A New Customer Orders Multi-Biometric LaserCard ID Cards from Drexler Technology for $1.6 Million

Business Wire, Feb 7, 2002

Business Editors and Security Writers

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Feb. 7, 2002

Drexler Technology Corporation (Nasdaq:DRXR) has received a $1.6 million order for multi-biometric LaserCard ID cards for a new customer. The card order was received through a value-added reseller and systems integrator, Information Spectrum, Inc. (www.informationspectrum.com), of Annandale, Virginia.

The $1.6 million LaserCard order calls for deliveries of 70,000 optical memory ID cards per month for five months starting in June 2002.

Drexler Technology does not have authorization to publicly disclose the customer's name or the specific customer application.

Headquartered in Mountain View, Drexler Technology Corporation (www.lasercard.com) develops and manufactures optical data storage products and systems, including LaserCard(R) optical memory cards and chip-ready Smart/Optical(TM) cards -- a combination of optical memory card and smart card. Drexler's wholly owned subsidiary, LaserCard Systems Corporation, makes optical card read/write drives, develops optical card system software, and markets card-related data systems and peripherals. In addition to cards made for the U.S. Immigration and Naturalization Service and the U.S. Department of State, the Company also supplies optical memory cards to other customers, such as the U.S. Department of Defense, the Government of Italy, and a state government of India.

Forward-Looking Statements: Except for the historical information contained herein, the matters set forth in this press release, including estimates of future card shipment volumes, statements as to market segments for the Company's products and current and potential customers or applications for the Company's products; 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; 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 value-added resellers (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 assurance that the Government of Italy, state government of India, or the customer relating to this news release will purchase cards in material quantities.