Pasadena, Calif. - Avery Dennison RFID, the world's largest producer of radiofrequency identification (RFID) inlays, announced today the shipment of its one billionth ultrahigh-frequency (UHF) RFID inlay -- an industry first -- which company officials believe to be a sign of the broadening deployment of the technology to overcome real-world challenges. Avery Dennison RFID provides both UHF and high-frequency (HF) inlays to supply chain applications and the healthcare, aviation, retail and other industries.

"For more than 75 years, Avery Dennison has leveraged its deep expertise in materials science and process capabilities to develop innovations in item identification, including the evolution of 'analog' adhesive labels into 'digital' RFID labels," said Dean Scarborough, Avery Dennison chairman, president and CEO. "Since our first RFID shipment in 2004, we have been certain that this technology can fundamentally improve both business operations and the consumer experience."

Today Avery Dennison RFID inlays are attached to or embedded in labels and tags produced by multiple label converting partners and distributed in more than 60 countries worldwide. By providing a unique identifier for individually tagged items that can be read without the line of sight required by traditional barcode systems, RFID-based systems can collect and organize data exponentially faster and more accurately.

The marketplace for UHF RFID tags has evolved in recent years from U.S. Department of Defense compliance mandates and pallet-based supply chain applications to versatile and quantifiable business process solutions. Over the past year, Avery Dennison RFID inlays have become more widely used by major apparel brands and retailers in "item-level marking" systems. Avery Dennison's Retail Branding and Information Solutions business is leading the growth of such systems, which provide retailers with benefits ranging from improved inventory productivity, labor efficiency and loss prevention to an enhanced customer experience.

According to the 2011 RFID Brand Report by RFID Journal, Avery Dennison is the number one-rated tag provider among end users. Chris Rezendes, executive vice president of technology market analysis firm VDC Research Group, said, "Avery Dennison has been unwavering in its commitment to the RFID industry. Reaching one billion inlays is impressive but not surprising, given their early investment and continued leadership in RFID commercialization on a number of dimensions."

Avery Dennison sees UHF applications expanding beyond supply chain applications into healthcare, authentication and transport logistics as well as retail apparel. In addition to pioneering the use of UHF inlay applications, the company has moved into the established HF RFID space to facilitate the growth opportunities presented by that technology.

"We are excited about the overall future growth of RFID in both UHF and HF," said Maggie Bidlingmaier, Avery Dennison RFID global director, sales and marketing. "The recent momentum in near-field communications technology, enabled by RFID-equipped smart phones, is particularly exciting, as it opens up the opportunity for many new applications for consumers as well as businesses."

"We are confident that our second billion chips will be shipped in much less than half the time it took to ship our first billion," said Jack Farrell, vice president and general manager of Avery Dennison RFID. "As use cases expand and companies invest in IT process improvements, RFID solutions become almost a mandate for the future. This is a very exciting time for the RFID industry."