.: Texas Instruments Expresses Confidence in Security of RFID Systems :.

Zero Fraud To-Date, None Expected in Installed Customer Base

DALLAS , TX ( February 10, 2005 )

Texas Instruments Incorporated (TI) answered questions today regarding the security of its 40-bit DST radio frequency identification (RFID) technology in response to work done by a university research team. With over eight years of protecting automobiles from theft and providing secure transactions using RFID technology, TI has been an innovator in protecting users by steadily evolving its product offering to include the most advanced security features available. TI made it clear that its installed RFID systems are secure and assured users they could continue to use their RFID-enabled products with confidence.

“We recognize that security needs to continually evolve to stay ahead of illegal attacks on RFID systems and we remain committed to our plan in meeting our customer's security and encryption requirements,” said Julie England, vice president of TI 's RFID business. “Part of that security commitment is to evaluate any claims that information security has been compromised and respond appropriately. Although a demonstration has been made that a determined attack by experienced cryptologists with highly specialized equipment can compromise one layer of a 40-bit multi-tiered security system, we have not received one reported incident of fraud in the eight years it has been used by consumers and we are confident the systems remain secure . We continually invest in enhanced RFID security and encryption features to ensure that record continues.”

This year TI will begin ramping production of its 128-bit encrypted RFID chips first introduced in early 2003 which includes the highest level of encryption that is commercially available today. These products feature National Institute of Standards and Technology (NIST) approved cryptographic algorithms, including Triple DES and SHA-1, developed by the National Security Agency (NSA).

Questions and Answers

Did the university research team identify an unforeseen security risk for RFID technology?

No. Since 1997, when the level of security in question was introduced, we've understood that a determined team of cryptographers could reverse engineer the algorithm involved. That is why several different layers of security were built into the system and we have evolved to a 128-bit encryption technology today from the 40-bit technology studied by the researchers.

Are existing users at risk of having the information stolen off an RFID product and placed on a cloned device?

We are aware of no such occurrences and after months of effort, the research team has been unable to demonstrate any scenario by which an unaware passerby's information can be captured at any practical range. In fact the chance of fraud being perpetrated in an RFID based system is much less than the chance of fraud with typical credit cards. Unlike magnetic stripe credit cards, the technology examined in this instance has not been involved in a single reported case of fraud which we are aware of since the product was introduced more than seven years ago.

Can a tag be read without the owner knowing they have been targeted?

At distances beyond around 2-feet it is virtually impossible to read RFID tags of this type, even in a lab environment. While it is technically feasible to query a tag of this type at less than 2 feet with a 40” tall antenna with an attached reader and a computer that needs to be plugged into the wall, the equipment needed to recreate the research team's work is complex, expensive and cumbersome. A portable reader, if one could even be built, would provide only a few inches of read range; therefore, acquiring the necessary information would be akin to being scanned by a handheld metal detector at the airport.

What should an existing Speedpass™ user or car owner with an RFID vehicle immobilizer do to protect themselves?

RFID-enabled products, like any other car key or payment device, need to be protected from being lost or stolen. There are no additional protections necessary.

About Electro-Com ( Australia ) Pty Ltd
Electro-Com is Australian owned and operated company located in Melbourne , Australia . Electro -Com is Australia 's largest and leading supplier of radio frequency identification (RFID) readers and tags to markets such as animal identification, access control and logistics management, supply chain. Electro-Com are the official distribution partners for Texas Instruments in Australia and New Zealand and is a leading supplier of Electro -mechanical components, control products, electrical switchgear and electronic enclosures. For more information, visit the company's website at www.rfid.com.au .

About Texas Instruments RFid Systems
Updated March 2005>>>> Texas Instruments is the world's largest integrated manufacturer of radio frequency identification (RFID) transponders and reader systems. Capitalizing on its competencies in high-volume semiconductor manufacturing and microelectronics packaging, TI is a visionary leader and at the forefront of establishing new markets and international standards for RFID applications. For more information, contact TI-RFid™ Systems at 1-888-937-6536 ( North America ) or +1 214-567-4364 (International), or visit the Web site at   www.ti-rfid.com .

Please contact Electro-Com on 1300 130 806 or email us for further information.