FORBES
September 13, 2005

Alien Technology Corporation today achieved another RFID industry milestone with the announcement of EPC Class 1 RFID labels priced at 12.9 cents. This represents a 44% decrease in the price of 96-bit RFID labels from Alien in the past 12 months reflecting significant progress towards the goal of widely available, economic RFID labels. The Alien Technology® ALL-9338-02, a fully converted EPC Class 1 tag, can be purchased today for 12.9 cents in order quantities of 1 million or more.

The industry's most widely adopted EPC label, the Alien® Squiggle™, available as the ALL-9338-02 pressure sensitive label, is suitable for use in general supply chain applications such as those being implemented by major retailers, their suppliers and the DoD around the world. The label is one-half inch by four inches in size, small enough for use on a wide variety of products.

"Customers are expecting and demanding dramatic reductions in RFID tag costs to improve the business case and ROI for their RFID implementations," said Keith McDonald, Sr. V.P., Alien Technology Corporation. "Alien has been very clear about our roadmap for aggressive cost reduction, and this 12.9 cent price for labels in relatively modest quantities demonstrates our progress in driving down the underlying cost of RFID tags. RFID labels from Alien and our extensive eco-system of Alien Qualified Partners can be delivered at prices appropriate for mass adoption in the retail supply chain and other industries."

The 12.9 cent RFID label offered by Alien is made possible by the company's patented manufacturing process, Fluidic Self Assembly (FSA®) and Alien's new cost efficient High Speed Strap Attach Machine (HiSAM) assembly technology. These manufacturing technologies allow for low-cost packaging of very small semiconductors in very high volumes that in turn are packaged as low-cost RFID tags.

Alien previously announced the ramp of its RFID chip packaging capacity to one billion straps per year at its Morgan Hill, CA headquarters. Alien has now doubled that capacity to two billion units per year and is building a 47,000 square foot facility in Fargo, North Dakota, with capacity to produce up to 20 billion units per year in the future.

About Alien Technology
Alien Technology Corporation is a leading provider of Radio Frequency Identification (RFID) products for global customers in government, retail, manufacturing, pharmaceuticals, transportation, and other industries. Using its patented manufacturing process, Fluidic Self Assembly (FSA), Alien manufactures EPC tags in very high-volumes and at low cost. The company provides a family of RFID readers for a variety of applications including supply chain management, logistics, and anti-counterfeiting, to improve inventory management and reduce operating costs. Alien is an active member of EPCglobal. More information about Alien Technology Corporation can be found on the Company's website at www.alientechnology.com.

Alien, Alien Technology, Squiggle, the Alien logo and FSA, are trademarks or registered trademarks of Alien Technology Corporation in the United States and other countries.

Copyright 2005 Alien Technology Corporation. All rights reserved.
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