Kimberly-Clark Deploys First Mobile RFID Tagging Solution; Uses OATSystems' Mobile Tag to Improve In-Store Product Promotions

Incorporates Mobile Tagging Station From ADASA; Solves Challenge of Encoding, Applying RFID Tags, Verifying Shipments of In-store Product Displays in Remote Facilities

DALLAS – March 27, 2007 -- OATSystems Inc. today announced here at RFID World 2007 that Kimberly-Clark Corporation (NYSE: KMB) has deployed OATSystems’ newly introduced OAT Mobile TagTM, the first enterprise-class, mobile RFID tagging solution to improve the execution of in-store product promotions.

Like other consumer product companies, Kimberly-Clark invests significantly in in-store product promotions, using as a primary vehicle a manufactured display that features the promoted product. These displays are typically shipped from Kimberly-Clark’s contracted manufacturers directly to retailers’ stores. All too frequently, operational challenges prevent these displays from reaching the sales floor at the beginning of the promotional period. In fact, industry statistics show that between 15% to 40% of stores fail to move displays to the sales floor on time, missing critical promotional windows and the opportunity to increase sales. Working with OATSystems, Kimberly-Clark has solved this complex operational problem using the latest RFID technology and a mobile tagging solution.

The solution, which incorporates the Mobile Tagging Station from ADASA, enables Kimberly-Clark’s third-party contract manufacturers to apply RFID tags to promotional displays. In-store RFID readers read the displays’ tags to record when they reach the backroom of the store and again when the displays reach the sales floor. When a display’s tag is read, data is sent to Kimberly-Clark and the retailer showing whether the display has reached the sales floor on time. With this innovation, Kimberly-Clark and its retail customers can intervene promptly when displays fail to reach the sales floor on time. This benefits Kimberly-Clark, the retailer and the consumer by ensuring promoted products are where customers expect them to be.

The OAT Mobile Tag solution will also enable Kimberly-Clark to support RFID-enabled stores in new geographies, easily conduct RFID proof of concepts and explore other RFID applications to improve performance. (See today’s related announcement from OAT, OATSystems Announces Real-Time Promotion Execution Solution). With this new capability, Kimberly-Clark will enrich its information flow substantially and thereby manage its promotions with greater precision to improve bottom-line results.

Before OAT introduced Mobile Tag, companies either had to deploy costly fixed, enterprise-connected RFID technology or take an unconnected approach that offered limited visibility, failed to ensure data quality and sapped the value of RFID data. OAT Mobile Tag now provides a pragmatic choice the market has been waiting for: enterprise connectivity at a moderate cost and without fixed infrastructure requirements.

“We have been working closely with OAT and ADASA for several months to advance our RFID operational tagging capabilities through a portable edge concept that we developed,” said Mike O’Shea, director, Auto-ID Sensing Technology, Kimberly-Clark. “OAT Mobile Tag is a cost-effective solution that allows us to focus our RFID tagging efforts where there is a clear value proposition for K-C and our customers.”

In addition, OATSystems said that Kimberly-Clark has signed an enterprise license agreement to purchase the OATSystems’ OAT Foundation Suite as part of its global RFID initiatives. The OAT Foundation Suite is a complete RFID solution from encoding tags, managing tag readers and gathering and analyzing electronic product code data. Kimberly-Clark said it plans to use the OAT Foundation Suite generally to increase efficiencies within its entire global supply chain and specifically to improve promotion management and other critical business functions, including goods movement within distribution centers, proof of delivery and shipment reconciliations.

OAT Mobile Tag Components

The OAT Mobile Tag solution includes software to manage the electronic product code number allocation and the business process, including coding, applying, verifying tags, verifying shipment and exchanging data between remote facilities and corporate headquarters.

“OAT Mobile Tag is a practical, cost-effective approach to applying RFID tags centrally and verifying tags and shipments, all in a manner that can be easily moved when necessary,” said Paul Cataldo, vice president of Marketing, OATSystems. “We are excited that Kimberly-Clark is once again taking the lead in demonstrating to the market the benefits of RFID solutions to improve operations and bottom-line results.”

The ADASA Mobile Tagging Station includes the PAD3500 mobile encoder, which can be worn on a belt and commission thousands of Gen2 electronic product tags per hour, a laptop running OAT software and a Symbol RFID and Barcode handheld device. All these are within a hardened case that weighs less than 50 pounds and is small enough to travel as checked baggage on most airlines.

“The mobile tagging station with the PAD3500 provides a unique, bundled solution that can be quickly set up and within minutes begin tagging,” said Clarke McAllister president of ADASA Inc.

The OAT Mobile Tag solution and ADASA Mobile Tagging Station are available for deployment immediately.

About ADASA
ADASA Inc. is a highly innovative technology company specializing in advanced mobile RFID systems and RFID recycling. Based in Eugene, Oregon, ADASA is leading the development of patented and cost effective mobile RFID and tag recycling methods, technologies, and applications for Fortune 500 companies.

About Kimberly-Clark
Kimberly-Clark and its well-known global brands are an indispensable part of life for people in more than 150 countries. Every day, 1.3 billion people -- nearly a quarter of the world's population -- trust K-C brands and the solutions they provide to enhance their health, hygiene and well-being. With brands such as Kleenex, Scott, Huggies, Pull-Ups, Kotex and Depend, Kimberly- Clark holds the No. 1 or No. 2 share position in more than 80 countries. To keep up with the latest K-C news and to learn more about the company's 135- year history of innovation, visit http://www.kimberly-clark.com.

About OATSystems, Inc.
OATSystems Inc. is the recognized radio-frequency identification (RFID) solution leader with software applications that empower businesses to achieve a competitive advantage and increase ROI. It provides solutions supporting the entire RFID process from tagging to data capture and filtering to analysis. As a pioneer in developing RFID technology, OAT has been setting the standards for more than half a decade and is responsible for industry firsts that include the largest scale and scope of deployments, as well as the most innovative approaches to providing enterprise-wide RFID solutions. OAT’s multinational client base consists of more than 80 customers in the retail, consumer packaged goods, industrial and other markets. Headquartered in Waltham, MA, OAT has offices in Austin, Chicago, London and Bangalore. To learn more about the company’s latest developments, visit the website at www.oatsystems.com.