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Will Economic Woes Matter?

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3/19/2008 03:00 PM EDT

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re: Will Economic Woes Matter?
Pensword   3/20/2008 4:55:58 AM
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Laurie: Your topic continues to show the astute timeliness and releance of your technology coverage, especially as it relates to the RFID industry. It seems completely logical to assume that the apparent downturn of the U.S. economy would have a deleterious impact on the implementation of RFID-based solutions. However, at Savi, a Lockheed Martin company, I can assure you that we have not yet noticed a negative impact. In January, the U.S. DoD extended and increased the ceiling of our RFID II contract by $60 million until the end of next January. Ten other allied international defense forces also are deploying our solutions. Further, we are seeing highly encouraging traction of commercial end-users such as logistics service providers and shippers adopting end-to-end cargo visibility, management and security solutions through our joint venture company, Savi Networks. I think this encouraging sign is because we focus on the business value proposition of RFID. I do not know if the apparent economic downturn may have a negative impact on passive RFID implementations, but at this point it does not appear to be having a negative impact on our active, battery-powered networked solutions. As you may know, Savi's SmartChain(R) software platform processes data from all types of automatic identificaiton and data collection (AIDC) technologies, including both passive and active RFID, and through this "more than middleware" platform we are also expanding our customer base in business solutions that add value involving passive RFID, GPS and other wireless technologies. This includes Materials, Repair and Overhaul (MRO) operations in the aerospace industry, end-to-end cargo visibility and security in the commercial supply chain, and a wide array of in-transit visibility and inventory condition monitoring in the public sector, including defense. Mark Nelson Senior Director, Communications and Public Affairs Savi Group, a Lockheed Martin Company mnelson@savi.com

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