Stockholm, Sweden, November 21, 2006 – TagMaster announces the first volume order for an RFID system to be installed on 100 locomotives in China. The order is placed by the Guangdong Railway Bureau through TagMaster’s local partner FTRD Industry Co. Ltd. in Shenzhen who specialise in power supply and security systems for the railway industry.

“This is an important milestone for TagMaster. Selling our equipment to the railway industry will have a positive impact on all ongoing business projects in China. TagMaster now strengthens its general market position in China and especially its railway position”, says Anders Holmlund, TagMaster AB.

The Chinese railways are to be improved and modernised in order to allow higher speed and improved security. The TagMaster RFID system will be a central part in a new automatic power switching system on locomotives. The system will ensure that the locomotive automatically switches between different feeder stations in each sector of the track, allowing the driver to focus on driving the train in a more relaxed and secure manner.

Today the transition between zones is handled manually, several times along the track. This is regarded as a critical moment where a mistake can cause such fatal damage to the engines that the train has to stop. Any stop along the track means physical risks, costly repairs and loss of time.

The Chinese market represents an enormous potential for RFID solutions. TagMaster has been working on this specific project for three years and has carried out tests on the system together with FTRD on locomotives in the Guangdong region during the past two years.

“Authorities in China are indeed very thorough in their evaluations and it is of great importance that we are now approved by the Railway Bureau in Guangdong. This approval will open up a large potential market for TagMaster in the extensive network of electrified railways in China”, continues Anders Holmlund.

Other customers that are using TagMaster’s RFID system today are for example the London Underground, the Madrid Metro and the Hamburg Metro.