SMARTCODE™ Corp. Receives Order For 100 Million EPC RFID Tags

SmartCode Corp., the world leading manufacturer of low cost EPC RFID solutions announced today that it received an order for 100 Millions EPC RFID Tags from MSWAYCO in Korea. Under the terms of the agreement, SmartCode Corp. will supply MSWAYCO with EPC Class 1 and EPC Gen 2 tags to be used in the Korean market.

“We are delighted to receive this high volume order for EPC tags.” said Avi Ofer, SmartCode™ Corp. President “Korea is an exciting market for RFID and SmartCode Corp. is uniquely positioned to mass produce ultra high volumes of EPC tags at a cost effective price. The sharp increase in demand for our low cost, high performance EPC tags has once again demonstrated the superiority of our offerings, both in performance and in unit price."

SmartCode™ Corp. EPC Class 1 RFID Inlays are Ultra-thin Transponders based on polymer tape substrate (PVC, PC or PET-G) and delivered in rolls. The Inlays can be embedded between layers of laminated paper or plastic foil to create inexpensive pallet/case label, product labels, tickets and airline baggage labels.

"Our aim is to be the Korean market leader in providing EPC RFID solutions." said Taehyun Jeon, RFID General Manager, MSWAYCO "We have chosen SmartCode EPC RFID tags based on its performance and low cost structure. After field testing in our facilities, we have found SmartCode Corp. EPC RFID tags to best meet our needs to become the leading provider of EPC RFID solutions in Korea."

The Ministry of Information and Communication (MIC) has unveiled the Ubiquitous-Sensor Network (USN) plan and said it would spend a total of 162.6 billion won until 2010 to develop and commercialize the RFID technology nationwide. The Korean ministry plans to inject 82 billion won into related research and development (R&D) activities and the remaining 63 billion won into pilot projects. The South Korea's Ministry of Information and Communication have also approved RFID systems to operate in the 908.5 MHz to 914 MHz band in Korea.

As a result of recent industry initiatives driven by Wal-Mart, the Department of Defense (DoD), Tesco, Metro AG, Target, Albertson's, Best Buy, the FDA and the Healthcare Distribution Management Association (HDMA), many global companies are looking for EPC-compliant solutions that satisfy both private and government mandate requirements while at the same time adding value to their business. So far Korea has tested the technology for tracking beef imports (in case of an outbreak of BSE), managing army ammunition inventories and controlling luggage at several national airports.

SmartCode Corp. is a world leader in providing low cost, high performance RFID solutions. Until toady, the prices of RFID tags with an average price of 50 cents each, have created a cost barrier for companies worldwide to adopt the RFID solution as the replacement of the inefficient barcode technology. With SmartCode™ Corp.’s exclusive patented manufacturing technology, SmartCode™ Corp. can manufacture these RFID tags at a price level of 5-10 cents, in large volumes.

About SMARTCODE CORP.

SmartCode™ Corp. is a world leading low cost, high performance EPC RFID manufacturer that has developed a revolutionary, patented, and cost effective RFID manufacturing technology. Our Patented technologies enable us to intelligently replace the current inefficient Barcode technology. Our patented technologies enables us to manufacture a very large number of RFID tags at a fraction of the cost of today's traditional RFID. SmartCode™ Corp. introduces a cost-effective approach to dramatically reducing our clients Total Cost of Operation (TCO) and increasing their Return On Investment (ROI).

SmartCode™ Corp. enables 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, London, Hong Kong and a R&D Center in Tel-Aviv, Israel.

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

About MSWAY CORPORATION

MSWAY Corporation, with offices in Seoul, Korea was established in 1991 and it is a leading semiconductor distributor in Korea for Memory, Microcontrollers and Radio Frequency Products. With excellence in R&D capablity, System Design and Services, MSWAY Corporation distributes a wide range of Digital/Analog Memory and Radio Frequency solutions including Motorola, TI and Microchip. MSWAY Corporation provides solutions for the Telecom, Automotive, Consumer Packaged Goods, Medical, Industrial and Transportation industries.

Learn more about MSWAY Corporation at www.msway.biz

SmartCode™ Hercules, Hercules Tag, Hercules RFID, Hercules EPC 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.