VTech Selects Cisco and Intel RFID Solution for Supply Chain Pilot

Cisco Systems(R) (NASDAQ:CSCO) and Intel Corporation todayannounced that VTech (Telecommunications division), a leading supplierof corded and cordless telephones, has selected a radio frequencyidentification (RFID) solution from Cisco(R) and Intel for its pilotparticipation in the Hong Kong EPCnetwork initiative directed byEPCglobal Hong Kong. Upon completion, VTech will be able to complywith Wal-Mart's RFID request requiring key suppliers and businesspartners to become RFID-compliant. This will also help VTech improvethe efficiency of warehouse operations and management throughautomation, as well as serving to enhance visibility throughout thesupply chain.

"We shipped over 40 million units of telecommunication products tovarious major retailers in North America in the financial year 2005,thus being RFID-ready and choosing a highly robust, reliable RFIDsolution is a must. The RFID solution from Cisco and Intel not onlyprovides us with better product visibility, but also improvescapabilities for inventory management, while bringing VTech muchcloser to its customers and partners in the supply chain. I am surethe Cisco solution as well as the industry-standard, widely deployedIntel architecture will continue to sharpen our edge in the globalmarketplace," remarked Alex Kwan, Senior Supply Chain and LogisticsManager, VTech Telecommunications Ltd.

VTech's pilot participation demonstrates that the Hong KongEPCnetwork of EPCglobal Hong Kong has made significant strides sinceits launch last year. The Hong Kong EPCnetwork initiative aims tobring end-to-end supply chain visibility to the Pan Pearl River Delta(PPRD) region through the use of a common, standards-based dataexchange allowing easy, secure, real-time communication betweenmanufacturers, logistics companies and retailers. Manufacturers andlogistics companies in the PPRD can expect to enhance theirconnections and relationships with retailers worldwide through theEPCnetwork initiative.

Commenting on this exciting move, Ms. Anna Lin, Chief Executive ofGS1 Hong Kong and EPCglobal Hong Kong, said, "We are very pleased tosee the world's leading manufacturer VTech connecting to our Hong KongEPCnetwork. VTech's pilot case will set a reference model for how HongKong and Pearl River Delta-based companies share and exchangereal-time supply chain data with their global customers. We aredelighted to have Intel and Cisco's continuous technological supportto the Hong Kong EPCnetwork project that is aimed to provide supplychain information visibility. With the successful implementation ofother of our pilot users, we believe it will help us deliver the valuepropositions of using EPC/RFID."

The RFID solution, comprising Cisco AON for RFID and CiscoServices for RFID, is based on platforms powered by Intel technologiesincluding Intel(R) Xeon(R)-based servers, RFID readers and PCs. Thesolution delivers integrated and intelligent RFID capabilities thatconnect the VTech and Wal-Mart RFID systems. The Hong Kong EPCnetworkproject will enable VTech to take advantage of next generation RFIDtechnology to track telecommunications products from the Dongguanfactory to Wal-Mart distribution centers in the US. Using EPC-basedRFID tags and readers and a standards-based data exchange -- the EPCInformation Service -- VTech will have a technology infrastructurethat will increase warehouse efficiency and global supply chainvisibility. Until now, information between manufacturers in China andretailers around the world was communicated through electronic datainterchange (EDI) or in worst-case situations via phone and fax.

"The PPRD is one of the world's most important manufacturing hubs.To enhance their relationship with major retailers and expand theirbusinesses, manufacturers in the region need to ride the RFID wave.VTech's pilot participation in the Hong Kong EPCnetwork projecttestifies to the trend whereby the region's manufacturing firms arerapidly transforming themselves by deploying technologies like RFID.Cisco is pleased to support EPCglobal Hong Kong's EPCnetworkinitiative to help manufacturers in the PPRD region increase theircompetitiveness and maintain their leading status in many differentfields," said Fredy Cheung, managing director of South China for CiscoSystems.

"Cisco is delighted to help top manufacturers such as VTech toembrace RFID. Our participation underpins our commitment to supportenterprises in different sectors including manufacturing to betterutilize the latest technologies," said Mohsen Moazami, vice presidentof Retail-Consumer Products-Distribution at Cisco and a member of theBoard of Governors for EPCglobal Inc. "RFID is gaining strong momentumbecause of the benefits it offers. These include end-to-end supplychain visibility, improved business flow and enhanced operatingefficiency. Cisco's RFID solution empowers customers such as VTech tojoin the growing RFID community easily and cost-effectively."

"Intel recognizes the crucial role the PPRD plays in thedevelopment of the global Digital Supply Chain," said Maria Kwok,director of customer solutions group, Intel Asia Pacific. "Intelsilicon provides the standards-based backbone for exchanging dataamongst widely distributed trading partners. By working with Cisco andGS1HK we are accelerating its adoption and maintaining Hong Kong'sposition as one of the world's busiest ports and an importantlogistics hub."

"Intel and Cisco are working together to support EPCglobal HongKong's EPCnetwork initiative that will facilitate suppliers, retailersand logistics players to benefit from real-time monitoring through theuse of RFID, and to drive adoption of RFID by the various supply chainplayers through easy-to-implement bundled solutions. The pilotparticipation of VTech in the Hong Kong EPCnetwork initiative isconsistent with Intel's vision of the Digital Supply Chain," said JonStine, Intel global industry manager, Retail-Consumer Packaged Goods.

Cisco and Intel will continue to support the various initiativesof EPCglobal, including those in Hong Kong. For instance, bothcompanies contribute to the EPCglobal Industry Support Program (EISP)announced by EPCglobal Hong Kong today. The EISP aims to helpmanufacturers and product suppliers in Hong Kong to deploy RFID byoffering them cost-effective solutions.

About VTech

VTech is one of the world's largest suppliers of corded andcordless telephones and a leading supplier of electronic learningproducts. It also provides highly sought-after contract manufacturingservices. Founded in 1976, the Group's mission is to be the most costeffective designer and manufacturer of innovative, high qualityconsumer electronics products and to distribute them to marketsworldwide in the most efficient manner. For more information on VTechand its products, please visit www.vtech.com.

About EPCglobal Hong Kong

EPCglobal Hong Kong, formed under the auspices of GS1 Hong Kong,is a not-for-profit organization dedicated to establish and supportthe EPCglobal Network(TM) as the global standard for real-time,automatic identification of information in the supply chain of anycompany, anywhere in the world. EPCglobal Hong Kong as the localMember Organization of EPCglobal Inc. is the only organizationauthorized to issue EPC Manager Numbers in Hong Kong. Supported by theHong Kong SAR Government's Innovation and Technology Commission (ITC)under the Guangdong-Hong Kong Technology Cooperation Funding Scheme,EPCglobal Hong Kong has launched an initiative to create end-to-endsupply chain visibility for enterprises located in Hong Kong and thePan Pearl River Delta by building an EPC network infrastructure basedon the EPCglobal Network standard. For more information aboutEPCglobal Hong Kong, please visit: www.epcglobal.org.hk

About the Cisco and Intel Strategic Alliance

This collaboration is an expansion of an ongoing strategicalliance, under which Cisco and Intel collaborate on varioustechnology and marketing initiatives. In addition to RFID, thecollaboration includes bringing Business Class Wireless Suite andsecurity solutions to enterprise customers. Cisco and Intel share agoal of developing and bringing to market technology solutions thatwill help businesses increase productivity and reduce the costs ofmanaging their networks. As global business technology leaders, Ciscoand Intel together are helping to transform businesses and industriesworldwide, enabling the benefits of this new computing and networkingmodel to be universally available today. For more information, pleasevisit www.ciscointelalliance.com.

About Intel

Intel, the world leader in silicon innovation, developstechnologies, products and initiatives to continually advance howpeople work and live. Additional information about Intel is availableat www.intel.com/pressroom.

About Cisco Systems

Cisco Systems, Inc. (NASDAQ:CSCO) is the worldwide leader innetworking for the Internet. Information about Cisco can be found atwww.cisco.com. For ongoing news, please go to newsroom.cisco.com. AsiaPacific news and information are available atwww.cisco.com/asiapac/news. For more information on the Cisco RFIDsolutions, please visit www.cisco.com/go/rfid.

Cisco, Cisco Systems and the Cisco Systems logo are registeredtrademarks of Cisco Systems, Inc. in the U.S. and certain othercountries. Intel is a trademark or registered trademark of IntelCorporation or its subsidiaries in the United States and othercountries. All other trademarks mentioned in this document are theproperty of their respective owners. The use of the word partner doesnot imply a partnership relationship between Cisco and any othercompany. This document is Cisco Public Information.