Aerospace - Defense

“SmartCode™ Corp. has once again taken a leadership role in providing the lowest cost EPC Gen 2 Solutions in the market," said Avi Ofer, SmartCode™ Corp. CEO & President. "Addressing the need of the 40,000 DoD suppliers for an expedited compliance with the DoD mandate, SmartCode™ Corp. has developed the lowest cost EPC Gen 2 solution with a fully integrated EPC Reader, Software and Tags to enable DoD suppliers to be up and running in less than 14 days."

Specially designed as a Low Cost complete EPC Gen 2/Gen 1 solution, the DOD EPC Compliance Kit includes a multi protocol EPC Gen 2 and Gen 1 Class 1/0 Integrated Reader with a USB/Serial port connection to a host PC, a fully functional EPC Gen 2 and Gen 1 Class 1/0 Software allowing to program and read tags with the DoD EPC codes. The Software enables an easy integration to various databases and have a full verification feature to make sure tags are working before shipment to the DoD.

The DOD EPC Compliance Kit supports common interface standards, including:

-J2EE™
-JDBC™
-Microsoft .NET™
-IBM MQSeries™
-TCP Sockets
-FTP
-XML over TCP
-Text files

The RFID mandate issued by the U.S DoD relates to the U.S military supply chain that has a world-wide network and handles items worth $ 29 billion every year. The DoD mandate requires that its 40,000 suppliers deploy passive RFID by 2007.

The DoD has instructed that by commencing January 1, 2006 all individual Cases + All Cases packaged within Palletized Unit Loads + all Palletized Unit Loads, will be tagged for the following classes/commodities to be phased in pending appropriate safety certifications.

-Packaged Operational Rations (subclass of Class I)
-Clothing, Individual Equipment, Tools (Class ll)
-Personal Demand Items (Class VI)
-Weapon System Repair Parts and Components (Class IX)
-Subsistence and Comfort Items (Class I)
-Packaged Petroleum, Lubricants, Oils, Preservatives, Chemicals, Additives (Class llIP)
-Construction and Barrier Material (Class IV)
-Ammunition of all types (Class V)
-Major End Items (Class VII)
-Pharmaceuticals and Medical Materials (Class vm)

PC and/or Trolley can be purchased separately. Upgradeable to EPC Gen 2 by Firmware. DoD EPC codes must be obtained form the DoD. EPC Station™ is a Trademark of SmartCode Corp.

About SMARTCODE CORP.
SmartCode™ Corp. is a world leading low cost, high performance EPC RFID manufacturer with revolutionary, patented, and cost effective RFID manufacturing processes. Our patented technologies enable the manufacturing of very large quantities of RFID tags at a fraction of the cost of today's traditional RFID processes. SmartCode™ Corp. introduces a cost-effective approach to dramatically reducing our clients Total Cost of Operation (TCO) thus increasing their Return On Investment (ROI). Highly affordable RFID solutions from SmartCode™ enable companies to receive 100% real time visibility of their products across their entire supply chain. SmartCode™ Corp. is headquartered in New York, NY with offices in London, Silicon Valley, Hong Kong and a R&D Center in Tel-Aviv, Israel.

Learn more about SmartCode Corp. at www.smartcodecorp.com

SmartCode™ EPC Station™ RFID Ready™ and EPC G2™ are Trademarks or Registered Trademarks of SmartCode Corp. Other marks used are trademarks or service marks of their respective owners.

Forward looking statements
Statements in this press release that are not historical facts, including those statements that refer to The SMARTCODETM CORP.’ plans, prospects, expectations, strategies, intentions, hopes and beliefs, are forward-looking statements. These forward-looking statements are based on information available to SMARTCODETM CORP. today, and SMARTCODETM CORP. assumes no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including, without limitation, market acceptance of our technologies, the competitive nature of our market, SMARTCODETM CORP.’ ability to retain and increase revenue from existing clients and to execute agreements with new clients, and SMARTCODETM CORP.’ ability to attract and retain qualified personnel.