| [August 12, 2005] |
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RFID LTD. Announces Acquisition of Packaged RFID, Inc. to Bolster Industry Leadership
DENVER --(Business Wire)-- Aug. 12, 2005 -- The boards of directors of RFID, LTD. (Pink Sheets: RFDL) and Packaged RFID, Inc., a leading integrator of RFID technology for the retail and defense sectors, today announced that they each have unanimously approved a definitive agreement for RFID, LTD. to acquire Packaged RFID through merger to form a new, stronger market leader in RFID integration for small to medium-sized Wal-Mart, Target and Department of Defense (DoD) suppliers.
"This acquisition will serve as a potent mechanism to transform the landscape of the RFID services industry. The merging of RFID, LTD. and Packaged RFID will create the broadest portfolio and the most experienced leadership team in the RFID integration industry who are focused fully on delivering value to customers, partners and shareholders," said Betty Chavez, Packaged RFID, Inc. chairwoman and chief executive officer.
Packaged RFID, Inc. consists of two businesses; Packaged RFID specializes in RFID compliance case studies, implementation and RFID scalability solutions for small to medium-sized suppliers who are required to comply with retail or government mandates centered around RFID. The second business unit RFIDBrains is responsible for scouting and recruiting the world's leading RFID talent on a retained search basis.
The transaction closed Friday, July 8, 2005. Following the merger, Packaged RFID, Inc. will become a wholly owned subsidiary of RFID, LTD. As a result of the merger, Packaged RFID, Inc.'s shareholders will own approximately 62.2 percent of the newly merged company on a fully diluted basis, and the shareholders of RFID, LTD. will own approximately 37.8 percent.
"This is a merger of leaders in our young and promising market," said Betty Chavez, Packaged RFID, Inc. president and chief executive officer. "Having the best and brightest RFID consultants that understand the additional constraints of small business is what matters most to our customers. We now have the capital to build a robust sales channel and scale our foundation of operational excellence. As the leading RFID solutions provider to the SMB market, we look forward to the opportunity to attract new customers and continue to acquire additional share in a market expected reach an aggregate of $27 billion by 2015."
About RFID, LTD.
RFID, LTD. and its subsidiaries engage in a number of RFID-related business activities among which the most important is the RFID consulting business conducted for small to medium-sized businesses required to comply with Wal-Mart, Target, Best Buy, Home Depot and Department of Defense RFID compliance mandates.
Forward-looking Statements
This news release may include forward-looking statements within the meaning of section 27A of the United States Securities Act of 1933, as amended, and section 21E of the United States Securities and Exchange Act of 1934, as amended, with respect to achieving corporate objectives, developing additional project interests, the company's analysis of opportunities in the acquisition and development of various project interests and certain other matters. These statements are made under the "Safe Harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein.
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