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Progress Report on Chipless RFID Applications SARcode™ Development By InkSure Technologies

Progress Report on Chipless RFID Applications SARcode™ Development By InkSure Technologies. 1. InkSure Technologies.

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Progress Report on Chipless RFID Applications SARcode™ Development By InkSure Technologies

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  1. Progress Report on Chipless RFID Applications SARcode™ Development By InkSure Technologies 1

  2. InkSure Technologies • Provider of covert, machine readable security solutions (“CMRT”) to definitively and quickly identify genuine branded products and documents for protection against counterfeiting • Our expertise in spectral detection of covert marks enables InkSure to provide the most advanced readers in the authentication industry • Over 5 years of commercial sales • Billions of consumer products protected with InkSure technology • Product and Image Security (“PISEC”) award winner: 2000, 2003, 2006 • Member Document Security Alliance (“DSA”), North America Security Products Organization (“NASPO”), Product and Image Security Foundation • U.S. public corporation (INKS.OB) • Corporate Headquarters in Fort Lauderdale, FL; Global R&D Center at the Science Park in Rehovot, Israel

  3. InkSure RF • Three patents granted and three additional applications pending. • Highly skilled and dedicated R&D team with expertise in: • Leading mathematical algorithm research • Experts in radar methods, RF and RFID technologies • Advanced Chemistry Research • Advanced optical/spectral research • Recipient of 2007 Frost & Sullivan Product Innovation Award –Chipless Tag Market, Asia Pacific • Proof of concept successfully demonstrated publicly at IDTechEx’s RFID Smart Labels USA 2006 conference in Boston, March 2006 • Beginning initial field testing, with commercial launch expected by end of 2008

  4. What is Chipless RFID? • A “Read-Only” system (no chip, no memory) • Bits of data based on a new printed symbology • Potential to produce the lowest cost RFID tag • Capabilities for printing directly and covertly on products or packaging • Frequencies above UHFThe RFID Connection • Ability to read without line-of-sight at any angle. i.e. through packaging • Ability to read at extended distances • Ability to read multiple tags with anti-collision 4

  5. Tag Price ComparisonsSource: IDTechEX Chipless Chip Range1m(3.3ft) 32¢ Tag price* 10¢ 10-20¢ Range0.1m (3.9in) 4¢ Target to sell trillions a year 2¢ Sub-Cent Anti-theft 1 bit ID 96 bits More Data k bit *When bought in millions

  6. SARcode™Development Vision Develop a low-cost Chipless RFID tag Printed directlyand covertly on products or packaging RFID tag price: under one cent Major advantages over barcodes or chip based RFID: Easily Detectable: Does not require line-of-sight Lower Cost: Requires less ink than printed RFID antennas and no silicon chip; does not take costly package space and improves package aesthetics Efficient: Enables detection of multiple codes simultaneously and remotely Higher coding ability:Codes a significantly higher amount of information than standard bar-codes, enabling EPC encoding Anti-counterfeiting solution:Easilyintegrated 96 bit coding Remotely detectable 12 digit/~40 bit Require contact reading 6

  7. How to get there… • Take Advantage of Diffraction • Create a New Symbology: “SARcode” • Utilize Radar-Based Imaging Principles • Develop a New Portfolio of SARcode Readers • Integrate Existing Printing Processes with SARcode Software

  8. Understanding the Diffraction Phenomena • The existence of diffraction has limited the extent to which symbols or images (such as barcodes) can be compressed. • Diffraction is the bending, spreading and interference of waves when they pass by an obstruction or through a gap. When a bar code symbol is placed too near another symbol, its waves interfere with those of its neighbour (diffraction) and vice versa, making it impossible to accurately read either bar. • This limitation has restricted the density with which symbol-based codes can be printed, and therefore the minimum size required for machine-readable codes. By extension, this has also limited the number of digits which can be used, for example, in barcodes.

  9. Taking Advantage of Diffraction • Current technologies do not take into account that the diffraction phenomena are predictable • Diffraction is not a random, chaotic event - it is measurable and predictable • Diffraction is 3 dimensional which allows a system to understand an object’s depth and orientation in relation to the reader • Estimating an object’s depth and orientation allows the system to read multiple discrete tags All Without Line of Sight

  10. The SARcode Concept - Controlling the Diffraction Effects The SARcode creates up to 96 bits in a small area and consumes only 10% of the conductive ink required for a printed RFID antenna!!!! 119mm x 50mm (4.68 x 1.9 inches) • Sequence of 37 symbols, each positioned (or not) in 1 of 9 potential vertical positions • Special symbols for tag positioning • 96 bits matrix = EPC code capacity • Very high error correction capacity • Tag dimensions = 119mm x 50mm

  11. Radar-Based Imaging • The reader is based on a multi antenna array, is operating in the MM wave spectra and is based on InSAR and SAR algorithms. It detects multi-symbol patterns and their inter-symbol diffraction effects. The tag is carrying up to 96 bits of information and can be read in an extended range. • Synthetic Aperture Radar (SAR) is a form of RADAR technology in which sophisticated post-processing techniques of SAR data are used to produce a very narrow effective beam. • The result is a map of radar reflectivity, including both amplitude and phase data. • The SAR principle is expected to be used in all reader applications. • The series of observations can produce the same resolution as of that of a very large antenna; InkSure’s process creates a synthetic aperture that is much larger than the length of the reader’s discrete antennas. • Interferometer Synthetic Aperture Radar (InSAR) • InSAR extracts data from the phase information. • Utilizing major improvements and developments of InSAR algorithms, we can detect typical static/ hand held applications. • InSAR allows the tag size to be substantially smaller.

  12. SAR Fundamentals Forming a very narrow beam using a large synthetic aperture Narrow beam = high resolution Output = image 12

  13. SAR image 3D view 13

  14. SARcode Processing Example What You See What the Reader Sees What the Mathematic Model Sees Notice Diffraction “Blur” 14

  15. Multiple Tags Reading Process Second step: High resolution SAR for single tag data detection First step: Low resolution SAR reading multi tag Third step: Image Processing resulting in evaluation of tag bit data 010011001011…0101 011111001010…1101

  16. InkSure Readers SARCam I - Conveyor Version • Up to 1 foot reading distance; 3 feet in 2009 • Weighs less than 1 pound • Up to 150 milliseconds reading time • Dual tag reading option over single item /reading process • Reading compatibility with any released SARcode format • “Tailor Made” designs for specialty applications • Connectivity feature to any infrastructure, backbone ~30cm(11.8 inches) ~10cm(3.9 inches) 16 16

  17. InkSure Readers – SARCam IIFor Stationary Applications • Read range of 5” to 12”; up to 2 feet in 2009 • Up to 150ms reading time • Multiple tag reading options • Reading compatibility with any released SARcode format • “Tailor Made” designs for specialty applications • Connectivity features. 17

  18. InkSure Readers – SARCam III For Portable/Handheld Applications • Up to 1 foot reading distance; 2 feet in 2009 • Up to 850ms reading time • Multiple tag reading options • Reading compatibility with any released SARcode format • “Tailor Made” designs for specialty applications • Connectivity features ~25 cm( 9.8inches) ~35 cm (13.8inches) Weighs Less Than 2 Pounds 18

  19. InkSure Readers – SARCam IIIMultiple tag reading requirements Range separation > 1” or Cross-range separation > ½” Up to 3 tags (2008) Cross-range separation 30 degree in all axis Range separation 19

  20. InkSure Readers – 2008 • SARCam I Conveyor Availability: • Beta/Pilot: 06/2008 • Commercial: 11/2008 • SARCam II Stationary and SARCam III Handheld Availability: • Beta/Pilot: Q3/2008 • Commercial: Q1/2009 20

  21. SARcode Printing Capabilites Creating a 96 bit tag pattern

  22. SARcode Printing Capabilities Creating a 64 bit tag pattern

  23. Printing Flexibility Tag size Vs. data capacity 96 Bits(5cm/1.97”x11.43cm/4.5”) 34 bits (5cm/1.97” x 5.08cm/2”) 15 Bits(2cm/.787”x5.08cm/2”) 41 Bits(2cm/.787”x11.43cm/4.5”) 23

  24. Printing FlexibilityDifferent tag layouts for different applications – 64bit example B2R5 B3R5 121mm X 41mm (4.76x 1.6 inches) 88mm X 41mm (3.46 x 1.6 inches) B2R2 B3R2 15 Bits(2cm/.787”x5.08cm/2”) 80mm X 45mm (3.15 x 1.77 inches) 119mm X 45mm (4.68 x 1.77 inches) 24

  25. InkSure SARcode FormatsSize/Data Conversion Method: 28-to-74 bit 25

  26. InkSure SARcode Formats Size/Data Conversion Method: 34-to-96 bit 26

  27. InkSure SARcode Print Process Capabilities • Conductive Ink Development • Nano-scale development underway • Sintering tests for InkJet printing underway • Thermal Transfer Ribbon in test and available (InkSure and IIMAK joint development) Tag image – Screen Printing Tag image – Ink Jet Printing

  28. How Our Technology Will Be Used • Consumer Promotions Estimated Annual Volume Potential: Billions ¹ • Brand Protection Needs for Multi-Layer Anti- Counterfeiting Estimated Volume Potential:100s of billions ¹ • Printing Industry – Sorting and Verification of Documents Estimated Volume Potential:100s of billions ¹ • Drug/Pharmaceutical Identification Estimated Volume Potential: 100s of billions¹ ¹ ID TechEX and Internal estimates for unit volumes

  29. How Our Technology Will Be Used • Asset tracking /internal identification Estimated Volume Potential: Hundreds of Millions¹ • Replacement of barcodes for added information and added “package real estate” Estimated Volume Potential: Trillions¹ • Anywhere “Low Cost and Easy to Print” is important= $ & ¢ !!

  30. SARcode Summary 2008 Pilot tests begin Read Range =1 foot (conveyor/handheld) Read Speed=0.15 second (conveyor), 0.85 second (handheld) Information Capacity = up to 96 bits Print Sizes = 4.6” x 1.6” Non-Line of sight reading = yes Orientation Flexibility = yes Anti–collision = yes Anti-counterfeiting capability = no 2009 and Beyond Commercial Availability Read Range =3 feet (conveyor), 2 feet (handheld) Read Speed = 0.15 sec. (conveyor), 0.85 second (handheld) Information Capacity = up to 113 bits Print Sizes = 4.6” x 1.6” Non-Line of sight reading = yes Orientation flexibility = yes Anti –collision = yes Anti-counterfeiting capability = yes 30

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