Checkpoint Systems, Inc. (NYSE: CKP), a leading manufacturer and marketer of identification, tracking, security and merchandising solutions for the retail industry and its supply chain, today announced that it has entered into a definitive agreement to acquire OATSystems, Inc., the leader in RFID-based application software and middleware.

The all cash transaction is expected to close within two weeks. Checkpoint expects the transaction to be dilutive to earnings per share through 2009 and accretive thereafter.

OATSystems is the leader in RFID-based application software and middleware. Its international client base consists of leading companies in the retail, consumer products, consumer electronics, manufacturing, life sciences, aerospace and defense industries.

Checkpoint and OATSystems offer complementary merchandise protection and inventory management applications that together strengthen their combined presence in the retail market. For retail customers, OATSystems solutions help turn large quantities of data from RFID hardware into meaningful and actionable information. These solutions enable retailers to enhance operational efficiency by obtaining accurate perpetual inventory levels, ensuring on-shelf availability of merchandise that is seamlessly integrated within the framework of existing loss prevention strategies and practices.

"With this acquisition, Checkpoint is once again redefining the scope of Shrink Management," said Rob van der Merwe, President and Chief Executive Officer, Checkpoint Systems, Inc. "The addition of OATSystems builds upon our previously announced strategy to help retailers and their suppliers migrate more easily with our Evolve Electronic Article Surveillance platform to Electronic Product Code RFID. As our industry moves to a common EPC standard, Checkpoint with the addition of OATSystems' capabilities will now be able to offer solutions that enable retailers and their supply chains to gain deeper inventory visibility--further reducing shrink and increasing bottom-line profits by enhancing on-shelf merchandise availability for consumers."

Senior management of OATSystems, including Michael George, President and Chief Executive Officer of OATSystems, will continue to operate the business as a division of Checkpoint. The Company will continue to use and develop the OATSystems brand and software platform to serve retail, consumer products and industrial customers.

"This is exciting news for OATSystems, its customers, partners and employees," said Mr. George. "We will continue our mission with the agility and technology innovation that has made OATSystems the leading provider of real-time RFID solutions. Combined with Checkpoint's global resources and leadership, we will be better positioned to help customers optimize their operations and achieve their goals."

"The addition of OATSystems provides Checkpoint with multiple avenues for expansion into higher growth markets as cross-selling opportunities are leveraged. We acted quickly and decisively on the acquisition of this industry recognized market leader," added Mr. van der Merwe. "The transaction is consistent with our plans for growing revenue both organically and through acquisitions. Importantly, in acquiring OATSystems we are welcoming one of the most respected management teams in the industry and a group of employees who are second to none. We look forward to working closely with the OATSystems team as we continue our efforts to grow our business and position Checkpoint for the future."