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AWID is Poised for a Bright Future in the RFID Industry

I am pleased to announce that AWID and the Federal Communications Commission have entered into a Consent Decree regarding the company'ss compliance issues involving certain FCC equipment authorization rules that AWID executives discovered in the spring. We have effectively put this challenge behind us and AWID is now fully poised for a bright future. Already, we have resumed sales of about 80 percent of all our products, and we are producing products with better quality and reliability than ever before.



Over the past few months, AWID has been working hard to re-certify its products with the FCC and has implemented an FCC Compliance Plan to ensure future compliance. As we have said in the past, the compliance issues did not affect AWID reader assemblies embedded in devices manufactured by others, such as handhelds, printers, and applicators where those manufacturers satisfied their FCC certification obligations independently.



We remain committed to maintaining strict compliance with the letter and spirit of the law -- from top management to engineering to administrative staff. To this end, as we have reported in the past, we have changed our management structure and instituted new internal procedures to emphasize compliance and accountability.



As part of this restructuring, we have also reduced the overall staff and reassigned critical management positions, shifting emphasis to those areas of the business that will provide us with the highest quality and focused customer support going forward. These actions, in combination with additional funding activity, lay the groundwork for a very prosperous and successful future.



We appreciate our customers's8217; support as we have worked to get things right. AWID will always sell and ship only the highest quality and the most cost-effective products that comply with FCC equipment authorization rules.



Larry Kellam

Chairman & CEO

AWID

18300 Sutter Blvd.

Morgan Hill, CA 95037

www.awid.com



About AWID:

AWID has been a trusted name in RFID technology since 1997. In 2004 and 2005, over 100,000 AWID readers were put into production systems.



AWID is a founding member of EPCglobal; a founding member of the RFID IP Patent Pool & participates in the Intermec RFID Rapid Start licensing program.

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