Kimberly-Clark Begins Shipping Gen2 RFID-Tagged Cases of Products to Wal-Mart

21 April 2006

Kimberly-Clark Corporation (NYSE: KMB) announced today it has begun shipping Gen2 RFID-tagged cases of product to Wal-Mart. This next step in the implementation of RFID technology is a result of K-C's extensive research and testing on the compatibility of Gen2 hardware and software with conveyor, packaging, logistics and shipping systems in the company's dedicated Auto-ID research lab in Neenah, Wis.

Leveraging the accuracy and up-to-the-minute information the Gen2 platform provides, K-C has shipped to Wal-Mart approximately 100,000 cases of Huggies brand diapers and other infant and child care products since March. Using industry-leading Gen2 hardware and software, K-C encoded the RFID tags, placed them on the cases, captured and transferred product data into its supply chain system, and forwarded the data to Wal-Mart, letting them know their product order had been shipped.

"Today's announcement solidifies our goal of partnering with customers to improve fundamental business processes and deliver greater value," said Cheryl Perkins, Kimberly-Clark's Senior Vice President and Chief Innovation Officer. "As we continue to deploy Gen2 RFID technology throughout our supply chain infrastructure, we expect to experience improved efficiencies that will help ensure we deliver the right product to the right customer at the right time."

Kimberly-Clark has been a pioneer and proponent of using RFID technology to address and improve two of the retail industry's greatest business challenges -- out-of-stocks and global standardization of supply chain systems. This initial rollout and use of Gen2 hardware and software is K-C's first step in fully incorporating the Gen2 platform within its global supply chain infrastructure. By the end of May, the company anticipates solely using the Gen2 platform to fulfill product shipments for those customers using an RFID-enabled supply chain that supports Gen2 technology.

"We are delighted to see the leadership from Kimberly-Clark, and the other suppliers who have started to ship product tagged with Gen2 tags," said Richard Ulrich, a spokesperson for Wal-Mart. "Gen2 has provided a real step change in performance. Both our suppliers and Wal-Mart will reap the benefits."

According to Mike O'Shea, Director of Kimberly-Clark's Auto-ID Sensing Technologies group, K-C is continuing to work with customers like Wal-Mart to determine how RFID technology can be used to potentially improve the accuracy and functionality of such mission-critical applications as shipping and receiving, invoicing, and inventory control.

"As we continue exploring the use of RFID technology within our own operations and those of our customers, we expect to gain insights on how the technology can improve the functionality of various back-office business applications. This knowledge will be invaluable for K-C and our customers, and has the potential to play a key role in the global adoption and implementation of RFID technology," said O'Shea.

Kimberly-Clark has a history of being recognized as a leader in RFID technology. In 2005, K-C's Auto-ID research lab in Wisconsin was one of only two facilities in North America to be awarded the first Global Performance Test Center Accreditation Marks by EPCglobal Inc. The award recognized K-C's leadership role in the testing of Gen2 RFID technology with the EPCs used in the global supply chain. In November 2005, the company also received the first Early RFID Adopter Award from Consumer Goods Technology magazine.

About Kimberly-Clark

Kimberly-Clark and its well-known global brands are an indispensable part of life for people in more than 150 countries. Every day, 1.3 billion people -- nearly a quarter of the world's population -- trust K-C brands and the solutions they provide to enhance their health, hygiene and well-being. With brands such as Kleenex, Scott, Huggies, Pull-Ups, Kotex and Depend, Kimberly- Clark holds No. 1 or No. 2 share positions in more than 80 countries. To keep up with the latest K-C news and to learn more about the company's 134-year history of innovation, visit http://www.kimberly-clark.com .

For further information: media, Dave Dickson, +1-972-281-1481, or ddickson@kcc.com , or Joey Mooring, +1-972-281-1443, or joey.mooring@kcc.com , or investors, Mike Masseth, +1-972-281-1478, or mmasseth@kcc.com , all of Kimberly-Clark Corporation /Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/19991117/KMBLOGO PRN Photo Desk, photodesk@prnewswire.com /Web site: http://www.kimberly-clark.com

Source: newswire