Fargo, Toppan, Viisage Announce Strategic Alliance, Distribution Agreements and Settlement of All Pending Litigation

Business Wire, May 23, 2005

MINNEAPOLIS -- Agreement reached in suit against Toppan Printing Co. Ltd and Trans Digital Technologies Corporation, a wholly owned subsidiary of Viisage Technology, Inc.

Fargo Electronics, Inc. (NASDAQ:FRGO), a global leader in secure technologies

for card identity systems, today announced that it has entered into a strategic alliance with Toppan Printing Co. Ltd. (Toppan). Fargo is to become one of two worldwide distributors (outside of Japan) for the Toppan CP400 card printer. Further, Viisage Technology, Inc. (Viisage) and Fargo have entered into a distribution agreement that allows Viisage to distribute the full line of Fargo printers and to distribute the Toppan CP400 printer worldwide outside of Japan. As part of this agreement, Fargo has made Viisage its exclusive distributor of the Toppan CP400 printer to the U.S. federal government and U.S. state drivers license markets. Viisage has also committed to purchase products from Fargo over the next two years, and Viisage will pay Fargo a commission on future sales of the Toppan CP400 printer and consumables for the Department of Defense Common Access Card program.

Fargo, Toppan and Viisage also announced today that they have agreed to a settlement of the lawsuit Fargo filed against Toppan and Trans Digital Technologies Corporation (TDT), in July, 2004, alleging that a reverse image printer manufactured by Toppan and distributed by TDT infringes four US patents owned by Fargo. The settlement requires Toppan to pay Fargo an amount of $400,000 U.S.

"We are pleased with the opportunities that will come with this alliance and the resolution of our lawsuit," said Gary Holland, Fargo's CEO. "Fargo now has another technology partner in Toppan, and the agreement with Viisage increases our distribution opportunities."

Bernard Bailey, president and CEO of Viisage, said "This is an ideal relationship for us as well. Having the exclusive rights to sell the Toppan CP400 printer to the federal government market and the U.S. state drivers license market continues our strategy of providing our customers with all of the technologies required for today's identity solutions. Adding Fargo products to the Viisage solution set for these and other markets gives us greater breadth to better serve our current customers and uncover new opportunities."

About Fargo

Founded in 1974, Fargo Electronics is a global leader in the development of secure technologies for identity card issuance systems, including secure card printer/encoders, materials and software. The company has sold more than 100,000 systems in the U.S. and over 80 other countries worldwide. Fargo card issuance systems reduce vulnerabilities and potential for loss of time, money and lives by continually improving the security of identity credentials. Fargo provides physical, information and transaction security for a wide variety of applications and industries, including government, corporate, national IDs, drivers' licenses, universities, schools and membership. Based in Minneapolis, Minn., Fargo markets its products through a global distribution network of professional security integrators. For more information about Fargo, visit www.fargo.com.

About Viisage

Viisage (NASDAQ:VISGE) delivers advanced technology identity solutions for governments, law enforcement agencies and businesses concerned with enhancing security, reducing identity theft, and protecting personal privacy. Viisage solutions include secure credentials such as passports and drivers' licenses, biometric technologies for uniquely linking individuals to those credentials, and credential authentication technologies to ensure the documents are valid before individuals are allowed to cross borders, gain access to finances, or granted other privileges. With over 3,000 installations worldwide, Viisage's identity solutions stand out as a result of the Company's industry-leading technology and unique understanding of customer needs. Viisage's product suite includes FaceTOOLS(R) SDK, Viisage PROOF(TM), FaceEXPLORER(R), iA-thenticate(R), BorderGuard(R), FacePASS(TM) and FaceFINDER(R).