International Paper, Micromem Technologies Enter Into Technology Alliance
Thursday, November 15, 2001
TORONTO, Ontario--Nov. 14, 2001--Micromem Technologies and International Paper Company, a DOW 30 company, are pleased to announce that they have executed a Memorandum of Understanding which establishes a strategic alliance for the purpose of delivering low cost solutions for automated product identification and tracking for manufacturing, retail and service industries. The parties will seek to integrate their existing complementary technologies with a view to delivering a "Smart Packaging'' solution to the customer. International Paper is the world's largest paper and forest products company. Its businesses include paper, packaging, and forest products and it is one of the largest private forest landowners in the world. Headquartered in the United States, at Stamford, Conn., International Paper has operations in nearly 50 countries, employs more than 113,000 people and exports its products to more than 130 nations. Salvatore Fuda, Chairman and CEO of Micromem Technologies, stated that "this MOU represents the achievement of an important milestone in positioning Micromem for entry into the RFID market with a world class industry partner. I believe that the MOU will significantly increase our exposure in the market place through a joint marketing strategy. I would also like to take this opportunity to thank the management team for developing the relationship with International Paper that has culminated in this MOU.'' The Alliance will be responsible for product integration including the introduction of Micromem's magnetic memory technology into the Radio Frequency Identification (RFID) chips developed for International Paper. The development plan for the Smart Packaging solution includes evaluation and selection of additional technology providers for inclusion in the strategic alliance in order to deliver an efficient, total system solution. The Alliance is being formed as a result of requests from multinational manufacturing and retail corporations for the development and implementation of a wireless electronic product tag and interrogation system. This industry is emerging into a multi-billion dollar market worldwide. RFID technology can also be used to assist in the reduction of product counterfeiting which costs manufacturers worldwide several billion dollars every year. The parties intend that Smart Packaging will aid supply chain efficiency, enhance inventory security and improve customer satisfaction by reducing checkout times for retail sales. The parties will jointly make marketing presentations commencing today to specific companies that require Smart Packaging solutions. The objective of these presentations is for interested parties to integrate the smart packaging solution into their existing inventory control / tracking systems. The Strategic Alliance will be managed by a team of personnel from both companies headed by Steven Van Fleet, Program Director for E-Packaging Silent Commerce at International Paper. Dale Hensley, Chief Operating Officer of Micromem Technologies, and Eitan Avni, Director of Development and Manufacturing for E-Packaging at International Paper, will be responsible for product integration. Joseph Fuda, Marketing Manager at Micromem, will manage customer development and marketing activities for the Alliance.