Intelli-Check Enters into Licensing and Strategic Alliance Agreement with SiVault Systems

Intelli-Check, Inc., a leader in advanced identification-document-verification systems, and SiVault Systems, which supplies biometric signature-based authentication and digitally signed document-management services, announced today that they have entered into a licensing and strategic alliance agreement that is designed to create a powerful new tool to help combat the scourge of identity theft – a problem that, together with other financial frauds, costs the U.S. economy an estimated $53 billion per year, according to the Federal Trade Commission. The combined solution is designed for retail, healthcare (Medicare/Medicaid), financial services, government credentialing and security applications.

SiVault will license Intelli-Check’s proprietary ID-CHECK® technology – which instantly reads, analyzes, and verifies the encoded data in magnetic stripes and barcodes on government-issued IDs to determine if the content and format is valid – and integrate it with SiVault’s advanced biometric signature-identity verification, credential authentication and paperless-document solutions. The result will be a system designed to offer customers a high level of security, according to Frank Mandelbaum, chairman and chief executive officer of Intelli-Check.

“To ensure the security and integrity of financial and other transactions, it is essential to first verify the authenticity of identity documents, such as driver licenses and other government-issued IDs that are presented to access goods and services, and we are gratified that we are now increasingly becoming the recognized leader in this regard,” said Mr. Mandelbaum. “A key part of our strategy for growth is to partner with other service and technology leaders as well as systems integrators that can create value-added, end-to-end solutions. We’re very pleased to provide our technology to SiVault, which will help expand the reach of our technology in growing markets, such as commercial-fraud prevention.”

“Identity theft, Medicare/Medicaid, prescription and other healthcare fraud, as well as credit-card, banking, and other financial-transaction frauds are rapidly increasing – with up to 700,000 people in the United States victimized by identity theft alone,” said Emilian Elefteratos, chief executive officer of SiVault Systems. “Every 60 seconds, someone’s identity is stolen, according to current estimates. By combining our proprietary signature-authentication system with Intelli-Check’s ID-CHECK technology, we will now be able to offer customers one of the most secure, portable credentialing solutions available for a wide range of authentication applications in both the private and government markets. Additionally, this agreement will support our recently announced agreement with Hypercom whereby we will be providing a prescription fulfillment solution designed to protect consumers, doctors, pharmacies and insurance providers when prescribing and dispensing pharmaceuticals.”

Mr. Elefteratos continued, “We believe that validating IDs to ensure they are accurate and creating a biometric signature coupled to that validated identification has virtually limitless applications in a variety of markets. For example, pharmacies will be able to confirm a patient’s identity at the prescription counter, retail merchants will further validate credit cards at the point of sale, banks will authenticate IDs and passports when making loans and to comply with provisions of the Patriot Act, and governments will further protect their credentialing programs.”

About Intelli-Check, Inc.
Intelli-Check, Inc. is the acknowledged leader in technology that assures the authenticity of driver licenses, state issued non-driver and military identification cards used as proof of identity. Our patented ID-CHECK technology instantly reads, analyzes, and verifies the encoded data in magnetic stripes and barcodes on government-issue IDs from approximately 60 jurisdictions in the U.S. and Canada to determine if the content and format is valid. Applications include:

• security and access control to protect airports, government and commercial buildings, military installations, and other critical sites

• identity theft, commercial and government fraud prevention to help stem the millions of dollars each year in losses from credit card, check-cashing, bank, insurance, healthcare and pharmacy fraud

• age verification to protect bars and other retail establishments from the potential fines and penalties associated with selling age-restricted products to minors

• productivity enhancement to eliminate inefficiencies and inaccuracies associated with manual data entry

The company has been the national testing laboratory for the American Association of Motor Vehicle Administrators (AAMVA) since 1999 and has access to all the currently encoded driver license formats. For more information, visit www.intellicheck.com.

About SiVault Systems Inc.
Founded in 1999, SiVault Systems is a recognized leader in the secure storage and retrieval of signed documents and biometric signature-based authentication for processing of online transactions. SiVault Systems’ services are 100% compliant with regulations and standards in the retail and healthcare industries for authentication, authorization, transmission and storage of data. For more information, visit www.sivault.com.

Intelli-Check Safe Harbor Statement – Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. When used in this press release, words such as “will,” “believe,” “expect”, “encouraged” and similar expressions, as they relate to the company or its management, as well as assumptions made by and information currently available to the company’s management identify forward-looking statements. Our actual results may differ materially from the information presented here. There is no assurance that the use of ID-CHECK technology by our potential customers and partners, or government efforts to enhance security will lead to additional sales of ID-CHECK technology. Additional information concerning forward looking statements is contained under the heading of risk factors listed from time to time in the company’s filings with the Securities and Exchange Commission. We do not assume any obligation to update the forward-looking information.