Savi Technology Inc Ravi Rajapakse Chief Technology Officer

Savi Technology, Inc Ravi Rajapakse Chief Technology Officer

Savi Technology, Inc 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 Defense logistics -> Global Systems Integration and Enterprise Software -> Global Commercial Supply Chain RFID Technology Over 10 years of proven experience in commercial and Do. D 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 © 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. © Savi Technology 2004 • 72 Participants and Partners representing 70% of US Ocean Container Imports, including: • 16 Ports • 11 Tradelanes • 20+ Shippers • 4 times ROI in Phase I

Smart Secure Tradelanes™ (SST) 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 • Rotterdam • Kwangyang • Pusan • HIT • Cosco-HIT • MSH • RTT • Karachi • Shanghai • Thilawa • Ningbo • Yantian • Xiamen • Shantou • Varacruz • Ensenada • Manzanillo • Freeport • Jiangmen • Nanhai • Jiuzhou • Gaolan • Felixstowe • Thamesport • Harwich • Dammam • Laemchabang • Des es Salaam • Jakarta Secretary Powell demonstrates Savi Security solution at APEC CEO Summit in Thailand, Oct. 18 th, 2003 © Savi Technology 2004 • Port Klang • Cristobal • Balboa • Buenos Aires

Global Commercial Implementations UK Retailer : Tag all dollies (20, 000+) and track their movement from DC to Retail store 2 nd largest railroad outside of the United States owning or operating 80 percent of the freight rail system in Africa 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. Satellite MOVEMENT VEHICLE Active RF CONTAINER PALLET Long range Passive RF technology is needed for this ‘middle’ transportation domain. Short range small asset technologies at either end. TRANSPORT UNIT PACKAGE Bar Code Supplier ITEM Factory © Savi Technology 2004 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 Passive RFID Barcode Class 1 Gen 2 ISO 18000 -6 Satellite Active RFID Class 4 Active Tag ISO 180007 Layer 2: Transport Unit Layer 1: Packaging Layer 0: Item © Savi Technology 2004

Regulatory /Spectrum Issues • 433 Mhz for RFID – Good RF Characteristics : – Widest Global acceptability • Good penetration and propagation with reasonable antenna size • 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 Do. D in more than 45 countries Exceptions : Japan, China, Korea – now opening this for RFID. • General Design • Specific Areas for Improvement • – – RFID devices are short range devices - by design Good sharing of spectrum is necessary even for our own devices. – 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