Presenting a new Chipless technology for low cost RFID applications

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• Presenting a new Chipless technology for low cost
  RFID applications
• SARcode

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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
• 4½ years of commercial sales
• Billions of consumer products protected with
  InkSure technology
• Product and Image Security (PISEC) award
  winner 200020032006
• Member Document Security Alliance (DSA) and
  North America Security Products Organization
  (NASPO)
• U.S. public corporation (INKS.OB)
• Corporate Headquarters in Fort Lauderdale FL
  Global RD Center at the Science Park in Rehovot
  Israel

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InkSure RF

• Wholly owned subsidiary of InkSure Technologies
  Inc.
• Holder of 3 patents 1 patent application to
  print and read Chipless RF labels for various
  RFID applications
• Highly skilled dedicated RD team for
  reader/label development
• Proof of concept successfully demonstrated
  publicly at IDTechExs RFID Smart Labels USA 2006
  conference in Boston March 29.
• Approaching initial field testing with
  commercial sales expected by end of 2007

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So What is Chipless

• RFID systems involving codes/symbology that do
  not contain a
• silicon chip
• Potential to produce the lowest cost RFID tag
• Capabilities for printing directly on top of
  products or packaging
• Passive/ Read only
• Frequencies above UHF

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Yearly Market Potential
Source IDTechEX
Today no more than several hundred million RFID
devices are sold yearly.

• Tens of Millions Secure access test
  tubes/blood samples toys
• Hundreds of millions Laundry library
  livestock logistics assets security
• Billions Pallets cases
  air baggage smart paper tickets
  banknotes financial cards parcels drugs
  archiving
• Trillions Supermarket
  barcodes brand protection

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Tag Price ComparisonsSource IDTechEX
Chipless Chip
Range1m
32c
Tag price
10c
10-20c
Range0.1m
4c
Target to sell trillions a year

2c
Anti-theft 1 bit
ID
More Data k bit
96 bits
When bought in millions
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InkSure Vision for Chipless RFID

• Achieve a sub-cent cost target for fully printed
  tag
• Provide a completely printed symbology on or
  within the product/package using digital or
  conventional printing technologies with focus on
  inkjet engines.
• Provide an anti-counterfeiting solution based on
  the unique RF properties of the ink used for
  printing the tag.
• Address the reading of printed labels in
  difficult real life conditions
• Non-line of sight
• Any orientation/angle
• Anti collision effect-identify single tags within
  tag groups
• Provide 25bit to 96bit information applications

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How our Technology Works

• 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.

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Technology Diffraction Phenomena

• Current technologies do not take into account
  that the diffraction phenomena are predictable.
  That is it is possible to place 2D objects
  within extremely high density yet still use
  deductive methods to identify them
• Although the labels produced using this method
  are 2-dimensional the phenomena itself produces
  a 3D effect. In this way it is possible to
  derive the exact position of the label even if
  behind an obstacle. This capability minimizes
  the challenge of correctly identifying objects
  that are located directly behind other objects
  (collision)

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Technology Using The Diffraction Phenomena

• Our approach devise a code of simple objects
  together with algorithms for interpreting the
  phenomena produced when they are printed close to
  each other
• Depending upon the wavelength used to query and
  transmit the information and the code used it is
  possible to print the desired level of
  information in small areas
• No silicon chip required
• 96-bit printed code consumes only 10 of the
  conductive ink required for a printed RFID
  antenna
• Detection principles based on Synthetic Aperture
  Radar (SAR) Interferometer Synthetic Aperture
  Radar (ISAR) and RF Holography (RFH)

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How our Technology Works
Each code produces a unique image. Red colors
indicate the presence of code information Image
processing algorithms detect the image and
extract its information
Segmentation of label information from
background Multiple image separation Further
analysis of the image completed only in the
labels area
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96 Bit Tag Structure - Concept
108mm x 15mm

• 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 108mm x 15mm

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How our Technology Works
Conductive Ink Printing Technology
EM Fields Diffraction Theory
Radar Methods
RF Signals Processing
Antennas Techniques
Digital Signals Processing
Control Algorithms
Imaging Algorithms
Deciphering Algorithms
Error Correct. Algorithms
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Where Are We Now

• Symbols have been tested to date on paper board
  typical packaging materials and polymeric foils

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Where Are We Now

• Symbols have been printed using conventional and
  commercially available printing techniques

Tag image Using Screen Printing
Tag image Using Ink Jet Printing
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Where Are We Now

• Multiple label reading capability is showing
  positive signs. We have tested a pattern
  consisting of 2-3 labels and results were good
  reading and full separate identification of each
  tag in most of the test scenarios

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Where Are We Now

• 96 bit tag size has been reduced

108mm x 55mm
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Where Are We Now Summary

• September 2006
• Read Range 1 foot
• Read Speed1 second( single tag)
• Information Capacityup to 96bits
• Print Sizes108mm x 15 mm(96 bits)
• Non-Line of sight readingyes
• Any orientation read capabilityyes
• Anti collisionyes
• Anti-counterfeiting capabilityno

• December 2007
• Read Range 10 feet
• Read Speed 1 second (stationary)
• Information Capacityup to 128bits
• Print Sizes 108mm x 15 mm Less
• Non-Line of sight readingyes
• Any orientation read capabilityyes
• Anti collisionyes
• Anti-counterfeiting capabilityyes

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How Our Technology Will Be Used

• Consumer Promotions
• Estimated Annual Volume Potential Billions ¹
• Brand Protection needs for Multi-Layer Anti-
  Counterfeiting
• Estimated Volume Potential100s of billions ¹
• Printing Industry Sorting and Verification of
  Documents
• Estimated Volume Potential100s of billions ¹
• Drug/Pharmaceutical identification
• Estimated Volume Potential 100s of billions¹
• ¹ ID TechEX and Internal estimates for unit
  volumes

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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 !!

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Next Steps

• Complete tests over a maximum variety of
  substrates packaging materials application
  environments etc.
• Complete the development of our SAR/ISAR/RFH
  and Processing algorithms.
• Identify five partners for test programs
• Phase One (Sept. 06 through Feb. 07)
• Format and print InkSureRF codes onto selected
  products
• Scan encoded products with prototype readers at
  InkSure
• Phase Two (March 07 through Aug. 07)
• Live field test involving readers encoded
  products and customer IT
• Commercial Release September/October 2007