NEWS
May 23, 2006
TAGSYS Raises $35m to fuel growth in accelerating item-level RFID market
 
Leader in Item-Level RFID Infrastructure Caps off Last 12 months with Innovation, Major Customer Wins and Move of Global HQ to U.S.

Cambridge, Mass. — May 23, 2006 – TAGSYS, the global leader in item-level RFID (Radio Frequency Identification) infrastructure, today announced that it has completed a $35M round of financing and relocated its global headquarters to Cambridge, Massachusetts. The round was led by JPMorgan Partners (“JPMP”), and included Cazenove Private Equity, as well as previous investors Elliott Associates, L.P. and its affiliates, and Endeavour. Shahan Soghikian, Partner with JPMP, and Paul Murray, Director with Cazenove, will join the board of directors. The capital will be used to advance the company’s rapid global growth, expand R&D efforts, and accelerate its ability to bring end-to-end item-level RFID infrastructure solutions to markets that are increasingly embracing RFID.

“This financing round marks an important new growth phase for TAGSYS as it solidifies its leadership position in the item-level RFID industry,” said Bernard Vogel, chairman of the board and managing partner of Endeavour. “The capital will allow TAGSYS to capitalize on the strong commercial momentum that the company is experiencing by expanding global production capacity, strengthening development efforts and augmenting its sales and services to meet the increasing demands of its customers.”

“The market is showing very encouraging signs that it is ready and willing to embrace item-level RFID,” said Elie Simon, CEO of TAGSYS. “TAGSYS has pioneered solutions and approaches that produce best of breed product and six-sigma level read rates of 99.9997%. Our technology and solutions are now helping early adopters like the pharmaceutical, luxury and branded goods industries to automate labor-intensive processes, authenticate and safeguard goods and enable real-time inventory. This injection of capital will help vault TAGSYS to new heights in our ability to deliver solutions that advance item-level RFID around the world.”

TAGSYS has developed a leadership position in the pharmaceutical sector by creating solutions which allow its customers to address patient and consumer safety, while combating the growing drug counterfeiting problem. Several of the largest pharmaceutical manufacturers in the world have initiated RFID projects with TAGSYS this year, including Pfizer for its high-profile Viagra RFID initiative. Additionally, TAGSYS pioneered the deployment of RFID in injectable vials through its partnership with West Pharmaceutical Services, in an effort to help medical personnel ensure the authenticity of the drugs that they dispense.

The company also recently announced its latest innovative approach to item-level tagging. The-Package-is-the-Tag™, a UHF Gen II solution, utilizes patented parasitic antenna technology that affords the high degree of flexibility, customization and quality that will make item-level RFID successful.

TAGSYS has successfully achieved a global foothold in key growth sectors including high-end luxury goods, fashion, cash-in-transit, electronic components, libraries, and industrial textile rental, and enjoys a client roster that includes companies like Philips, Rabobank (the largest Dutch network bank), Elis (a European leader in uniform rental and cleaning), and the Seattle Public Library (one of the largest in the world). TAGSYS is also well positioned to deliver deployable solutions through its partnerships with key players in the item-level ecosystem, such as Paxar, Dow Corning, Cap Gemini, and IBM Business Consulting.

“Having evaluated a number of RFID companies over the past couple of years, we were drawn to TAGSYS by the strength of its management team and their relentless focus on driving complete solutions for their customers,” said Shahan Soghikian, Partner with JPMP. “The company has leveraged its expertise in both HF and UHF technologies to create products, services and solutions that produce outstanding performance and value for its customers. We are enthusiastic about the prospects for rapid industry adoption of RFID solutions in key verticals, and believe TAGSYS will continue to provide industry leading solutions through steady innovation and superior customer focus.”

About TAGSYS
TAGSYS is the global leader in item-level RFID infrastructure. TAGSYS RFID provides RFID systems and tags for end-to-end item-level tracking that automates labor-intensive processes, authenticates and safeguards goods, and enables real-time inventory and asset visibility. With a proven track record of delivering Reliable, Accurate and Secure (R.A.S.) RFID systems and tags, TAGSYS has deployed over 60 million tags and 50,000 reader systems to over 500 customers in more than 40 countries. TAGSYS’ RFID solutions are currently being deployed in a range of highly specialized vertical markets that include pharmaceutical, fashion apparel, libraries, and textile rental. The company is headquartered in Cambridge, Massachusetts with offices and R&D Centers in France’s Smart Valley, in Doylestown, Pennsylvania and in Hong Kong. More information on TAGSYS can be found at www.tagsysrfid.com

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partner of the European Tech Tour "VC is about funding your project but it is more about extending your core team. Thus, it is about partnering with those who are great to work with and are team players. Those, who understand your business and embrace your vision. Those, who know how to challenge your execution and to bring value. This is why I recommend Endeavour Vision team to entrepreneurs looking for funding."
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