Overview

Advanced ID Corp. (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. Lastly, the Company is active in the pet recovery business through its AVID Canada subsidiary in Calgary, Alberta, which is reintroducing its livestock tagging product line in several countries and has developed a UHF RFID reader product line for all market applications.

AIDO Investor Highlights

• AIDO currently supply over 3,000 organizations such as animal shelters, veterinarians, breeders, government agencies, universities, zoos, research labs and fisheries with RFID devices for companion animals, equines, bovines, llamas, alpacas, ostriches, aquatic species, reptiles, migratory and endangered species. The Company has implanted microchips in over 500,000 animals and currently tracks nearly one million animals in their pet recovery database, while reuniting numerous lost pets with their families each month.
• The Company has been actively involved with government and industry projects establishing livestock identification and trace back solutions in Australia, Canada, Brazil, Argentina, Thailand, Taiwan, China and the United States.
• The Company uses low frequency radio waves for companion animal recovery and is the second largest player in the Canadian companion animal and biological sciences market, with an estimated 40% market share.
• The Company is making the transition from being a provider of pet recovery systems to offering global RFID solutions for asset management applications. AIDO’s tracking systems are being tested in asset management applications by major companies in the tire, document management, pharmaceutical, vehicle ID, food services and general retail industries.
• AIDO also sells UHF identification tags for tires. Goodyear Tire and Rubber Company is its major customer. I
• AIDO’s revenues increased 123% year-over-year to $424,955 in the first quarter of 2008, reflecting increased sales to animal shelters, expanding reader sales and sales of the Company’s new PR500 reader. Revenues were also positively impacted by the Pneu-Logic acquisition. AIDO attributed 34% of first quarter 2008 revenues to sales by its Canadian Companion Animal/Biological Sciences division and the remaining 66% to worldwide sales made by its Ultra High Frequency division.
• AIDO has also emerged as a major player in the RFID tire tag/patch business; revenues associated with this business line are growing at double and triple-digit rates. The Company has already announced a multi-million dollar purchase agreement with Mesnac in China, as well as similar agreements for Europe, Brazil, Mexico, Venezuela, Indonesia, India and Malaysia.
• According to research company IDTechEx, the value of the RFID market is likely to rise to $5.3 billion in 2008 from $4.9 million in 2007. By 2018, the market is forecast to grow five-fold and the number of tags supplied will increase 300-fold, driven by the development of lower cost tags and an installed infrastructure, which will enable high volumes of tagging.
• In 2005, the Company went in a new direction with its UHF RFID products and entered the tire RFID business. The Company was successful in getting a contract from Goodyear to supply the tire tag that is embedded in every Racing Eagle Tire that is used on the NASCAR circuit. The Company won the 2006-2007 contract and have recently confirmed the 2007-2008 season.

Profile

AIDO develops, manufactures and sells microchip identification devices, referred to as RFID microchips and readers, to the livestock and companion animal markets, and supply chain management applications. In the second quarter of 2004, the Company began commercializing its animal tracking products under the brand name DataTRAC.

RFID enables the positive identification and location tracking of animals or objects that are tagged with RFID microchips. The Company currently supplies more than 3,000 organizations, including animal shelters, veterinarians, breeders, government agencies, universities, zoos, research labs and fisheries with RFID devices for companion animals, exotics, equines, bovines, llamas, alpacas, ostriches, aquatic species, reptiles, migratory and endangered species. The Company’s microchips have been implanted in more than 500,000 animals and are being used to track nearly 1 million animals in the PETtrac database.

AIDO also sells UHF identification tags for tires. Goodyear Tire and Rubber Company is its major customer. In addition, tire tag and tire patch sales have been made to value-added resellers in several countries for trial or pilot runs. Tire tag readers are sold to tire manufacturers and resellers in India, Canada, Mexico, Venezuela, Australia, Japan and the United States. Michelin U.S. has purchased multiple readers.

AIDO recently secured approval for its new, lower cost ISO chip made by SOKYMAT. The significant cost savings associated with this new ISO standard chip will allow the Company to reduce tag prices in Canada and other countries, thus spurring higher sales. AIDO has also developed a new LF reader for companion animals with language-specific readout capabilities that will be made available in several countries.

In its tire ID product line, AIDO is collaborating with Hana and others manufacturers to introduce products that will serve the tire management industry worldwide. The addition of Pneu-Logic’s tire inspection tools to AIDO’s RFID tire management product line creates a unique, vertically integrated product offering that will prove attractive to tire manufacturers and retailers. AIDO plans to focus its resources on securing a leadership position in the tire tagging market to capitalize on growth as this market matures and reaches high volume levels.

Additionally, AIDO has developed high power, long range UHF RFID readers that are being sold for supply chain management and tire tag applications. AIDO’s readers are priced at half of the cost of a competitor’s equivalent product. The Company also designed a lower cost, mass market UHF RFID reader that will retail at half the price of AIDO’s current readers.

Management believes the UHF RFID reader market will follow a path similar to the UPC bar code reader market. The UPC barcode business did not take off in the 1970-1980s until reader prices fell below $100. AIDO plans to introduce a $100 UHF RFID reader. The Company has completed development of its new lower price PR 500 reader, and has installed it at bookstores in Portugal and Spain. During 2008, the Company plans to market the new reader for a variety of industry applications.

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Financials Approximate as of August 27, 2008

Market Cap: 16.3M

Outstanding Shares: 62.9M

52 Low / High: $0.13 / $0.35

Price: $0.26

Ticker: AIDO

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