Veritec, Inc., and Siemens A&D, SC, Enter Software Purchase and License Agreement

Business Wire, April 2, 2007

German-based global technology giant incorporating Veritec software

MINNEAPOLIS -- Van Tran, CEO of Minneapolis-based Veritec, Inc., today announced that Siemens A&D, SC, based in Nuremberg-Moorenbrunn, Germany, has re-established a distribution agreement with Veritec and placed a significant order to purchase and license Veritec, Inc.'s VeriRead[TM] software that decodes images contained in VeriCode[R] symbols, as described in U.S. patent numbers 4,924,078; 5,331,176; 5,612,524 and 7,159,780 to be incorporated into Siemens' hardware products, including the Simatic VS 100 Series Machine Vision System.

"All of us at Veritec are delighted that Siemens has recognized our patented software to be of value to its customers and its product lines, and we're looking forward to a very long term and fruitful relationship for each organization", said Van Tran, Veritec's CEO.

VeriCode[R], the Veritec 2-D Matrix Symbol, has long been recognized in the automation manufacturing industry as the code of choice, specifically in the LCD/FPD, because of its robustness and its high error detection and correction (EDAC) capability.

ABOUT VERITEC, INC.

Founded in 1982, Veritec offers a patented line of microprocessor-based encoding and decoding system products that utilize Matrix Symbology[TM] or 2-Dimensional Barcode technology owned by Veritec's wholly-owned subsidiary, VCode Holdings, Inc.

Veritec's encoding and decoding systems allow users to create and apply unique identifiers to the products in the form of a coded symbol which enable automated manufacturing control, as well as identification, tracking and collection of data through cameras, readers and scanners also marketed by Veritec. The collected data is then stored in the 2-D barcode available for contemporaneous verification or other user-definable purposes.

In 2007, Veritec introduced its new "multi-purpose-all-in-one" card, named the VSCard. The VSCard has combined both a Visa debit card and an identity card to create a multi-functional ID card with unique banking and security capabilities. The VSCode, with unparalleled robustness, security features, and data storage capacity up to 4,000 bytes, stores the owner's fingerprint minutiae along with other critical personal information. The VSCode is placed on the back of the card along with a magnetic strip, a signature, and the name of the issuing bank. The front of the card has a picture ID and VISA logo.

Please visit Veritec's website at www.veritecinc.com. to learn more about the VSCard, its capabilities and other Veritec products.

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This news release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties affecting technology companies, our ability to successfully develop products, rapid technological change in our markets, changes in demand for our future products, legislative, regulatory and competitive developments and general economic conditions. Our SEC filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to revise or update publicly any forward-looking statements for any reason unless otherwise required to do so by SEC Regulations.