Chep to Launch Global Track and Trace System

First commercial application of RFID solution for product and asset tracking

ORLANDO, FLORIDA - October 12, 2006 - CHEP, the world leader in pallet and container pooling solutions, today announced the development of a worldwide system to provide trading partners in the supply chain with real-time visibility to products shipped on the company's pallets and containers. The new solution, which is built on EPC global standards and part of the CHEP PLUS ID offer, is now piloting at several customers in the automotive and consumer package goods industries including Procter & Gamble and Avon in Brazil. It is planned to be extended to other markets in early 2007.

The CHEP Global Track and Trace System provides users with comprehensive visibility of products from the point of processing to the point of consumption using radio frequency identification (RFID) technology. Real time product tracking throughout distribution center and store environments, as well as with trading partners across the extended supply chain allows companies to reduce out-of-stocks and improve customer service, among other benefits.

"This represents a milestone for the use of automatic identification technology in supply chain operations. The CHEP Global Track and Trace System will allow our customers to see exactly where their products are at any given time," said Dave Mezzanotte, Chief Operating Officer, CHEP.

"This solution allows CHEP customers to vastly improve the way they track their products through the supply chain in a secure setting. It also allows them to share these data with trading partners to further improve the flow of both information and goods," said Brian Beattie, Senior Vice President, Marketing, CHEP.

The new solution features the CHEP 3-in-1 tags, which can be read through RFID, bar code, or visually using a human readable identification number. The CHEP PLUS ID offer features 100% performing RFID tags, multi-mode readability that reduces the need for installation of RFID readers in all supply chain locations, total conformance to EPC global standards, and full read-write capability, with two pages of user memory enabling CHEP customers to temporarily write product-related information. This secure application that supports multiple devices also provides users with accurate, granular and real time management reports and sophisticated analytical tools that can be used to monitor key performance metrics.

CHEP is using the Microsoft RFID Platform, the SQL 2005 reporting tool, as well as SAP's Auto ID Infrastructure / Event Manager as the foundation of the system. The Microsoft solution was implemented by Cactus Commerce and the SAP solution was implemented by Infosys Technologies.

Note: Additional information on the development of the CHEP Global Track and Trace System will be released at the EPC Global Conference in Los Angeles, October 17-19, 2006.

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