Management Comments on Latest Tire Recall
CALGARY, Alberta--Advanced ID Corporation (OTCBB: AIDO), a leading developer of radio frequency identification (“RFID”) technology for livestock tracking, pet recovery and supply chain applications focusing on the tire management industry, today reiterated that its RFID platform for vehicle tires is a practical and cost effective solution for today’s tire safety problems, which are rooted in an antiquated tire recall and identification process. Yesterday, CNN aired a story addressing the failed tire recall system. The story, “Recalled Tires Still on Road,” noted that, “You could be driving on recalled tires and not know it due to what some call a flawed system.”
The CNN report is the second major media outlet in the last 30 days to profile the shortcomings of the tire recall system and the dangers this presents to automobile drivers and passengers. On November 1, 2007, The Wall Street Journal published an article, “Tire Recalls Show Flaws in the System.”
Yesterday’s CNN segment included an interview with Carolyne Thorne, a driver seriously injured in an automobile incident which resulted when the tires on her car had not been replaced as a result of the failed recall system. Sean Kane of Safety Research & Strategies, Inc., a safety advocate, highlighted the need for government to adopt a new tire recall process.
“It is very encouraging to have mass media and consumer safety advocates draw attention to the need for a new tire recall system that involves RFID technology,” said Dan Finch, President and CEO of Advanced ID. “We bring a low cost and highly effective solution that is capable of enhancing automobile safety as well as provide numerous administrative and efficiency benefits to the tire industry.”
At issue behind the failed tire recall system is that consumers often aren’t informed when a product is recalled, with an average of 28 recall notices for all consumer products announced each week. The failure of the tire recall system presently in place exposes car passengers to potentially life threatening driving conditions, and car/tire manufacturers, dealers and distributors to potentially expensive legal actions.
RFID technology will enable market participants to inexpensively track tires for passenger safety precautions as well as provide for automotive industry administrative benefits. The tire tag solution from Advanced ID is based on proprietary RFID tag readers developed by the Company and RFID tag technology obtained through a licensing agreement with Michelin for its 915 MHz tire tag for the transportation industry. Advanced ID provides both the tire tag that is embedded in the tire during the tire curing (manufacturing) process and also the tire patch, which is cold vulcanized on the tire after manufacture or for replacement tires already in the field. Both applications provide a life-of-tire, unique ID for the tire which can be used for inventory purposes, tire maintenance with the Company’s Pneu-Logic tire inspection tools division, theft prevention, and as a resource in tire recall situations.
For a related tire event, Advanced ID management commented on the November 30, 2007 announcement by one of the world’s largest tire manufacturers that it is conducting a recall and replacement of 400,000 passenger vehicle tires (used primarily on light trucks and minivans). The manufacturer announced a precautionary customer satisfaction campaign to exchange certain tires sold under a variety of names in the United States and Canada due to “internal analysis and review of early warning data we monitor on our tires…The company has determined some of these tires have experienced adverse service conditions that have led to a tread separation, and in the interest of customer satisfaction has decided to replace qualifying tires.”
Commenting on the tire industry’s latest recall, Mr. Finch noted, “Although the tire manufacturer is working admirably on behalf of its customers, capturing recall tires given the current recall system is failing. A technological solution exists today for all tires, including those made for original equipment as well as those for the replacement market, which enables the tire industry to identify and track tires. This solution is available only from Advanced ID and involves our proprietary system: tire tags, readers and software applications.
“Upon implementation of an RFID system, tires can be identified by using a hand held reader made by Advanced ID, which in turn wirelessly connects to a central database of tires. Instantly, tires can be identified and action can be taken, if necessary. We are already using RFID tags for tires manufactured for NASCAR racing and we are ready to expand usage for mainstream passenger vehicle and truck tire markets.”
To review the CNN story, it is available online at www.CNN.com or via the following link: http://www.cnn.com/video/?/video/us/2007/12/03/lavandera.tire.recall. cnn. (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)
About Advanced ID Corporation: Advanced ID Corporation (OTCBB: AIDO) is a complete solutions provider in the RFID market with a focus on the tire management industry. The company is also a major factor in the tire inspection business through its UK based Pneu-Logic subsidiary. The Company is active in the pet recovery business through its AVID Canada subsidiary in Calgary, Alberta, and has developed a UHF RFID reader product line through its Advanced ID Asia Engineering technical support and business development partner in Chiang Mai, Thailand.
Safe Harbor Statement: Statements in this press release other than statements of historical fact, including statements regarding the company’s plans, beliefs and estimate as to projections are “forward-looking statements”. Such statements are subject to certain risks and uncertainties, including factors listed from time to time in the company’s SEC filings, and actual results could differ materially from expected results. These forward-looking statements represent the company’s judgment as of the date of this release. Advanced ID Corporation does not undertake to update, revise or correct any forward-looking statements.
For further information visit Advanced ID Corporation at www.advancedidcorp.com
