Cross Match to Proceed With Initial Public Offering of Common Stock.

PALM BEACH GARDENS, Fla. -- Cross Match Technologies, Inc. announced today that it will proceed with a proposed initial public offering of 9,420,290 shares of common stock in an amendment to its Form S-1 registration statement on file with the U.S. Securities and Exchange Commission.

The offering will include 8,333,334 primary shares and 1,086,956 secondary shares. Proceeds will be used to fund acquisitions, provide working capital and other general corporate purposes including repayment of approximately $4.0M of outstanding indebtedness.

W.R. Hambrecht + Co., LLC will act as the sole book-running manager for the offering. Stanford Group Company and E*TRADE Securities LLC will act as co-managers.

The offering price and allocations will be determined primarily by W.R. Hambrecht + Co.'s OpenIPO auction process. When available, prospectuses may be obtained from W.R. Hambrecht + Co.'s prospectus department at 555 Lancaster Avenue, Suite 200, Berwyn, PA 19312, by telephone at 877-828-5200 or by email at [e-mail].

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted prior to the time the registration statement becomes effective. This announcement shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.