Does the Smart cover reduce wifi signal

I have a week old iPad2 and Smart cover. I have noticed the wifi signal very low with the smart cover in place. Remove it and full signal.

The new iPad2 connects to my AEBS at the same time as 3 Macs, 2 iPhones, 1 ATV, 1 AE and a PC.

No problems. One tip off is that apps both iPads react differently, the iPad2 app shows not connected to the Internet - network.

Removing the Smart cover is the solution but has the use of the magnetic smart cover damaged the wifi capabilities ? a trip to the Apple Store Genius bar?

Need to find a new non magnetic case.