I recently received the following from Kathy Knight-McConnell
relative to technology being developed by NPCT. Since it appears to compete directly with holographic labels, I thought I'd post it here for your review:
Dear Investor to Investor readers:
I just received this update from Paul Metzinger, President and CEO of
Nanopierce Technologies, Inc. It was written to clear up the many questions
that have besieged the company since the last memo update.
Kathy Knight-McConnell
Investor to Investor
investortoinvestor.com
TO: KATHY KNIGHT-MCCONNELL
FROM: PAUL H. METZINGER
DATE: JULY 13, 1999
RE: NANOPIERCE INTERMEDIATE BUSINESS OBJECTIVES
Following my last memo to you where I explained the primary and near term and
secondary and intermediate strategic business objectives of Nanopierce
Technologies, Inc., this office was deluged with calls.
We found that many of the calls related to the proposed contactless smart
label business of Nanopierce Technologies, Inc. and specifically, an
explanation of why the contactless smart labels were so superior to bar code
labels.
In an effort to continue the education of our shareholders and prospective
investors about this exciting market, I have prepared a simple comparison,
which hopefully will promote that objective. It is only when one understands
the technological implications of a contactless smart label can one truly
appreciate the gargantuan opportunity provided to Nanopierce in this world
wide market.
BENEFITS OF CONTACTLESS SMART LABELS
SPEED
Contactless smart label: time is money and therefore speed is the ultimate
objective in any logistics process.
Contactless Smart Labels - Accelerated Scanning & Identification
Bar Code Labels - Slower Scanning & Identification
Contactless Smart Labels - No line of sight positioning required
Bar Code Labels -Item must be positioned to line of sight
Contactless Smart Labels - Operates simultaneously on many labels
Bar Code Labels - Item singulation required
Contactless Smart Labels - Sees through most materials permitting
scanning even if item is boxed
Bar Code Labels - Cannot be scanned if boxed
Contactless Smart Labels -Virtually indestructible, less immune to
physical limitations
Bar Code Labels -Bar codes easily defeated by smudges,
smears, dirt, wrinkles, etc.
Contactless Smart Labels - Suitable for harsh environment
Bar Code Labels - Ineffective in harsh environment
Contactless Smart Labels - Less personnel required
Bar Code Labels - More personnel required
Contactless Smart Labels - Lesser liability
Bar Code Labels - More liability
RELIABILITY
Equally important to speed. What good is a 500 H.P. car if one cannot keep it
running?
Contactless Smart Labels - Control instantaneous and omnipresent
Bar Code Labels - Control sporadic
Contactless Smart Labels - Stored and updatable data assures
greater accuracy
Bar Code Labels - No capacity for updating information
Contactless Smart Labels - Removes need for time and personnel, intensive
checking, manual sorting & error
correction
Bar Code Labels - More time & personnel required, e.g. baggage handlers to
assure bar code on suit case is properly
positioned
Contactless Smart Labels -Improves high volume scanning
Bar Code Labels -High volume scanning, limited by line of
sight requirement
SECURITY
The ultimate objective is to protect assets and goods from shoplifting in the
warehouse or store and to protect the integrity of the market from
counterfeit or
mislabeled goods.
Contactless Smart Labels - One label contains all information
including security code
Bar Code Labels - Requires two or more labels
Contactless Smart Labels - Can be concealed within item by manufacturer
Bar Code Labels - Cannot be concealed
Contactless Smart Labels - Concealed label difficult to detect or defeat
Bar Code Labels - Easily detected and defeated
Contactless Smart Labels - Control of item from manufacturer to point
of sale by updated information
Bar Code Labels - Cannot be updated
Contactless Smart Labels - Code in chip (the manufacturer's signature)
provides proof of genuineness
Bar Code Labels - No similar functional capability
COST EFFECTIVENESS
Lowest "cost per scan" is the ultimate goal for handling items with machine
readable labels.
Contactless Smart Labels - One label lowers cost per scan
Bar Code Labels -Two or more labels required
Contactless Smart Labels - Information updatable
Bar Code Labels -Information cannot be changed
Contactless Smart Labels - Improved speed and reliability reduces
personnel cost and increases
throughput
Bar Code Labels - Improvements difficult due to physical limitations
INFORMATION
Contactless Smart Labels - Real time, instantly accessible information
Bar Code Labels -Unchangeable limited information
Contactless Smart Labels - Better service for customer because
information can be updated on
command
Bar Code Labels - Improvements in service difficult because
label is not "smart"
Everyone is generally familiar with bar code labels, which appear on
everything from a tube of toothpaste to the large tags put on our suitcases
at the airport. Nanopierce Technologies, Inc. believes that with its
technology the contactless smart label can be reduced to the size of a
postage stamp. It is further important to realize that a contactless smart
label using radio frequencies (I) is in fact operating at light speed and
(ii) capable of "seeing through" most materials. These are two of the many
reasons contactless smart labels will initiate a revolution in the way
business is conducted in the next millennium. Two examples will suffice to
point out the revolutionary changes that contactless smart labels will
provide.
Example #1: The manufacturer of a $1,000 Gucci designer handbag will conceal
the tiny contactless smart label in the handbag. The label will contain among
other things the manufacturer's signature identifying it as the real and
genuine manufacturer, the date, time, place and origin of manufacture, any
identifying number, a security code which will activate any armed alarm,
unless deactivated, and any other information desired by the manufacturer,
transportation company, warehouse or retailer. The handbag (even if boxed,
since RF "sees through" most materials) is logged into a computer upon
leaving the manufacturer's location, logged into the transportation vehicle,
logged out of the transportation vehicle, logged in and out of the warehouse
and logged in to the retailer. Even if there are 100 handbags in a box, they
will all be separately logged in, almost instantaneously. Since all of this
information is logged into a network of computers with information
transmitted to them at the speed of light the obvious benefits of greater
security, increased productivity, reduction of personnel and associated costs
are readily apparent. When the Gucci handbag arrives at the retailer, the
retailer has real time inventory control at all points until the Gucci
handbag is sold and leaves with the customer. When the retailer receives the
handbag, if the real manufacturer's signature is not contained in the chip
then the retailer will realize that it is a counterfeit product produced by
someone other than Gucci, trying to profit on the Gucci name. In addition, if
the retailer does not deactivate the security code through proper checkout it
will set off alarms alerting the retailer that someone is attempting to steal
the handbag. Since the contactless smart label is concealed, it is virtually
impossible for a person to easily detect it, let alone, defeat it. Therefore,
security is greatly enhanced and shoplifting will become a very hazardous
activity for malefactors.
Example #2: A contactless smart label is attached to a suitcase when a
passenger checks in at the airport and it will contain all relevant data that
the airline wishes to put on the label. As the suitcase is logged in it (no
matter what its position on the conveyor system) will be rapidly transported
by the baggage handling equipment through the airport and checked at numerous
points moving under constant control and identification. When the suitcase is
loaded in a specific container the label will be updated with the container
number and the location within the container where the suitcase can be found.
If the passenger does not board the aircraft the baggage handling crews know
immediately where to go to retrieve the suitcase. The benefits from this real
time information are obvious. It increases security, avoids delays of
aircraft departures, reduces the number of personnel required to efficiently
operate a baggage handling system (since among other things, line of sight is
not required for RF identification, unlike bar code labels), and decreases
the airline's insurance liability for occupational injuries and lost luggage.
Nanopierce Technologies, Inc. knows that it is capable of providing the
connection system for contactless smart labels. It is an exciting business
activity, wherein we hope to become the dominant player. Nanopierce will play
a critical role in the contactless smart label revolution.
I do not want readers of this communiqué to in anyway think that we are not
aggressively pursuing our near term opportunity of contactless smart cards
and combi-cards. We are extremely focused in our efforts to capitalize on
that opportunity.
I hope you, your readers, our shareholders and prospective investors will
find this informative and helpful. I merely wanted to excite the imagination
of the readers of the possibilities.
Sincerely,
Paul H. Metzinger
President & Chief Executive Officer
NANOPIERCE TECHNOLOGIES, INC.
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NOTE: I am in receipt of 24,500 shares of NPCT stock as payment for an
"introductory fee" to certain parties in Switzerland. |
