Columbia, Maryland (September 17, 2004) — PEAK Technologies, an RR Donnelley company (NYSE:RRD), played a key role in the success of bicycle supplier Pacific Cycle’s radio frequency identification (RFID) program. The pilot RFID program helped Pacific Cycle become one of the first to demonstrate its compliance with Wal-Mart’s RFID initiative.

Wal-Mart’s announcement that its top 100 suppliers must implement RFID technology prompted suppliers to quickly learn about the technology used to identify and track goods in the supply chain. When informed of the Wal-Mart initiative, Pacific Cycle recognized the need for a technology partner to help navigate the RFID maze. According to Ed Mathews, Director of Information Systems for Pacific Cycle, “A key factor in our early success has been the integrated solution provided by our technology integrator, PEAK Technologies.”

Pacific Cycle began its pilot program by applying RFID tags in Pacific Cycle’s distribution center. An important challenge of the pilot program was interfacing the RFID technology with Pacific Cycle’s SAP R/3^® enterprise resource planning software. The project was further complicated by the fact that bicycles contain a large amount of metal and are packaged using high-density foam packaging, both of which tend to interfere with RF reception.

Pacific Cycle is also an advanced user of SAP R/3, running a large number of modules of version 4.6C, so integration with their Enterprise Resource Planning system was an important consideration. According to Mathews, most vendors tend to provide only the hardware, the software, or tags and labels—but not all three. PEAK Technologies is unique in its ability to provide a complete RFID solution.

PEAK provided a solution consisting of Zebra R4Mplus and Printronix T5304e Smart Label printer/encoders, SAMSys MP9320 UHF portal readers, and Moore Wallace RFID labels using Alien Class 1 tags. The tags are embedded in a 4-inch by 6-inch Moore Wallace label. A UCC128 barcode is printed on the label so that it can be scanned in case it becomes impossible to read the RFID tag. The tag is encoded with an electronic product code (EPC), a unique number that identifies a specific item in the supply chain.

“RFID is clearly a technology that is here to stay, and we are proud to be one of the first Wal-Mart suppliers to demonstrate the ability to meet the retailer’s requirements,” added Matthews. “Many questions remain about exactly how RFID technology will be deployed and what information will be shared between Wal-Mart and its suppliers. But it is already clear to us that the technology has the potential to improve efficiency, cut costs and increase revenues. PEAK provided an important contribution in the success of our pilot by helping us define our business process, select and install the RFID equipment, and developing the interface to SAP. They have taken the approach of a long term business partner that is fully committed to helping us achieve our business goals.”

Pacific Cycle is also going beyond the requirements of Wal-Mart’s initiative by applying RFID tags to individual bikes in order to capture additional savings throughout the supply chain.

“Pacific Cycle is a great example of a forward-looking company that was not satisfied merely complying with the Wal-Mart initiative,” said Adrian Thomas, President and CEO of PEAK Technologies. “Pacific Cycle is fully evaluating how RFID can be used throughout their supply chain to achieve greater savings and efficiencies into the future. Companies like Pacific Cycle who do their homework up front and analyze their supply chain from manufacturing to the retail floor will be the prime beneficiaries of the significant return on investment that is possible through RFID technologies.”

About PEAK Technologies
PEAK Technologies, an RR Donnelley company, is an international provider of automatic identification and data collection (AIDC) systems, enterprise mobility solutions and ongoing service and support. PEAK's primary applications include solutions for warehousing, manufacturing, distribution and field-based operations. PEAK's market leadership and strong financial management provide stability and assurance that solutions are delivered with long-term support. Headquartered in Columbia, Maryland (USA), PEAK Technologies has more than 800 employees with locations throughout the United States, Canada, Mexico and Europe. For more information, visit www.peaktech.com email info@peaktech.com, or call PEAK at (888) 275-7325.

Use of Forward-Looking Statements
Except for historical information, this news release may contain “forward-looking statements” as defined in the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements and any such forward-looking statements are qualified in their entirety by reference to the following cautionary statements. All forward-looking statements speak only as of the date of this press release and are based on current expectations and involve a number of assumptions, risks and uncertainties that could cause the actual results to differ materially from such forward-looking statements. Readers are strongly encouraged to read the full cautionary statements described in RR Donnelley’s filings with the Securities and Exchange Commission, including the section entitled “Management's Discussion and Analysis of Financial Condition and Results of Operations” contained therein. RR Donnelley disclaims any obligation to update or revise any forward-looking statements.