Online and Offline Security of LaserCard ID Cards Can Be Enhanced by Use of Inventions Described in Two New U.S. Patents Granted to Drexler Technology

Business Wire, Dec 5, 2001

Business Editors and Technology Writers

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Dec. 5, 2001

Drexler Technology Corporation (Nasdaq:DRXR) has been granted U.S. Patents 6,290,130 and 6,318,633 on new methods and systems that can be used to enhance online or offline security of LaserCard(R) identification ID cards employed in digital governance or homeland security applications.

U.S. Patent 6,290,130 is entitled, "Anti-Counterfeit Authentication Method for Optical Memory Cards and Hybrid Smart Cards," which can be used to determine in seconds whether or not a particular optical memory card utilizes the Drexon(R) laser recording medium, the distinguishing feature of all valid Drexler Technology optical memory cards. If a card does not have the hallmark features of Drexon, it is not a Drexler-made card.

U.S. Patent 6,318,633, entitled, "Method and System for Laser Writing on Smart/Optical Cards Data Pixels Usable in E-Commerce Transactions," is best described in terms of some of the objectives of the patent. One objective of the invention is to utilize data-pixel-based, two-dimensional bar codes on Smart/Optical cards for authentication, validation, authorization, or identification involving Internet and intranet E-commerce transactions. Another objective of the invention is to devise a method and apparatus to update CCD-read, data-pixel-based, two-dimensional bar codes on Smart/Optical cards. Another objective is to permit an optical memory stripe on Smart/Optical cards to be utilized for reading and writing microscopic data spots during some time periods and for writing and reading large data pixels with the same Smart/Optical card during other time periods.

These two U.S. patents are the 74th and 75th of Jerome Drexler's engineering career, which began with a seven-year stint at Bell Laboratories, Murray Hill, NJ, in research and development of microwave power sources for telecommunications and radar. For his invention of the multi-megabyte digital optical memory card, now used by the U.S. government in quantities totaling more than 10 million cards by the INS, the Department of State, and the U.S. Army, Jerome Drexler has received Honorary Doctor of Science degrees from New Jersey Institute of Technology and from Upsala College, and was named Inventor of the Year in 1990 in the Silicon Valley peninsula by the Peninsula Intellectual Property Law Association.

Drexler Technology Corporation (www.lasercard.com) and its wholly owned subsidiary, LaserCard Systems Corporation, are based in Mountain View. Drexler develops and manufactures LaserCard(R) optical memory cards and chip-ready Smart/Optical(TM) cards -- a combination of optical memory card and smart card. LaserCard Systems manufactures optical card read/write drives, develops optical card system software, and markets card-related data systems and peripherals. The Company's markets include identification ID cards, electronic visas, homeland security, digital governance, child healthcare, vehicle registration, construction licenses, and immigration cards. The Company owns over 50 unexpired U.S. patents and 70 foreign patents in 12 countries, involving optical memory cards and systems and related technology, and has received more than $40 million in fees from licensing its patents.

Forward-Looking Statements: Except for the historical information contained herein, the matters set forth in this press release, including statements as to current and potential customers, applications, or market segments for the Company's products; estimates of customer card-issuance levels; and the Company's plans, objectives, and anticipated economic performance, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including, but not limited to, the Company's ability to initiate and grow new programs utilizing the Company's card products; potential manufacturing difficulties; general economic trends; the unpredictability of customer demand for products and customer issuance and release of corresponding orders; risks associated with doing business in and with foreign countries; the Company's reliance on VARs and licensees; the U.S. government's right to withhold order releases, reduce the quantities released, and extend delivery dates; the impact of technological advances and competitive products; and other risks detailed from time to time in the SEC reports of Drexler Technology Corporation, including its annual report on Form 10-K for the year ended March 31, 2001. These forward-looking statements speak only as of the date hereof. Drexler Technology disclaims any intention or obligation to update or revise any forward-looking statements. There is no guarantee that patents issued to the Company will create new market opportunities or increase product or licensing revenues.