Bóboli Pilots Tagsys RFID Program

Cambridge, Mass.-based Tagsys USA Inc. — a radio frequency identification (RFID) equipment maker —
has announced that Spain-based Bóboli — a children’s apparel manufacturer — is piloting an RFID
deployment program to track and manage its products. Bóboli manufactures more than 2 million items
per year that are offered in 30 owned stores and franchises in Europe, the Arab States, the Far
East and the Americas.

The initial test will involve a Tagsys ultra-high-frequency (UHF) tunnel, which quickly will
scan and read the RFID-tagged contents of Bóboli’s inbound and outbound warehouse shipments. The
scanned items will then be checked against the packing slip to confirm the content’s accuracy. This
process is expected to cut five days off the amount of time items remain in Bóboli’s distribution
center, and in the long run will allow the company to quickly and accurately refill store inventory
and verify product availability.

According to Tagsys, Bóboli is the first Spanish-brand apparel producer to install an RFID
item-level tracking system. “This is a strategic bet for our brand to keep up with our rapid
expansion, while reducing our operational costs and staying a step ahead of our competitors,” said
Bóboli Operations Director Domingo Garrido.

The pilot program will be tested on 10 percent of Bóboli’s production inventory, and plans
are being made to expand full RFID deployment for all items and eventually a final store-level
phase, in which products will be tracked from manufacturing through point-of-sale.

Cetemmsa, a Spain-based technology center, has specified the project’s guidelines and will
manage the implementation, and also will supply technical support and training to Bóboli’s staff.
Pasadena, Calif.-based Avery Dennison will provide the hangtags that will integrate with Tagsys’
UHF tags.  

June 17, 2008