METRO Group is also using IBM's Radio Frequency Identification (RFID)technology and the EPCIS standard for supply chain trackingenterprise-wide.

"Smart Freezers" for Fresh Meat

At METRO Group's real,- Future Store in Toenisvorst, Germany, the companyteamed with IBM for a new quality assurance system in the store's "MasterButchery" department. IBM's InfoSphere Traceablity Server software servesas a repository for all information about the meat -- its expiration date,Electronic Product Code, type, and of course, its provenance, so that meatcan be traced in the event of any recalls. A second IBM software product-- WebSphere Premises Server -- captures the RFID data from each meatpackage.

The IBM software automates the process of identifying items nearing theirexpiration dates and alerts staff when the store is low on a particularmeat item. In the past, these tasks have been performed manually byemployees, who visually scanned shelves for items about to expire, andsurveyed the freezer frequently to determine which meats needed to berestocked. Using IBM's RFID technology, METRO Group can improve customersatisfaction and boost sales by ensuring that its freezer is stocked withthe meats shoppers are looking for.

Getting Hot Items on the Shelves

METRO Group is also working with IBM to allow suppliers using the EPCISstandard to track items destined for the company's real,- stores acrossGermany. METRO Group's goal is to provide suppliers with visibility intothe whereabouts of items targeted for special promotions such asadvertising campaigns or tie-ins to sporting events or movies.

The tracking process begins with the supplier, which tags items prior toshipping. The supplier can then track items through shipping, arrival atMETRO Group distribution centers, and delivery -- right to the shelves ofindividual real,- stores. The supplier can determine whether an item thatis part of a special promotion is on the shelves of the right store at theright time, and they can take corrective actions if items are not wherethey should be.

On METRO Group's side, all information concerning each supplier's promotedproducts -- EPC code, order number, and other key information -- can bestored using the InfoSphere Traceability Server. As METRO Group'ssuppliers begin using EPCIS-standard software themselves, both METRO Groupand its suppliers will be able to securely share information on taggeditems. This will provide suppliers with a clear view of where theirproducts are after they are shipped. For consumers, this means that theproducts they want are more likely to be available on the shelves of areal,- store.

According to ABI research, RFID systems revenue for the retail industrywill grow 19.6 percent between now and 2013; from $228.4 million in 2008 to$558.2 million in 2013.* Michael Liard, research director for RFID &contactless at ABI Research, said: "The use of RFID in retail remains anexciting segment of the market. By using RFID, retailers everywhere havethe opportunity to rethink their supply chain and in-store approaches. Withthe help of RFID technology retailers can use real-time information andimproved data visibility and accuracy to transform their supply chains intoadaptive business networks as well as to enhance the in-store consumerexperience."

Retailers around the world are increasingly focused on finding new ways toprovide a high level of service to customers while continuing to drive costand inefficiency out of their supply chains. METRO Group is widely knownfor its innovative use of RFID technologies to improve customers' totalshopping experience. To continue this effort, the retailer is tapping IBM'sretail industry expertise and industry leading RFID software to meet itsneeds for two critical initiatives.

METRO Group has selected IBM's Electronic Product Code Information Services(EPCIS) software, InfoSphere Traceablity Server, to track items as theymove through its supply chain. The software is fully compliant with GS1EPCglobal's EPCIS standard for sharing RFID information among tradingpartners. By using software that meets those standards, METRO Group iscreating a system it can use to share information on product movements withany trading partner that also uses an EPCIS-compliant solution. Inaddition, METRO Group is enhancing its ability to track items, such asmeats, within its stores.

Commenting on his company's expanded relationship with IBM, Gerd Wolfram,managing director, MGI METRO Group Information Technology GmbH, said: "IBMis a strategic partner in our quest to use RFID technology to giveconsumers the best possible shopping experience. As a leader in thecreation of the EPC Information Services standard, IBM has the technologyand expertise needed to make our latest RFID projects a success for ourcustomers and suppliers."

"METRO Group continues to be a pioneer in using RFID technologies to createa better experience for both customers and suppliers," said MartinWildberger, vice president, RFID solutions, IBM. "With these projects,METRO Group is offering consumers a better shopping experience whileproviding greater supply chain visibility to suppliers."

About IBM

A pioneer in sensor technology and a leader in IT and business strategy,IBM offers sensor solutions that unlock new business value and help drivenew insights and innovation. For more information, visit:http://www-306.ibm.com/software/data/masterdata/rfid/

www.ibm.com/solutions/sensors

www.ibm.com/retail

*excludes security/access control and POS/contactless payment applicationrevenues. Source: ABI Research.

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Contact:IBMNancy Kaplan914-766-1849Mobile: 914-714-2299nkaplan@us.ibm.com