TraX TM Cold Chain March 10 th , 2006

1. TraXTM Cold Chain March 10th, 2006

2. TraXTM Cold Chain Features Battery Assisted Passive (BAP) Tags • Interfaced with a temperature tracking sensor • Relatively small (8 cm x 2.5 cm x 1.5 cm) • Read/write capabilities at up to 30 meters • Long battery life allowing for years of operation Reader / Antenna • Can be a portable handheld or in a fixed location • Downloads the data from the tags Computer / TraXTMCold Chain Software • Stores tag data on TraX Cold Chain DB for further analysis • Allows data to be sent to others involved in the product’s chain of custody Graphical User Interface • Communicates to personnel indicating exceptions like if the product is acceptable or refused

3. Sample Business Cases • Warehousing / Supply Chain / Transportation • Creates a chain of custody to determine where in the cold chain a temperature breach has occurred if at all • With integration, this solution can tell operators in real time, to accept, reject, or accelerate the product through the supply chain (dynamic queuing—not limited to FIFO or Expiration Date) • Disaster Planning and Recovery • Allows companies to understand the temperature changes in products when an anticipated power outage takes place. Executed at retail stores with a handheld and tags in the coolers / freezers.

4. Why Implement a Solution? On average, a facility will write-off 5% of all annual perishable purchases due to quality and shelf life issues caused by temperature abuse. Without a solution these products are found after receipt of the product.

5. Sample Solution Design BAP tags are inserted at case or pallet level Product arrives at destination and is unloaded Product loaded and shipped to destination BAP Tag memory is cleared Normal receipt process continues NO Was there a breach? YES Product is refused, data is sent from TraX to the required parties / systems BAP tags are sent back to origin for reuse

6. Sample Business Case Benefits Accountability / Profitability • Financial obligation for refused product is placed on the correct source in the chain of custody because there is a correlation between the cold chain breach and the time it took place Quality • The shelf life of temperature sensitive products is impacted in a negative manner by variations in temperature. • In understanding the impact temperature has on shelf life, the amount of time that the product was in an unacceptable temperature range must be known (degree minutes).

7. Sample Business Case Benefits, cont’d In-stock Position • Cold chain breaches are identified immediately versus when the recipient opens the product and determines that it is unacceptable. That product must be immediately reordered and increases the safety stock levels. • On a wide-scale, this can cause serious inventory issues since inventory planning assumed the product would be available for use. All re-order data is now skewed and the product has to be available for reorder quicker. Food Safety Liability • Microbial activity starts at an exponential rate at temperatures over 40°F • This can activate possibly fatal strands of food borne pathogens such as E.coli, Listeria and Salmonella. • The consequences of infecting a customer with this type of illness are detrimental, not only from a financial sense but a company’s reputation is tarnished.

8. TraXTM Cold Chain Version 1.0

9. Product Setup of Temp Control Limits

10. Web Based Reporting (Secured)

11. TraXTM Roadmap to V2.0 (underway) • Extended reporting capabilities:

12. Upon selecting Store #1000…

13. Additional Features for v.2.0 • Addition of a Rules Engine • Cradle-to-Grave Reporting • Temperature / Time Thresholds • Aging / Expiration Reporting Events • Dynamic Queuing Capabilities • Dynamic Shelf Life Calculations • Tagging of fixed assets (coolers, freezers, etc.)

14. Thank You