Ravi Rajapakse Chief Technology Officer Savi Technology, Inc Ravi Rajapakse Chief Technology Officer

Savi Technology, Inc as they move through global supply chains. Management and Security of Supply Chain Assets and Contents … as they move through global supply chains. History Founded in 1989, acquired by Texas Instruments (1995), then Raytheon(1997), management buy-out (1999). Solutions Real time managements & security of goods in the supply chain from factory to foxhole, supplier to retailer Evolution Hardware Active tag vendor -> Global Systems Integration and Enterprise Software Defense logistics -> Global Commercial Supply Chain RFID Technology Over 10 years of proven experience in commercial and DoD RFID applications Commercial and military applications in over 50 countries Container and Cargo Tracking/Security : TAV, SST, OSC (Starbucks, Canadian Tire, Vitra) In-facility Asset Tracking : CCAD, SARS Reusable container management : Woolworths, Envirotainer, Spoornet Partnerships with major global port operators Represent 70% of goods shipped via ocean into the US (HPH, PSA, P&O, China Merchant and Kaoshung) Implementing container tracking and security infrastructure This is to show in graphics how the unique technologies as mentioned in the previous slides, if implemented synergistically from the front to the back-end, will undoubted integrate information flow, transforming inventory into intelligent information for a transparent, real-time management and security of supply chain assets and their contents as they move through global supply chains. © Savi Technology 2004

Global Container/Asset Visibility Network Operating at 433 MHz TAV Network Hutchison PSA P&O SSA Marine © Savi Technology 2004

Commercial Initiative Smart Secure Tradelanes™ (SST) Global Security Network – Initial Implementations in 2002/2003 Business Problem: Low visibility to security status and location of ISO Container movements Solution: Transportation Security provides baseline capability in container security consistent with government requirements Synchronize with CSI, OSC, C-TPAT, as well as the 24 Hour Advance Manifest Information Rule Project Brief: SST is a private/public initiative to help secure the global supply chain. Initiated by Strategic Council of Security Technology Lessons Learned: Viable global solution. Value of information extends beyond security to enable better supply chain management. 72 Participants and Partners representing 70% of US Ocean Container Imports, including: 16 Ports 11 Tradelanes 20+ Shippers 4 times ROI in Phase I © Savi Technology 2004

Leveraging Global Ports: Hutchison Port Holdings Smart Secure Tradelanes™ (SST) Rotterdam Karachi Thilawa Felixstowe Thamesport Harwich Des es Salaam HIT Cosco-HIT MSH RTT Kwangyang Pusan Shanghai Ningbo Yantian Xiamen Shantou Jiangmen Nanhai Jiuzhou Gaolan Dammam Jakarta Laemchabang Port Klang Varacruz Ensenada Manzanillo Cristobal Balboa Buenos Aires Freeport Leveraging Global Ports: Hutchison Port Holdings Major Participants Global Port Operators Hutchison Port Holdings PSA Corporation P & O Ports Domestic Port Authorities Port of Seattle, Port of New York/New Jersey, Port of Tacoma, Port of Long Beach, Port of Los Angeles Shippers: 12 committed Carriers: 3 committed Technology Providers Qualcomm, Savi Technology, Oracle, Symbol, Sun Microsystems Service Providers Parsons Brinckerhoff, Sandler Travis Trade Advisory Services, SAIC Secretary Powell demonstrates Savi Security solution at APEC CEO Summit in Thailand, Oct. 18th, 2003 © Savi Technology 2004

Global Commercial Implementations UK Retailer : Tag all dollies (20,000+) and track their movement from DC to Retail store 2nd largest railroad outside of the United States - owning or operating 80 percent of the freight rail system in Africa CCAD Item Tracking System Annually, there are approximately 250,000 parts going through 151 shops Savi provides Inventory and Item-Level Tracking of aircraft parts using active RFID tags Wireless Network of Readers record part arrival and departure at each shop Savi Item Tracking Database manages Item Location and Inventory Envirotainer operates 3,000 temperature-controlled ULDs, servicing 60 international airports in over 35 countries © Savi Technology 2004

Conveyance Types Across Supply Chain Supply chain has small objects at either end and big objects (containers) in the middle. Shipper and retailer lose track of their goods in the middle. Long range technology is needed for this ‘middle’ transportation domain. Short range small asset technologies at either end. Satellite MOVEMENT VEHICLE Active RF CONTAINER PALLET Passive RF TRANSPORT UNIT Describe chart – axes – In studing the SC we see that SC has small objects at beginning and end and large in middle Commercial Shippers lose track of their goods in the middle of the SC If you want to order goods based on stock levels at the destination, you need to know whats in the middle. We targeted infrastructure to solve the middle of the SC problems first - Requires a tech that works globally Once we know this, its easy to integrate at either end. PACKAGE Bar Code ITEM © Savi Technology 2004 Supplier Factory Distribution Center Customer

The Right Technology for the Right Conveyance Selection Considerations Global operation – frequency selection High metal environment Flexibility Signal Penetration Transaction rates/speed Tag density per reader Long range vs resolution Long life – power consumption High data storage Cost Size Mounting location and RF visibility Commercial availability Environmental robustness Reliability Ease of use Communications Networkability Layer 5: Movement Vehicle Layer 4: Container Layer 3: Unit Load Layer 2: Transport Unit Layer 1: Packaging Layer 0: Item Satellite Passive RFID Barcode Class 1 Gen 2 ISO 18000-6 Active RFID Class 4 Active Tag ISO 18000-7 1) ISO has grouped SC into logistic unit hierarchy 2) Each type of object has different properties and is handheld differently 3) Each type of object requires a different technology © Savi Technology 2004

Regulatory /Spectrum Issues 433Mhz for RFID Good RF Characteristics : Good penetration and propagation with reasonable antenna size Widest Global acceptability One of the few Frequencies acceptable for RFID both in the US AND EUROPE. Rest of the world tends to harmonize with one or the other. De facto standard for DoD in more than 45 countries Exceptions : Japan, China, Korea – now opening this for RFID. General Design RFID devices are short range devices - by design Good sharing of spectrum is necessary even for our own devices. Specific Areas for Improvement Rule change on duty cycle, allowing longer transmissions durations for RFID, is a key change. The FCC Recently increased duration of transmissions in port environments for greater data transfers. This would allow container manifests to be uploaded and downloaded much faster. Any assistance in getting ITU and other National bodies to embrace similar regulation will be very welcome. Overall FCC has been very open to helping RFID industry provide value to their customers while sharing spectrum. As our customers request more features, we would like to continue to work with the FCC in enabling those capabilities. © Savi Technology 2004