LaserCard Corporation on Winning Team for Angola National ID Card Project

Business Wire, Jan 17, 2008

$90 Million in Potential Program Revenues Over Five Years

MOUNTAIN VIEW, Calif. -- LaserCard Corporation (NASDAQ:LCRD), a leading provider of secure ID solutions, today commented on the government of Angola announcement of a contract award to DGM-Sistemas, of Luanda, Angola, for the delivery of a complete ID management system. The contract calls for an initial 8 million optical memory cards for the country's new national citizen ID program to be issued as the infrastructure is built. Up to an additional 12 million cards could be issued later. LaserCard teamed with DGM as the exclusive supplier of cards for the project. Other team members include Unisys Corporation (NYSE:UIS) which is responsible for systems integration and LaserCard's value-added reseller, Identicard S.A. of Portugal, which developed the system architecture.

The DGM bid includes $90 million of products and services to be provided by LaserCard including optical memory cards, card personalization systems, printer consumables, installation and training. Key factors emphasized in the proposal to the Angolan government included the security characteristics and high data storage capacity of the optical memory and the fact that the optical memory's digital security has never been compromised.

Purchase orders are expected to be received through Identicard S.A.

"We are pleased to receive our first national-level award for optical memory cards in the African continent," said Bernard C. Bailey, Chairman of LaserCard's Board of Directors. "This is an endorsement of our strategy to focus on ID management programs in rapidly developing countries and a key reference for other African nations looking at their homeland security requirements. We look forward to working closely with DGM-Sistemas and the other team members in the successful implementation of this program."

The $400 million prime contract awarded to DGM-Sistemas includes significant funds for data collection and card issuance at a national level. Mobile data collection vehicles will be employed to cover remote rural areas. Program meetings will be held in the coming weeks to further define the implementation schedule. LaserCard does not expect to record significant revenue on this project during its current fiscal year ending March 31, 2008.

About LaserCard Corporation

LaserCard Corporation, a leader in secure ID solutions, manufactures and markets LaserCard[R] optical memory cards, LaserPASS[TM] Optical/RFID cards and chip-ready Optical/Smart[TM] cards, all featuring Optical IDLock[TM] technology, and other advanced-technology secure identification cards. The Company's secure ID cards are used in countries around the world, including the United States, Canada, Italy, India and the Middle East for demanding requirements such as border security, immigration and national identification. In addition, the Company provides optical card read/write drives, optical card system software, card-related ID subsystems and card issuance enabling services. The Company operates a wholly-owned German subsidiary, Challenge Card Design Plastikkarten GmbH, which manufactures specialty cards, and markets cards, system solutions, and card personalization printers under the CCD and Cards & More brands.

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 delivery schedule for the 20 million cards, the involvement of Identicard S.A. as a VAR, LaserCard's anticipated five-year $90 million program component, and LaserCard's focus on ID management programs in rapidly developing countries. These forward-looking statements 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 Angola follows through and orders 20 million cards from DGM-Sistemas on the specified schedule, whether DGM-Sistemas in turn orders from Identicard S.A. who in turn orders from LaserCard program components with a sales price of approximately $90 million, whether the pricing over five years remains as anticipated, whether the Angola ID card program is successfully rolled out and embraced by the citizenry, whether there is a change of governments to one that does not approve the program, whether there are funding issues for the program, and whether LaserCard is able to obtain orders for ID management programs in other rapidly developing countries 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.