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DE LA RUE PLC

18 August 1999

BRAND PROTECTION SPECIALISTS DE LA RUE AND MICROTAG JOIN FORCES WITH LAUNCH OF REVOLUTIONARY ANTI-COUNTERFEITING SOLUTION


A revolutionary tagging technology capable of full integration into existing manufacturing processes has been launched to the Brand Protection industry. The project is spearheaded by De La Rue Brand Protection - the authority on brand security - which has joined forces with Israeli based technology company, Microtag. This new tagging technology is the most important innovation in tagging for several years and is thought to be of particular interest to the pharmaceutical and software industries.

Microtag successfully developed this unique covert, high security taggant specifically for use in the brand protection arena - a growth area due to the increasing problem of counterfeiting. The piracy rate for business software, for example, was estimated to reach total losses of 38% or $11 billion world-wide in 1998 (Business Software Alliance, May 1999).

The unique, Microtag taggant is machine readable - even through packaging and is set apart from other taggant solutions in that it does not employ the more commonly used methods of either magnetic or optical technologies. The taggant has also successfully completed stringent field trials carried out by both De La Rue's own Research and Development department as well as universities and a number of central bank laboratories.

The technology can be incorporated into a wide range of materials - including plastics, paper, metals, glass, clothing, leather and ink systems and this level of flexibility means that it can be applied to a variety of products in a highly efficient way as the technology can be incorporated into the usual manufacturing process. For example, this would enable CD replicators and pharmaceutical companies to print a highly secure feature within their own manufacturing environment. This enables application to the packaging or, in the case of CDs and DVDs, directly onto the product.

The need for these type of solutions is on the increase with both the software and pharmaceutical industries suffering from record counterfeiting losses. The Pharmaceutical industry is being hit hard. The latest report (1999) issued by the ACG (Anti-Counterfeiting Group) estimates the cost of counterfeited pharmaceuticals to be 6.1% or £190 million per annum in the UK alone.

Andy Blundell, Director, De La Rue Brand Protection commented: "Counterfeit pharmaceuticals are of great concern to the industry as the real threat lies in associated liability issues and the damage to consumer confidence.”

Commenting on De La Rue's latest strategic alliance with Microtag, he said: "We differentiate ourselves by taking a solution based approach - working with brand owners to fully understand their business issues. In our role of systems integrator - De La Rue can offer the appropriate services and technologies, irrespective of whether they are in-house or from external providers. As a result, the Microtag technology is expected to add significantly to the De La Rue technology offering."

De La Rue Brand Protection was formed in 1998 to assist in protecting Brand Owners against counterfeiting and unauthorised distribution of their products. The business has received a great deal of interest and success in securing a number of major blue chip customers in the last few months. In addition, it has secured further growth to existing business through product extensions such as the Microsoft account.

De La Rue Brand Protection offers solutions to Brand Owners, including the latest in banknote anti-counterfeit technology. The business is increasingly involved in consultancy projects within Brand Owners' organisations and offers value added services in areas such as distribution and tracking services, whilst simultaneously offering source tagging and tamper evident label products from internal and external sources.

ENQUIRIES


Suzy Wilson 01329 221616

NOTE TO EDITOR


De La Rue plc
De La Rue Brand Protection is part of De La Rue plc. The group incorporates three divisions: Cash Systems; Card Systems and Security Paper and Print. Established nearly 200 years ago, De La Rue is the world's leading security provider and banknote printer. Specialising in currency, security solutions, smart cards and cash systems.

De La Rue Brand Protection
De La Rue Brand Protection was established in 1999 to provide solutions aimed at defending brand owners against the counterfeit or unauthorised distribution of genuine products.

Brand Protection exploits De La Rue's existing internal technologies and products, such as chips technologies, holographic materials, security printing and security label production. The business also has strategic partnerships with external technology and service providers in order to supply a one-stop-shop and technology screening service to its customers. Increasingly, Brand Protection is being asked by customers to work in a consultancy role within the Brand owner's organisation.