The crackdown on bike stealers is about to step into the high-tech age with a scheme to fit microchips into motorcycles.

Canadian-based MicroTrack Systems is due to set up a Bermuda base next month to install microchips, less than the size of a grain of rice, onto motorbikes.

It is a further tool in the fight against bike thefts which have almost halved since 1994.

Latest figures show that up to the end of September, 1994, there were 1,743 motorcycle thefts, compared with 1,549 in the same time last year and just 901 to the end of September this year.

Police credit the fall to increased bike security, including U-marking, and the fact that about 10 people who steal bikes as a business are now behind bars.

"The reason behind this is that the major players in cycle stealing are presently serving custodial sentences,'' said Sgt. Ken Lewis, who is in charge of the Police cycle squad.

Sgt. Lewis said he expected the microchip system would be up-and-running in Bermuda by the end of the year.

For a price, which has yet to be set, motorbike owners will be able to have a undetectable microchip fitted to the bike by MicroTrack.

Each chip will be encoded with a number which will be picked up by Police using a hand-held scanner. Numbers will be held in a central Police computer which will show the owner's name and address.

"MicroTrack has worked with the Police cycle squad and have conducted a trial run which was successful,'' said Sgt. Lewis, who said bikes would also carry a sign warning thieves it was fitted with a microchip.

The microchip system will be sponsored by Colonial Insurance which will put money into a massive marketing and advertising campaign to promote the scheme.

William Madeiros, Colonial's senior general manager, said: "We were approached some time ago by MicroTrack about using these chips as part of an initiative to combat cycle theft.

"They are incredible things. They are not affected by heat, humidity solvents, even gas.'' Mr. Madeiros said he hoped to co-ordinate a launch of the scheme next month, backed by an advertising blitz.

"At the moment we are looking to support the marketing and publicity campaign. It will be a MicroTrack product marketed by Colonial. It will be a heavy marketing campaign,'' he added.

"We want to create public knowledge of the product and a hunger for it.'' Meanwhile Police are also cracking down on "annoying cycles'' where mufflers have been removed and bikes modified with illegally sized engines.

"It is an offence to tamper with or alter an exhaust system. We will be looking for these cycles, impounding them, having them examined and prosecuting the people breaking the law,'' added Sgt. Lewis.

"It is something we are doing and I am emphasising to officers that it must be maintained.'' He said recently the squad had impounded many bikes which had been re-fitted with over-sized engines. One 100cc bike -- the legal limit in Bermuda -- had a 175cc engine.

"Cycles which have had their engines altered will also be impounded, the engines measured and the offenders prosecuted.'' Despite the falling theft figures Sgt. Lewis urged the public not to become complacent and carry on U-marking and locking their bikes.

"We would still suggest that people use a heavy lock in addition to the lock on the motorbike. The fact that cycle thefts are down does not mean people should get complacent.''