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u-Fiber Microwire(TM) Technology to Revolutionize Electronic Article Surveillance, Anti-Counterfeiting, Security, Biomedical Capabilities: Addresses R

18 January 2006

Demodulation Inc., announced today that it has successfully developed the first technology capable of fulfilling the global demand for a low cost, long-range item level tracking system. Demodulation Inc.'s patented Microfiber Sensor Tracking (MST) system is capable of reading digital signal information from their "u-Fiber" (Mu-Fiber) Microwire(TM), a chipless, glass-coated microfiber with an amorphous alloy core that is smaller than the diameter of a human hair. The synergistic pairing of these dissimilar materials creates a remarkably simple platform upon which to build a truly revolutionary technology.


Furthermore, the potential for magnetic coding and its superior detection capabilities allows for multiple item tracking, which will revolutionize the world of Electronic Article Surveillance (EAS) and brand identification. Demodulation Inc.'s u-Fiber Microwire(TM) can be incorporated into items such as labels, clothing, packaging, paper and currency. Furthermore, u-Fiber Microwire(TM) is functional even in the presence of metals, foils, and liquids, which until now was thought to be impossible. With a selling price of $.01 per unit and a size of less than 50 microns, the u-Fiber Microwire(TM) costs far less than RFID-based targets. In addition, u-Fiber Microwire(TM) technology opens up a much broader range of applications and addresses the needs of an untapped, multi-billion dollar market for users that have heretofore been unable to accommodate the inherent limitations of chip-based RFID.


According to studies conducted by the Department of Commerce, current RFID technology has serious limitations, including high target cost, large target size, and difficulties with placement of the target on articles appointed for protection.(1)


"Until now, no one has been able to develop a cost effective long range tracking system which can be deployed on the item level and which is ideal for source tagging," says James O'Keefe, CEO of Demodulation, Inc. "In our view the successful development of u-Fiber Microwire(TM) technology provides a platform that not only has applications for tracking, security, and industrial sensors, but also for a wide variety of other applications, including biomedical applications. The u-Fiber Microwire's(TM) broad application and multi-functionality make this core platform technology a remarkable development in modern material science."


Demodulation Inc.'s team of world-renowned scientists, which includes PhDs in glass science, metallurgy, physics, and electronics have successfully demonstrated that it is possible to detect and read multi-bit information from a u-Fiber Microwire (TM) segment less than 40 microns in diameter (one inch long) at a distance of up to 25 meters. Demodulation Inc. scientists are confident in their ability to provide encoded u-Fiber Microwire(TM), which will lead to remote non-line-of-site barcode reading for merchandise tracking. Demodulation Inc.'s ability to engineer and control both magnetic and optical signatures within the u-Fiber Microwire(TM) allows for information to be carried without the use of a chip, another key difference between u-Fiber Microwire(TM) technology and RFID. Each u-Fiber Microwire(TM) segment may be assigned its own magnetically embedded code from a pool of millions of possible combinations, making it possible to securely identify, track, and trace individual items which can be used for anti-counterfeit means, self- check out and security electronic applications.


Furthermore, the u-Fiber Microwire(TM) is not affected by temperatures up to 400 degrees F or below freezing. It is resistant in both acidic and basic environments, making u-Fiber Microwire(TM) ideal for various manufacturing environments including textile manufacturing. u-Fiber Microwire's(TM) shut-off capabilities, high-speed manufacturing and ease of application allows for "source tagging." It can be covertly embedded within labels and packaging at time of manufacturing. Once embedded, a low cost stationary or hand-held reader is used to digitally and optically detect and identify the magnetic signature associated with the label. This, in turn, exposes the location of a tagged item that is present within the surveillance zone of the reader. With its stress and temperature sensing capabilities, the u-Fiber Microwire(TM) facilitates manufacture of tamper evident packages, making it particularly beneficial to the food and pharmaceutical industry.


For the Biomedical Industry, the u-Fiber Microwire(TM) shows promise for diagnostic, biosensor and drug delivery applications. Demodulation Inc. has applied for patent protection on a process that incorporates the use of DNA on the u-Fiber Microwire's(TM) engineered porous glass surface. This technology will lead to a host of bio-sensing applications and more advanced anti-counterfeiting and brand identity tracking devices. Furthermore, the u-Fiber Microwire(TM) has the ability to facilitate and miniaturize "PCR" (Polymerase Chain Reaction). The u-Fiber Microwire(TM) in this kind of application can be used in a universal biological detection system. Demodulation Inc. scientists believe that this will lead to a handheld PCR device that may be used for biomedical and forensic means.


Demodulation has an extensive international and domestic patent portfolio for this u-Fiber Microwire(TM) technology. These patents cover the formulation, production, encoding processes, glass surface functionality, and detection methods, both optically and digitally. Despite the significant progress made on these developments, the company is continuing with optimization of production processes and the development of new product applications. Demodulation Inc. intends to manufacture and market its u-Fiber Microwire(TM) technology worldwide, including but not limited to the public and private sectors. Demodulation Inc. has plans to expand its operations at a facility in upstate New York near the campus of the New York State College of Ceramics at Alfred University. The company is currently engaged in negotiations with Fortune 500 companies and plans to begin a full market rollout by the end of 2006.


Demodulation Inc., a privately held company, is a technology development company focusing on advanced microsensor applications. Its select group of investors includes Gary W. Heinz, former Goldman, Sachs & Co. Investment Banker, who was recently appointed to its Board of Directors.


(1) "Radio Frequency Identification: Opportunities and Challenges in Implementation," Department of Commerce Report, Washington D.C., April 2005.


For more information please contact:


Jack Youngworth James E. O'Keefe, Jr.


Senior Vice President President & CEO


Youngworth Communications, Inc. Demodulation, Inc.


Ph: 973-744-5556 Ph: 201-522-4720


Email: jack@youngworthpr.com


The statements made by Demodulation Inc. may be forward-looking in nature and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe the Company's future plans, projections, strategies and expectations, and are based on assumptions and involve a number of risks and uncertainties, many of which are beyond the control of Demodulation, Inc. Actual results could differ materially from those projected due to changes in interest rates, market competition, changes in the local and national economies, and various other factors. The Company undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date hereof to reflect the occurrence of unanticipated events.

Source: prnewswire


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