IPICO receives order to supply tags for South Africa vehicle number plates

Breakthrough into vehicle registration market for IPICO's IP-X RFID

technology

BURLINGTON, ON, Jan. 14 /CNW/ - IPICO Inc. (TSX-V: RFD.V) and its South African BEE partner IPICO Africa (Pty) Ltd announce they have received an initial order for 600,000 UHF RFID tags for vehicle registration number plates to be deployed in Gauteng Province, South Africa. The order marks a significant breakthrough into the global transportation industry, one of the most important markets for IPICO's passive UHF RFID tags and readers, which can be used to identify vehicles, vehicle license discs and number plates.

"Winning this order confirms that the market for passive RFID in government controlled transportation applications has finally taken off," said Gordon Westwater, President of IPICO Inc. "Now we're able to start rolling out the same IP-X based EVI solution we're using for Gauteng Province as a powerful contender in the global transportation sector."

IPICO expects the Gauteng Department of Public Transport, Roads & Works, will eventually deliver a complete system for the authentication of all Gauteng vehicle number plates and after this initial three to four month order, IPICO expects that up to ten million tagged number plates will be issued during the next two years in this province alone.

"The South African transportation authorities are serious about the deployment of RFID to improve safety and security on our roads and they intend to deploy these systems in time to prepare our country for important events such as the Soccer World Cup of 2010," said Luther Erasmus, President, IPICO Innovations in South Africa.

Passive UHF RFID is already used around the world for applications such as vehicle access control and electronic vehicle licensing, where it replaces either active RFID based solutions or proximity card solutions. The primary benefit of passive UHF RFID technology derives from its low cost and its long read range, features that can't be matched by previous generations of RFID but which are essential for many transportation applications. IPICO's passive technology enables authorities to manage the legal status of vehicles and vehicle identification systems, by providing visibility of individual vehicles in dense traffic scenarios and authenticating number plates.

ABOUT IPICO Inc.: IPICO Inc. is an RFID solution supplier with operations in Canada, USA, South Africa, Europe, Asia and Australia. IPICO produces smart labels and tags based on the IP-X communication protocol. IPICO's low interference readers are designed to meet regulatory requirements in many major markets, and allow for multi-reader rollout in close proximity. IPICO's low cost RFID products excel at long read range, fast multi-read anti-collision and high thru-beam read-speeds of dynamic tag populations. These products are used to optimize the management of items, people, animals and processes within the logistic supply chain and other value chains. For further information, go to www.ipico.com.

This news release contains certain forward-looking statements pertaining to future anticipated projected plans, performance and developments, as well as other statements relating to future operations and results, including, without limitation, statements as to sales forecasts and required minimum future revenues. Any statements in this news release that are not statements of historical fact may be considered to be forward-looking statements. Written words such as "may", "will", "expect", "believe", "anticipate", "estimate", "intends", "goal", "objective", "seek", "attempt", "suggest" or variations of these or similar words, identify forward-looking statements. These statements by their nature are estimates of future results only. Actual results could differ materially from those contained in the forward-looking statements and are based on current expectations that involve substantial risks and uncertainties, including but not limited to the failure to meet market growth, order volume, delivery commitment or minimum revenue expectations, political intervention, and those other risks and uncertainties detailed from time to time in IPICO's periodic reports filed on SEDAR (www.sedar.com).

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Contacts

Gordon Westwater
President
IPICO Inc.
Tel: (905) 631-6310
Email: gordon.westwater@ipico.com

Luther Erasmus
President
IPICO Innovations
Tel: +27 12-345-9520
Email: luther.erasmus@ipico.com

Hilary Bassett
MAVERICK for IPICO Inc.
Tel: (416) 640-5525 x245
Email: hilaryb@maverickpr.com