Evolution Robotics GmbH

Evolution Robotics Announces LaneHawk™ Loss Prevention Solution to Combat Retail Fraud

LaneHawk Helps Retailers Turn Bottom-of-Basket Losses into Profits
Using Proven Object Recognition Technology

Pasadena, CA - July 20, 2004 - Evolution Robotics, a leading provider
of next-generation robotics technologies and component solutions, today announced the availability of LaneHawk, a solution for retailers that prevents loss and increases profits by automatically ringing up under-cart items. Using Evolution Robotics' advanced object recognition technology, LaneHawk provides retailers with an effective solution for limiting inventory shrinkage due to retail fraud.

"We believe that LaneHawk will have a tremendous impact in reducing
retail fraud,” said Alec Hudnut, President of Evolution Robotics. "Retailers implementing this solution can be confident that items passing through their check-out lanes will be accounted for, which translates to positive bottom line results. For example, if a retailer loses $10 per lane each day from unpaid items in a 50-store chain, the annual loss in revenues amounts
to about $2 million. LaneHawk recovers that revenue.”

In big-box and grocery retail outlets where customers rely on shopping carts, cashiers can easily miss items on the bottom of the cart in the check-out process. Check-out lanes at these retailers are often hectic for both the cashier and the customer, and even large items are routinely overlooked as a result. In addition to preventing this loss, LaneHawk also improves check-out lane productivity by no longer requiring cashiers or customers to lift items out of the bottom of the basket.

LaneHawk is trained to recognize and identify each product likely to be placed under the shopping cart. A smart camera is flush-mounted in the check-out lane utilizing Evolution Robotics' patented object recognition technology to match items under the cart to each store's list.

This recognition technology is extremely accurate; distinguishing unique features from each product to ensure nothing is overlooked, including multiple or partially-blocked items. The system only looks for items it
has been trained to recognize, therefore the error rate is very low. LaneHawk is compatible with any point-of-sale system.

"In my thirty-five years in supermarket security, I've seen retailers try
a variety of methods such as mirrors and closed circuit cameras to
mitigate the losses of missed items at the bottom of their shopping carts, with minimal success,” said Chuck Miller, an independent retail security consultant and former Vice President of Loss Prevention Services for the Food Marketing Institute. "According to a 2002 National Retail Security Survey report on retail theft, inventory shrinkage cost U.S. retailers over
$31 billion annually. LaneHawk's ability to recognize objects left under
the cart is a valuable solution because the cashier never has to remember to inspect the cart. Retailers using LaneHawk will quickly see their shrink decrease and revenues increase.”

The product is now available to retailers worldwide. For more information please visit www.evolution.com.