for the retail industry and its supply chain. Checkpoint's services are aimed at increasing sales and protecting the profits of its customers. Listed on the NYSE, Checkpoint operates in every geographic market and employs 3,600 personnel worldwide. Checkpoint specializes in source protection of consumer goods, EAS (Electronic Article Surveillance), RFID (Radio Frequency Identification) and merchandising solutions. CheckNet is Checkpoint's strategic platform for its source tagging service, a global network for 'just-in-time' delivery of critical information and protection applied on products at the point of manufacture.

Visit Checkpoint Systems at www.checkpointasiapac.com

About Reno
Reno was established in the 1970s in Thaleischweiler-Fröschen (Rheinland-Pfalz, Germany). They have over 700 branches employing 5,000 people and are operational in 15 countries. RENO is part of the HR group, Europe's second-largest shoe retailer. Reno stands for quality shoes at a decent price. Alongside their own brands, Reno also sells shoes made by a number of other manufacturers.

Visit Reno at www.reno.de