Fuerth/Germany, July 2007:

KURZ announced the formation of a new business division dedicated to the

manufacturing and marketing of highperformance radio frequency identification

(RFID) antennas. The new division KURZ Antenna Business will leverage the

Company's existing distribution system for card foils by global direct marketing

RFID antennas to its inlay and tag converter customers, who supply contactless

smart cards to selected end-user markets.

"As we shift our RFID activities from a business venture mode to implementing our high-speed, low-cost manufacturing strategy, we continue to be enthusiastic about the excellent long-term growth opportunities of RFID,” said Thorsten B. Hepp, 34, manager of Marketing and Sales at KURZ Antenna Business. "We see our emerging RFID business as one of the Company's promising long-term growth opportunity.”

Stamping foil manufacturer KURZ has developed a new thin layer product for industrial use that will go to full production in the autumn of 2007: a transponder antenna for RFID tags. The two-dimensional HF antenna comprises a copper coil with a small number of windings, is 76 by 45 millimeters in size to comply with the ISO ID-1 card standard, and will initially be used in the smart card and ticket field.

The copper antennas, when compared to aluminum ones, are distinguishable by their high electrical quality having conductivity almost 70 percent greater. The antennas are produced using a new process involving neither winding or etching, which brings significant advantages. This manufacturing process is considerably more economical than that used for wound antennas. The new antennas are therefore substantially lower in price while offering precisely the required quality factor. Compared to etched antennas, the process is a good deal more environmentally friendly since it uses much less material and produces almost no environmentally damaging waste. These environmental advantages, in turn, also provide significant cost savings.

Inadequate quality control has a major impact on RFID antennas. If defective antennas are not detected in a timely manner, the entire transponder or even the finished card will later need to be rejected leading to high scrap costs. That is why KURZ takes quality assurance particularly seriously. Every single antenna is subject to laser-controlled inspection to enable optimal performance. The antennas, produced to ISO 15693 and ISO 14443 standards, go through intensive checks first during the manufacturing process itself. On the finished roll, each and every one of the antennas is again tested optically and electronically.

High production speeds are achieved during manufacture so very large quantities may be shipped within short lead times. The antennas are also quickly adaptable to customer's requirements. Customer requests can be developed and tested in a timely fashion. Additional time and cost savings are realized due to easy processing. The antennas are produced as rolled goods and are built to suit commonly available chip bonding machines used worldwide. The rolls are inserted directly into the machines without the need for any intermediate processing steps. On account of their fast manufacture and efficient integration into the production process, KURZ's antennas contribute to the economical and flexible mass production of high-quality RFID transponders.

Card technology is an important component of the fast growing RFID market. Increasingly, more cards and tickets are being equipped with RFID systems. This has created an enormous demand for cost-effective, functional and reliable antennas. KURZ has developed its new antennas to meet the demands and service requirements of this large market.

"The major strength of our antennas lies in their combination of optimum quality, low price and high deliverability" says Thorsten B. Hepp, Marketing and Sales Manager for Antenna Products at KURZ. KURZ has accelerated its investment in RFID, with plans in 2007 to more than double the previous year's spending on RFID research and development activities. KURZ has build an infrastructure and created cost-effective manufacturing processes to enable the Company to produce quantities of RFID antennas in the hundreds of millions. KURZ has stated that it expects to begin generating revenue from its RFID business by the end of 2007, with significant growth expected in 2008 and beyond.

RFID technology

RFID - Radio Frequency Identification - is the name of a method by which data is transferred using radio waves without the need for contact or line of sight. This process utilizes a transponder, comprising a microchip and an antenna, that acts as a data medium and data transmitter. It also requires a reader/writer and an IT system to process the received data. As soon as the reader comes within range of the transponder it can activate the data communication, retrieve the data from the chip and, in the case of rewriteable transponders, even transmit new data. There are active transponders that have their own energy source, and passive transponders that are supplied with energy via the electromagnetic field of the reader.

KURZ antennas in the RFID system

There are several Government-defined radio frequency ranges for radio transmission of RFID signals. KURZ antennas transmit in the high frequency range of 13.56 MHz which offers a higher data transfer rate than low-frequency systems. The antennas are a component of passive transponders and can be activated within a distance of about a half a meter from the reader. A higher range of up to one meter is technically possible but unnecessary for most smart card applications. In the event that several cards are within range of the reader at the same time, the transponders are equipped with an anti-collision function. This enables several so-called tags to be read without interference and within a short space of time.

RFID for the card sector

Plastic cards that can be read via radio signals offer numerous advantages. The cards are wear-free, non-sensitive to dirt and moisture and therefore less prone to faults, user-friendly and convenient, and above all, they enable fast data transfer. These advantages can be employed in numerous applications. Whether it be cards for access control, time recording or loan systems, bonus or rebate cards, money cards, health insurance cards, membership or customer cards, or as paper tickets, RFID systems are conceivable, or already successfully deployed in all these areas. For example, they are being used as single or multi-travel tickets in the local public transport network of various large cities. The cards are read while getting on or off a bus or train, and the amount payable is either invoiced at the end of the month or deducted from a rechargeable money card. Contact-free cards can be particularly recommended for locations where queues can form very quickly and speedy, problem-free transactions are required, like for example subway entrances or admission gates at major events.