SMARTRAC receives major order for several million inlays for US ePass project

- Major order confirms SMARTRAC’s claim for market leadership
in ePassport inlays
- Opening of fourth factory in Thailand earlier than planned
in order to meet strong demand for ePassport inlays
- Order allows SMARTRAC clear capacity planning for 2007

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DE Amsterdam (euro adhoc) - Amsterdam, 28 November 2006. SMARTRAC,
the inventor of inlays for electronic passports, has obtained the
first major order to supply several million ePassport inlays for the
United States’ ePass project in 2006/2007. The order, placed by
Infineon Technologies, is the most significant order in the
high-security RFID inlay industry to date. The US programme, for
which SMARTRAC will produce the inlays, is currently the world’s
largest ePass project with a potential volume of 13 to 18 million
passports per annum.

Since 2004, SMARTRAC has been a certified supplier for the current US
ePassport programme for which it is already producing approximately
one million inlays a month. In order to meet the US and increasing
worldwide demand for high security inlays SMARTRAC is planning to
open its fourth factory at the company’s location in Thailand as
early as January 2007. In addition, SMARTRAC plans to boost its
worldwide production capacity for ePassport inlays in 2007 to 4
million per month by opening a factory in the US.

With the US order, SMARTRAC is confirming its claim to market
leadership in the field of high-security inlay production for the
foreseeable future. "SMARTRAC sets standards, both with the security
of its products and with the technological sophistication of its
customer solutions," said Dr. Christian Fischer, CFO of SMARTRAC N.V.
"The US order allows us clear capacity planning. By the end of 2006,
we want to achieve a production capacity of approx. 13 million
high-frequency inlays per month," Fischer continued.

SMARTRAC is currently involved in 70 of the world’s 95 ePassport
programmes. Certification for the US ePassport programme means that
the company will greatly benefit from the worldwide introduction of
ePassports that is also accelerated by the provisions of the US
authorities within the framework of the Visa Waiver Programme that
came into effect on 26 October 2006. In order to comply with these
regulations, the 27 countries whose citizens are allowed to enter the
United States without a visa have started introducing electronic
passports.

On 16 November 2006, SMARTRAC reported that it increased sales by 133
percent and EBITDA by more than 140 percent in the 9 months up to
September 2006, compared to the same period last year. SMARTRAC
boosted its total sales in the 3rd quarter 2006 to EUR 13.4 million,
up from EUR 7.2 million in the same period 2005. For the nine months
ended September 2006 SMARTRAC achieved sales of EUR 35.9 million. The
Group’s 3rd quarter EBITDA almost doubled from EUR 1.8 million in
2005 to EUR 3.4 million in 2006. For the nine months ended September
2006 the EBITDA is EUR 8.1 million, an increase of more than 140
percent over the previous year (EUR 3.3 million).

About SMARTRAC N.V. SMARTRAC is a leading supplier of inlays for
passports and credit cards with an integrated contactless chip and an
antenna. The company, which was founded in 2000, is incorporated
under Dutch law and has its head office in Amsterdam. SMARTRAC has
its main production and R&D centre in Bangkok (Thailand), as well as
sales offices in Stuttgart and Singapore. Through an agreement with
Xytec Solutions (Kulim, Malaysia), in which SMARTRAC holds a 30%
stake, the company has exclusive access to proprietary manufacturing
equipment. In two product segments - Standard and High Security -
SMARTRAC manufactures components for RFID applications in public
transport, access control and logistics, as well as in the
high-security applications of ePayment and ePassports.

end of announcement euro adhoc 28.11.2006 09:08:15
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ots Originaltext: SMARTRAC N.V.
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Max Hohenberg
Media Relations SMARTRAC N.V.
Tel: +49 711 6569 2616
Email: max.hohenberg@smartrac-group.com

Branche: Technology
ISIN: NL0000186633
WKN: A0JEHN
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard
Börse Berlin-Bremen / free trade
Baden-Württembergische Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Bayerische Börse / free trade