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PJM RFID from Scanology delivers 50% process improvement to Eurostar Diamond Traders

20 March 2007

Scanology and Eurostar Diamond Traders (Eurostar**) announce the successful implementation of PJM RFID to control diamond inventory worldwide.

In December 2005, Eurostar invited Scanology to advise on the use of RFID to optimise management control of the flow of diamonds within the Eurostar operation.

The PJM system was identified and qualified as the most appropriate system due to its unique capability to read very closely stacked items and because its very high speed guarantees 100% read/write reliability.

PJM – the letters stand for Phase Jitter Modulation - is a powerful 13.56 MHz RFID system developed by Magellan Technology, and standardised as ISO 18000-3 Mode 2. PJM is currently included as an option in the EPCglobal 13.56 MHz proposal.

An intensive development program by Scanology and its partners led to the start of operations in June 2006, including the successful integration of RFID data into Eurostar’s SAP enterprise system. The new system enables SAP to manage the Eurostar logistics processes worldwide and in real time. The system scope is end-to-end, starting with the intake and grading of uncut diamonds in China through control of shipment and grading of cut diamonds in Antwerp and India.

Each parcel of diamonds is uniquely identified, with the number being both digitally stored in the chip in the label and also printed on the label.

The label is read in 13.56 MHz readers manufactured by Magellan Technology.

Small Batch Readers (MTR-1310) are deployed to read trays of brifkas - the industry term for a paper envelope containing a cut diamond – at up to 200 a second.

Eurostar report that the system “improves stock control and sales administration enormously. A process improvement of more then 50% has been identified, driven by the very fast and 100% accurate inventory control.” A very rapid ROI has resulted.

The benefits extend beyond the wholesale business. Implementation of PJM control of brifkas enables the certain identification and rapid picking of diamonds of a particular grade, speeding up delivery and reducing cost, especially when there is a requirement to supply several exactly matching diamonds.

“The partnership between Scanology and Eurostar is working extremely well”, said Kaushik Mehta, Director of Eurostar Diamond Traders, “These first RFID installations have all been proven successfully completed without incident or interruption to the daily activities.”

“We will certainly continue to work with Scanology to expand the RFID integration to our New York and Shanghai sales offices”

Richard Rees, President of Scanology, commented, “Given the exceptional value of the items being tagged, a 100% reliability of a tracking system is essential and only PJM has delivered this”.

“Scanology supplied all readers and tags for the project. We also developed an encoding printer service for Eurostar in collaboration with the PJM partner Zebra Technologies, with whom we have a long-standing relationship. The encoding yield performance has been exceptional, the best we have ever seen, and this is a great credit to the PJM team.”

“The success of this project has proven that PJM is now a mature technology, supported at each stage of the delivery process by a range of very competent and enthusiastic partners. PJM delivers functionality, reliability and certainty, without any ifs and buts. That’s good for our customers, and it is good for us as a systems integrator.”

About Eurostar Diamond Traders NV

Eurostar is a leading global diamond conglomerate with annual sales of over $1 billion per annum. Eurostar has a world-class network of fully integrated and technologically advanced diamond cutting and polishing centers, employing 10,000 professionals worldwide, including an elite group of the most highly skilled diamond artisans in the world. Eurostar specializes in the full range of fine diamonds with a dedicated focus on providing unparalleled supply consistency, service, and quality. “Innovative partnerships which brighten up the future”

www.eurostardiamond.com

**Eurostar Diamond Traders NV is not connected to Eurostar Group, the train service provider, whose trademarks are acknowledged.

About Scanology

Scanology is a leading European AIDC Solutions provider, with an extensive history and knowledge of RFID technology. Scanology provides a full service from consultancy and project design through delivery of hardware and software to complete systems installation. Based in The Netherlands, we have partners in 26 countries across the world. Independent and independently minded, we aim to deliver the system the client needs to meet their current and future business needs.

www.scanology.nl

About Magellan Technology

Magellan Technology Pty Ltd. is a technology developer, manufacturer and licensor of advanced read and write 13.56MHz RFID systems. We design and offer RFID chips, inlets and a complete reader portfolio for our Phase Jitter Modulation (PJM) technology, which complies with the International Standard ISO/IEC 18000 Part 3 Mode 2. PJM technology is more than 10 times faster than other existing HF technologies. PJM products are optimized for applications where many hundreds of tags are stacked tightly or need to be identified reliably in dynamic situations where tags are presented in all orientations. PJM RFID systems are used in all applications like in casino gaming, document management, postal, jewelry, medical and pharmaceutical applications.

www.magellan-technology.com