About Advanced ID Corporation (OTCBB: AIDO)

Advanced ID Corporation (OTCBB: AIDO) is a complete solutions provider in the radio frequency identification (RFID) market. The Company provides tracking and identification tools for supply chain management applications and animal tracking and recovery. AIDO utilizes low frequency (LF) radio waves for companion animal recovery purposes and ultra high frequency (UHF) waves for supply chain applications. 

AIDO also offers UHF RFID identification for tires. The Company provides both the tire tag that is embedded in tires during manufacturing, and tire patches that are cold vulcanized on the tire after manufacture. Both tools provide a lifetime, unique tire ID that can be used for inventory purposes, tire maintenance, theft prevention and as a resource in recall situations.  AIDO markets the Michelin- licensed 915 MHz tire tag as an AIDO brand to the transportation industry.

AIDO’s Canadian subsidiary uses LF RFID to implant microchips in pets for tracking and recovery purposes when pets are lost. AVID Canada is the country’s second largest provider of microchips and is expanding into new markets by selling its microchips in India, China, Taiwan and Thailand.

AIDO is also active in the UHF RFID reader market and has developed readers that are full featured, easy-to-use, rugged and priced at less than half the cost of equivalent competitor readers.

The Company recently acquired UK-based Pneu-Logi and its unique tire maintenance tools. The combination of AIDO’s RFID tire ID system and Pneu-Logic’s innovative tire inspection products provides a one-stop solution for tire manufacturers, re-treaders and fleet owners not available from other industry providers.

The patented Pneu-Logic Data capture tools transmit tread depth and pressure readings to any Windows mobile device through our own Pneu-logic software, or a host of reseller specific applications, has ensured our tyre inspection solutions are No 1 in the market today.

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Investment Highlights

Business model addressing demand for wireless identification tools

AIDO provides tools for identifying objects for supply chain management applications, and tracing animals for recovery purposes. The Company uses low frequency radio waves for companion animal recovery and is the second largest player in the Canadian companion animal and biological sciences market, with an estimated 40% market share.

AIDO is also involved in ultra high frequency RFID for tires. The Company provides lifetime IDs for tires that can be used for inventory purposes, tire maintenance, theft prevention and as a tracking resource in recall situations.

Product Line Expansion

The Company is making the transition from being a provider of pet recovery systems to offering global RFID solutions for asset management applications.  AIDO’s tracking systems are being tested in asset management applications by major companies in the tire, document management, pharmaceutical, vehicle ID, food services and general retail industries.
 

In addition, AIDO’s Pneu-Logic subsidiary has introduced two new tire maintenance products that position AIDO as an industry leader in tire diagnostics. Going forward, the Company will offer the only tire diagnostics products that include real-time tire temperature and tire pressure monitoring.  These products are scheduled for launch in late 2008.

The Market for Advanced ID Corp.

Competitive advantages support market share gains

AIDO plans to become a price-performance leader in all segments of its market. By keeping prices low, the Company discourages competitors from entering the market. 

Existing RFID livestock tracking technologies use low radio frequency and high radio frequency tags that typically offer a read range up to three feet and retail for $2 to $10 per tag. These tags have not been widely adopted by customers, however, because of high prices compared to bar code tags, which typically retail for between $1 and $1.50 per tag, and because current technology doesn’t address the needs of many users.  AIDO’s RFID technology utilizes a higher frequency of 915 MHz, and provides a read range up to 10 feet at prices of $1.50 to $2 per tag. Some of the Company’s RFID tags also include a bar code to ensure a seamless transition for bar code tag customers to RFID technology.

Strong first quarter 2008 revenue growth

AIDO’s revenues increased 123% year-over-year to $424,955 in the first quarter of 2008, reflecting increased sales to animal shelters, expanding reader sales and sales of the Company’s new PR500 reader.  Revenues were also positively impacted by the Pneu-Logic acquisition. AIDO attributed 34% of first quarter 2008 revenues to sales by its Canadian Companion Animal/Biological Sciences division and the remaining 66% to worldwide sales made by its Ultra High Frequency division.

Going forward, AIDO is expected to report revenues of approximately $2.6 million in 2008 and $5.1 million in 2009.

Worldwide distribution network 

AIDO is building a global distribution network by contracting with new distributors, system integrators, value-added resellers and direct sales professionals.

The Company has already established strong distribution channels in Canada’s companion animal and biological sciences markets and plans to extend its reach by pursuing relationships with veterinary professionals in targeted regions across Canada. At present, the Company has relationships with Associate Vet Purchasing, Western Drug Distribution Center, Vet Purchasing, Canadian Kennel Club and Centre de Distribution de Medicaments Veterinaires. 

AIDO has also emerged as a major player in the RFID tire tag/patch business; revenues associated with this business line are growing at double and triple-digit rates. The Company has already announced a multi-million dollar purchase agreement with Mesnac in China, as well as similar agreements for Europe, Brazil, Mexico, Venezuela, Indonesia, India and Malaysia.

Asian market penetration 

AIDO entered the Asian market in late 2007 through a strategic relationship with Kit Loong Tyre Management of Malaysia. Kit Loong has signed an exclusive, three-year commitment contract for AIDO’s RFID and Pneu-Logic’s tire inspection products. As part of the agreement, Kit Loong agreed to purchase $1.8 million of Advanced ID tire products. Kit Loong’s territories covered by this agreement includes Greater China, Malaysia, Singapore, Brunei, Thailand, Indonesia, Philippines, Vietnam, Cambodia, Laos and Myammar. In April 2008, the Company announced Qingdao Mesnac Co. Ltd. had become the first tire manufacturer to embed AIDO’s RFID tire tags in a commercial truck tire line. Mesnac is purchasing a minimum of 2 million RFID tire tags and a quantity of RFID readers from AIDO. In June 2008, AIDO announced a new Hong Kong subsidiary, Advanced ID Asia Pacific Co. Ltd., which will serve as the Company’s regional headquarters in the Asian market. 

China is the world’s largest tire-producing nation with 205 million tires manufactured in 2006, according to Tire Business magazine. 

RFID technology benefits from governmental support

The National Highway Traffic Safety Administration’s (NHTSA) recently issued a Consumer Advisory on the dangers of aged tires. NHTSA kicked off the summer driving season with a warning to motorists to check their tires – including the spare – for signs of wear, under-inflation and age. The NHTSA consumer advisory will impact tire manufacturers by encouraging the adoption of RFID technology as a solution for identifying and tracking tires from manufacture to scrap. AIDO may become a key beneficiary if tire tagging becomes implemented on a global scale. 

Enormous market opportunity

According to research company IDTechEx, the value of the RFID market is likely to rise to $5.3 billion in 2008 from $4.9 million in 2007.  By 2018, the market is forecast to grow five-fold and the number of tags supplied will increase 300-fold, driven by the development of lower cost tags and an installed infrastructure, which will enable high volumes of tagging. 

Within the RFID industry, much of the growth is coming from existing applications such as security/access control, automobile immobilization, animal tracking and toll collection. However, emerging applications in security, contactless payments and supply chain management are in late testing stages and present significant new market opportunities.

Financial Highlights For AIDO

Estimated Market Cap
12,292,964 as of Aug 22, 2008

Outstanding Shares
64,922,217 as of August 11, 2008

Number of Share Holders of Record
1,819 as of Apr 15, 2008

You may view all of AIDO's filings with the SEC HERE

Corporate Contacts

Advanced ID Corporation 
4500 – 5th Street NE #200, Bay 6
Calgary, Alberta, Canada 
T2E 7C3
403-264-6300
Company web site: http://www.advancedidcorp.com/ 

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Public Relations Contact:
Jordan M. Darrow
Darrow Associates, Inc.
273 Walt Whitman Road, Suite 280
Melville, NY 11746
Tel. 631-367-1866
Fax. 631-614-3612
Email: jdarrow@darrowir.com
 

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