RFID: The Next Big Little Thing William T. Colleran, Ph.D. President & CEO, Impinj Inc. Copyright 2003 Impinj, Inc. All rights reserved.

2 Gilder / Forbes Telecosm Conference 2003 What is RFID? Stands for “Radio Frequency Identification” Replacement for bar codes with several key advantages –No line-of-sight required –Tags can be rewriteable –Unique serial number for each tag EPC replaces UPC EPC Code Expiration Date Tax Tariff Kill Command Repair History RFID

3 Gilder / Forbes Telecosm Conference 2003 How Does RFID Work? Reader sends RF interrogation signal Tag uses incoming RF signal as power source –Tag comprises antenna and RFID chip RFID chips are extremely small (< 1 mm 2 ) –No battery required – unlimited lifetime Power dissipation must very low (< 10 uW) Tag returns EPC by reflecting incident RF signal

4 Gilder / Forbes Telecosm Conference 2003 RFID is Old, So What’s New? Previous standards –125 KHz and MHz –Inefficient modulations schemes –Large antennas – credit card size –Short range – < 3 feet Emerging standards –900 MHz –Efficient modulation scheme –Small antennas – postage stamp size –Long range – ~ 20 – 30 feet –Rewriteable nonvolatile memory 13 MHz 900 MHz 1 – 3 ft 30 ft +

5 Gilder / Forbes Telecosm Conference 2003 Myriad Applications Supply Chain Package tracking (UPS, FedEx) Airline tickets, luggage Pharmaceuticals Anti-counterfeiting Asset tagging, archiving Car tires Animal tagging

6 Gilder / Forbes Telecosm Conference 2003 RFID in Supply Chain Management Albertson’s distribution center in Brea, CA RFID will increase throughput and efficiency –Current barcode scanning slow –Barcode applied manually by retailer, not supplier

7 Gilder / Forbes Telecosm Conference 2003 RFID in Logistics UPS sorting facility in Louisville, KY –Handles ~5 billion parcels annually RFID will increase throughput and efficiency –Current barcode scanning slow and requires manual alignment

8 Gilder / Forbes Telecosm Conference 2003 An Idea Whose Time Has Come 6 of top 7 retailers worldwide > $750 billion revenue

9 Gilder / Forbes Telecosm Conference 2003 Astounding Volume Source: Deloitte & Touche, stores.org, customer interviews.

10 Gilder / Forbes Telecosm Conference 2003 Conservative at 100 Billion/Year? 10 TU 1 TU 100 BU 10 BU 1 BU 100 MU 10 MU Metcalf’s Law: The value of a network increases exponentially with the number of nodes on the network 1/Computer 1/Consumer Appliance 1/Object Cell PhonesWi-Fi Bluetooth/ ZigBee RFID 1/Human Potential Current Penetration

11 Gilder / Forbes Telecosm Conference 2003 RFID Chip Market First and only market for consumable semiconductors –Most semiconductor products designed to last years –Many RFID chips will last for weeks, days or even hours Huge volume – 10s of billions per year –ASPs will start < $0.30 and move to < $0.10 –$ multi-billion market in a few years –No entrenched incumbent Keys to success –Global standards –Very inexpensive chips => Logic CMOS –Very low power chips => Advanced logic CMOS –Rewriteable nonvolatile memory => Impinj’s AEON memory

12 Gilder / Forbes Telecosm Conference 2003 Impinj, Inc. Fabless startup located in Seattle, WA –Founders: Dr. Carver Mead and Dr. Chris Diorio –45 employees –Raised $30 million to date Platform technology: Self-Adaptive Silicon TM –Self-tuning analog circuits in lowest cost logic CMOS processes Superior analog and RF performance (extremely low power) –AEON TM low-density nonvolatile memory in logic CMOS RFID activity –Chairing AutoID Center’s hardware standards body –Developing RFID products for > 1 year First RFID chip sampling late this year

13 Gilder / Forbes Telecosm Conference 2003 Award Winning Technology “Best of the Best” “Startup of the Year” “Startups Graduate with Honors” “Most Promising New Technology” “Hottest Young Communication Companies” “Venture All-Star”

William T. Colleran, Ph.D. President & CEO Copyright 2003 Impinj, Inc. All rights reserved.