OAT Announces First End-to-End RFID Software Solution To Power The High Resolution Supply Chain™

OAT Takes an Early Lead Landing More than 25 Customers and Naming Former MIT Auto-ID Center Chairman Sanjay Sarma as CTO

WATERTOWN, MASS. – May 24, 2004 – OATSystems, Inc., the leading provider of software for the High-Resolution Supply Chain™, today unveiled OAT EPC-IS Edge Server 3.0. OAT EPC-IS Edge Server 3.0 is an industrial-strength Radio Frequency Identification (RFID) software solution that is easy to deploy and proven to meet the requirements of a full-blown Electronic Product Code (EPC) Network. OAT EPC-IS Edge Server manages networks of RFID readers deployed in manufacturing, distribution and retail facilities and turns the raw EPC data stream into a “high-resolution” view of product movement across the extended supply chain. Many of the world’s leading retail, defense, pharmaceutical and consumer packaged goods (CPG) companies, including three of Wal-Mart’s top eight suppliers, are deploying OAT to meet RFID mandates, reduce loss, improve order accuracy and increase inventory turns.

“Businesses today are limited by the quality of the information collected within the supply chain, as data is often old, inaccurate and imprecise. To effectively compete in today’s market, companies need easy access to timely information that can help them increase sales, reduce out-of-stocks and meet retailer mandates,” said Prasad Putta, CEO of OAT. “OAT EPC-IS Edge Server 3.0 delivers on the promise of automatically identifying, tracking and sharing – in real time – the movement of individual products across the supply chain. With OAT, companies can rest assured that they’re delivering the right product, to the right customer, at the right time.”

The pioneers leading the adoption of RFID technology, such as Wal-Mart, Target, Gillette and Tesco, are doing so because they understand how high-resolution visibility of inventory and product movement can drive inefficiency and waste out of the supply chain. As an example, out-of-stocks cost CPG suppliers 6-8% of revenues, according to a study by the University of Colorado. For a large supplier, out-of-stocks cost hundreds of millions of dollars annually. Other areas of waste include chargebacks resulting from disputed shipment contents, diversions, shrinkage and counterfeit.

These problems are caused primarily by inaccurate inventory counts, the lack of a real-time replenishment signal and the inability to track individual products through the supply chain. The vision of RFID is to provide a High-Resolution Supply Chain™, where individual products are tracked automatically in real-time, providing accurate, precise and timely information in order to ensure delivery of the right product, to the right location, at the right time. By capturing, managing and distributing EPC information, OAT enables businesses, for the first time, to optimize manufacturing and distribution operations based on a high-resolution view of the supply chain. This real-time insight enables businesses to automate shipping and receiving processes, verify the authenticity of branded goods, improve order accuracy and maintain accurate inventory levels. In addition, suppliers and retailers can use information about the velocity of product movement to adjust to rapidly changing consumer demands and preferences. OAT serves as a common RFID software solution across the enterprise and is easy to integrate into existing systems, thereby leveraging prior investment in enterprise applications.

A COMPLETE RFID SOFTWARE SOLUTION

OAT EPC-IS Edge Server 3.0 is a complete RFID software solution that includes both industrial-strength device management and a visibility engine that builds and stores “context” around EPC information for track-and-trace capability. The expanded capabilities of OAT EPC-IS Edge Server 3.0 include:

• Ease of use – Configurable through an intuitive, Web-based user interface. The product can be deployed in less than a week
• Seamless integration – XML-based API for easy integration with existing enterprise systems, such as warehouse management and ERP systems
• Scalability – Capable of powering EPC Networks with more than 100 readers from a single server
• Common platform - Proven solution for owned and outsourced facilities in manufacturing, distribution and retail.

OAT EPC-IS Edge Server has been successfully deployed by more than 25 customers. For more information about OAT EPC-IS Edge Server, please visit http://www.oatsystems.com/solutions.shtml.

OAT GAINS MOMENTUM

OAT has enjoyed a significant head-start over other RFID companies since it was selected to develop the software that powered the MIT Auto-ID Center’s initial field trial. The company has built upon that competitive lead by racking up an impressive roster of milestones including: •

• Establishing the largest customer base of any RFID software vendor, including:
  • HP, Gillette, the United States Department of Defense
  • Three of Wal-Mart’s top eight suppliers
  • Three of the world’s largest pharmaceutical companies
• Enlisting former Auto-ID Center Research Chairman Sanjay Sarma as CTO; and
• Building the industry’s largest team of EPC experts.

About OAT

OATSystems, Inc. is the leading provider of software for the High-Resolution Supply Chain™. OAT powers the EPC networks of many of the world’s largest retail, defense, CPG and pharmaceutical companies. First released in 2001, OAT is the world’s most widely deployed EPC software solution. OAT has been involved in the creation of the EPC industry from day one and has assembled the industry’s most respected team of EPC experts. For more information, please visit the company’s website at www.oatsystems.com