As European Retailers Lose Euro 32 Billion to "Shrink", Carrefour is to
            "Source Tag" Products to Reduce Losses and Improve the
                         Consumer Shopping Experience

    HONG KONG, Feb. 28 /Xinhua-PRNewswire/ -- Europe's biggest retailer
Carrefour has signed a strategic agreement with Checkpoint Systems
(NYSE: CKP), the global leader in product identification and shrink management
solutions, to roll-out the world's most ambitious "source tagging" programme
to reduce losses including customer and staff theft.
    (Photo: http://xprnnews.xfn.info/Checkpoint/20060228/carrefour.htm )
    Carrefour's strategy to protect merchandise at the point of manufacture,
will tap into Checkpoint's global network and provide the benchmark for other
global retailers who collectively lost euro 32 billion to shrinkage last year
(Source: European Retail Theft Barometer No 5 published by the Centre for
Retail Research).
    The eight-figure deal is a giant step forward for Checkpoint's Radio
Frequency (RF) source tagging programme, as it creates a controlled and
consistent environment for Carrefour's product protection worldwide.
    The protection of merchandise at the point of manufacture frees up retail
staff time by providing "shelf-ready" protected items straight to stores,
making it more difficult for shoplifters and dishonest staff to steal.
    The agreement will also see Checkpoint's Digital RF technology being
installed in all 179 Carrefour's hypermarkets in France.  RF is rapidly
becoming standard technology across Europe.  This move will help all retailers
improve product flows and effectively combat shoplifting which represented a
loss more than euro 5 billion in France alone, according to the fifth edition
of the European Retail Theft Barometer published in September 2005.
    Checkpoint Systems will supply 7,800 third-generation digital RF antennas
and 8,300 new-generation CP IX deactivators and scanners for checkout
counters.  To optimize shrink management, the company will also deploy 179
CheckPro(TM) Manager software suites and the accompanying remote-maintenance
application.  The implementation programme should be completed by the end of
2007.
    With this strategy, Carrefour will have one programme and one technology
across the group to more efficiently fight company-wide losses.  Close Global
cooperation with Carrefour's offices in Hong-Kong and China, should help speed
deployment of the source tagging programme worldwide.  The CheckPro(TM)
Manager web-enabled shrink management information system and remote-
maintenance will ensure the highest possible performance across Carrefour.

    The "most ambitious" source tagging programme in the world
    Along with equipping its stores, Carrefour is launching the most ambitious
source tagging programme in the world with RF EAS (electronic article
surveillance) labels integrated into products at the point of manufacturing.
The programme has the highest priority and will cover theft-sensitive articles
including apparel, multimedia, alcoholic beverages, etc- from both private
labels and global brands.
    Source tagging helps retailers respond to consumers' increasingly high
expectations for product presentation, speed to shelf and shelf availability.
    "We needed to shift to RF technology to develop source tagging, facilitate
the consumer's shopping experience and improve speed to shelf," said Jean-
Claude Coutant, manager of the source tagging project for Carrefour Hyper
France's non-food supply chain.  "Now we've got a skilled and committed
partner to help us develop our programme."
    Bernard Theobald of the Perifem retailers' technical association, noted:
"All retailers would like to see greater use of source tagging.  Perifem will
set up working groups on this topic to support source tagging, which will
expand in France and the rest of Europe, notably with the momentum generated
by Carrefour."
    "This decision from Carrefour Group is strategically important for other
leading retailers," declared Per Levin, President of Checkpoint Systems
Europe.  "Suppliers of consumer goods and retailers now have the opportunity
to develop winning strategies together, to sell more and lose less."

    About Checkpoint Systems, Inc.
    Checkpoint Systems Inc. is the global leader in product identification and
shrink management solutions for the retail industry and its supply chain.
Checkpoint's services are aiming at increasing sales and protect the profit of
its customers.  Listed on the NYSE, Checkpoint operates in every geographic
market and employs more than 4,000 personnel worldwide.  It specializes in
source protection of consumer goods, RF EAS (Electronic Article Surveillance),
RFID (Radio Frequency Identification) and merchandising solutions.  A
strategic platform for the source tagging service (CheckNet) is the global
network for just in time delivery of critical information and protection
applied on products at the point of manufacturing.  For more information,
please visit http://www.checkpointsystems.com or http://www.checkpointeurope.com .

    About Carrefour
    Carrefour is Europe's leading retailer and ranks second worldwide, with
more than 11,000 hypermarkets, supermarkets, hard discount and convenience
stores in 30 countries and 430,000 employees.  Corporate website:
http://www.carrefour.com

    About Perifem
    Perifem has more than 160 corporate members, including all of the major
retailers, numerous specialized banners and networks, shopping center
developers and managers, and their manufacturing partners and service
providers involved in store base operation and innovation.  http://www.perifem.com

    Contact:

    Checkpoint Systems, Inc.
     Natalie Chan
     Tel:   +852-2995-8350
     Email: natalie.chan@checkpt.com

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