Transcore Container Security Announcement

The big question is MIK involved in the container security product just announced by Transcore. I don't believe that Transcore has the technology to provide the electronic tamper indicating seals referred to in the announcement without MIK's participation. I expect MIK will not make any announcement until the share issue is out of the way (on the grounds of confidentiality of course). Watch the sellers disappear towards the end of next week when the issue closes.

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Northwest International Trade Corridor & Smart Border Crossing Program Deploys TransCore System in Support of Homeland Security Initiatives
System ready to fortify borders while expediting freight movement

San Diego, Aug. 26, 2002 – TransCore announced today it has completed the first-of-its-kind freight management system that demonstrates a secure chain of custody for containerized freight. Shipping containers are sealed at the factory in Japan and as containers enter a U.S. port the system verifies the integrity of electronic seals and begins monitoring freight as it travels over U.S. Interstates in commercial vehicles and passes between the United States and Canada.

This intelligent transportation system (ITS) program was commissioned by the U.S. Department of Transportation to support America's homeland security freight management and border crossing efforts through the Washington State Department of Transportation's Northwest International Trade Corridor & Smart Border Crossing Program. Each year, tens of millions of commercial shipments enter the United States from other countries or circulate within the country, constituting a potentially serious security problem. The program serves as a basis for future projects. Both federal and state funds were used for this project which is managed by the Washington State Department of Transportation. Other participants, in addition to TransCore, include U.S. Customs, the Ports of Tacoma and Seattle, shipping companies American Presidents Line and Maersk Sealand, Westwood Shipping, and the U.S. Department of Agriculture.

"The Northwest International Trade Corridor Program is enhancing the safe and legal movement of trade goods through a vital economic trade zone, improving security without hindering the free flow of goods," said Pete Briglia, ITS program manager, Washington State Department of Transportation. "The key is quickly and accurately identifying high-risk shipments for closer attention while processing low-risk shipments to keep traffic flowing smoothly at trade processing gateways."

Through this process, critical logistics information is gathered and distributed to authorized users to minimize freight security risk and monitor shipments throughout the Northwest Trade Corridor. Shipping containers are affixed with electronic seals, and loaded onto trucks outfitted with wireless communication RFID (radio frequency identification) tags. Roadside readers positively identify shipments as they pass by various gateways from point of origin to their destination. The electronic container seals also provide data necessary to identify the container and associated cargo and report whether a container has been opened, whether it has been tampered with, and whether an illicit breach occurred so authorities can be notified.

Commercial vehicle and container monitoring technology is deployed at six weigh stations and processing centers spanning 300 miles of Interstate 5 from Vancouver, Wash., to the United States and Canadian border. The system relays critical event data including information on carrier, vehicle, cargo, location and time of detection, drivers, and security status to authorized public and private sector stakeholders, such as U.S. Customs Service agents and the U.S. Department of Agriculture agents and freight operators, via a secure Web site at www.transcorridor.com. The system will automatically close and open in-bond freight transactions in the U.S. Customs Service Automated Manifest System at the Blaine, Wash., Commercial Vehicle Processing center.

TransCore is spearheading the deployment of these types of operational systems that meet the requirements of various homeland security initiatives such as the Smart Border Declaration and the U.S. Customs Service Container Security Initiative.

Future plans for the Northwest Project include monitoring the movement of containerized, in-bond freight out of Canada, south through the Blaine Commercial Vehicle Processing center and into the ports of Seattle and Tacoma, Wash. Also planned is the provision of logistics data to the regional Canadian Customs and Revenue Agency. Eventually the system will make use of biometrics, extending the positive identification of the trade transactions made by the driver, eliminating the risk of counterfeit credentials. This driver identification functionality will also be used for secure entry and exit of vehicles from ports and intermodal freight facilities throughout the region.

About TransCore

TransCore is a privately held transportation services company with 1,700 employees and more than 80 locations throughout the world. With installations in 39 countries, 80-plus patents and a world-class manufacturing facility, TransCore's expertise in providing system-based applications that improve transportation efficiency is unparalleled. For more information, visit www.transcore.com.