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Thursday, October 10, 2002
DVD and Video game theft reduced by "Red Tag" security device


The Tag Company, a leading provider of electronic security tagging solutions, has launched the Red Tag® DVD and Game Security System to home entertainment retailers throughout the UK and Europe.

The Tag Company is partnering with AGI Amaray, the manufacturer of the industry-leading Amaray® DVD-Safe case to bring the Red Tag to film studios, game manufacturers, replicators, and stores in time for the busy holiday shopping season.

Red Tag® has been developed to enable retailers to more openly display DVDs and Games, without the threat of unacceptable levels of theft. Red Tag is easily and simply inserted into the disc box, locking the disc to the box and locking the box shut securing an EAS (Electronic Article Surveillance) label inside. Illicit tampering of Red Tag-protected DVD's and games leads to substantial damage to the box or the disc, preventing thieves from acquiring pristine product and packaging for resale. Red Tag's patented locking system is designed to break the package and/or damage the disc unless the tag is removed by the store at point of purchase.

Mark Krom, Managing Director of The Tag Company, says: "Red Tag is quite simply the most impressive integrated packaging security device that I've seen. The Red Tag is a powerful weapon in the fight against DVD and Game theft. Shoplifters are frustrated to the point that they give up and go elsewhere."

The conversion to Red Tag compatible versions of AGI Amaray's DVD-Safe® case for Europe and the UK started early this year and will be completed by January 2003. The Red Tag cases neither impact the studios' handling and automated fulfilment processes nor their costs and will reduce security handling at retailer level, compared to case-keepers or behind-the-counter bagging. Importantly, converted DVD-Safe cases do not affect on-shelf display aesthetics or visual impact in the home.

For DVD, from October, retailers will receive DVD movies from studios like Disney/Buena Vista and Sony/Columbia in Red Tag compatible cases. Two of the largest releases of the year: Black Hawk Down and Spiderman will be in Red Tag cases. In November, 80% of all DVD-Safe cases produced by AGI Amaray will be Red Tag compatible. In the Games sector, Nintendo's Game Cube was launched in Europe in May 2002 in a Red Tag case. All EA (Electronic Arts) PC games are compatible (with the exception of double CD games). Visit the official Red Tag website @ www.tagcompany.com/redtag for up-to-date details on the Red Tag and availability in your area.

The film and game industry is currently enjoying a surge in the DVD and video games market with sales increasing by up to 200 per cent annually. However, industry estimates point to more than triple the rate of theft compared to music CD or video cassette formats. Some retailers have reported losses of up to 18 per cent of their DVD inventory despite using a variety of security services and technologies. Games retailers limit the availability to customers by locking the format behind display counters. This growing problem is threatening to limit global sales of both categories.

Leading retailers including HMV, Borders, and WH Smith have installed the Red Tag system with impressive results. The Red Tag has effectively reduced shrink to enable these retailers to place their DVDs on open display. HMV and Borders will now roll Red Tag out across their chain of stores, with other primary retailers to follow. Some of the largest-scale installations have been held at selected HMV stores in the UK. Andy Martin, Head of Loss Prevention, HMV UK Ltd., explains: "The introduction of Red Tag-secured DVD cases saw an immediate displacement of theft from our stores. Interestingly, we only experienced one bulk snatch theft during the trial, with no re-attempt as the criminal clearly realised that he/she had a product they couldn't resell once outside the store. The Red Tag cases make life easier for the store staff, speeding counter transactions and reducing stock discrepancies."

The Red Tag DVD and Game Security System is available from The Tag Company in the UK and through Tag Company dealers throughout Europe. Contact the Tag Company at www.tagcompany.com or free phone +44 (0)20 0800 389 1706 for information on Red Tag in your area.

The Tag Company is a leader in Retail (EAS) security tagging and is a division of Entertainment UK Limited, Britain's largest wholesale distributor of home entertainment products. Entertainment UK Limited is part of the Woolworth's Group plc, based in London, UK.

For more information about The Tag Company, visit the company's website, www.tagcompany.com


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