UPM Raflatac ShortDipole Meets Requirements Set by IATA

(UPM Raflatac, Tampere, November 3, 2009) - UPM Raflatac is among three RFID inlay suppliers to meet the operational requirements of an airline baggage tagging tender by the International Air Transport Association (IATA).

IATA has tested an extensive number of RFID inlays to identify products with optimal performance. UPM Raflatac's ShortDipole inlay carrying an Impinj Monza 3 chip was put through processes typical to the airline industry including baggage sorting, reconciliation and check-in. All tests were carried out at real sites using existing RFID infrastructure including readers and printers. UPM Raflatac's ShortDipole inlay delivered excellent performance in all tested areas.

The ShortDipole inlay is already successfully deployed as part of a new RFID-based baggage handling system (BHS) at Portugal's Lisbon Airport. The Airport reports that the RFID system reduces the average time to process a transfer bag by at least 66% and baggage-handling errors by as much as 50%.

The system used at Lisbon Airport is among the world's first to totally abandon the bar-code system and rely on RFID technology to track transfer bags.

RFID technology offers significant benefits not only to airports and airlines but for passengers as well. RFID technology enables real-time tracking to enhance luggage security and reduces the time spent locating any misplaced luggage. RFID also improves customer loyalty by minimizing the number of customers suffering any inconvenience.

Unlike bar-coded labels which require a direct line of sight, RFID tags can be read from a distance and at an angle. They carry more information and provide better accuracy. RFID tags yield read rates of up to 97% while the average bar code read-rate stands at just 80%.

"IATA's qualification is yet another result born from our long-term commitment to the baggage tagging segment. UPM Raflatac is dedicated to this business area through its converting partners and in close cooperation with major RFID infrastructure providers and systems integrators," says Mikko Nikkanen, Business Development Director, UPM Raflatac, RFID.

"We're currently finalizing our partner alliance - a winning team capable of responding to the airline industry's market requirements with high performance solutions at an affordable level."

UPM Raflatac's ShortDipole inlay has been widely adopted by end-users in logistics applications. Delivered in high volumes since its release, the Short Dipole is a short pitch based standard RFID inlay which enables cost-effective baggage tags for airline companies.

UPM Raflatac's RFID Business Area has factories on three continents (Europe, North America, Asia). This makes UPM Raflatac's products available in large volumes for all airlines globally.

For more information, please contact:

Mr Mikko Nikkanen, Business Development Director,

UPM Raflatac, RFID,

tel. +1 828 275 5162

About UPM Raflatac

UPM Raflatac, part of UPM's Engineered Materials business group, is one of the world's leading suppliers of self-adhesive label materials and the world's number one producer of HF and UHF radio frequency identification (RFID) tags and inlays. UPM Raflatac has a global service network consisting of 14 factories on five continents and a broad network of sales offices and slitting and distribution terminals worldwide. UPM Raflatac employs 2,600 people and made sales of approximately EUR 1 billion (USD 1.4 billion) in 2008.

Further information is available at www.upmraflatac.com.

About IATA

IATA is an international trade body created over 60 years ago by a group of airlines. Today, IATA represents some 230 airlines accounting for 93% of scheduled international air traffic. The organization also represents, leads and serves the airline industry in general.

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