**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**WASHINGTON,
      D.C. 20549**





**FORM
      10-Q**





**x**
            **QUARTERLY
                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE****SECURITIES
                EXCHANGE ACT OF 1934****For
                the quarterly period ended July 1, 2007****OR****o**
            
            **TRANSITION
                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE****SECURITIES
                EXCHANGE ACT OF 1934****For
                the transition period from
                to**





**Commission
      file number: 001-13279**





**INTERMEC,
      INC.**


(Exact
      name of registrant as specified in its charter)





**Delaware**
            
            **95-4647021**(State
                or other jurisdiction of
            
            (I.R.S.
                Employerincorporation
                or organization)
            
            Identification
                No.)**6001
                36th Avenue West, Everett, WA**
            
            **98203-1264**(Address
                of principal executive offices)
            
            (Zip
                Code)





**(425)
      265-2400**


(Registrant’s
      telephone number, including area code)





**[None]**


(Former
      name, former address and former fiscal year, if changed since last
      report)





Indicate
      by check mark whether the registrant (1) has filed all reports required to
      be
      filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
      the
      preceding 12 months (or for such shorter period that the registrant was required
      to file such reports), and (2) has been subject to such filing requirements
      for
      the past 90 days.


Yes x
            No o





Indicate
      by check mark whether the registrant is a large accelerated filer, an
      accelerated filer, or a non-accelerated filer. See definition of “accelerated
      filer and large accelerated filer” in Rule 12b-2 of the Exchange
      Act.


Large
                accelerated
                filer x
            
            Accelerated
                filer o
            
            Non-accelerated
                filer o





Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act).


Yes o
            No x





Indicate
      the number of shares outstanding of each of the issuer’s classes of common
      stock, as of the latest practicable date.





**Class**
            
            **Outstanding
                at July 29, 2007**Common
                Stock, $0.01 par value per share
            
            60,772,362
                shares





























**INTERMEC,
      INC.**


**TABLE
      OF CONTENTS**


**REPORT
      ON FORM 10-Q**


**FOR
      THE THREE AND SIX MONTHS ENDED JULY 1, 2007**





**Page**
              **Number****PART
                I. FINANCIAL INFORMATION****ITEM
                1.**
            Financial
                StatementsConsolidated
                Condensed Statements of Operations (unaudited)
              Three
                and Six Months Ended July 1, 2007, and July 2, 2006
            
            3Consolidated
                Condensed Balance Sheets (unaudited)
              July
                1, 2007, and December 31, 2006
            
            4Consolidated
                Condensed Statements of Cash Flows (unaudited)
              For
                the Six Months Ended July 1, 2007, and July 2, 2006
            
            5Notes
                to Consolidated Condensed Financial Statements
                (unaudited)
            
            6
                -
                11**ITEM
                2.**
            Management’s
                Discussion and Analysis of Financial Condition and Results of
                Operations
            
            12
                - 18**ITEM
                3.**
            Quantitative
                and Qualitative Disclosures about Market Risk
            
            19**ITEM
                4.**
            Controls
                and Procedures
            
            19**PART
                II. OTHER INFORMATION****ITEM
                1.**
            Legal
                Proceedings
            
            19**ITEM
                1A.**
            Risk
                Factors
            
            19
                - 20**ITEM
                2.**
            Unregistered
                Sales of Equity Securities and Use of Proceeds
            
            21**ITEM
                4.**
            Submission
                of Matters to a Vote of Security Holders
            
            22**ITEM
                6.**
            Exhibits
            
            22Signature



































**PART
      I. FINANCIAL INFORMATION**





**ITEM
      1. FINANCIAL STATEMENTS**








**INTERMEC,
      INC.**


**CONSOLIDATED
      CONDENSED STATEMENTS OF OPERATIONS**


**(thousands
      of dollars, except per share amounts)**


**(unaudited)**




**Three
                  Months Ended**
              
              **Six
                  Months Ended****July
                  1, 2007**
              
              
              **July
                  2, 2006**
              
              
              **July
                  1, 2007**
              
              
              **July
                  2, 2006**Revenues:Product
              
              $
              169,939
              
              $
              192,440
              
              $
              311,451
              
              $
              358,790Service
              
              
              40,584
              
              
              38,997
              
              
              78,390
              
              
              76,478Total
                  Revenues
              
              
              210,523
              
              
              231,437
              
              
              389,841
              
              
              435,268Costs
                  and expenses:Cost
                  of product revenues
              
              
              108,726
              
              
              116,401
              
              
              200,920
              
              
              217,015Cost
                  of service revenues
              
              
              20,623
              
              
              21,413
              
              
              43,206
              
              
              44,274Selling,
                  general and administrative
              
              
              68,772
              
              
              78,496
              
              
              138,333
              
              
              156,289Gain
                  on intellectual property settlement
              
              
              -
              
              
              -
              
              
              -
              
              
              (16,538
              )Restructuring
                  charge
              
              
              
              
              
              1,135
              
              
              -
              
              
              2,242Total
                  costs and expenses
              
              
              198,121
              
              
              217,445
              
              
              382,459
              
              
              403,282Operating
                  profit from continuing operations
              
              
              12,402
              
              
              13,992
              
              
              7,382
              
              
              31,986Gain
                  on sale of investments
              
              
              -
              
              
              2,305
              
              
              -
              
              
              2,305Interest
                  income
              
              
              2,467
              
              
              3,979
              
              
              5,020
              
              
              7,339Interest
                  expense
              
              
              (2,348
              )
              
              (2,213
              )
              
              (4,643
              )
              
              (4,429
              )Earnings
                  from continuing operations before income taxes
              
              
              12,521
              
              
              18,063
              
              
              7,759
              
              
              37,201Provision
                  for income taxes
              
              
              4,591
              
              
              6,767
              
              
              4,261
              
              
              10,835Earnings
                  before discontinued operations
              
              
              7,930
              
              
              11,296
              
              
              3,498
              
              
              26,366Loss
                  from discontinued operations, net of tax
              
              
              (1,283
              )
              
              (940
              )
              
              (1,283
              )
              
              (2,019
              )Net
                  earnings
              
              $
              6,647
              
              $
              10,356
              
              $
              2,215
              
              $
              24,347Basic
                  earnings (loss) per shareContinuing
                  Operations
              
              $
              0.13
              
              $
              0.18
              
              $
              0.06
              
              $
              0.42Discontinued
                  Operations
              
              
              (0.02
              )
              
              (0.02
              )
              
              (0.02
              )
              
              (0.03
              )Net
                  earnings per share
              
              $
              0.11
              
              $
              0.16
              
              $
              0.04
              
              $
              0.39Diluted
                  earnings (loss) per shareContinuing
                  Operations
              
              $
              0.13
              
              $
              0.18
              
              $
              0.06
              
              $
              0.41Discontinued
                  Operations
              
              
              (0.02
              )
              
              (0.02
              )
              
              (0.02
              )
              
              (0.03
              )Net
                  earnings per share
              
              $
              0.11
              
              $
              0.16
              
              $
              0.04
              
              $
              0.38Shares
                  used in computing earnings (loss) per shareBasic
              
              
              60,251
              
              
              63,252
              
              
              60,121
              
              
              63,138Diluted
              
              
              61,065
              
              
              64,529
              
              
              60,987
              
              
              64,565


See
      accompanying notes to consolidated condensed financial statements.
















**INTERMEC,
      INC.**


**CONSOLIDATED
      CONDENSED BALANCE SHEETS**


**(amounts
      in thousands of dollars)**


**(unaudited)**





**July
                  1, 2007**
              
              
              **December
                  31, 2006****ASSETS**Current
                  assets:Cash
                  and cash equivalents
              
              $
              159,535
              
              $
              155,027Short-term
                  investments
              
              
              29,372
              
              
              29,510Accounts
                  receivable, net of allowance for doubtful accountsand sales returns of $9,437 and $7,796
              
              
              156,236
              
              
              158,369Inventories
              
              
              115,593
              
              
              119,027Net
                  current deferred tax assets
              
              
              49,875
              
              
              49,623Assets
                  held for sale
              
              
              8,393
              
              
              8,661Other
                  current assets
              
              
              27,658
              
              
              28,913Total
                  current assets
              
              
              546,662
              
              
              549,130Property,
                  plant and equipment, net
              
              
              43,455
              
              
              43,453Intangibles,
                  net
              
              
              6,097
              
              
              3,978Net
                  deferred tax assets
              
              
              175,836
              
              
              190,683Other
                  assets
              
              
              21,807
              
              
              23,096Total
                  assets
              
              $
              793,857
              
              $
              810,340**LIABILITIES
                  AND SHAREHOLDERS' INVESTMENT**Current
                  liabilities:Accounts
                  payable and accrued expenses
              
              $
              101,606
              
              $
              113,207Payroll
                  and related expenses
              
              
              25,616
              
              
              32,008Deferred
                  revenue
              
              
              50,392
              
              
              45,021Current
                  debt
              
              
              100,000
              
              
              -Total
                  current liabilities
              
              
              277,614
              
              
              190,236Long-term
                  deferred revenue
              
              
              14,862
              
              
              17,318Long-term
                  debt
              
              
              -
              
              
              100,000Other
                  long-term liabilities
              
              
              76,684
              
              
              85,184Shareholders'
                  investment:Common
                  stock
              
              
              602
              
              
              598Additional
                  paid-in-capital
              
              
              665,754
              
              
              657,468Accumulated
                  deficit
              
              
              (217,632
              )
              
              (212,903
              )Accumulated
                  other comprehensive loss
              
              
              (24,027
              )
              
              (27,561
              )Total
                  shareholders' investment
              
              
              424,697
              
              
              417,602Total
                  liabilities and shareholders' investment
              
              $
              793,857
              
              $
              810,340




See
      accompanying notes to consolidated condensed financial statements.














**INTERMEC,
      INC.**


**CONSOLIDATED
      CONDENSED STATEMENTS OF CASH FLOWS**


**(thousands
      of dollars)**


**(unaudited)**




**Six
                  Months Ended****July
                  1,**
              
              
              **July
                  2,****2007**
              
              
              **2006**Cash
                  and cash equivalents at beginning of year
              
              $
              155,027
              
              $
              256,782Cash
                  flows from operating activities of continuing operations:Net
                  earnings from continuing operations
              
              
              3,498
              
              
              24,347Adjustments
                  to reconcile net earnings to net cash provided by operating activitiesof
                  continuing operations:Depreciation
                  and amortization
              
              
              6,190
              
              
              5,186Provision
                  for bad debt
              
              
              1,334
              
              
              319Change
                  in prepaid pension costs, net
              
              
              (780
              )
              
              3,392Gain
                  on sale of property, plant and equipment
              
              
              (530
              )
              
              -Deferred
                  taxes
              
              
              3,531
              
              
              10,097Stock-based
                  compensation and other
              
              
              2,953
              
              
              5,125Excess
                  tax benefits from stock-based payment arrangements
              
              
              (1,181
              )
              
              (3,076
              )Changes
                  in operating assets and liabilities:Accounts
                  receivable
              
              
              1,024
              
              
              18,297Inventories
              
              
              3,434
              
              
              (22,540
              )Other
                  current assets
              
              
              (1,504
              )
              
              3,524Accounts
                  payable and accrued expenses
              
              
              (9,379
              )
              
              9,770Payroll
                  and related expenses
              
              
              (6,392
              )
              
              94Other
                  long-term liabilities
              
              
              704
              
              
              2,294Other
                  operating activities
              
              
              1,423
              
              
              5,557Net
                  cash provided by operating activities of continuing
                  operations
              
              
              4,325
              
              
              62,386Cash
                  flows from investing activities of continuing operations:Capital
                  expenditures
              
              
              (5,474
              )
              
              (12,304
              )Purchases
                  of investments
              
              
              (1,355
              )
              
              (19,695
              )Sale
                  of investments
              
              
              1,493
              
              
              565Note
                  receivable, discounted
              
              
              1,351
              
              
              -Patent
                  legal fees capitalized
              
              
              (652
              )
              
              -Other
                  investing activities
              
              
              (661
              )
              
              5Net
                  cash used in investing activities of continuing operations
              
              
              (5,298
              )
              
              (31,429
              )Cash
                  flows from financing activities of continuing operations:Excess
                  tax benefits from stock-based payment arrangements
              
              
              1,181
              
              
              3,076Stock
                  options exercised
              
              
              3,042
              
              
              4,340Other
                  financing activities
              
              
              1,008
              
              
              1,616Net
                  cash provided by financing activities of continuing
                  operations
              
              
              5,231
              
              
              9,032Net
                  cash provided by continuing operations
              
              
              4,258
              
              
              39,989Net
                  cash provided by investing activities of discontinued
                  operations
              
              
              250
              
              
              6,912Resulting
                  increase in cash and cash equivalents
              
              
              4,508
              
              
              46,901Cash
                  and cash equivalents at end of period
              
              $
              159,535
              
              $
              303,683**Supplemental
                  Information**Effect
                  of exchange rates on cash and cash equivalents
              
              $
              3,627
              
              $
              4,923




See
      accompanying notes to consolidated condensed financial statements.













**INTERMEC,
      INC.**


**NOTES
      TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (unaudited)**





**1.
      Basis of Presentation**





Our
      interim financial periods are based on a thirteen-week internal accounting
      calendar. In our opinion, the accompanying balance sheets, interim statements
      of
      operations and statements of cash flows include all adjustments, consisting
      only
      of normal recurring items, necessary for their fair presentation in conformity
      with accounting principles generally accepted in the United States of America
      (“U.S. GAAP”). The financial statements include the accounts of Intermec and our
      subsidiaries. Intercompany transactions and balances have been eliminated.
      Equity investments in which we exercise significant influence but do not
      exercise control and are not the primary beneficiary are accounted for using
      the
      equity method. Investments in which we are not able to exercise significant
      influence over the investee are accounted for under the cost method. Preparing
      our financial statements requires us to make estimates and assumptions that
      affect the reported amounts of assets, liabilities, revenue, expenses, and
      financial data included in the accompanying notes to the financial statements.
      Actual results and outcomes may differ from our estimates and
      assumptions.





Interim
      results are not necessarily indicative of results for a full year. The
      information included in this Form 10-Q should be read in conjunction with
      Management’s Discussion and Analysis of Financial Condition and Results of
      Operations and the Consolidated Condensed Financial Statements and notes
      thereto included in our 2006 Form 10-K.




**Reclassification**




Prior
      to
      the fourth quarter of 2006, we recognized certain amounts arising from IP
      settlements as revenue and direct costs related to the settlements as cost
      of
      revenue. We have determined that these IP settlements should more appropriately
      be recorded as “Gain on intellectual property settlement” in operations rather
      than as revenue and cost of revenue and accordingly have reclassified $23.0
      million previously recorded as IP settlement revenue and $6.5 million of IP
      settlement cost as a net Gain on intellectual property settlement of $16.5
      million within the Consolidated Condensed Statement of Operations for the six
      months ended July 2, 2006.





**Accounting
      Changes**





In
      June
      2006, the Financial Accounting Standards Board (“FASB”) issued FASB
      Interpretation No. 48 “Accounting for Uncertainty in Income Taxes - an
      interpretation of FASB Statement 109” (“FIN 48”). FIN 48 establishes a single
      model to address accounting for uncertain tax positions. FIN 48 clarifies the
      accounting for income taxes by prescribing a minimum recognition threshold
      a tax
      position is required to meet before being recognized in the financial
      statements. FIN 48 also provides guidance on derecognition, measurement,
      classification, interest and penalties, accounting in interim periods,
      disclosure and transition.





Upon
      adoption of FIN 48, as of January 1, 2007, we recognized a charge of
      approximately $6.9 million to accumulated deficit in shareholders’ investment.
      As of January 1, 2007, we had $21.3 million of unrecognized tax benefits, and
      if
      recognized, these amounts would be recorded as a component of income tax
      benefit. There have been no significant changes to these amounts during the
      six
      months ended July 1, 2007.





We
      file
      our tax returns as prescribed by the tax laws of the jurisdictions in which
      we
      operate. In the United States, our tax years 1997 - 2006 remain open to
      examination by the Internal Revenue Service, as well as various state
      jurisdictions. In the normal course of business, we are subject to examination
      by taxing authorities throughout the world, including such major jurisdictions
      as Canada, France, Germany, Italy, Mexico, the Netherlands, Spain, Sweden and
      the United Kingdom. In many cases, our uncertain tax positions are related
      to
      tax years that remain subject to examination by the relevant taxing
      authorities.





Based
      on
      the outcome of relevant examinations, or as a result of the expiration of
      statute of limitations for specific jurisdictions, it is not reasonably possible
      that the related unrecognized tax benefits for tax positions taken regarding
      previously filed tax returns will materially change within the next twelve
      months from those recorded as liabilities for uncertain tax positions in our
      financial statements at January 1, 2007.





Estimated
      interest and penalties related to the underpayment of income taxes are
      classified as a component of Tax Expense in the Consolidated Condensed Statement
      of Operations and accrued interest and penalties were $0.2 million as of January
      1, 2007, and $0.3 million as of July 1, 2007.




In
      May
      2007, the FASB issued Staff Position No. FIN 48-1, "Definition of
      Settlement in FASB Interpretation No. 48," which provides guidance on how a
      company should determine whether a tax position is effectively settled for
      purposes of recognizing previously unrecognized tax benefits.  We adopted
      this Staff Position during the first quarter of 2007, and it had no effect
      on
      our Consolidated Condensed Financial Statements.





Inventories
        comprise the following (thousands of dollars):


In
      February 2007, the FASB issued Statement of Financial Accounting Standards
      (“SFAS”) No. 159, “The Fair Value Option for Financial Assets and Financial
      Liabilities, Including an Amendment of FASB Statement No. 115,” which will
      become effective in 2008. SFAS No. 159 permits entities to measure eligible
      financial assets, financial liabilities and firm commitments at fair value,
      on
      an instrument-by-instrument basis, that are otherwise not permitted to be
      accounted for at fair value under other generally accepted accounting
      principles. The fair value measurement election is irrevocable and subsequent
      changes in fair value must be recorded in earnings. We will adopt this Statement
      in fiscal year 2008 and we are currently evaluating if we will elect the fair
      value option for any of our eligible financial instruments and other
      items.





In
      September 2006, the FASB finalized SFAS No. 157, “Fair Value Measurements” which
      will become effective in 2008. This Statement defines fair value, establishes
      a
      framework for measuring fair value and expands disclosures about fair value
      measurements; however, it does not require any new fair value measurements.
      The
      provisions of SFAS No. 157 will be applied prospectively to fair value
      measurements and disclosures beginning in the first quarter of
      2008.





In
      June
      2006, the FASB ratified the Emerging Issues Task Force (“EITF”) consensus on
      EITF Issue No. 06-03 “How Taxes Collected from Customers and Remitted to
      Governmental Authorities Should be presented in the Income Statement (“EITF
      06-03”). The scope of EITF 06-03 includes any tax assessed by a governmental
      authority that is directly imposed on a revenue-producing transaction between
      a
      seller and a customer, and provides that a company may adopt a policy of
      presenting taxes either gross within revenue or on a net basis. For any such
      taxes that are reported on a gross basis, a company should disclose the amounts
      of those taxes for each period for which an income statement is presented if
      those amounts are significant. This statement is effective with respect to
      financial reports for interim and annual reporting periods beginning after
      December 15, 2006. We adopted EITF 06-03 on January 1, 2007. Various taxes
      and
      fees on the sale of products and services to customers are collected by us
      as an
      agent and remitted to the respective taxing authority. These taxes and fees
      have
      been presented on a net basis in the accompanying Consolidated Condensed
      Statement of Operations and recorded as a liability until remitted to the
      respective taxing authority.




**2.****Inventories**




**July
                  1, 2007**
              
              
              **December
                  31, 2006**Raw
                  materials
              
              $
              63,920
              
              $
              69,769Work
                  in process
              
              
              906
              
              
              450Finished
                  goods
              
              
              50,767
              
              
              48,808Inventories
              
              $
              115,593
              
              $
              119,027




**3.**  **Notes
      Receivable**





In
      connection with the sale of Cincinnati Lamb, we received a $12.5 million
      long-term note receivable bearing interest at an annual rate of LIBOR plus
      three
      percent (8.32% as of July 1, 2007) with interest payable quarterly. Principal
      payments on the note are due in six semiannual installments beginning April
      2007
      of $1.5 million, $2.0 million, $2.0 million, $2.5 million, $2.0 million and
      $2.5
      million. As of July 1, 2007, the estimated fair value of the note is $10.1
      million, based on the estimated cash flows from the note and a risk-adjusted
      discount rate equal to LIBOR plus eight percent. Our Consolidated Condensed
      Balance Sheet as of July 1, 2007, classifies the current and long-term portions
      of the $10.1 million note receivable as other current assets and other assets,
      respectively.





As
      part
      of the sale of Landis Grinding Systems, we received a $10.0 million two-year
      note at an interest rate of five percent per annum guaranteed by the buyer’s
      parent company, due December 2007. As of July 1, 2007, the estimated fair value
      of the note is $9.9 million, based on the estimated cash flows from the note
      and
      a risk-adjusted discount rate equal to LIBOR plus 2.25% (7.68 % as of July
      1,
      2007). This note receivable is included in other current assets on our
      Consolidated Condensed Balance Sheet.








**4.**  **Debt**





We
      have a
      secured Revolving Credit Facility (the “Revolving Facility”) with a maximum
      amount available under the Revolving Facility of $50.0 million. Net of
      outstanding letters of credit and limitations on availability, we had borrowing
      capacity at July 1, 2007, of $19.6 million under the Revolving Facility. We
      made
      no borrowings under the Revolving Facility during 2007, and as of July 1, 2007,
      no borrowings were outstanding under this facility. As of July 1, 2007, we
      were
      in compliance with all financial covenants of this agreement. The Revolving
      Facility matures in September 2007.





As
      of
      July 1, 2007, we have $100.0 million of current ten-year senior unsecured debt
      outstanding, due in March 2008. Interest payments at 7.0% are due semi-annually
      in March and September. Including underwriting fees, discounts and other
      issuance costs, the effective interest rate is 7.175%.





We
      also
      have letter-of-credit reimbursement agreements totaling $6.9 million at July
      1,
      2007, compared to $7.4 million at December 31, 2006.





**5.**  **Discontinued
      Operations**





We
      completed our divestiture of the IAS businesses with the sale of the Cincinnati
      Lamb business in the first quarter of 2005 and the sale of the Landis Grinding
      Systems business in the fourth quarter of 2005. There was a net loss of $1.3
      million from discontinued operations for the three and six months ended July
      1,
      2007 as a result of the resolution of a purchase price arbitration.





The
      loss
      from discontinued operations for the three and six months ended July 2, 2006,
      includes period expenses relating to finalizing the sale of the Landis Grinding
      Systems and changes to the estimated sales price adjustment, net of tax
      benefits.





**6.**  **Restructuring
      Costs**





In
      March
      2006, we announced our plan to close our design centers in Goteborg and Lund,
      Sweden. The activities previously assigned to the design centers in Sweden
      have
      been reassigned to other parts of our business or moved to third-party vendors
      to improve efficiencies, benefit from reduced cost, and realign resources to
      increase new product development capacity. This restructuring resulted in
      charges of $1.1 million and $2.2 million for the three and six months ended
      July
      2, 2006, respectively, and was substantially completed by the end of
      2006.





In
      November 2006, we committed to a business restructuring plan intended to reduce
      costs, streamline operations and improve productivity. The restructuring
      includes headcount reductions and consolidation of certain facilities on a
      regional and/or global basis. The restructuring activities were substantially
      completed as of July 1, 2007 at approximately the amount we had
      accrued.




**7.** **Operating** **Gains**




In
      March
      2006, we settled an intellectual property lawsuit relating to our battery
      power-management patents. The terms of this settlement are confidential. We
      recorded a gain on intellectual property settlement of $16.5 million, which
      is
      net of $6.5 million of intellectual property settlement cost, within our
      Consolidated Condensed Statement of Operations for the six months ended July
      2,
      2006. There were no IP settlements for the three or six months ended July 1,
      2007.




Included
        as an offset against general and administrative expenses for the three and
        six
        month periods ended July 1, 2007, is an insurance death benefit gain of
        approximately $1.5 million, which was recorded when cash was received.


**8.**  **Provision
      for Income Taxes**





The
      tax
      expense for the three and six months ended July 1, 2007, reflects an effective
      tax rate for continuing operations of 36.7% and 54.9%, respectively, compared
      to
      a U.S. statutory rate of 35%. In the first quarter of 2007, the tax
      provision was increased primarily due to a reduction of foreign deferred tax
      assets as a result of recording a valuation allowance on a foreign net operating
      loss and the impact of changes in foreign tax rates. Our expected effective
      tax
      rate for fiscal year 2007, excluding the impact of discrete items, is
      approximately 36%.


The
      tax
      provision for the three and six months ended July 2, 2006, reflects an effective
      tax rate for continuing operations of 37.4% and 29.1%, respectively, compared
      to
      a U.S. statutory rate of 35%.  The tax provision was reduced by $2.2
      million primarily due to the favorable conclusion of a Canadian tax audit during
      the first quarter of 2006.







**9.**  **Shares
      Used in Computing Earnings (Loss) per Share**





Basic
      earnings (loss) per share is calculated using the weighted average number of
      common shares outstanding and issuable for the applicable period. Diluted
      earnings (loss) per share is computed using basic weighted average shares plus
      the dilutive effect of unvested restricted stock and outstanding stock options
      using the “treasury stock” method.




**Three
                  Months Ended**
              
              
              **Six
                  Months Ended****July
                  1, 2007**
              
              
              **July
                  2, 2006**
              
              
              **July
                  1, 2007**
              
              
              **July
                  2, 2006**Weighted
                  average shares - basic
              
              
              60,250,995
              
              
              63,252,443
              
              
              60,120,507
              
              
              63,138,099Dilutive
                  effect of unvested restricted shares and stock options
              
              
              814,239
              
              
              1,276,159
              
              
              866,205
              
              
              1,427,263Weighted
                  average shares - diluted
              
              
              61,065,234
              
              
              64,528,602
              
              
              60,986,712
              
              
              64,565,362





Our
      employees and directors held options to purchase 717,061 and 721,681 shares
      of
      our common stock for the three and six months ended July 1, 2007, and 586,401
      and 339,776 shares for the three and six months ended July 2, 2006,
      respectively, that were not included in weighted average shares diluted because
      they were antidilutive to the diluted earnings per share computation. These
      options could become dilutive in future periods if the average market price
      of
      our common stock exceeds the exercise price of the outstanding options and
      we
      report net earnings.




**10.**  **Equity**




The
        fair
        value of options issued during the three and six months ended July 1,
        2007 was $4. 8 million and $5.8 million, respectively, and
        are expected to vest ratably over the next five years.




The fair
      value assumptions used for these calculations were as follows:




**Fair
                  Value Assumptions**
              
              
              **Three
                  Months Ended July 1, 2007**
              
              
              **Six
                  Months Ended     July 1, 2007**Expected
                  Life in Years
              
              
              4.75
              
              
              4.90Annualized
                  Volatility
              
              
              38.37
              %
              
              38.63
              %Annual
                  Rate of Quarterly Dividends
              
              
              0.00
              %
              
              0.00
              %Discount
                  Rate - Bond Equivalent Yield
              
              
              4.63
              %
              
              4.63
              %




Our
      accumulated other comprehensive loss comprised the following (thousands of
      dollars):




**July
                  1, 2007**
              
              
              **December
                  31, 2006**Currency
                  translation adjustment, net
              
              $
              4,796
              
              $
              2,933Unamortized
                  benefit plan costs, net of tax benefit of $18,204 and $16,446,
                  respectively
              
              
              (28,872
              )
              
              (30,543
              )Unrealized
                  gain on securities, net
              
              
              49
              
              
              49Accumulated
                  other comprehensive loss
              
              $
              (24,027
              )
              $
              (27,561
              )




**11.**  **Segment
      Reporting**





We
      design, develop, manufacture, integrate, sell, resell and service wired and
      wireless automated identification and data collection (“AIDC”) products,
      including radio frequency identification (“RFID”) products, mobile computing
      products, wired and wireless bar code printers and label media products. Our
      reportable segments comprise products and services. The product segment
      generates revenue from the design, development, manufacture, sale and resale
      of
      AIDC products, including RFID products and license fees. The service segment
      generates revenue from customer support, product maintenance and other services
      related to the products and systems integration.





The
      accounting policies of our two reportable segments are the same as those used
      to
      prepare our consolidated condensed financial statements. Performance and
      resource allocation are primarily measured by sales and standard gross profit.
      All other earnings, costs and expenses are aggregated and reported on a
      consolidated basis.





For
      the
      three and six months ended July 1, 2007, one customer accounted for more than
      10% of our revenues. Total sales to this customer were $22.7 million and $41.0
      million for the three and six months ended July 1, 2007, respectively. No single
      customer accounted for more than 10% of our revenues for the three or six months
      ended July 2, 2006.





As
      described in Note 1, certain amounts in our prior-year consolidated condensed
      financial statements related to IP settlements have been reclassified to conform
      to the current-year presentation. The effect of such reclassification on segment
      amounts for the six months ended July 2, 2006, was to reduce product revenue
      by
      $23.0 million and reduce product gross profit by $16.5 million.








The
      following table sets forth our operations by reportable segment (millions of
      dollars):




**Three
                  Months Ended**
              
              
              **Six
                  Months Ended****July
                  1, 2007**
              
              
              **July
                  2, 2006**
              
              
              **July
                  1, 2007**
              
              
              **July
                  2, 2006**Revenues:Product
              
              $
              169.9
              
              $
              192.4
              
              $
              311.4
              
              $
              358.8Service
              
              
              40.6
              
              
              39.0
              
              
              78.4
              
              
              76.5Total
              
              $
              210.5
              
              $
              231.4
              
              $
              389.8
              
              $
              435.3Gross
                  Profit:Product
              
              $
              61.2
              
              $
              76.0
              
              $
              110.5
              
              $
              141.8Service
              
              
              20.0
              
              
              17.6
              
              
              35.2
              
              
              32.2Total
              
              $
              81.2
              
              $
              93.6
              
              $
              145.7
              
              $
              174.0




The
      following table sets forth our revenues by product lines (millions of
      dollars):




**Three
                  Months Ended**
              
              **Six
                  Months Ended****July
                  1, 2007**
              
              
              **July
                  2, 2006**
              
              
              **July
                  1, 2007**
              
              
              **July
                  2, 2006****Revenues:**Systems
                  and Solutions
              
              $
              117.6
              
              $
              135.5
              
              $
              211.1
              
              $
              251.8Printer
                  and Media
              
              
              52.3
              
              
              56.9
              
              
              100.3
              
              
              107.0Service
              
              
              40.6
              
              
              39.0
              
              
              78.4
              
              
              76.5$
              210.5
              
              $
              231.4
              
              $
              389.8
              
              $
              435.3




**12.**  **Commitments
      and Contingencies**





Provisions
      for estimated expenses related to product warranties are made at the time
      products are sold. These estimates are established using historical information
      on the nature, frequency, and average cost of warranty claims. We actively
      study
      trends of warranty claims and take action to improve product quality and
      minimize warranty claims. The following table indicates the change in our
      warranty accrual included in current liabilities (thousands of
      dollars):




**Six
                  Months Ended****July
                  1, 2007**
              
              
              **July
                  2, 2006**Beginning
                  Balance
              
              $
              6,800
              
              $
              5,514Payments
              
              
              (1,998
              )
              
              (1,830
              )Increase
                  in liability (new warranties issued)
              
              
              1,557
              
              
              2,149Ending
                  Balance
              
              $
              6,359
              
              $
              5,833




We
      have
      entered into a variety of agreements with third parties that include
      indemnification clauses, both in the ordinary course of business and in
      connection with our divestitures of certain product lines. These clauses require
      us to compensate these third parties for certain liabilities and damages
      incurred by them.





FASB
      Interpretation No. 45, “Guarantors’ Accounting and Disclosure Requirements for
      Guarantees, Including Indirect Guarantees of Indebtedness of Others” requires
      that we estimate and record the fair value of guarantees as a liability. We
      do
      not believe that we have any significant exposure related to such guarantees
      and
      therefore have not recorded a liability as of July 1, 2007, or December 31,
      2006. We have not made any significant indemnification payments as a result
      of
      these clauses.




We
      currently, and from time to time, are subject to claims and lawsuits arising
      in
      the ordinary course of business. The ultimate resolution of currently pending
      proceedings is not expected to have a material adverse effect on our business,
      financial condition, results of operations or liquidity.







**13.**  **Pension
      and Other Postretirement Benefit Plans**





The
      information in this note represents the net periodic pension and post-retirement
      benefit costs and related components in accordance with SFAS 132(R), “Employers’
Disclosures about Pensions and Other Postretirement Benefits (as amended).” The
      components of net pension and postretirement periodic benefit cost (credit)
      for
      the three and six months ended July 1, 2007, and July 2, 2006, are as follows
      (thousands of dollars):




**U.S.
                  Defined Benefit Plans**
              
              
              **Non-U.S.
                  Defined Benefit Plans**
              
              
              **Other
                  Postretirement Benefit Plans****2007**
              
              
              **2006**
              
              
              **2007**
              
              
              **2006**
              
              
              **2007**
              
              
              **2006****Quarter
                  Ended July 1, 2007,****and
                  July 2, 2006**Service
                  cost
              
              $
              453
              
              $
              1,741
              
              $
              -
              
              $
              273
              
              $
              -
              
              $
              4Interest
                  cost
              
              
              2,678
              
              
              2,988
              
              
              664
              
              
              552
              
              
              44
              
              
              66Expected
                  Return on Plan Assets
              
              
              (2,611
              )
              
              (2,508
              )
              
              (862
              )
              
              (756
              )
              
              -
              
              
              -Amortization
                  and Deferrals:Transition
                  asset
              
              
              -
              
              
              -
              
              
              (43
              )
              
              (39
              )
              
              -
              
              
              -Actuarial
                  loss
              
              
              942
              
              
              1,241
              
              
              105
              
              
              112
              
              
              -
              
              
              28Prior
                  service cost
              
              
              144
              
              
              177
              
              
              -
              
              
              -
              
              
              -
              
              
              -Special
                  Termination Benefits
              
              
              -
              
              
              675
              
              
              -
              
              
              -
              
              
              -
              
              
              -Net
                  pension and postretirement periodic benefit cost (gain)
              
              $
              1,606
              
              $
              4,314
              
              $
              (136
              )
              $
              142
              
              $
              44
              
              $
              98**Six
                  Months Ended July 1, 2007,****and
                  July 2, 2006**Service
                  cost
              
              $
              905
              
              $
              3,482
              
              $
              -
              
              $
              536
              
              $
              -
              
              $
              8Interest
                  cost
              
              
              5,356
              
              
              5,976
              
              
              1,308
              
              
              1,083
              
              
              88
              
              
              132Expected
                  Return on Plan Assets
              
              
              (5,222
              )
              
              (5,016
              )
              
              (1,698
              )
              
              (1,483
              )
              
              -
              
              
              -Amortization
                  and Deferrals:Transition
                  asset
              
              
              -
              
              
              -
              
              
              (85
              )
              
              (77
              )
              
              -
              
              
              -Actuarial
                  loss
              
              
              1,884
              
              
              2,480
              
              
              207
              
              
              220
              
              
              -
              
              
              55Prior
                  service cost
              
              
              289
              
              
              354
              
              
              -
              
              
              -
              
              
              -
              
              
              -Special
                  Termination Benefits
              
              
              -
              
              
              1,350
              
              
              -
              
              
              -
              
              
              -
              
              
              -Net
                  pension and postretirement periodic benefit cost (gain)
              
              $
              3,212
              
              $
              8,626
              
              $
              (268
              )
              $
              279
              
              $
              88
              
              $
              195








**ITEM
      2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
      OF OPERATIONS**





**Forward-Looking
      Statements and Risk Factors**




Forward-looking
      statements contained in this filing are subject to the safe harbor created
      by
      the Private Securities Litigation Reform Act of 1995 (alternatively: Section
      27A
      of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
      of
      1934) and are dependent upon a variety of important factors that could cause
      actual results to differ materially from those reflected in such forward-looking
      statements.





Forward-looking
      statements include but are not limited to statements about: maintaining or
      improving our revenues, gross margins or profits of our continuing operations,
      for the current period or any future period; competing effectively with our
      current products and planned products, and introducing new products; effectively
      completing restructuring activities, including the closure of certain facilities
      and redeployment of related functions; maintaining or reducing expenses;
      maintaining or improving operational efficiency; increasing product development
      capacity; using our investment in research and development to generate future
      revenue; and the applicability of accounting policies used in our financial
      reporting. When used in this document and in documents it references, the words
      “anticipate,” “believe,” “will,” “intend,” “project” and “expect” and similar
      expressions as they relate to Intermec or our management are intended to
      identify such forward-looking statements. We undertake no obligation to publicly
      update or revise any forward-looking statements, whether as a result of new
      information, future events, changed circumstances or any other reason after
      the
      date of this quarterly report.





Forward-looking
      statements involve and are dependent upon certain risks and uncertainties and
      are not guarantees of future performance. A number of factors can impact our
      business and determine whether we can or will achieve any forward-looking
      statement made in this report. Any one of these factors could cause our actual
      results to differ materially from those expressed or implied in a
      forward-looking statement. We outline these risk factors in reports that we
      file
      with the SEC, in press releases and on our website, www.intermec.com. You are
      encouraged to review the discussion below in Part I, “Item 2, Management’s
      Discussion and Analysis of Financial Condition and Results of Operations,” and
      Part II, “Item 1A Risk Factors,” of this filing, which discuss risk factors
      associated with our business.





**Results
      of Operations**





The
      following discussion compares our results of operations for the three and six
      months ended July 1, 2007, and July 2, 2006. Results of operations and
      percentage of revenues were as follows (millions of dollars):




**Three
                Months Ended**
            
            
            **Six
                Months Ended****July
                1, 2007**
            
            
            **July
                2, 2006**
            
            
            **July
                1, 2007**
            
            
            **July
                2, 2006****Amounts**
            
            
            **Amounts**
            
            
            **Amounts**
            
            
            **Amounts**Revenues
            
            $
            210.5
            
            $
            231.4
            
            $
            389.8
            
            $
            435.3Costs
                and expenses:Cost
                of revenues
            
            
            129.3
            
            
            137.8
            
            
            244.1
            
            
            261.3Selling,
                general and administrative
            
            
            68.8
            
            
            78.5
            
            
            138.3
            
            
            156.3Gain
                on intellectual property settlements
            
            
            -
            
            
            -
            
            
            -
            
            
            (16.5
            )Restructuring
                charge
            
            
            -
            
            
            1.1
            
            
            -
            
            
            2.2Total
                costs and expenses
            
            
            198.1
            
            
            217.4
            
            
            382.4
            
            
            403.3Operating
                profit from continuing operations
            
            
            12.4
            
            
            14.0
            
            
            7.4
            
            
            32.0Gain
                on sale of investments
            
            
            -
            
            
            2.3
            
            
            -
            
            
            2.3Interest
                income, net
            
            
            0.1
            
            
            1.8
            
            
            0.4
            
            
            2.9Earnings
                from continuing operations, before income tax
            
            
            12.5
            
            
            18.1
            
            
            7.8
            
            
            37.2Provision
                for income tax
            
            
            4.6
            
            
            6.8
            
            
            4.3
            
            
            10.8Earnings
                from continuing operations, net of tax
            
            
            7.9
            
            
            11.3
            
            
            3.5
            
            
            26.4Loss
                from discontinued operations, net of tax
            
            
            (1.3
            )
            
            (0.9
            )
            
            (1.3
            )
            
            (2.0
            )Net
                earnings
            
            $
            6.6
            
            $
            10.4
            
            $
            2.2
            
            $
            24.4**Percent
                of Revenues**
            
            
            **Percent
                of Revenues**
            
            
            **Percent
                of Revenues**
            
            
            **Percent
                of Revenues**RevenuesCosts
                and expenses:Cost
                of revenues
            
            
            61.4
            %
            
            59.6
            %
            
            62.6
            %
            
            60.0
            %Selling,
                general and administrative
            
            
            32.7
            %
            
            33.9
            %
            
            35.5
            %
            
            35.9
            %Gain
                on intellectual property settlements
            
            
            -
            
            
            -
            
            
            -
            
            
            -3.8
            %Restructuring
                charge
            
            
            -
            
            
            0.5
            %
            
            -
            
            
            0.5
            %Total
                costs and expenses
            
            
            94.1
            %
            
            93.9
            %
            
            98.1
            %
            
            92.6
            %Operating
                profit from continuing operations
            
            
            5.9
            %
            
            6.1
            %
            
            1.9
            %
            
            7.4
            %Gain
                on sale of investments
            
            
            *****
            
            
            *****
            
            
            *****
            
            
            *****Interest
                income, net
            
            
            *****
            
            
            *****
            
            
            *****
            
            
            *****Earnings
                from continuing operations, before income tax
            
            
            5.9
            %
            
            7.8
            %
            
            2.0
            %
            
            8.5
            %Provision
                for income tax
            
            
            *****
            
            
            *****
            
            
            *****
            
            
            *****Earnings
                from continuing operations, net of tax
            
            
            3.8
            %
            
            4.9
            %
            
            0.9
            %
            
            6.1
            %Loss
                from discontinued operations, net of tax
            
            
            *****
            
            
            *****
            
            
            *****
            
            
            *****Net
                earnings
            
            
            3.1
            %
            
            4.5
            %
            
            0.6
            %
            
            5.6
            %




*****
      Calculation is not meaningful





*Revenues*





Revenues
      by category and geographic region and as a percentage of total revenues from
      continuing operations for the three and six months ended July 1, 2007, and
      July
      2, 2006, as well as the same three and six months revenue changes were as
      follows (millions of dollars):





**Three
                Months Ended****July
                1, 2007**
            **July
                2, 2006**
            
            **Change**
            
            
            **Percentage
                Change****Amount**
            
            
            **Percent
                of Revenues**
            
            
            **Amount**
            
            
            **Percent
                of Revenues**Revenues
                by Category:Product
            
            $
            169.9
            
            
            80.7
            %
            $
            192.4
            
            
            83.1
            %
            $
            (22.5
            )
            
            -11.7
            %Service
            
            
            40.6
            
            
            19.3
            %
            
            39.0
            
            
            16.9
            %
            
            1.6
            
            
            4.1
            %Total
                Revenues
            
            $
            210.5
            
            
            100.0
            %
            $
            231.4
            
            
            100.0
            %
            $
            (20.9
            )
            
            -9.0
            %Revenues
                by Geographic Region:North
                America
            
            $
            108.0
            
            
            51.3
            %
            $
            136.3
            
            
            58.9
            %
            $
            (28.3
            )
            
            -20.8
            %Europe,
                Middle East and Africa(EMEA)
            
            
            68.5
            
            
            32.5
            %
            
            68.2
            
            
            29.5
            %
            
            0.3
            
            
            0.4
            %All
                Others
            
            
            34.0
            
            
            16.2
            %
            
            26.9
            
            
            11.6
            %
            
            7.1
            
            
            26.4
            %Total
                Revenues
            
            $
            210.5
            
            
            100.0
            %
            $
            231.4
            
            
            100.0
            %
            $
            (20.9
            )
            
            -9.0
            %


Revenue
      decreased $20.9 million for the three months ended July 1, 2007 compared to
      the
      prior year period, primarily from the $22.5 million decline in product revenue,
      slightly offset by a $1.6 million increase in service revenue. The decrease
      in
      product revenue was attributable to a $17.9 million decrease in systems and
      solution products and a $4.6 million decline in printer and media
      products. The
      lower product revenue is primarily a result of the decline in the North America
      market, which was down 24.3% from the prior year quarter. Our analysis of the
      causal factors for the decline indicates the introduction of several new
      products and the related transition to these products is the most significant
      factor. Sequentially, product revenue in North America is up 23.1% from the
      first quarter of 2007.





The
      increase in quarterly service revenues of $1.6 million, or 4.1%, was primarily
      attributable to an increase in professional service fees in our international
      markets.








**Six
                Months Ended****July
                1, 2007**
            **July
                2, 2006**
            
            **Change**
            
            
            **Percentage
                Change****Amount**
            
            
            **Percent
                of Revenues**
            
            
            **Amount**
            
            
            **Percent
                of Revenues**Revenues
                by Category:Product
            
            $
            311.4
            
            
            79.9
            %
            $
            358.8
            
            
            82.4
            %
            $
            (47.4
            )
            
            -13.2
            %Service
            
            
            78.4
            
            
            20.1
            %
            
            76.5
            
            
            17.6
            %
            
            1.9
            
            
            2.5
            %Total
                Revenues
            
            $
            389.8
            
            
            100.0
            %
            $
            435.3
            
            
            100.0
            %
            $
            (45.5
            )
            
            -10.5
            %Revenues
                by Geographic Region:North
                America
            
            $
            199.1
            
            
            51.1
            %
            $
            264.8
            
            
            60.8
            %
            $
            (65.7
            )
            
            -24.8
            %Europe,
                Middle East and Africa(EMEA)
            
            
            131.5
            
            
            33.7
            %
            
            122.3
            
            
            28.1
            %
            
            9.2
            
            
            7.5
            %All
                Others
            
            
            59.2
            
            
            15.2
            %
            
            48.2
            
            
            11.1
            %
            
            11.0
            
            
            22.8
            %Total
                Revenues
            
            $
            389.8
            
            
            100.0
            %
            $
            435.3
            
            
            100.0
            %
            $
            (45.5
            )
            
            100.0
            %




Revenue
      for the six months ended July 1, 2007, declined $45.5 million or 10.5%,
      primarily due to a $47.4 million, or 13.2%, decline in product revenues,
      partially offset by $1.9 million, or 2.5%, increase in service revenues. The
      decline in product revenues was due to $40.7 million decline in systems and
      solution products and a $6.7 million decline in printer and media products.
      The
      lower product revenue is primarily a result of the decline in the North America
      market, which was down 29.2% from the prior year quarter. Our analysis of the
      causal factors for the decline suggests the introduction of several new products
      and the related transition to these products is the most significant factor.
      The
      marked difference in performance by regions was driven in part by EMEA and
      All
      Other regions having earlier availability of our next generation mobile
      computer, the CN3, compared to the North American region.





The
      increase in six month service revenues of $1.9 million, or 2.5%, was primarily
      attributable to an increase in professional service fees in our international
      markets.





*Gross
      Profit*





Gross
      profit and gross margin by revenue category for the three and six months ended
      July 1, 2007 and July 2, 2006, were as follows (millions of
      dollars):




**Three
                  Months Ended**
              
              
              **Six
                  Months Ended****July
                  1, 2007**
              
              **July
                  2, 2006**
              
              
              **July
                  1, 2007**
              
              **July
                  2, 2006****Gross
                  Profit**
              
              
              **Gross
                  Margin**
              
              
              **Gross
                  Profit**
              
              
              **Gross
                  Margin**
              
              
              **Gross
                  Profit**
              
              
              **Gross
                  Margin**
              
              
              **Gross
                  Profit**
              
              
              **Gross
                  Margin**Product
              
              $
              61.2
              
              
              36.0
              %
              $
              76.0
              
              
              39.5
              %
              $
              110.5
              
              
              35.5
              %
              $
              141.8
              
              
              39.5
              %Service
              
              
              20.0
              
              
              49.3
              %
              
              17.6
              
              
              45.1
              %
              
              35.2
              
              
              44.9
              %
              
              32.2
              
              
              42.1
              %Total
                  gross profitand
                  gross margin
              
              $
              81.2
              
              
              38.6
              %
              $
              93.6
              
              
              40.4
              %
              $
              145.7
              
              
              37.4
              %
              $
              174.0
              
              
              40.0
              %




The
      total
      gross profit for the three and six months ended July 1, 2007, decreased by
      $12.4
      million and $28.3 million, respectively, compared to the corresponding prior
      year periods. The decreases are attributable to the lower product revenue and
      a
      decrease in product gross margin percentage. The quarterly product gross margin
      of 36.0% is a 3.5 percentage point decrease compared to the prior year period.
      The reduction in product gross margin is primarily due to lower unit volume,
      lower average selling prices and lower absorption on lower volumes. Product
      gross margin of 36.0% reflects a 1.1 percentage point improvement from the
      first
      quarter of 2007.





Service
      gross profit increased $2.4 million and $3.0 million for the three and six
      months ended July 1, 2007, respectively, from higher revenue and improved gross
      margin percentage. The improved gross margin percentage is primarily due to
      cost
      reductions from the restructuring initiated in the fourth quarter of 2006 and
      improved operating efficiency as a result of the higher
      revenue.





*Selling,
      General and Administrative*





The
      total
      selling, general and administrative (“SG&A”) expenses were $68.8 million and
      $138.3 million for the three and six months ended July 1, 2007, respectively,
      compared with SG&A expenses of $78.5 million and $156.3 million for the
      corresponding prior-year period. The $9.7 million decrease in SG&A expense
      in the quarter is primarily due to cost reduction initiatives, the pension
      freeze in the U.S. effective June 30, 2006, and approximately $2.0 million
      of
      other operating gains, due to an insurance death benefit, in the
      second quarter of 2007.





*Gain
      on Intellectual Property Settlements*




In
      March
      2006, we settled an intellectual property lawsuit relating to our battery
      power-management patents. The terms of this settlement are confidential. We
      recorded a gain on intellectual property settlement of $16.5 million, which
      is
      net of $6.5 million of intellectual property settlement cost, within our
      Consolidated Condensed Statement of Operations for the six months ended July
      2,
      2006. There were no IP settlements for the three or six months ended July 1,
      2007.




*Restructuring
      Charge*




In
      March
      2006, we announced our plan to close our design centers in Goteborg and Lund,
      Sweden. The activities previously assigned to the design centers in Sweden
      have
      been reassigned to other parts of our business or moved to third-party vendors
      to improve efficiencies, benefit from reduced cost, and realign resources to
      increase new product development capacity. This restructuring resulted in
      charges of $1.1 million and $2.2 million for the three and six months ended
      July
      2, 2006, respectively, and was substantially complete by the end of
      2006.




*Interest,
      Net*





Net
      interest income was $0.1 million and $0.4 million for the three and six months
      ended July 1, 2007, compared to net interest income of $1.8 million and $2.9
      million for the corresponding prior-year period. The decrease in net interest
      income reflects the reduction in average cash and cash equivalent
      balances.





*Provision
      for Income Taxes*





The
      tax
      expense for the three and six months ended July 1, 2007, reflects an effective
      tax rate for continuing operations of 36.7% and 54.9%, respectively, compared
      to
      a U.S. statutory rate of 35%. In the first quarter of 2007, the tax
      provision was increased primarily due to a reduction of foreign deferred tax
      assets as a result of recording a valuation allowance on a foreign net operating
      loss and the impact of changes in foreign tax rates. Our expected effective
      tax rate for fiscal year 2007, excluding the impact of discrete items, is
      approximately 36%.





The
      tax
      provision for the three and six months ended July 2, 2006, reflects an effective
      tax rate for continuing operations of 37.4% and 29.1%, respectively, compared
      to
      a U.S. statutory rate of 35%.  The tax provision was reduced by $2.2
      million primarily due to the favorable conclusion of a Canadian tax audit during
      the first quarter of 2006.





*Loss
      from Discontinued Operations*





The
      loss
      from discontinued operations for the three months ended July 1, 2007, reflects
      the outcome of an arbitration settlement related to the sale of Cincinnati
      Lamb.
      The loss from discontinued operations for the three and six months ended July
      2,
      2006, includes period expenses related to finalizing the sale of the Landis
      Grinding Systems and changes to the estimated sales price adjustment, net
      of tax benefits.





**Liquidity
      and Capital Resources**





Cash,
      cash equivalents and short-term investments as of July 1, 2007, totaled $188.9
      million, compared to $184.5 million as of December 31, 2006. Operating
      activities of continuing operations for the first six months of 2007 provided
      $4.3 million of cash flow. Investing activities of continuing operations for
      the
      first six months of 2007, used $5.3 million related primarily to $5.5 million
      of
      capital expenditures. Financing activities of continuing operations provided
      $5.2 million, primarily due to $4.1 million of proceeds from stock option
      exercises and other related stock awards during the six months ended July 1,
      2007.





Net
      of
      outstanding letters of credit and limitations on minimum availability, we had
      borrowing capacity at July 1, 2007, of $19.6 million under the Secured Revolving
      Credit Revolving Facility that we have (the "Revolving Facility"). We made
      no
      borrowings under the Revolving Facility during the three and six months ended
      July 1, 2007, and as of July 1, 2007, no borrowings were outstanding under
      the
      Revolving Facility. As of July 1, 2007, we were in compliance with the financial
      covenants of the Revolving Facility.





The
      key
      terms of the Revolving Facility are as follows:





•
            Our
                obligations under the Revolving Facility are secured by substantially
                all
                of our U.S. assets and our U.S. subsidiaries and a pledge of 65%
                of the
                stock of certain of foreign
                subsidiaries.





•
            Borrowings
                under the Revolving Facility bear interest at a variable rate equal
                to (at
                our option) (i) LIBOR plus an applicable margin ranging from 1.5%
                to 2.5%
                based on consolidated leverage, or (ii) the greater of the federal
                funds
                rate plus 0.50% or the bank’s prime rate, plus an applicable margin
                ranging from 0.5% to 1.5% based on consolidated
                leverage.





•
            The
                Revolving Facility places certain restrictions on our ability and
                our
                subsidiaries’ ability to consolidate or merge, make acquisitions, create
                liens, incur additional indebtedness or dispose of
                assets.





•
            Financial
                covenants include a Consolidated Leverage test, a Consolidated Interest
                Coverage test and a Consolidated Net Worth test, each as defined
                in the
                agreement.





Management
      is considering options for renewing the Revolving Facility, which matures
      September 2007.


As
      of
      July 1, 2007, we had $100.0 million of current ten-year senior unsecured debt
      outstanding, due March 2008. Interest payments at 7.0% are due semi-annually
      in
      March and September. Including underwriting fees, discounts and other issuance
      costs, the effective interest rate is 7.175%.





Management
      believes that cash and cash equivalents on hand, combined with projected cash
      flow from operations, assets held for sale and available borrowings under our
      Revolving Facility will be sufficient to fund our operations, research and
      development efforts, anticipated capital expenditures, liabilities, commitments,
      and other capital requirements, for at least the next twelve
      months.





**Contractual
      Obligations**





Our
      contractual commitments as of July 1, 2007, have not changed materially from
      those disclosed in Item 7 of our annual report on Form 10-K for the year ended
      December 31, 2006, other than the uncertain tax positions totaling $21.4
      million.




As
      of
      July 1, 2007, we have classified $1.3 million of unrecognized tax benefits,
      including interest and penalties, as a  current liability. 
The remainder of our unrecognized tax benefits are classified as noncurrent
      liabilities. At this time, the settlement period for the noncurrent portion
      of
      our unrecognized tax benefits cannot be determined; however, it is not expected
      to be due within the next twelve months.




**Critical
      Accounting Policies**





“Management’s
      Discussion and Analysis of Financial Condition and Results of Operations”
(“MD&A”) discusses our consolidated financial statements, which have been
      prepared in accordance with accounting principles generally accepted in the
      United States. The preparation of these financial statements requires us to
      make
      estimates and assumptions that affect the reported amounts of assets and
      liabilities, the disclosure of contingent assets and liabilities, and the
      reported amounts of revenues and expenses. Actual amounts could differ from
      those estimates under different assumptions or conditions. Management’s beliefs
      regarding significant accounting policies have not changed significantly from
      those disclosed in Item 7 of our Annual Report on Form 10-K for the year ended
      December 31, 2006.




Significant
      estimates and assumptions were used to determine the provisions for
      uncollectible accounts receivable, excess and obsolete inventory, tax valuation
      allowances, recoverability of intangible assets, warranty costs, retiree medical
      and pension obligations, estimated net realizable value of assets held for
      sale
      and litigation loss contingencies.





**New
      Accounting Pronouncements**





In
      June
      2006, the Financial Accounting Standards Board (“FASB”) issued FASB
      Interpretation No. 48 “Accounting for Uncertainty in Income Taxes - an
      interpretation of FASB Statement 109” (“FIN 48”). FIN 48 establishes a single
      model to address accounting for uncertain tax positions. FIN 48 clarifies the
      accounting for income taxes by prescribing a minimum recognition threshold
      a tax
      position is required to meet before being recognized in the financial
      statements. FIN 48 also provides guidance on derecognition, measurement
      classification, interest and penalties, accounting in interim periods,
      disclosure and transition.





Upon
      adoption of FIN 48, as of January 1, 2007, we recognized a charge of
      approximately $6.9 million to accumulated deficit. As of January 1, 2007, we
      had
      $21.3 million of unrecognized tax benefits, and if recognized, these amounts
      would be recorded as a component of income tax benefit. There have been no
      significant changes to these amounts during the three or six months ended July
      1, 2007.





We
      file
      our tax returns as prescribed by the tax laws of the jurisdictions in which
      we
      operate. In the United States our tax years 1997 through 2006 remain open to
      examination by the Internal Revenue Service, as well as various state
      jurisdictions. In the normal course of business, we are subject to examination
      by taxing authorities throughout the world, including such major jurisdictions
      as Canada, France, Germany, Italy, Mexico, the Netherlands, Spain, Sweden and
      the United Kingdom. In many cases, our uncertain tax positions are related
      to
      tax years that remain subject to examination by the relevant taxing authorities.





Based
      on
      the outcome of relevant examinations, or as a result of the expiration of
      statute of limitations for specific jurisdictions, it is not reasonably possible
      that the related unrecognized tax benefits for tax positions taken regarding
      previously filed tax returns will materially change within the next twelve
      months from those recorded as liabilities for uncertain tax positions in our
      financial statements at January 1, 2007.





Estimated
      interest and penalties related to the underpayment of income taxes are
      classified as a component of Tax Expense in the Consolidated Condensed Statement
      of Operations and accrued interest and penalties were $0.2 million as of January
      1, 2007, and $0.3 million as of July 1, 2007.




In
      May
      2007, the FASB issued Staff Position No. FIN 48-1, "Definition of
      Settlement in FASB Interpretation No. 48," which provides guidance on how a
      company should determine whether a tax position is effectively settled for
      purposes of recognizing previously unrecognized tax benefits.  We adopted
      this Staff Position during the first quarter of 2007, and it had no effect
      on
      our Consolidated Condensed Financial Statements.




In
        February 2007, the FASB issued Statement of Financial Accounting Standards
        (“SFAS”) No. 159, “The Fair Value Option for Financial Assets and Financial
        Liabilities, Including an Amendment of FASB Statement No. 115,” which will
        become effective in 2008. SFAS No. 159 permits entities to measure eligible
        financial assets, financial liabilities and firm commitments at fair value,
        on
        an instrument-by-instrument basis, that are otherwise not permitted to be
        accounted for at fair value under other generally accepted accounting
        principles. The fair value measurement election is irrevocable and subsequent
        changes in fair value must be recorded in earnings. We will adopt this Statement
        in fiscal year 2008 and we are currently evaluating if we will elect the
        fair
        value option for any of our eligible financial instruments and other
        items.




In
      September 2006, the FASB finalized SFAS No. 157, “Fair Value Measurements” which
      will become effective in 2008. This Statement defines fair value, establishes
      a
      framework for measuring fair value and expands disclosures about fair value
      measurements; however, it does not require any new fair value measurements.
      The
      provisions of SFAS No. 157 will be applied prospectively to fair value
      measurements and disclosures beginning in the first quarter of 2008 and is
      not
      expected to have a material effect on our Consolidated Condensed Financial
      Statements.





In
      June
      2006, the FASB ratified the Emerging Issues Task Force (“EITF”) consensus on
      EITF Issue No. 06-03 “How Taxes Collected From Customers and Remitted to
      Governmental Authorities Should Be Presented in the Income Statement (“EITF
      06-03”). The scope of EITF 06-03 includes any tax assessed by a governmental
      authority that is directly imposed on a revenue-producing transaction between
      a
      seller and a customer, and provides that a company may adopt a policy of
      presenting taxes either gross within revenue or on a net basis. For any such
      taxes that are reported on a gross basis, a company should disclose the amounts
      of those taxes for each period for which an income statement is presented if
      those amounts are significant. This statement is effective to financial reports
      for interim and annual reporting periods beginning after December 15, 2006.
      We
      adopted EITF 06-03 on January 1, 2007. Various taxes and fees on the sale of
      products and services to customers are collected by us as an agent and remitted
      to the respective taxing authority. These taxes and fees have been presented
      on
      a net basis in the accompanying consolidated condensed statement of operations
      and recorded as a liability until remitted to the respective taxing
      authority.





**ITEM
      3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
      RISK**





We
      are
      exposed to interest rate risk primarily from our short-term and long-term
      borrowings and to foreign exchange rate risk with respect to our foreign
      operations and from foreign currency transactions.





Due
      to
      our global operations, our cash flows and earnings are exposed to foreign
      exchange rate fluctuations. When appropriate, we may attempt to limit our
      exposure to changing foreign exchange rates by entering into short-term foreign
      currency exchange contracts. As of July 1, 2007, we held short-term contracts
      for the purpose of hedging foreign currency cash flows with an aggregate
      notional amount of $270.4 million.





Except
      as
      noted in the preceding paragraph, as of July 1, 2007, there have been no
      material changes in information provided in Item 7A of our annual report on
      Form
      10-K for the year ended December 31, 2006, which contains a complete discussion
      of our material exposures to interest rate and foreign exchange rate
      risks.





**ITEM
      4. CONTROLS AND PROCEDURES**





We
      maintain disclosure controls and procedures, which are designed to ensure that
      information required to be disclosed in the reports we file or submit under
      the
      Securities Exchange Act of 1934, as amended, is recorded, processed, summarized
      and reported within the time periods specified in the Securities and Exchange
      Commission’s rules and forms, and that such information is accumulated and
      communicated to management, including the Chief Executive Officer, or CEO,
      and
      Chief Financial Officer, or CFO, as appropriate to allow timely decisions
      regarding required disclosure.





Under
      the
      supervision and with the participation of management, including the CEO and
      CFO,
      an evaluation was performed on the effectiveness of the design and operation
      of
      our disclosure controls and procedures as of the end of the period covered
      by
      this quarterly report. Based on that evaluation, management, including the
      CEO
      and CFO, concluded that our disclosure controls and procedures were effective
      as
      of July 1, 2007.





An
      evaluation was also performed under the supervision and with the participation
      of management, including the CEO and CFO, of any change in our internal controls
      over financial reporting that occurred during the last fiscal quarter and that
      has materially affected, or is reasonably likely to materially affect, our
      internal controls over financial reporting. That evaluation did not identify
      any
      change in our internal controls over financial reporting that occurred during
      the latest fiscal quarter and that has materially affected, or is reasonably
      likely to materially affect, our internal controls over financial
      reporting.







**PART
      II. OTHER INFORMATION**





**ITEM
      1. LEGAL PROCEEDINGS**





We
      currently, and from time to time, are subject to claims and suits arising in
      the
      ordinary course of business. The ultimate resolution of currently pending
      proceedings is not expected to have a material adverse effect on our business,
      financial condition, results of operations or liquidity.





**ITEM
      1A. RISK FACTORS**








You
      are
      encouraged to review the discussion of Forward Looking Statements and Risk
      Factors appearing in this report at Part I, “Item 2. Management’s Discussion and
      Analysis of Financial Condition and Results of Operations.”




In
      addition to the other information set forth in this Report, you should carefully
      consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual
      Report on Form 10-K for the year ended December 31, 2006, which could materially
      affect our business, financial condition or operating results. The risks
      described in our Annual Report on Form 10-K for the year ended December 31,
      2006
      and in this Report are not the only risks facing our Company. Additional risks
      and uncertainties not currently known to us or that we currently deem to be
      immaterial also may materially adversely affect our business, financial
      condition or operating results.





The
      risk
      factor included in the Annual Report on Form 10-K for the year ended December
      31, 2006 under the caption *“* *Some
      of our competitors are substantially larger or are more profitable than we
      are
      which may give them a competitive advantage* *”* is
      restated in its entirety as follows.




***Some
      of our competitors are substantially larger or are more profitable than we
      are,
      which may give them a competitive advantage.*** Some of
      our competitors are substantially larger in terms of revenue or profit than
      we
      are. The scale advantage of these companies may allow them to invest more in
      research and development (“R&D”), systems and human resources than we can.
      The scale advantage may also allow them to acquire or make complementary
      products that alone or in combination with other AIDC products could afford
      them a competitive advantage. These advantages may enable our larger
      competitors to weather market downturns longer or adapt more quickly to market
      trends or price declines than we can. Those competitors may also be able to
      precipitate such market changes by changing their activities. There is no
      assurance that the strategies we use to counteract our competitors’ advantages
      will successfully offset all or a portion of this scale imbalance. If we are
      unable to offset all or a significant portion of this imbalance, our revenues,
      revenue growth and results of operations may be materially and adversely
      affected.







The
      risk
      factor included in the Annual Report on Form 10-K for the year ended December
      31, 2006 under the caption *“* *Rapid
      technological change or technological convergence could hurt results of
      operations by increasing product or inventory obsolescence* *”* is
      restated in its entirety as follows.







***Rapid
      technological change or technological convergence could adversley
      impact results of operations by causing or increasing excess inventories or
      by rendering them obsolete.*** Rapid
      technological change or technological convergence could cause excess inventory
      or obsolete inventory or could increase the amount of such inventory. In such
      event, we might have to sell all or a portion of the excess or obsolete
      inventory at a substantial discount to the planned resale price or the cost
      of
      making or acquiring that inventory and write off the difference. This could
      materially and adversely impact our revenues, gross profit margins and results
      of operations.










The
      risk
      factor included in the Annual Report on Form 10-K for the year ended December
      31, 2006 under the caption *“* *Export
      controls, import controls and operating conditions in markets outside of the
      U.S. could adversely affect our revenues, gross profit margins and results
      of
      operations* *”* is
      restated in its entirety as follows.




***Export
      controls, import controls, security measures, and operating conditions in U.S.
      and foreign markets could adversely affect our revenues, gross profit margins
      and results of operations.*** We sell
      a significant percentage of our products globally. U.S. and foreign government
      restrictions on the export or import of technology could prevent us from selling
      some or all of our products in one or more countries. Our sales could also
      be
      materially and adversely affected by burdensome laws, regulations, security
      requirements, tariffs, quotas, taxes, trade barriers or capital flow
      restrictions imposed by the U.S. or foreign governments. In addition, political
      and economic instability could reduce demand for our products or impair or
      eliminate our ability to sell or deliver those products to customers in those
      countries or put our assets at risk. There is no assurance that we will be
      able
      to continue or expand sales of our products in any market, and disruptions
      of
      our sales could materially and adversely impact our revenues, revenue growth,
      gross profit margins and results of operations.





The
      risk
      factor included in the Annual Report on Form 10-K for the year ended December
      31, 2006 under the caption “ *Our
      results of operations could suffer if we are unable to expand and enforce our
      patent estate.”*  is
      restated in its entirety as follows.







***Our
      results of operations could suffer if we are unable to expand and enforce our
      patent estate.*** **** One
      element of our strategy is to expand our AIDC patent estate and to use that
      estate to differentiate Intermec in the marketplace or generate royalty revenue,
      or both. The creation, maintenance, licensing and enforcement of a patent estate
      are complex activities with uncertain outcomes and those activities can be
      adversely affected by changes in patent laws, treaties and regulations and
      changes in judicial and administrative interpretations of those laws, treaties
      and regulations. There is no assurance that we will be able to obtain valuable
      AIDC patents in the jurisdictions where we and our competitors operate or that
      we will be able to use or license those patents to differentiate our products
      in
      the marketplace or to generate meaningful royalty revenue. As part of our
      intellectual property strategy, we may be required to initiate patent
      infringement lawsuits. Patent lawsuits are complex proceedings and the results
      are very difficult to predict. There is no assurance that we will prevail in
      all
      or any of these cases. Adverse results in such patent lawsuits could give
      competitors the legal right to compete with us and with our licensees using
      technology that is similar to or the same as ours. Adverse outcomes in patent
      lawsuits could also reduce our royalty revenues. Our results of operations
      could
      be materially and adversely impacted if we do not adequately invest in the
      acquisition, maintenance and enforcement of AIDC patents, if we are unable
      to
      obtain AIDC patents covering products and services that customers consider
      valuable enough to purchase or if our efforts to enforce our patents are not
      fully successful or only minimally so.









**ITEM
      2.**  **UNREGISTERED
      SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**





(c)
            Issuer
                Purchases of Equity Securities




**Total
                  Number of Shares Purchased**
              
              
              **Average
                  Price Paid per Share**
              
              
              **Total
                  Number of Shares Purchased as Part of Publicly Announced Plans
                  or Programs**
              
              
              **Maximum
                  Number of Shares (or Approximate Dollar Value) that May Yet Be
                  Purchased
                  Under the Plans or Programs**April
                  2 to April 29, 2007
              
              
              -
              
              
              -
              
              
              -
              
              
              -April
                  30 to May 27, 2007
              
              
              7,600
              
              $
              22.22
              
              
              -
              
              
              -May
                  28 to July 1, 2007
              
              
              -
              
              
              -
              
              
              -
              
              
              -Total
              
              
              7,600
              
              $
              22.22
              
              
              -
              
              
              -




The
      purchased shares indicated in the above table were surrendered to satisfy
      tax withholding obligations in connection with the vesting of restricted
      stock.





**ITEM
      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**





(a)
            The
                Company’s Annual Meeting of Shareholders was held on May 16,
                2007.





(b)
            At
                the Annual Meeting, the following directors were elected directors
                for
                terms expiring at the annual meeting in 2008 and when their successors
                are
                elected and qualified. The votes were as
                follows:





**For**
            
            
            **Withheld**Larry
                D. Brady
            
            
            55,028,841
            
            
            491,475Claire
                W. Gargalli
            
            
            54,534,049
            
            
            986,267Gregory
                K. Hinckley
            
            
            55,195,162
            
            
            325,154Lydia
                H. Kennard
            
            
            55,170,950
            
            
            349,366Allen
                J. Lauer
            
            
            55,204,893
            
            
            315,423Stephen
                P. Reynolds
            
            
            55,174,058
            
            
            346,258Steven
                B. Sample
            
            
            55,198,699
            
            
            321,617Oren
                G. Shaffer
            
            
            55,171,687
            
            
            348,629Larry
                D. Yost
            
            
            55,162,430
            
            
            357,886





(c)
            Proposal
                2, a management advisory proposal to ratify the appointment of Deloitte
                & Touche LLP as independent auditors for 2007, received the votes of
                a
                majority of the shares present on the
                proposal.





**Number
                of Votes**For
            
            
            54,996,331Against
            
            
            476,275Abstain
            
            
            47,710Broker
                non-votes
            
            
            0





**ITEM
      6.**   **EXHIBITS**


3.1
              
              By-Laws
                  of Intermec, Inc., as amended July 19, 200710.1
              
              2002
                  Director Stock Option and Fee Plan, as amended July 19,
                  200710.2
              
              Form
                  of Amended and Restated Change of Control Employment Agreement
                  applicable
                  to Chief Executive Officer, as amended July 18, 200710.3
              
              Form
                  of Amended and Restated Change of Control Employment Agreement
                  applicable
                  to executive officers other than the Chief Executive Officer, as
                  amended
                  July 18, 200710.4
              
              Form
                  of Executive Severance Plan applicable to the Chief Executive Officer,
                  as
                  amended July 18, 200710.5
              
              Form
                  of Executive Severance Plan applicable to executive officers other
                  than
                  the Chief Executive Officer, as amended July 18, 200710.6
              
              Restoration
                  Plan, as amended July 19, 200710.7
              
              Supplemental
                  Executive Retirement Plan, as amended July 19, 200710.8
              
              1999
                  Stock Incentive Plan, as amended July 19, 200710.9
              
              2001
                  Stock Incentive Plan, as amended July 19, 200710.10
              
              Management
                  Incentive Compensation Plan, as amended July 19, 200710.11
              
              2004
                  Omnibus Incentive Compensation Plan, as amended July 18,
                  200710.12
              
              2004
                  Long Term Performance Share Program, a sub-plan under the 2004
                  Omnibus
                  Incentive Compensation Plan, as amended July 18, 200710.13
              
              Summary
                  of Compensation Arrangements for Patrick J. Byrne, President and
                  Chief
                  Executive Officer31.1
              
              Certification
                  of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
                  Act of2002,
                  dated as of August 3, 200731.2
              
              Certification
                  of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
                  Act of2002,
                  dated as of August 3, 200732.1
              
              Certification
                  of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley
                  Act of2002,
                  dated as of August 3, 200732.2
              
              Certification
                  of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley
                  Act of2002,
                  dated as of August 3, 2007




**SIGNATURE**





Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has
      duly caused this report to be signed on its behalf by the undersigned thereunto
      duly authorized.








Intermec,
                Inc.(Registrant)By
            /s/
                Lanny H. MichaelLanny
                H. Michael*Chief
                Financial Officer*August
                3, 2007