Intermec, Inc.

6001 36^th Avenue West

Everett, WA 98203-1264

www.intermec.com

Revenue year-over-year increases 37% to $221 Million; Organic growth of 16%

GAAP loss per share ($0.06); Non-GAAP EPS of $0.09

Adjusted EBITDA of $15.3 million

Profit/(loss) as reported

Acquisition related adjustments

Restructuring charges

Impairment of facility

Non-GAAP profit/ (loss) as adjusted

Total revenue of $221.1 million increased 37% from the prior-year quarter, including the benefit of approximately $34 million, or 21%, from a full quarter of revenues from acquired businesses, including Vocollect. Excluding the acquisitions revenue increased 16%. Total revenue growth of 37% includes the benefit of 5 percentage points from currency translation.

Geographically, compared to the prior-year quarter and including the benefit of Vocollect, revenues in North America increased 27%, primarily due to the inclusion of the businesses acquired in March. Europe, Middle East and Africa (EMEA) revenues increased 41%. On a constant currency basis EMEA revenues increased 28%. Including Vocollect, the rest of world improved by 64%, led by 77% growth in Latin America and 48% growth in Asia.

Compared to the prior year quarter Intermec branded Systems and Solutions revenue grew 26% and Printer and Media revenue increased 5%. Intermec branded Service revenue increased 15% primarily as a result of revenues from the Enterprise Mobile business acquired in March 2011. The company also added a new segment called Voice Solutions which includes all product and service revenues from our recently acquired Vocollect business. Voice Solutions revenues of $30.5 million reflect the operating revenues from our Vocollect business of $32.7 million, net of deferred revenue purchase accounting adjustments of $2.2 million.

Total gross profit margin as reported for the second quarter was 41.3% up from a comparable 36.3% in the prior-year quarter. Excluding the impact of $3.1 million of acquisition-related cost and amortization and $2.2 million of deferred revenue and acquisition-related adjustments, total gross margin was 43.3%.

Product gross margin as reported was 40.6% compared to 36.7% in second quarter 2010. Excluding the acquisition-related adjustments of $3.1 million, product gross margins were 42.3% reflecting improvements in the core Intermec businesses and the favorable mix of Vocollect products. Service gross margin as reported was 44.2% compared to 34.8% in second quarter 2010. Adjusting for the $2.2 million of deferred revenue acquisition adjustments, service gross margin was 46.9% reflecting the favorable impact of both Vocollect and Enterprise Mobile services.

Total operating expenses for the quarter were $94.4 million, which includes $18.8 million of expenses from acquired company operations, $5.1 million for restructuring and acquisition-related expenses of $1.4 million. That compares to prior-year operating expenses of $64.1 million, which included facility impairment and restructuring charges of $0.6 million and $0.2 million, respectively. On a comparable basis, core Intermec operating expenses were $69.0 million in the 2011 quarter, versus $63.3 million in the 2010 quarter. The increase reflects increased selling, marketing and new product initiatives, which drove the 16% organic revenue increase year-over-year.

The Company used $12.9 million in operating cash flow during the quarter due primarily to strong sequential revenue growth and the related increase in accounts receivables. Cash, cash equivalents, and short-term investments totaled approximately $82.4 million at quarter-end. The Company repaid $20 million of its line of credit borrowings during the quarter. The outstanding balance at the end of the quarter was $77 million with $21.5 million now available under the credit agreement.

In the second quarter, Intermec repurchased approximately 507 thousand shares for $5.5 million or $10.81 per share as part of a $10 million program begun in the first quarter. Following this most recent program there is $45 million remaining under its share repurchase authorization.

Intermec was honored with the 2011 Microsoft Windows Embedded OEM Partner Excellence Award, in addition to adding 100 new ISVs and certifications to the Intermec ISV program. Independent Software Vendors provide applications, technologies and platforms to help enterprise customers deliver better business outcomes for their customers.

Intermec strengthened its distribution channel in Turkey by entering into an agreement with SEDNA, a leading distributor of AIDC and RFID products. Established in 2006, SEDNA is a key Value Added Distributor with a network of more than 1,500 reseller partners.

Vocollect made significant progress in growing its customer deployments of multiple voice-centric workflows with companies expanding their use of voice-directed solutions beyond warehouse picking. Vocollect now counts more than 100 customers using voice in warehouse workflows other than picking or order selection.

Q3’11 revenues are expected to be within a range of $215 to $225 million, including approximately $33 million from our Vocollect and Enterprise Mobile businesses.

Q3’11 GAAP EPS is expected to be within a range of ($0.01) to $0.04 per diluted share.

Q3’11 Non-GAAP EPS is expected to be within a range of $0.07 to $0.12 per diluted share, excluding the impact of the following approximate costs: restructuring and restructuring-related charges of $0.5 million, acquisition-related costs of $1.0 million, amortization of acquired intangibles of $3.3 million and deferred services revenue acquisition-related adjustments of $2.2 million.

Revenues:

Product

Service

Total revenues

Costs and expenses:

Cost of product revenues

Cost of service revenues

Research and development

Selling, general and administrative

Acquisition costs

Restructuring charges

Impairment of facility

Total costs and expenses

Operating loss

Interest income

Interest expense

Loss before income taxes

Income tax benefit (expense)

Net loss

Basic loss per share

Diluted loss per share

Shares used in computing basic loss per share

Shares used in computing diluted loss per share

Current assets:

Cash and cash equivalents

Short-term investments

Accounts receivable, net

Inventories, net

Current deferred tax assets, net

Other current assets

Total current assets

Deferred tax assets, net

Goodwill

Other acquired intangibles, net

Property, plant and equipment, net

Other assets, net

Total assets

Current liabilities:

Accounts payable

Payroll and related expenses

Deferred revenue

Accrued expenses

Total current liabilities

Long-term debt

Pension and other postretirement benefits liabilities

Long-term deferred revenue

Other long-term liabilities

Commitments and contingencies

Shareholders’ equity:

Common stock (250,000 shares authorized, 62,943 and 62,594 shares issued and 59,537 and 60,191 outstanding)

Additional paid-in capital

Accumulated deficit

Accumulated other comprehensive loss

Total shareholders’ equity

Total liabilities and shareholders’ equity

Cash and cash equivalents at beginning of the period

Cash flows from operating activities:

Net loss

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

Impairment of facility

Deferred taxes

Stock-based compensation

Changes in operating assets and liabilities:

Accounts receivable

Inventories

Accounts payable

Payroll and related expenses

Accrued expenses

Deferred revenue

Other operating activities

Net cash used in operating activities

Cash flows from investing activities:

Acquisitions, net of cash acquired

Additions to property, plant and equipment

Other investing activities

Net cash used in investing activities

Cash flows from financing activities:

Proceeds from issuance of debt

Repayement of debt

Stock repurchase

Stock options exercised and other

Net cash provided by financing activities

Effect of exchange rate changes on cash and cash equivalents

Resulting decrease in cash and cash equivalents

Cash and cash equivalents at end of the period

Total revenues

Costs and expenses:

Cost of revenues

Research and development

Selling, general and administrative

Acquisition costs

Restructuring charges

Impairment of facility

Total costs and expenses

Operating (loss) income

Total revenues

Costs and expenses:

Cost of revenues

Research and development

Selling, general and administrative

Acquisition costs

Restructuring charges

Impairment of facility

Total costs and expenses

Operating (loss) income

Revenues:

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Service

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Service

Total cost of revenues

Gross margins:

Product

Service

Total

Revenues:

Product

Service

Total revenues

Cost of revenues:

Product

Service

Total revenues

Gross margins:

Product

Service

Total

As reported

Acquisition related costs

Acquisition adjustments

Restructuring

As adjusted

Operating loss, as reported

Acquisition adjustments

Acquisition fair-value adjustments

Intangible amortization

Acquisition costs

Restructuring charges

Impairment of facility

Other

Total adjustments

Non-GAAP operating income (loss)

Adjusted EBITDA calculation

Add: depreciation and amortization (excluding acquisition related)

Add: stock-based compensation