SmartPaper agreement
NanoPierce plans to create a new wholly owned subsidiary EXYPNOTECH LLC in the USA to market and sell radio frequency identification (RFID) components manufactured by ExypnoTech and marketed by TagStar.
The US company will maintain exclusivity in the North and South American markets provided that by September 30, 2005, and thereafter it achieves annual gross sales of EUR0.25mn from sale of ExypnoTech/TagStar RFID products.
NanoPierce believes that ExypnoTechs SmartPaper RFID product appears to present significant high volume market opportunities. SmartPaper is a converted RFID product of ExypnoTech that consists of a plain sheet of paper and an embedded transponder (a chip connected to an antenna).
Customers using modified conventional laser or inkjet printers or a smart printer prepared by ExypnoTech can create customised smart labels by simultaneously printing on the paper and using standard read/write devices to transmit data to program the RFID chip.
SmartPaper can be used in very high volume applications but is particularly suitable for producing small quantities of RFID labels, used and created on demand. SmartPaper was developed by ExpynoTech, when it was a wholly owned subsidiary of NanoPierce. NanoPierce currently owns a 49% interest in ExypnoTech.
