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An identification and localization system based on surface acoustic wave (SAW) radio sensors is presented in this paper. This system is able to identify and localize objects within a two-dimensional area. Identification is achieved with a fixed coded passive SAW identification-tag. Localization is carried out with three receiving antennas and with a following analysis of time delay between the sent interrogation signal and the received signals. For practical tests, a special interrogator has been established, as well as the receiving and demodulation unit. The whole system is controlled by a computer.