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Checkpoint’s Alpha Keeper™ provides retailers with a secure, open merchandising solution for Windows® 7

June 17, 2010

Industry research validates the effectiveness of the Alpha Keeper system in suppressing theft and increasing sales by enhancing the consumer shopping experience

THOROFARE, N.J. – June 17, 2010 – Checkpoint Systems, a global leader in shrink management, merchandise visibility and apparel labelling solutions for the retail industry and its supply chain, today announced that it offers retailers an effective method of guarding Microsoft Windows 7 packs against theft, while enabling them to maximize sales opportunities for the popular operating system.

Software protected with the company’s Alpha Keeper system can be put on open display for easy customer access. Alpha is a wholly-owned division of Checkpoint. As the leading developer of solutions for high-theft items, Alpha continuously uncovers new, high-risk merchandise categories. Working with its retail customers, Alpha develops innovative solutions that help reduce theft and increase sales of popular merchandise that is prone to theft.

Alpha S3® Keepers are clear polycarbonate cases that keep vulnerable merchandise safely inside and protect its packaging, while allowing customers to browse the shelves and visually examine the products. Customers are, therefore, able to make purchasing decisions more easily about products that would otherwise be inaccessible in a secure cabinet or behind a counter, or would require assistance from a store associate. Studies show that sales increase if merchandise is available and accessible to consumers without store associate assistance. Alpha Keepers have proven effective in reducing theft, but also increasing sales of high-risk merchandise.

Keepers are available in AM (Acousto Magnetic) and RF (Radio Frequency) formats and feature three levels of alarm technology for maximum security.

Checkpoint’s Alpha Keepers are the broadest and most comprehensive of its kind in the industry. They come in a variety of sizes designed to protect a wide range of high-theft items. These include small, lightweight products that are easily hidden by potential thieves in pockets, bags or clothing, such as computer software and hardware, DVDs and video games, health and beauty products, and merchandising accessories.

According to the latest Global Retail Theft Barometer (GRTB), worldwide shrink rose by nearly 6 percent to almost $115 billion in 2009. The survey data showed that thieves tend to focus on small, branded items that have considerable appeal and are, therefore, easy to resell. Electronics goods are among the most commonly stolen merchandise.

“As Microsoft’s fastest-selling operating system to date, Windows 7 represents an excellent merchandising opportunity for retailers. However, it’s also a prime example of the popular, branded products that thieves are targeting. Alpha’s tried and tested Keepers solution allows retailers to capitalize on market demand with open product displays that engage bona fide customers, rather than giving thieves a free upgrade,” said Per Levin, president of Checkpoint’s Shrink Management Solutions business.

A recent study by the Loss Prevention Research Council (LPRC) has validated the effectiveness of Keepers by studying their effect on small health and beauty items. The research, conducted at a large U.S. retailer, found that stores using the Keepers significantly reduced shrink and increased sales, compared to those where the system was not deployed. Taking into account the cost of goods, reduced shrink, increased sales, cost of labor, cost of capital, time and out of stocks, the study showed that Keepers pay for themselves in about seven months. Both the retailer and its store employees had a positive perception of Keepers in terms of security and accessibility.

Levin added, “Alpha’s Keepers are proven to deliver impressive returns on investment, often paying for themselves in a matter of months through both reduced shrink and higher sales. This is good news at a time when retailers are looking to protect their profits as the recovery gains pace, because they are still facing increased financial pressures from the high costs associated with shrink.”

About Checkpoint Systems, Inc.
Checkpoint Systems is a global leader in shrink management, merchandise visibility and apparel labeling solutions. Checkpoint enables retailers and their suppliers to reduce shrink, improve shelf availability and leverage real-time data to achieve operational excellence. Checkpoint solutions are built upon 40 years of RF technology expertise, diverse shrink management offerings, a broad portfolio of apparel labeling solutions, market-leading RFID applications, innovative high-theft solutions and its Web-based Check-Net data management platform. As a result, Checkpoint customers enjoy increased sales and profits by improving supply-chain efficiencies, by facilitating on-demand label printing and by providing a secure open-merchandising environment enhancing the consumer’s shopping experience. Listed on the NYSE (NYSE:CKP), Checkpoint operates in every major geographic market and employs 3,900 people worldwide. For more information, visit http://www.checkpointsystems.com

About the Loss Prevention Research Council
The Loss Prevention Research Council (LPRC) uses fact-based research to develop crime and loss control solutions that improve the performance of its members and the industry.

The LPRC was founded in 2001 by leading retailers including Target, Wal-Mart, OfficeMax, CVS, The Home Depot, Barnes and Noble and others in an effort to support the fact-based needs of the Loss Prevention industry. To date, the LPRC has conducted over 40 real-world loss prevention research projects for retailers and partners. For more information, visit http://www.lpresearch.org/