1. Microsoft RFID Industry Focus

2. Microsoft RFID Vision Create an ecosystem for scalable, deployable, lowest cost business solutions powered by RFID Deliver Microsoft Platform to enable business applications –Lowest TCO –Inclusive (RFID, Barcodes, EPC, GTIN, etc.) –Hardware agnostic –Scalable, Deployable, Extensible Develop business solutions for SMB Support and participate in standards development and deployment –EPC Global (UCC, EAN) –Others (ISO, AIAG…) Deliver low cost, innovative, standards-based RFID systems that are easy to deploy and manage

3. Requirements of the Platform Comprehensive, extensible programming model and tools Easy to deploy and manage Secure – by default Reliable – available, fault-tolerant Scalable – up and out Rich, consistent user experience (IT Pro, Developer, Business User) Componentized functionality but “better together” Integration with existing systems

4. Microsoft & RFID RFID Strategy Partner driven strategy for enterprise customers Provide the base platform: Windows Server, SQL Server, BizTalk Server, XML WebServices, WinCE & XPe RFID enable Platform for partners to develop business solutions RFID enable Microsoft Business Solutions for SMB RFID Engagement RFID deployments at major retailers Engaged in many pilots with partners EPC Global Membership RFID Partner Council Architectural guidance for ITPros and Business Architects RFID Views RFID compliance is an increasing priority for Enterprise customers Businesses are looking for complete RFID enabled solutions Partners are looking for an enabling platform Item level adoption Standardization and privacy concerns must be addressed to facilitate rapid adoption

5. RFID Vertical Industry Solutions

6. RFID in Retail Pallet & Case Level Most of the early adoption Product visibility across the supply chain Smarter operations, operational efficiencies Inventory reduction Product availability in stores, backrooms, DCs Item level scenarios Product availability on the store shelf Item level inventory visibility at the store level Smarter Shopping, customer convenience Customer service, service errors (pharmacies)

7. Store ePOS ePOS Self Checkout Self Checkout Unattended Checkout Unattended Checkout Electronic Signage Electronic Signage Digital Assistants Digital Assistants Smart Shelves Smart Shelves Cross-Channel integration Cross-Channel integration RFID RFID RFID in Retail – innovation at the edge of the enterprise – The Future Store Core Operations ERP ERP Merchandising Systems Merchandising Systems Inventory Management Inventory Management Promotions Management Promotions Management Traditional Replenishment Systems Traditional Replenishment Systems Human Resource Systems Human Resource Systems Labor Management Labor Management Enterprise Data Warehousing Enterprise Data Warehousing Consumers Multi-Channel Shopping (shop online/buy offline) Multi-Channel Shopping (shop online/buy offline) Assisted Shopping Assisted Shopping Personal Digital Assistants Personal Digital Assistants Mobile/Wireless- Enabled Mobile/Wireless- Enabled Merchandise Supply Chain Closed Loop Systems for Synchronizing Supply and Demand Closed Loop Systems for Synchronizing Supply and Demand Information Transparency Across Trading Partners Information Transparency Across Trading Partners RFID RFID

8. RFID in Life Sciences Clinical Development Clinical trials and materials management Avoiding medical errors Dosing and protocol compliance Forms completion / data integration Lab sample tracking Medical device status, management, data interchange (“life of a device”) Public Product Use Dosing compliance Labeling Dosing information/reference Product history/genealogy Improper importing/exporting Sales & Marketing Anti-theft and shrinkage management Product tracking and distribution compliance Anti-counterfeit and fraud detection Shipping and inventory management Regulatory compliance Manufacturing & Supply Chain Shipping and inventory management Product recall Improper importing/exporting Manufacturing execution/efficiency Quality management Maintenance management

9. RFID in Pharmaceutical Industry Business Benefits Ability to identify individual bottles, containers of Rx Remotely track movement and location of drugs Provide assurance that the ID on the Rx has not bee forged Reduce gray market sales Increase efficiency of clinical trial by reducing start up delays, reduce trial errors and trial dropouts EPC Drivers Rx counterfeit – 88% seized Rx are not approved US use 40% Rx made in Mexico, Argentina, Colombia, India, China, may be counterfeit Inventory management Regulatory compliance Product return, recalls

10. Arenas of Excellence RFID Center of Excellence

11. RFID Showcase Arena Efficient use of capital Embedded tracking Embedded tracking Location tracking Location tracking Condition Condition Raw material / goods receiving Raw material / goods receiving VMI VMI Fixed Asset Management Fixed Asset Management Tools, Shelf Mgmt Tools, Shelf Mgmt Cycle time, Labor cost reductions Receiving, Put away Receiving, Put away Pick, Pack, Trace Pick, Pack, Trace Asset management Asset management Warehouse management Warehouse management Smart shelves Smart shelves Fork lifts Fork lifts Out of stock / Inventory Mgmt Back room receiving Back room receiving Product Availability Product Availability Smart Shelves Smart Shelves Product information Product information Planogram planning Planogram planning Assortment Assortment Automatic payments Automatic payments Loyalty cards Loyalty cards Convenience Returns Returns Warranties Warranties After sales After sales Home appliances Home appliances Assisted living Assisted living Asset management Asset management Insurance Insurance Recycling Recycling ManufacturingDistribution RetailConsumer Showcase Arena Full-scale supply chain scenarios –Manufacturing – Raw material goods receiving, WIP replenishment –Distribution – Warehouse Management, pick, pack, trace and putaway –Retail – Smart Shelves, POS, loyalty cards, planogram compliance –Consumer– Returns and warranties, recycling and disposal

12. RFID Technology Arena New Technology Concepts Tag IDs and numbering Tag IDs and numbering Air protocols Air protocols Advanced Tag Capabilities Advanced Tag Capabilities Software APIs Software APIs Security Security Tags and Readers Interoperation across vendors Interoperation across vendors Compliance with standards Compliance with standards Interference and noise Interference and noise Singulation Singulation RFID Server and Infrastructure Device driver development Device driver development Event data conditioning Event data conditioning Reader management Reader management Interface and Deployment Architecture standardization Architecture standardization API definition and refinement API definition and refinement Needs analysis Needs analysis Privacy Privacy Research Technology Arena Research and technology development Bring components and people together Develop shared understanding of issues HardwarePlatformsApplications

13. RFID Roundtable Shared Vision General areas of technology General areas of technology Special topics of focused interest Special topics of focused interest Whitepapers Whitepapers Draft standards proposals Draft standards proposals Scenario planning Scenario planning Empowerment Through Knowledge Symposia Symposia Formal courses and hands-on workshops Formal courses and hands-on workshops Self-study materials Self-study materials Speakers’ bureau Speakers’ bureau Action in Partnership Outreach to industry and consumers Outreach to industry and consumers Rants and Raves Rants and Raves Review standards proposals Review standards proposals Partnership in standards bodies Partnership in standards bodies Planning for the Center of Excellence Planning for the Center of Excellence Working Groups RFID Roundtable Partners in Thought Leadership Partners in Technology Partners in Business EducationCommunity

14. TAP & EAP here in Taiwan Technical Alliance Program (TAP) and Early Adopter Programs (EAP) A coordinate group of programs to offer a wide range of services to our Customers and Partners. Working on Hardware and Hardware interface solutions. Integrated Software solutions. Bridging these two realms together. Full support from Corporate product teams for these programs here in Taiwan.

15. Conclusion: Microsoft’s Value Add Provides Flexible RFID Platform Provide linked solutions between existing systems and RFID Modify existing system to an RFID Enabled one. Extensive Partner Network Fast Time-To-Market Solutions Real-World Experience

16. © 2003 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.