News & Events

VeriSign Announces Plans for EPC and RFID Pilot with Bailian Group

Largest Retailer in China Will Target Top Suppliers For Program Piloting Network-Based Exchange of EPC and RFID Data

MOUNTAIN VIEW, CA., April 27, 2006 - VeriSign, Inc. (Nasdaq: VRSN), the leading provider of intelligent infrastructure services for the Internet and telecommunications networks, today announced that Bailian Group Ltd., China’s largest retailer, has developed plans for the second phase of the China Implementation Reference Project, a pilot program that seeks to expand usage of Electronic Product Codes (EPCs) and radio frequency identification (RFID). Bailian Group is using the EPCglobal Network™, which enables automatic identification and visibility of product information, to track merchandise as it moves through the company’s global supply chain.

The first phase of the pilot project involved simulation-based testing of RFID and information infrastructures, modeled on the hypothetical movement of products through a supply chain. The second phase will track the movement of actual products tagged with EPC-enabled RFID tags. Bailian Group expects the second phase to yield key information about the quality and uses of data generated through the EPCglobal Network.

VeriSign plans to provide critical components of the EPCglobal Network for phase two of the pilot, including Object Naming Services (ONS), EPC Information Services and Track & Trace Services. Each of these plays a key role in the storage, discovery and sharing of RFID product information.

“VeriSign has provided valuable expertise around the critical data infrastructure and has demonstrated the ability to support the security and scalability needed to improve visibility across our vast trading network,” said Shi Jin Xiu, assistant general manager, Bailian Logistics.

For the second phase of the project, Bailian Group is inviting the participation of key suppliers, based on their level of interest in integrating RFID technology into the supply chain. Participating suppliers will tag shipments in their originating distribution centers, and send those shipments to a Bailian Group distribution center in Shanghai. The movement of these products will be recorded, enabling all participants to gain a more accurate view of inventory levels.

“The emergence of RFID and the Electronic Product Code is improving global visibility, collaboration and performance in the supply chain,” said Jeff Richards, vice president, Intelligent Supply Chain Services, VeriSign. “Leveraging information captured from RFID and sharing it across supply chain participants is a critical next step in supply chain excellence. Our work with Bailian Group demonstrates VeriSign’s commitment to helping leading retailers and suppliers adopt advanced technologies that yield better visibility into their supply chains worldwide.”

As a leading distribution conglomerate in China, Bailian Group’s capital totals over 40 billion RMB. Bailian Group employs 200,000 and operates over 7,000 stores across China. In the tally of the top 100 chain enterprises in 2004 in China, Bailian Group and its business lines ranked first with $67.627 billion USD annual sales. The revenue of Bailian Group represents approximately 13.7 percent of the total amount of the national top 100 enterprises, and its stores account for approximately 18 percent of all stores from the top 100 retailers in China. Bailian Group’s business lines include retailers, department stores and productive materials as well as logistic services and other services.

Bailian Group is exploring RFID and the EPCglobal Network to maintain its leadership position as an innovative retail company in China. It has worked with IT service provider JMIT to put a new information system into practice in 2005, and then began to search for a technological platform to support its growing network of suppliers.

“The EPCglobal Network is an important part of extending the benefits of supply chain efficiency in both China and throughout the world,” said Mr. Wang Kiajiang, CEO, JMIT. “Given its critical role in supporting the EPCglobal Network™, VeriSign is an ideal partner to work with Bailian Group and JMIT to help create more efficiency in our global distribution process."

VeriSign is the exclusive provider of Root ONS services to EPCglobal, and these services support the overall EPC directory capabilities of the EPCglobal Network. VeriSign® Intelligent Supply Chain Services and Retail Data services enable global supply chain participants to engage in secure information exchange and collaboration via a highly scalable infrastructure.

To learn more about VeriSign Intelligent Supply Chain Services, visit www.verisign.com/supplychain.

About VeriSign 
VeriSign, Inc. (Nasdaq: VRSN), operates intelligent infrastructure services that enable and protect billions of interactions every day across the world’s voice and data networks. Additional news and information about the company is available at www.verisign.com.

For more information, contact: 
VeriSign Media Relations: Brendan P. Lewis, brlewis@verisign.com, 650-426-4470 
VeriSign Investor Relations: Tom McCallum, tmccallum@verisign.com, 650-426-3744 

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VeriSign and other trademarks, service marks and logos are registered or unregistered marks of VeriSign, Inc. and its subsidiaries in the United States and in foreign countries.  Copyright © 2006 VeriSign, Inc. All rights reserved. 

EPCglobal Network is a registered or unregistered mark of EPCglobal, Inc.

Statements in this announcement other than historical data and information constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve risks and uncertainties that could cause VeriSign's actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, the uncertainty of future revenue and profitability and potential fluctuations in quarterly operating results due to such factors as the risk that VeriSign's announced strategic relationships, including the relationship described herein, may not result in additional products, services, customers, profits or revenues; and increased competition and pricing pressures. More information about potential factors that could affect the company's business and financial results is included in VeriSign's filings with the Securities and Exchange Commission, including in the company's Annual Report on Form 10-K for the year ended December 31, 2005 and quarterly reports on Form 10-Q. VeriSign undertakes no obligation to update any of the forward-looking statements after the date of this press release.

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