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Driving Value for Our Shareholders

Intermec Innovation
It has long been our contention that to be the technology leader in the automated data capture industry requires a leadership position in each of the three main data capture technologies: RFID, laser scanning and imaging.

To this end, and to allay uncertainty for customers concerning which suppliers Intermec would license to use its considerable RFID technology, the company undertook a novel licensing program in 2005, known as "Rapid Start." Chosen licensees, in addition to several whose status predated the program, represent a complete range of supplier alternatives for the customer base. Today, Intermec has agreements with 24 such licensees, and holds more than 154 RFID patents covering broad areas of supply chain applications.

Intermec had also begun development of its own laser scanner several years earlier, to complement its existing leadership positions in imaging and RFID. Its introduction to the broader market was hastened when our competitor terminated an existing supply agreement for laser scan engines in March, 2005. The new laser scanner from Intermec employs a “leapfrog” technology called Micro-Electro-Mechanical Systems, or MEMS. This marked the first major laser-scanning advance in 20 years, and CNN has named MEMS one of the top 25 innovations of the last quarter century.

And in 2006, Intermec furthered its leadership position in imaging with the introduction of a revolutionary area-imaging bar code scan engine that shatters previous limitations – the Intellibeam™ EX25 Scan Engine. The EX25 scan engine reads and decodes 1D and 2D bar codes in any orientation from six inches to 50 feet, as well as composite and postal codes. And its capabilities don’t stop at scanning: The EX25 capture photographs and operates in total darkness.

Intermec Initiative
We are driven by our long-term ambition to convert our technology leadership position to one of market leadership in the automated data capture industry. We believe that Intermec has the right vision, technology, and focus to capitalize on the business opportunities created by emerging technologies, new markets, and the data capture industry as a whole.

Intermec, Inc. (NYSE: IN)
6001 – 36th Avenue West
Everett, Washington 98203-1264
Main Tel: (425) 348-2600
Main Fax: (425) 355-9551

For more information, please contact Investor Relations.

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