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Ambient intelligence (AmI) considers responsive environments in which applications and services adapt their behavior according to the user's needs and changing context. One of the most challenging aspects for many applications in AmI environments is location and orientation of the surrounding objects. This is especially important for effective cooperation among mobile physical objects in such smart environments. In this paper, we propose a robust indoor positioning system that provides 2-D positioning and orientation information for mobile objects. The system utilizes low-range passive radio frequency identification (RFID) technology. The proposed system, which consists of RFID carpets and several peripherals for sensor data interpretation, is implemented and tested through extensive experiments. Our results show that the proposed system outperforms similar existing systems in minimizing the average positioning error.