IBTTA Interoperability and All-Electronic Toll Collection Workshop May 15-17, 2011

1. IBTTA Interoperability and All-Electronic Toll Collection WorkshopMay 15-17, 2011 6C Technology in TollingPerformance and Interoperability Eric Redman Vice President, Sales & Marketing Neology, Inc. eredman@neology-rfid.com

2. Pace of Technological Change Half of YouTube users are under 20 years of age. Over 35 hoursof video is uploaded every minute. In an average 60-day period, more video content is uploaded to YouTube than NBC, CBS and ABC combined had accumulated in 60years. Enough content is currently uploaded to provide 1,700+ years of continuous video. YouTube has only been in existence since 2005.

3. Introduction To Neology • Neology is headquartered in San Diego with additional offices and manufacturing in Mexico City. • From an early R&D background, the company has focused more recently on vehicle AVI/Tolling. • Over 30M tags deployed globally. • Substantial experience with 6C technology on vehicles-supplier of the Mexico Repuve program.

4. Is 6C “Low Tech?” • Yes, the ISO 18000-6C standard came from efforts in supply chain to replace barcodes-and this is a good thing. • This effort and the “Wal-Mart effect” led to massive investment-one provider alone has received $340M in funding since 2004. • The challenge of driving costs low while maximizing performance benefits ALL 6C users. • As retail volumes have largely faltered, 6C hardware providers have rapidly added other features for new markets like tolling.

5. Is 6C Ready? • The U.S. Government has made a massive and sustained investment in the 6C platform. • Every U.S. land border crossing (39 sites) are equipped with 6C. • New PRC “Green Card” has 6C as do other IDs (EDL, etc.). • Military ramping up with 6C in logistics. • In tolling/vehicle use, 6C is being rapidly deployed worldwide (Mexico, India, etc.) • Mexico chose 6C exclusively for all vehicles (approximately 30 million) in that country.

6. Is 6C Secure? • First Question: What security is needed? • Methods are available to authenticate the tag on the fly. Some tags can now detect tampering and report to reader. • Data security: Traveling database vs. backend. • Physical security can be another important measure to implement.

7. Mexico Repuve 6C Experience • Mexico sought a platform to cover every vehicle (30M). • Exhaustive testing process arrived at 6C as the best technology. • Demanding specs: 160 KPH read reliability, 10 year life, secure form and vehicle label. • Ambitious program with about two-thirds of the total delivered to date. Initial data and public reaction positive.

8. Interoperability Considerations • When choosing any technology platform, you want to choose the dominant standard. • 6C has the largest supplier base and is the dominant standard in RFID deployments by far. • 6C is a standard for precisely what is sought: interoperability. • Huge investment in the 6C platform has resulted in the highest performance and lowest cost. • This lower cost allows “massification” of the technology. Less expensive to sign up a user rather than pursue a violation.

9. Interoperability Through Readers • Multi-protocol readers are a current favored path. • First Question: What protocols? • As the three popular tolling technologies all use the 900 MHz band, communication interference can be an issue. • In a true ORT environment, two protocols is the likely limit. • Inverse relationship between number of reader protocols and available suppliers. • End result: Increased cost and fewer suppliers.

10. 6C Pitfalls In U.S. Tolling • Installed ETC base is there, but is not 6C currently. • Ideal conversion scenario is complete replacement of reader and tag, but this may not be practical for all agencies. • Some areas must write data to transponder--increasing complexity and reliability concerns. • True value in 6C reduced when other protocols are introduced. The platform was designed to be “lightweight.” • Most 6C providers have no experience with vehicles.

11. Why Use 6C In Tolling? • Performance – 6C is the newest RFID platform and offers the highest performance chipsets by far. • Dominant Standard – 6C platforms allow the largest selection of suppliers for maximum performance at a low cost. • Flexible Form Factor – The smaller chip sizes and lower cost available with 6C allow a host of form factors such as flexible substrates, ID cards, etc. • 6C Allows “Massification” – The lower cost of 6C allows huge deployments at a moderate price. Opens the door to other valuable services (Parking, EVR, Congestion Charging, etc.)

12. Conclusions • 6C technology has arrived and is viable for vehicle use. • Promise of interoperability, but the platform works best when staying close to its design mission. • Reader side may offer migration path with multi-protocol, but at a price. • Important to choose a 6C provider that has experience with vehicles. • Overall value proposition of 6C may outweigh barriers to implementation.

13. IBTTA Interoperability and All-Electronic Toll Collection WorkshopMay 15-17, 2011 Eric Redman Vice President, Sales & Marketing Neology, Inc. eredman@neology-rfid.com Thank You!