1

The Benefits of Battery-Assisted Labels in Challenging Environments: Case-Study EvidenceGidy WeisglassDirector, European SalesPowerID DivisionPower Paper

About Power Paper

• Breakthrough micro-power source technology- Ink-based, thin and flexible energy cells

• Founded: 1997, headquartered in Israel• Employees: 100+ and growing• Funding:: $34 M• Investors: Amadeus, PolyTechnos, Millennium, Bank of

America, Yasuda, EDB, Clal, Toppan Forms & others• Business Divisions:

Empowering cosmetic and topical delivery

Power Paper Core Technology

• Ink-based energy cells (batteries) printed onto any surface or integrated into the device

• Highly elastic and flexibility• Environment-friendly, contains no hazardous

materials• Mass-produced at pennies per micro-power source• Easy to customize shape and specs

Authorized Battery Manufacturers

• Low-cost production using conventional printing processes• Roll-to-roll: High volume

Capacity = ~350 m units per year Location : USA, Japan

• Plate-sheet: Low volumeCapacity = ~80 m units per yearLocation: Germany

Radio Frequency Identification (RFID) Overview

• Active Tag• Independent• Contains a battery, chip,

and antenna• Transmits in pre-defined

frequency and RF power

• Passive Label• Dependent • Contains a chip and

antenna• Backscatters in reader’s

frequency

• Battery-Assisted, Passive Labels• Dependent• Thin battery, chip, and antenna• Backscatters in reader’s

frequency

PowerID™ Battery-Assisted Label

• Components:• UHF Read / Read Write (1Kb) EM Marin chip• Printable antenna• Printable, disposable power source• Gen. 2 available Q4 2005

Read/Write RangeRead Only RangePowerID™Passive

15 meters(50 feet)

2 meters(6.56 feet)

PowerID™Passive

2.5 meter15+ meters

(50 feet)

18 meters(60 feet)

18+ meters(60 feet)

3.5 meters (14 feet)EU standard (2 W)

4 metersUSA Standard (4 W)

Battery-Assisted Label Opportunity ($M)

$29

$72

$256

$231

$160

$458

$145

$62

$55

$39

$53

$36

$46

$5

$7

$8

$8

$9

$9

$23

$23

$73

0 50 100 150 200 250 300 350 400 450 500

Multi-modal

Aerospace

Electronics

Third Party Logistics

Pharmaceuticals

Courier

Food Products

Consumer Products

Government

Trucking

Automotive

2007 Total = $1558.9

2004 Total = $245.3

CAGR = 77.2%

CAGR = 100.8%

CAGR = 70.5%

CAGR = 87.9%

CAGR = 101.3%

CAGR = 88.2%

CAGR = 86.1%

CAGR =171.1%

CAGR = 64.9%

CAGR = 71.5%

CAGR = 52.2%

2004 Total = $245.3 2007 Total = $1558.9

CAGR = 52.2%

CAGR = 71.5%

CAGR = 64.9%

CAGR = 171.1%

CAGR = 86.1%

CAGR = 88.2%

CAGR = 101.3%

CAGR = 87.9%

CAGR = 70.5%

CAGR = 100.8%

CAGR = 77.2%

• Harsh RFID environmentexpected to represent over 60% of all consumer goods and nearly 65% of all food products by 2007

• % hostile RFID landscapefor PowerID targeted segments expected to grow over 85% through 2007

Source: Venture Development Corporation

Battery-Assisted Market Potential2004 Total = $245.3 2007 Total = $1558.9

The Solution: PowerID System

• A comprehensive battery-assisted (semi-active) RFID label system for superior tracking and tracing in the supply chain and other industries

Readers Middleware

APIsAir interface protocols

InternalDatabase

(ERP)

Enterprise Applications

BusinessTransactions

PowerID labels (PP battery on board)

System IntegratorOr Solution Providers

Challenge 1: “Waking up” the label

• Range• Product materials (liquids, metals, etc.) • Environment • Packaging materials (metal cans, foils, plastic) • “Sandwich” effect • Orientation• Movement speed

T2

T1Reader T1

T3

T2

T4

Labels do not reach power excitation levelLabels do not reach power excitation level

PowerID Solution

• Longer range, stronger signal• Overcomes:

• Product and packaging materials (Liquids, metal etc.)• Environment interference • “Sandwich” effect • Orientation of antenna• Movement speed

Battery eliminates the need for label to Battery eliminates the need for label to collect energy from the reader collect energy from the reader

T2

T1Reader T1

T3

T2

T4

Challenge 2: Weak Backscatter SignalChallenge 2: Weak Backscatter Signal

• Antenna is optimized primarily for energy collection and less for backscatter signal level (trade-off)

• Environmental and product / packaging interference• “Sandwich” effect• Orientation

Reader does not detect labelReader does not detect label’’s backscatter s backscatter low/poor signallow/poor signal

T2

T1Reader T1

T3

T2

T4

PowerID Solution

• Antenna optimized for high backscatter signal level with improved modulation depth (s/n ratio) and range

• Overcomes environmental and product / packaging interference, “sandwich” effects, orientation

Antenna is optimized for maximum signal level Antenna is optimized for maximum signal level

12m/35ft

T2

T1Reader T1

T3

T2

T4

Challenge 3: Limited operability worldwide

• Narrow responsive bandwidth ~868 or ~921, but not both

• Label antenna is optimized for energy collection• Limiting the frequency bandwidth• A label will not perform with every reader

Label is optimized to specific regional Label is optimized to specific regional frequency bandfrequency band

868 918 Frequency, MHz

Backscatter Signal

Strength

i.e Read Range

950

Europe NA Japan

PowerID Solution

• Responsive bandwidth ~850 to ~960• Label antenna is optimized for energy backscatter• PowerID labels will perform well everywhere

Antenna designed to operate in a wide UHF Antenna designed to operate in a wide UHF frequency bandwidthfrequency bandwidth

868 918 Frequency, MHz956

Europe NA Japan

Challenge 4: Write Range

Write operation requires high voltage (~ 2.2V)Reader power is limited by regulationsPassive label write range is very short Environment / product & packaging materials “Sandwich” effectOrientation

RFID write capability is limited to a very short rangeRFID write capability is limited to a very short range

T1Reader T1T1

4m/12ft2m/6ft

ReadWrite

PowerID Solution

• Power source on board (~2.2V) sufficient for write operations• Does not depend on reader power• Write Range is 4m-15m / 12ft-45ft • Handling environment / product & packaging materials,

“sandwich” effects, orientation

Battery provides constant voltage needed for long range Battery provides constant voltage needed for long range write operationswrite operations

15m/50 ft

TP

Read

18m/60ft

T1Reader T1T1

4m/12ft2m/6ft

ReadWrite Write

TP

How it works: PowerID

Reader

Strengthof reader signal

Distance

Required for Passivelabel

T1

TP2Required for PowerIDlabel

4m/12ft 18m / 54ft

TP3

PowerID Roadmap

Pallet & Crate

Battery-assisted for superior performance asset visibility Version 1: Available Q2 2004

Version 2 (Gen 2 EPC compliant): Available Q4 2005

PowerID™System

Extremely low-cost RFID solution for shelf management in mass supply chain, based on BiStatix™Technology from MotorolaVersion 1: Available Q3/05

Version 2 (printable chip): Available 2007

PowerID™Printalic System

Item level

PowerID Printalic™

• PrinatlicA breakthrough, printable solution reaching less than $0.05 per label for managing stocks at the shelf level

• Benefits• Very low cost carbon-based antenna• Interposer technology: low cost assembly• Improved anti-collision protocols – high reliability• Perfect technology for retail (metal shelves “become” the

antenna)

PowerID in Harsh Environments: Empirical Data

Reading Range

Reliability (% of labels read)

ScenarioType of Goods

Up to 30 feet100%Outdoor loading/unloading areaMetal containers w/ liquid

10 feet* 100%Distribution center; reader on truck door; 100 boxes on metal roll containers

Aluminum foil juice boxes

10 feet*100%Distribution center; reader on truck door; Canned food

10 feet*100%Distribution center; reader on truck door; Ice cream (at -30° C)

10 feet*100%Reader/gate scenario. Several labels in and around boxes on pallet

Mixed goods (e.g. ketchup, metallic coffee canisters)

10 feet*100%Reader/gate scenario. Labels placed around box holding boxes of detergent. (case level)

Dishwashing detergent

10 feet*100%Labels sandwiched in between items !!!Baby wipes

N/A98%Item level; one label per box (10 packs); 50 boxes in a carton. conveyer

Cigarette packs (alum. foil)

23-30 feet100%Item level on pallet in several layersOil lubricant bottles

32 feet100%Item levelCondensed dog food

*According to customer requirements

Case studiesCase studies

Case Study 1 Case Study 1 ––Leading European CPGLeading European CPG

Challenging CPG Asset Tracking

• Application: Tracking assets in closed loop

• Asset type: Solid metal container holding liquid

• Environment: • Metal container• Liquid in the container• Surrounding objects causing RF interference

• Requirements:• Range: 10 meters• Reliability: 100% of labels read• Affordability ($25 active tag was too expensive)

Challenging Environment

Testing Methodology

• Setup• Apply PowerID label on metal containers• Place readers along key points in production line

• Testing• Move containers through specific points along

production line• Read labels

• Scenario• Ranges• Orientation

Field Testing

Field Test Results

• Reliability100%Orientation insensitive

• Range10 meters

• AffordabilityPerformance of active tag at less than 1/10 the cost

Case Study 2 Case Study 2 ––Leading European RetailerLeading European Retailer

Challenging Retailer Asset Tracking

• Application: Tracking assets in closed loop

• Asset type: Meshed roll-cage

• Environment: • Metal roll-cage• Various types of consumer packaged goods in roll-container• Surrounding objects causing RF interference• Five roll-cages stacked on one – A lot of metal

• Requirements:• Reliability: Ability to track roll-cages with products and when

stacked at 100% rates• Affordability

Testing Methodology

• Setup• Apply PowerID label on metal mesh roll-cages• Place readers along key points in production line

• Testing• Move containers through specific points along

production line• Read labels

• Scenario• Ranges• Orientation

Field Testing

Field Test Results

• Reliability100%Orientation insensitive

• AffordabilityPerformance of active tag at less than 1/10 the cost

Frequently Asked Frequently Asked QuestionsQuestions

FAQs

• How long does the label’s battery last?• What happens when the battery dies?• Can batteries be recharged or replaced?• What are PowerID’s manufacturing capabilities?• Are PowerID labels EPC Gen 2 compatible?• Are PowerID labels compatible with other systems?• Can labels be purchased without readers?• What pilots are utilizing PowerID?

Thank you!

21 Yegia Kapayim StreetPO Box 3353

Petah Tikva, IsraelTel: +972-3-920-4200Fax: +972-3-920-4222gidy@powerpaper.com