LaserCard Receives $11.6 Million in Purchase Orders for Angola National ID Card Program

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--LaserCard Corporation (NASDAQ:LCRD), a leading provider of secure ID solutions, today announced receipt of purchase orders totaling $11.6 million for optical memory cards, personalization systems and consumables for the Angola National Citizen ID Card program.

The purchase orders were received from the Angolan government’s prime contractor, DGM-Sistemas of Luanda under a recently executed $103 million five-year subcontract with LaserCard. The orders were preceded by a previously disclosed advance payment in the amount of $5.8 million to enable LaserCard to make certain preparatory investments to meet early program demands.

“We are pleased to have received the initial purchase orders for this important program,” said Bob DeVincenzi, President and CEO of LaserCard Corporation. “We look forward to cooperating with DGM-Sistemas, our other team partners and government authorities to support the initial implementation phases and roll-out.”

The purchase orders specify approximately $8.8 million in secure custom optical memory cards and $2.8 million in personalization systems and printer consumables. Card deliveries will commence after legislative approval of the card design which could be as early as November this year. Therefore, card deliveries could begin at a low rate in the December quarter and accelerate appreciably in the last quarter of the current fiscal year ending March 31, 2009. Deliveries of personalization systems, which do not require legislative approval, are expected to begin shortly.

Staff from DGM-Sistemas’ partners are in Angola currently working on initial system implementation including the IT infrastructure and database installation. It is anticipated that installation of the first personalization solutions in Luanda will start by the end of calendar 2008.

About LaserCard Corporation

LaserCard Corporation, together with its subsidiaries, is a leading provider of secure ID solutions to governments and commercial clients worldwide. It develops, manufactures, and integrates LaserCard® optical memory cards, encoders, peripherals, smart and specialty cards, biometrics, and modular software. The company’s cards and systems are used in various applications, including citizen identification, border security, government service delivery and facility access.

For further information, please visit www.lasercard.com

Forward-Looking Statements

All statements contained in this press release that are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are not historical facts or guarantees of future performance or events. Rather, they are based on current expectations, estimates, beliefs, assumptions, and goals and objectives and are subject to uncertainties that are difficult to predict. As a result, our actual results may differ materially from the statements made. Often such statements can be identified by their use of words such as may, will, intends, plans, believes, anticipates, visualizes, expects, and estimates. Examples of forward-looking statements in this release include the expected timing for initial card and personalization system deliveries against the orders, that the first personalization solution will begin to be installed prior to calendar year end, and the implication that the Company will deliver the $11.6 million worth of optical memory cards, personalization systems and consumables. This and other forward-looking statements in this press release are based upon our assumptions about and assessment of the future, which may or may not prove true, and involve a number of risks and uncertainties including, but not limited to whether the program is cancelled for political or budgetary reasons, whether the Angolan legislature approves the card design in a timely manner or at all, whether the Angolan government’s anticipated requested delivery dates are rescheduled or canceled in whole or in part, and whether the Company encounters card or equipment production difficulties as well as the risk factors detailed in the Company's Form 8-K, 10-K, and 10-Q filings with the Securities and Exchange Commission. Due to these and other risks, future actual results could differ materially from the Company’s expectations. These forward-looking statements speak only as to the date of this release, and, except as required by law, the Company undertakes no obligation to publicly release updates or revisions to these statements whether as a result of new information, future events, or otherwise.