SMARTCODE™ CORP. teams up with Microsoft corp.

SMARTCODE™ CORP. Joins Microsoft Windows Embedded Partner Program – Company to Offer world leading EPC RFID solutions supporting Microsoft's platform

Membership highlights the quality and innovation of SmartCode Corp.'s Low Cost, standard based Electronic Product Code (EPC) RFID solutions supporting Microsoft's platform for Wal Mart, DoD, Tesco, METRO, Target and Albertson’s

New York, NY, August 26, 2004 – SmartCode Corp. the world’s leading provider of low cost EPC RFID tags and readers, today announced that it has joined the Microsoft Windows Embedded Partner Program. SmartCode Corp. becomes one of a select group of companies worldwide in this exclusive program; proof to the expertise and solutions SmartCode Corp. brings to the market for Windows-based embedded technologies.

SmartCode Corp. will also join Microsoft’s RFID Council for the acceleration and development of standards-based RFID solutions for the global market. The primary purpose of the Microsoft RFID Council is to research the RFID requirements and advantages of today's RFID technology to make it easier for retailers and manufacturers to track and trace merchandise.

SmartCode Corp.’s relationship with Microsoft will enable new and innovative RFID solutions to the global RFID marketplace. The relationship will enable world-leading retailers such as Wal-Mart, the Department of Defense (DoD), Tesco in the UK and METRO AG in Germany with a standards-based EPC RFID solutions, fully integrated with the Microsoft platform.

"We are very happy to work together with Microsoft,” said Avi Ofer, SmartCode Corp. President "For SmartCode Corp., this worldwide collaboration translates into new revenue streams and product development opportunities, expanded sales channels and broadened reach into new industry sectors," added Ofer.

"SmartCode’s low-cost EPC RFID solutions provide a true added value in implementing large-scale EPC RFID supply chains,” said Javed Sikander, program manager for RFID strategy at Microsoft. “When EPC RFID is implemented throughout the supply chain, the price of these disposable RFID tags plays a major role. SmartCode’s unique low-cost EPC RFID tags and readers enable our mutual customers to enjoy a high-performance RFID solution at a cost-effective price.”

“When building Windows Powered solutions, our customers need to be able to quickly identify third-party offerings that work with our platform,” said Jane Gilson, group product manager of the Mobile and Embedded Devices Division at Microsoft Corp. “SmartCode’s high-quality RFID solutions and services can now be easily identified by our mutual customers.”

SmartCode Corp. is a world leader in providing low cost, high performance RFID solutions. Until today, the prices of RFID tags with an average price of 50 cents each have created a cost barrier for companies worldwide to adopt the RFID solution as the replacement of the inefficient barcode technology. With SmartCode™ Corp.’s exclusive patented manufacturing technology, SmartCode™ Corp. can manufacture these RFID tags at a price level of 5-10 cents, in large volumes.

About SMARTCODE CORP.

SmartCode™ Corp. is a leading RFID developer that has developed a revolutionary, patented, and cost effective RFID manufacturing technology. Our Patented technologies enable us to intelligently replace the current inefficient Barcode technology. Our patented technologies enables us to manufacture a very large number of RFID tags at a fraction of the cost of today's traditional RFID. SmartCode™ Corp. introduces a cost-effective approach to dramatically reducing our clients Total Cost of Operation (TCO) and increasing their Return On Investment (ROI).

SmartCode™ Corp. enables companies to receive 100% real time visibility of their products across their entire supply chain. SmartCode™ Corp. is headquartered in New York, NY with offices in London, Silicon Valley, London, Hong Kong and a R&D Center in Tel-Aviv, Israel.

Learn more about SmartCode Corp. at www.smartcodecorp.com

SmartCode™ is a Trademark of SmartCode Corp. Other marks used are trademarks or service marks of their respective owners.

Contact information:

Mrs. Ruth Cohen,
Director, Media Relations
SmartCode Corporation
ruth.cohen@smartcodecorp.com
Tel: + 1-801-999-7632
Fax: +1-801-906-6885