Matrics Named Top 100 Technology Company by Red Herring; Frost & Sullivan Selects Matrics for 2004 Entrepreneurial Company Award

Palo Alto, Calif. and Columbia, Md. -- Matrics Inc., a global leader in the design and manufacture of EPC-compliant Radio Frequency Identification (RFID) systems, has been named to Red Herring's prestigious list of top 100 technology companies. Red Herring, the international media company covering innovation, technology, financing and entrepreneurial activity, compiles the list each year to showcase the "best and brightest."

Red Herring publisher Alex Vieux said the Red Herring 100 award has a tradition of identifying new and innovative technology companies and entrepreneurs. "At the Red Herring, we scour the industry to identify the best and brightest technology companies that are transforming the current markets and creating new ones," said Vieux. "The Red Herring 100 is our annual list of the most promising private companies. Like Google, eBay, Salesforce.com and other previous Red Herring 100 alumni, these 100 have the potential to become the next titans of technology."

Matrics' EPC-compliant RFID systems are targeted at highly publicized initiatives from leaders in the private sector like Wal-Mart and in the government sector such as the Department of Defense. According to Frost & Sullivan, an international growth consulting company, the total global RFID market generated revenues of $1.65 billion in 2003 and is forecast to double by 2006. Matrics' move to a larger facility announced last month, and its new, high-speed RFID tag assembly system, will enable the company to meet this demand.

Having talked to experts and examined over 500 companies' business models, financials and management teams, Red Herring says this year's selection process "was weighted to reflect the reality of survival in today's challenging marketplace: generating revenues, establishing a strong customer base and equally strong industry partnerships." The crop of candidates this year was broadened considerably to include companies from ten countries.

"We are extremely pleased that Red Herring has named Matrics to its prestigious list of the top 100 technology companies," said Girish Rishi, Matrics' Senior Vice President of Marketing. "This is yet another independent recognition of Matrics' RFID innovation and its business strategy -- all directed towards ensuring customer success."

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Palo Alto, Calif. and Columbia, Md. -- Frost & Sullivan, an international strategic market consulting and training firm, today announced the selection of Matrics Inc., a global leader in the design and manufacture of EPC-compliant Radio Frequency Identification (RFID) systems, as the recipient of the Frost & Sullivan Award for Entrepreneurial Company for 2004.

This award is given each year to a company that demonstrates superior entrepreneurial ability in its industry. It also signifies Frost & Sullivan's identification of a breakthrough solution offering with significant market potential. Additionally, the award certifies that the company's marketing strategy is sound and poised for success. Matrics was chosen for the award for emerging as the most promising company in the global RFID market today.

"In less than five years, Matrics Inc. has become a force to reckon with in the logistics and supply chain segments of the world RFID market," says Karthik Nagarajan, Frost & Sullivan industry analyst. "Matrics' cutting edge technology innovations and globally pervasive partnership network have been the most important reasons for this success. These achievements have been demonstrated through Matrics' launch of the advanced, multi-protocol AR 400 RFID Reader, Class 0 read/write RFID tag (0+), and the recent alliance with Checkpoint Systems for retail supply chain solutions."

Frost & Sullivan selected Matrics based on sound research methodology. Entrepreneurial ability was assessed using mostly primary research with top manufacturers and end-users in the industry.

Frost & Sullivan analyst teams performed extensive interviews with vendors to evaluate its products, business, and marketing plan. In addition, primary research with leading manufacturers was performed to benchmark the award recipient's strategy for growth against established players' strategies. Also considered were elements such as strategic alliances, expected time to market, and the senior management team. Finally, primary research with end-users was conducted to evaluate and compare the value of the award recipient's product solution.

"We are extremely pleased and gratified to accept this award," stated Dr. William Bandy, Chief Scientist and Co-Founder of Matrics. "For Frost & Sullivan, a world class company with worldwide recognition, to recognize Matrics as the Entrepreneurial Company for 2004 is simply outstanding. This award validates the diligence, perseverance, and dedication of our people and our business plan."

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