Acquisition Will Further Broaden the Company’s Extensive Access Control Portfolio

Sensormatic Electronics Corporation (NYSE:SRM), the leading provider of electronic security solutions to a wide range of businesses, today announced that it has acquired Controlled Electronic Management (CEM) Systems, Ltd., of Belfast, Northern Ireland along with its parent company Intellectual Systems Ltd. CEM Systems’ product line spans from low-end, entry level access control systems ideal for store-level operations in the retail sector to large-scale, integrated systems found in many of the world’s largest airports. This acquisition adds a number of major airports to Sensormatic’s customer base including Heathrow and Gatwick in the UK as well as airports in Hong Kong, Hawaii, Vancouver, Belfast, Athens and Tahiti. In addition to the range of technology this acquisition brings to Sensormatic, CEM Systems professional staff of hardware and software engineers along with its network personnel will further strengthen Sensormatic’s future development efforts.

Terms of the agreement were not disclosed. CEM Systems’ founders Andrew Fulton, Richard Fulton and George Redpath will join Sensormatic’s Access Control Division along with their staff of access control professionals.

“CEM Systems’ complementary products and technologies allow Sensormatic to further strengthen its product line and provide additional solutions for the retail store segment as well as large scale networked sites,” said Per-Olof Loof, Sensormatic’s president and chief executive officer. “CEM Systems’ operations in Northern Ireland also provide us with a new engineering center, staffed with highly skilled professionals.”

CEM Systems is best known for its Ethernet-ready entry controller panels and readers and UNIX-based, high-end airport solutions. The Ethernet-ready products complement Sensormatic’s CoCURE(R) iSTAR(TM) by allowing customers to more easily tie their physical security to their IT infrastructure for a seamless system. The UNIX-based, high-end systems are also installed at leading world organizations such as Athen’s Central Securities Depository S.A.; British Telecom; the accounting firm KPMG; the solicitors Linklaters Alliance; British Airways; Algeria’s national oil and gas company, Sonatrach; and Ulster Bank.

“With markets such as finance, telecommunications, transportation and retail all looking for more of a balance between local security and networked systems, CEM Systems’ products will give our customers a greater selection when making decisions for their local or enterprise security requirements,” said Steve Cannellos, senior vice president of Sensormatic’s Access Control Division. “The CEM Systems acquisition builds on our continued internal development and investment strategy to meet our customers’ needs.”

Sensormatic Electronics Corporation is the leading supplier of electronic security solutions to the retail, commercial and industrial marketplaces. Sensormatic is also the leader in integrated source tagging — a process where consumer good manufacturers insert anti-theft tags at the point of manufacturing or packaging.

The company is also the Official Electronic Security Supplier and a Sponsor of the 2002 Winter Olympic Games in Salt Lake City, Utah, and a sponsor of the U.S. Olympic Team through the year 2004.