Our industry has changed dramatically over the years since our inception. From the very beginning, our company has helped its customers stay at the leading edge, achieve operational efficiencies and remain stable and competitive, and we don't intend that to change.

The company now known as RFID Systems, Inc., began as M-Group Systems (M-Group) in 1993. M-Group was founded to deliver "computerized operations" for the food distribution industry. At that time, there were no commercial applications available to support the basic requirements needed to run this technology-enabled business model. M-Group began its designing effort by involving industry experts with over thirty years experience in wholesale logistics to develop the M-Group Distribution System (MDS). Original functions of MDS included those to facilitate: purchasing, receiving, inventory management, customer management, invoicing and shipping.

To date, the MDS application has been installed in numerous locations in the United States and throughout the world (Australia, Poland, Portugal, South Africa, Spain, and the United Kingdom). The McLane Company purchased the MDS logistics business rules and data model, when it was a division of Wal-Mart, to enhance their distribution application.

As part of a strategic expansion, M-Group Systems merged with Fusion Laboratories, Inc. (Fusion Labs) in 2002. Fusion Labs provides managed services, information technology consulting, solution provisioning and IT outsourcing services. Clients and partners of Fusion Labs' include Neiman Marcus, Toys 'R Us, Saks Fifth Avenue, Bank of America, NCR, Kintetsu World Express, American Express, Caterpillar, and Pizza Hut.

On April 3, 2003, the company also leveraged emerging RFID technology to demonstrate value within typical supply chain and warehousing environments. In the forth quarter of 2003 a decision was reached to rename and rebrand the company as RFID Systems, Inc.

Using the MDS package as the core for development, RFIDpak is the industry's first distribution software to deliver essential functions of SCM/ERP/WMS in one package. The system provides RFID "readiness" to forward-looking organizations while meeting the current demands of today's warehousing and distribution operations. The proven core application, now branded as RFIDpak, has exceeded many ROI and IRR hurdles, improved P&L performance and provided expense reduction benefits to RFID Systems customers. One of RFID Systems' largest client credits RFIDpak for decreasing their out-of-stocks from 7% to 2% across all facilities, and their warehouse productivity went up by 30%.

RFID Systems stays on top of new trends and carefully invests in those technologies that represent significant value to our customers and partners. Our commitment to the success of our business partners, customers, suppliers and employees ensures our longevity. We plan to facilitate our impact on the global distribution environment by remaining dedicated to our "best practices - best in class" growth strategy and delivering unparalleled services and support levels to customers.

Recognizing that not all clients require the same level of sophistication and that there may be a wide variance in the data elements that are considered mandatory and those that are considered optional "nice to haves," RFIDedge™ and RFIDpak™ both have the capacity to address requirements on a client-by-client basis. This is to establish a practical use (based on client factors) of RFID technology in order to yield the greatest benefits and provide a solid Return on Investment. The package is credited with streamlining Inbound/Outbound Logistics, Routing, Replenishment, Inventory Control, and improves Labor Productivity, Security and Loss Prevention, Customer Service, Finance and Administration.