UPM Rafsec providing RFID tags for the first Gen2 project in Hong Kong and the South China region

UPM Rafsec, a leading RFID tag and inlay manufacturer, announces today that it has entered into an agreement with Supply Chain and Logistics Technology Holdings Limited (SCL), a joint-venture of The Hong Kong Polytechnic University (PolyU), to deliver UPM Rafsec Gen 2 RFID tags. UPM Rafsec together with SCL will supply tags to Novetex Spinners Limited (Novetex), the world’s largest single site woollen spinner, for the project that will mark the first Gen 2 RFID initiative in Hong Kong and the South China region.

The new RFID system being deployed for Novetex by SCL, consultant as well as hardware & solution provider for the project will touch three different processes in Novetex’s Zhuhai warehouse - the receiving process, cycle counting and the delivery process.

UPM Rafsec’s Gen 2 RFID tags will be instrumental in achieving real-time visibility of raw materials and product inventory, leading to fewer production delays and faster response times to customer requests. Novetex expects substantial enhancements in operating efficiency at its warehouse when the project is fully deployed.

Marcus Vaenerberg, Vice President Sales at UPM Rafsec, comments “We’re extremely excited to be taking part in the first Gen 2 project in the South China region. The technology is just starting to take hold here. However this region is very dynamic. Our collaboration with SCL, an ideal partner for us, will permit us to expand our presence significantly in this rapidly growing market.”

UPM Rafsec’s latest RFID Class 1 Generation 2 technology has a single, globally applicable antenna design and provides higher read ranges and faster response times than RFID tags of previous generations.

Novetex’s complete RFID identification and tracking solution will go live in early 2006.

For more information, please contact:
Mr Marcus Vaenerberg,
Vice President Sales, UPM Rafsec,
tel. +358 204 168 133

UPM Rafsec
Communications
January 2, 2006

About UPM Rafsec
UPM Rafsec is a world-leading RFID tag and inlay manufacturer and a pioneer of the EPC standard specialized in cost-efficient high-volume production. Headquartered in Finland, the company has the broadest and most comprehensive in-house knowledge and capability for RFID tag design and manufacture. Together with Raflatac, UPM Rafsec forms the Labelstock Business of UPM, one of the leading global forest products companies with annual sales of EUR 10 billion and stocks listed on the Helsinki and New York stock exchanges. Raflatac is a global supplier of paper-based and filmic pressure sensitive labelstock.

About Supply Chain & Logistics Technology Limited
Based in Hong Kong, Supply Chain & Logistics Technology Ltd. (SCL) is a professional, knowledge-based solution provider specialized in developing solutions for the logistics & supply chain industries. SCL believes that RFID technology will transform supply chain to become value chain. Therefore, SCL has developed a diverse list of applications in warehouse management and point of sales systems to match its customer base where each of them plays a specific role along the supply chain and logistics industry. Contact: Ms Natalie Yue at +852 29977017. www.sclnet.com.hk