October 19, 2005

Alien Technology today announced a value-added solutions provider (VASP) agreement with BT, one of the world's leading providers of communications solutions serving customers in Europe, the Americas and Asia Pacific, to resell Alien® RFID reader and tag products across Europe. Focusing on retail supply chain applications, BT will offer Alien RFID products as part of its BT Auto-ID Services for improved supply chain visibility and responsiveness, and enhanced retail customer satisfaction.

"Alien's enterprise-ready RFID offerings are an excellent complement to BT Auto-ID's existing services to the retail sector, designed to integrate and manage real-time RFID data for use by business information systems," said Ross Hall, BT Auto-ID Services chief executive. "With a comprehensive line of international standards-based readers and some of the best value RFID tags in the industry, Alien is one of the forces behind RFID's global momentum and we are pleased to be working with them to bring affordable, high-performance RFID solutions to the retail sector."

"Taking an appropriately broad view of the capabilities of RFID for retailers and their suppliers, BT is a leader in providing complete solutions for maximum supply chain visibility and collaborative information exchanges among trading partners," said Andrew Berger, Vice President, International, Alien Technology Corporation. "RFID has enormous potential to streamline the retail supply chain, keep the right products on the shelves at the right time, reduce shrinkage costs, and protect brand integrity and consumer safety, and we look forward to working with BT in delivering these benefits to its clientele."

About BT
BT is one of the world's leading providers of communications solutions serving customers in Europe, the Americas and Asia Pacific. Its principal activities include networked IT services, local, national and international telecommunications services, and higher-value broadband and internet products and services.

BT consists principally of three lines of business:
-- BT Retail, providing a comprehensive range of communications and related services to more than 20m UK consumers and businesses.

-- BT Wholesale, providing network services and solutions within the UK to more than 600 fixed and mobile operators and service providers including the provision of broadband and private circuits.

-- BT Global Services, providing networked IT services to meet the needs of multi-site organizations globally. BT Global Services operates in more than 130 countries and also offers international carrier services.

In the year ended 31 March 2005, BT Group's turnover was GBP 18,623 million with profit before goodwill amortization, exceptional items and taxation of GBP 2,085 million.

BT Group plc is listed on stock exchanges in London and New York. British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and encompasses virtually all businesses and assets of the BT Group.

About BT Auto-ID Services
BT Auto-ID Services is a market leader in the provision of complete, scalable and affordable Automatic Identification solutions including RFID and barcoding. Helping customers manage inventory control, increase sales, provide electronic proof of delivery, and comply with mandatory track, trace and authenticate requirements throughout the supply chain.

As part of the BT Retail business, it combines the resources of a large corporation with the agility and flexible approach of a new technology start-up.

For further information, visit www.auto-id.bt.com.

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, 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.Copyright © 2004 LexisNexis, a division of Reed Elsevier Inc. All rights reserved.