SAMSys Technologies (fka SMY.M)

[dannyboy_101]

I recieved this via e-mail today. Very good reading on the subject of SAMSys and rfid.
INVESTORFILE.COM -- SAMSYS TECHNOLOGIES INC. (SMY:ME)
For more information about SMY, ADS, GBI, GBD, EMY visit: www.investorfile.com

SAMSYS IN THE NEWS: BIDDING ON BAY STREET

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*BAY $TREET BYTE$* August 17 SAMSYS (SMY,ME: $2.25)

Featured July '98 @ $0.30

RFID: THE NEXT GENERATION

"RFID is widely expected to be the enabling technology for the next
generation of item management, inventory control, supply chain management
and logistics support systems which at present rely mainly on barcoding for
automated data capture. What we are developing with our technology partners
in the United States (and Canada!) is the ability to not only read a wide
range of RFID smart labels but also detect and track tampering of those
labels" (MIKOH Managing Director Peter Atherton, August 17, '00).

'WHERE' ARE THE WIDGETS? 'HOW' ARE THE WIDGETS?
MAJOR RFID BREAKTHROUGH

Before taking a look at today's news from SAMSys, it is very important to
understand that the emerging RFID industry is experiencing a major
breakthrough in terms of the level of functionality RFID technology is able
to deliver to customers/end users.

The 'hands-off', wireless, intelligent tracking ability of RFID is
(hopefully) well understood by SMY followers. Now, in addition to this
functionality, Australia's MIKOH has added a major new function to RFID:
SECURITY/PROTECTION/TAMPER-PROOFING. Not only will manufacturers, suppliers
and customers know 'where' the widgets are, they will know 'how' they are,
and if tampering or damage has occurred, where it may have taken place.

Where the previous focus in RFID has been on 'data' security, MIKOH brings a
unique 'physical' security perspective to the smart label industry.

So now when you think RFID, think Dynamic Dual Function - think Tracking and
Security. The MIKOH trade name says it all: SmartANDSecure.

IRRESISTIBLE COMBINATION
"MAINSTREAM APPLICATIONS"

How important is the addition of the security function? In some industries
security is absolutely crucial; in most industries it is sufficiently
irresistible, in combination with smart-tracking functions, to tip the
balance in favour of widespread adoption of RFID.

In the 2 most recent SMY press releases, Cliff Horwitz has alluded to
marketing RFID into mainstream applications: "There is little doubt that
successful marketing of RFID into mainstream applications will rely upon the
unique functionality which this technology offers;"(August 17) and "MIKOH
represents an ideal model for the implementation of our technology, and
their focus on Security and Asset Integrity Protection markets lends
significant importance to the introduction of RFID into the 'mainstream' of
Automatic Data Collection, especially in the market areas which they serve."

This suggests that the dual functionality now available, is the enticement
needed to jumpstart the global RFID industry and attract large contracts
from major companies.

In a press release today, that follows on SMY latest news, MIKOH calls its
latest agreements with SAMSys and Poly-Flex (which will manufacture its
latest new tag product) "a breakthrough for "smart label" users, including
supply chain managers and customs authorities .There are a lot of large,
global companies interested in smart-labelling using radio frequency
identification (RFID) and our latest development, the SmartANDSecure(TM)
label tamper identification and tracking process, adds a further dimension
to this leading-edge technology."

SMY OPPORTUNITY IN CLOSED LOOP SYSTEMS

Whereas in the past the SMY reader has been considered to have an advantage
mainly in systems where multiple competing technologies are expected to
converge, necessitating a universal reader approach, the addition of
security functions opens new doors. Even in closed loop systems (FEDEX
comes to mind) if security is an issue, a multi-frequency, multi-protocol
reader will be needed.

SERIES OF BREAKTHROUGHS
NECESSITY IS THE MOTHER ---

SMY' development of a multi-frequency, multi-protocol Universal Reader was
in itself a breakthrough for the industry. Major innovation very often
comes in a series of steps, in which necessity is the mother of invention.
There are no co-incidences.

SMY recognized the need for a universal reader through real-life
experiences/pilots in the field. Industry standardization of frequencies
does not solve the problem when differing frequencies are best suited to a
variety of different product applications.

MIKOH realized it could provide highly secure smart labels by incorporating
multiple chips from more than one chip developer/supplier. But it then
required a product that could read multiple protocols. MIKOH has been
blowing SMY's horn in this regard, in an earlier PR MIKOH stated:
"Widespread adoption of pressure-sensitive RFID labels and seals is
inhibited by the unavailability of secure multiprotocol and multifrequency
tracking readers. The RFID reader design experiences of SAMSys, and its
ability to put unique and effective architectures into real-world
applications, are vital to our marketing of RFID capability. SAMSys
engineering expertise ensures that there will be no compromise on security
in our RFID applications.""


DELIVERY OF FIRST READERS TO MIKOH

>>From today's press release: "The first in a series of reading devices,
specifically designed to demonstrate the unique process branded
SmartANDSecure(TM) by MIKOH, has now been delivered by SAMSys, and it is
anticipated that the marketing of these products will commence shortly."
Just one month from announcing an agreement to develop readers for MIKOH,
SMY has delivered the product.

HOW EASY WAS IT?

To my first question to Cliff Horwitz (above) the answer is "very easy".
The modular design of the SMY reader makes specialty development, for these
and potentially other partners 'a snap!' "We are also pleased that we have
been able to adapt our multi-protocol, multi-frequency architecture so
smoothly for this particular application; and believe that the simplicity
and modularity of the technology will lend itself to further fast
implementation in other areas."

ARE CONTRACTS UPCOMING?

MIKOH has very recently signed agreements with SAMSys, to develop readers,
and with Poly-Flex Circuits, Inc., to manufacture and distribute
SmartANDSecure transponders and labels. It may be safe to assume MIKOH
either has in hand or anticipates orders in the near future.

COMPLEXITY OF THE RFID INDUSTRY

Keep in mind that the RFID industry is very complex and each major contract
will rely upon collaboration and co-operation from numerous product and
service providers. In a hypothetical example, the new MIKOH product will
incorporate chip technology from TI and Philips into tags manufactured by
Poly-Flex. SAMSys will supply the reader technology. Firms like Symbol or
Marconi may act as marketer/integrators.

KEY POINTS TO PONDER (From MIKOH, 08/10/00)

** "SmartANDSecure is a process that is applied to any smart label to make
it tamper-intelligent. This process enhances existing RFID transponders
(thin, flexible RFID circuits included in smart label constructions) so that
tampering can be detected by a special RFID reader." SAMSys is supplying
that 'special' RFID reader.

** Widespread adoption of RFID will increase the need for security. "As
RFID carriers gain wider acceptance in item management and tracking, their
inherent lack of physical tamper protection and their easy portability make
them major security concerns"

** "SmartANDSecure ensures that any attempt to tamper with a smart label,
or remove it from one item and place it on another, will be detected by an
RFID system. A SmartANDSecure label will alert an RFID system even when
sophisticated chemical, temperature or mechanical tampering is attempted."

** "SmartANDSecure provides benefits in high security applications such as
the sealing of classified equipment, restricted locations and HAZMAT
containers, where a combination of tamper-intelligence and on-board data
storage is required."

** "In the commercial arena, it provides powerful asset integrity
protection for item management,
supply chain management and logistics applications, offering cost-effective
protection against inventory fraud, warranty and repair violations, product
diversion and other security-related
actions."


RFID AS THE WORLD VIEWS IT

The August edition of RFID News states "the largest benefit of RFID is that
it will reduce the "cost of doing business" by increasing efficiencies and
decreasing human intervention. The top five advantages of RFID (below) are
presented in terms of 1)Multiple Reads; 2)User Convenience; 3)Position;
4)Writeable; and 5)Rugged. While the editor was thinking of RFID's
conventionally recognized functionality, many, if not most, of the
advantages are as true on the security-function side as on the intelligent
tracking-function side:

"Top five "advantages" of RFID:

It's all about efficiencies in time and motion

I recently asked a group of people what are their top five advantages of
RFID. I have taken their comments and distilled them down into a
collection of similar attributes that may help you with your decision to
adopt RFID as the technology for your project.

The largest benefit of RFID is that it will reduce the "cost of doing
business" by increasing efficiencies and decreasing human intervention.
RFID offers the ability to speed data collection (up to 50x compared to
today's technology) and the transfer of information--making a wider
variety and larger volume of up-to-date, real-time information available
to users in today's decentralized (global) item management market.

* Customer requires ID solution that cannot be met by other
technologies.
* Data capacity of a 2-D symbol or more.... especially when
coupled with #1
* Marketing advantage
* Cost efficiency
* Reduce wasted efforts in tracking collecting and monitoring.
* Be a part of the new age.
* Gear up to technology that has become affordable.
* Competitors are doing it.
* Adds value to the company and a return for the investors.
* Improve profit. Improve profit. Improve profit. Whether that is
by increasing revenues or decreasing costs.
* Eliminate human error, clean databases so they are accurate,
provide better service to customers, automatic data capture where bar
codes can't go.
* Fully integrated solutions: RFID is finally complementary to
today's current AIDC/bar code systems-providing flexibility for the
multiple entities in a supply chain to CHOOSE when to upgrade to RFID
(without changing their GUI interfaces or affecting today's business
partners or practices).

User Convenience

Optimization of processes and convenience for the user (like e.g.
sortation, identification,...) by:

* higher level of automation
* higher reliability of identification
* decentralized data storage
* removing the restrictions given by currently used technologies
(dirt, line of sight,...)
* Decrease in labor cost due to #1.
* Multiple-use in one tag (inventory control, EAS, POS etc.)
* Increase in throughput and productivity
* Ease of use
* Reduced labor costs

Multiple Reads

Customer desires ID solution that requires multiple simultaneous tag
reading.

* High-speed efficiency, increased throughput: RFID offers the
ability to perform multiple tag id/read at extended ranges. Readers can
read and discriminate over 50 tags per second and communicate to
multiple tags in its field of view.
* Ability to read multiple objects and differentiate them...
simplifies tracking and accounting
* Group select: Users can choose to communicate with or identify
all or only a subgroup of tags in the field. The user can also write
information on all or a subgroup of tags simultaneously with a single
command (instantaneously).

Position

No line of sight required (so less human intervention): Multiple
(literally thousands) of RFID labels/tags can be rapidly scanned in a
large volume of space without regard to orientation of the tag.

* Customer desires passive ID tag with long read range
* Customer requires a covert ID technology.
* Auto-location feature... allows you to "find" objects with out
seeing a symbol

Writeable

Customer needs to add data to a tagged item during its use.

* Ability to add and modify all or part of the data on the fly...
more effective process control, avoids relabeling
* Ability to update information in real-time, store and change
information in a tag or database. The business reason for doing this
varies with the application, but it usually comes down to optimizing or
saving time and money in another facet of the end-user's operation based
on information gathered.
* Read/write memory: RFID offers read/write memory which can be
optionally permanently locked (at the byte level). Bytes left unlocked
can be written and rewritten over a 100,000 times.

Rugged

Better survivability than barcodes... for especially in long-term frozen
(ex: plasma) or outdoor storage (ex: Hazardous waste)

* Reliability of information and speed of the read compared to
human reading or barcode reading (humans err; barcodes, or even the item
to which it is attached, can be damaged, bent, covered with paint,
dirt,). http://www.aimglobal.org/


SMY Press Release (1)

http://www.newswire.ca/releases/August2000/17/c1248.html


"SAMSys Technologies Inc. delivers proprietary RFID reader to MIKOH Corporation.

Unique reader enables MIKOH to apply SmartANDSecure(TM) technology

Stock Symbol: SMY:ME
Montreal Exchange

TORONTO, Aug. 17 /CNW/ - SAMSys Technologies Inc. (SMY:ME): SAMSys
Technologies Inc. ("SAMSys") announced today that it has completed the initial
phase of its agreement with MIKOH Corporation ("MIKOH") to design and produce
a proprietary range of Radio Frequency Identification ("RFID") readers for use
with MIKOH's security transponder technology. This agreement was announced by
the Companies on July 18, 2000.
The first in a series of reading devices, specifically designed to
demonstrate the unique process branded SmartANDSecure(TM) by MIKOH, has now
been delivered by SAMSys, and it is anticipated that the marketing of these
products will commence shortly. MIKOH recently announced an agreement with
Poly-Flex Circuits Inc. under which Poly-Flex will produce RFID smart labels
using MIKOH's tamper-indicating SmartANDSecure(TM) process.
"There is little doubt that successful marketing of RFID into mainstream
applications will rely upon the unique functionality which this technology
offers. SmartANDSecure(TM) is a perfect example of this - and we are extremely
proud to be a partner in this effort," says Cliff Horwitz, CEO of SAMSys. "We
are also pleased that we have been able to adapt our multi-protocol, multi-
frequency architecture so smoothly for this particular application; and
believe that the simplicity and modularity of the technology will lend itself
to further fast implementation in other areas."
According to MIKOH President and CEO Peter Atherton, "This important
milestone reflects the SAMSys commitment to SmartANDSecure(TM). This high-
reliability reader will further accelerate the acceptance of secure smart
labels in our target markets."
About RFID: Radio Frequency Identification (RF/ID) is a wireless
electronic labeling/data collection system that uses radio frequency signals
as a communication medium between tag protocols and readers by which to
identify and count closely spaced items without the need to separate or scan
individually tagged objects. RF/ID offers numerous advantages over optical
barcode systems and other Automatic Data Collection technologies. It can be
used in a variety of applications, where it is desirable to remove dependence
on Line of Sight, Physical Contact and Operator Intervention. Today's state of
the art RF/ID technologies also include Read/Write capabilities as well as
Anti-Collision algorithms, permitting the simultaneous reading of a large
number of tagged objects, while ensuring that each tag is read only once.
Potential applications are broad and varied, and would include
Warehouse/Storage, Parcel and Container Tracking, Stock Control/ Inventory,
Anti-theft for Asset Protection, Airline Baggage/ Passenger Tagging, and
Supply Chain Management. A further emerging market for this technology exists
in the field of contactless smart cards. This application is fast growing in
popularity for financial transaction processing. A rapidly emerging industry,
the size of RF/ID market is expected to reach $10 billion by year 2004
according to the research consultant Frost & Sullivan.
About SAMSys: SAMSys Technologies Inc. has emerged as a world leader in
the development of RF/ID reader hardware designed to support the broadest
possible array of protocols and frequencies. It is a company dedicated to
working in close cooperation with all of the producers and suppliers of
proprietary tag products so as to facilitate the interrogation of both current
and future devices. SAMSys Technologies Inc. is a public company whose shares
are listed for trading on the Montreal Exchange under the symbol: "SMY". The
Company has a total of 19,603,465 shares fully diluted outstanding. For more
information about SAMSys, visit the web site: www.samsys.com and
www.investorfile.com.
About MIKOH: MIKOH is a specialty supplier of security products with
powerful marking technologies for authentication, labels, seals, cards,
classified documents, specialized inks, and security threads. These carriers
are rugged, resistant to chemical and UV exposure, able to withstand extremes
of temperature and humidity, and highly secure. MIKOH technologies include
COUNTERFOIL and COPYSHIELD (for covert and overt authentication), and
SubScribe (for subsurface laser marking and information storage).
MIKOH brings excellent security credentials to the RFID arena. The
company is strongly grounded in Asset Integrity Protection methodologies for
authenticity verification, counterfeit detection, covert identification, and
subsurface information storage. Its technology components are used by key
federal agencies in the US, and they have been endorsed and adopted by the
governments of Australia and New Zealand. For more information about MIKOH
technology and products, visit www.MIKOH.com.

For further information: Company Contact: Cliff Horwitz, Chief Executive
Officer, Tel: [phone] x230, Fax: [phone], E-mail:
[e-mail]; Investor Relations: Gerry Wimmer,
InvestorFile.com(TM), Tel: [phone], Fax: [phone], Toll Free:
1-888-894-8222, E-mail: [e-mail]

MIKOH Press Release

"8/17/00 -
Gains Edge With Tamper Intelligence For Smart Labels
HOMEX - Sydney
-------------------------
Gains Edge with Tamper-Intelligence for Smart Labels
ASX-listed MIKOH Corporation, which specialises in developing asset
integrity protection products, has achieved a breakthrough for "smart
label" users, including supply chain managers and customs
authorities, with its latest agreements with North American
technology companies SAMSys and Poly-Flex.
"There are a lot of large, global companies interested in
smart-labelling using radio frequency identification (RFID) and our
latest development, the SmartANDSecure(TM) label tamper
identification and tracking process, adds a further dimension to this
leading-edge technology," said MIKOH Managing Director Peter Atherton
today.
He was commenting following the announcement today from Canadian
corporation SAMSys Technologies Inc that it had delivered the first
of a series of reading devices specially designed for use with
MIKOH's unique tamper-intelligent technology.
"RFID is widely expected to be the enabling technology for the next
generation of item management, inventory control, supply chain
management and logistics support systems which at present rely mainly
on barcoding for automated data capture. What we are developing with
our technology partners in the United States is the ability to not
only read a wide range of RFID smart labels but also detect and track
tampering of those labels," he said.
SAMSys last month announced an agreement under which it will develop
and supply multi-frequency, multi protocol (usable with different
label types) readers for use with MIKOH's RFID labels. Subsequently
Poly-Flex Circuits Inc announced that it had entered into an
exclusive manufacturing agreement under which Poly-Flex will produce
RFID label transponders using MIKOH's proprietary tamper-intelligent
SmartANDSecure process, as well as act as a channel distributor.
Poly-Flex is a subsidiary of NASDAQ-listed Parlex Corporation, a
global supplier of flexible interconnects and circuitry to a wide
variety of markets including RFID companies.
"Used in conjunction with a RFID reader, the tamper-intelligent
transponder developed by MIKOH means that if a smart label is even
partially lifted it will not work - the reader will indicate that it
has been tampered with or re-applied to another item," said Dr
Atherton. "A new reader being developed by SAMSys for MIKOH will also
send an alert back to the company concerned if there is any
tampering, and allow tracking."
"This will be immensely valuable for a number of users, including
asset managers, inventory managers, supply chain managers, government
agencies such as customs, and so on."
Dr Atherton said the potential was significant with a number of
multi-national companies interested in using smart labelling.
"There are several factors that should make SmartANDSecure appeal to
the market. It can be read by either a standard reader or, to take
advantage of the tracking capability, the SmartANDSecure reader.
Another important element is that the process does not have to be
linked to any specific RFID brand fruequency."
"All of these attributes mean it will be accessible to a wide range
of users, and attractive to the key RFID manufacturers."
The latest announcement from SAMSys, confirming the delivery of the
first prototype reader under its agreement with MIKOH to produce a
series of proprietary readers, said the company believed that the
development of the SmartANDSecure technology by MIKOH would help
bring to fruition the promise of RFID through the introduction of
mainstream applications.
Contact Details
Dr Peter Atherton
e-mail: [e-mail]"


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