Fargo Electronics, Inc. And Sony Chemicals Corporation Announce Creation of New Global Technology And Business Alliance, Amicable Settlement Of All Pending Litigation.

Business Editors & Technology Writers

MINNEAPOLIS--(BUSINESS WIRE)--Aug. 13, 2002

Fargo Electronics, Inc. (Nasdaq:FRGO), Sony Chemicals Corporation Japan (SCC), and Sony Chemicals Corporation of America (SCCA) today announced the creation of a global technology and business alliance, as well as the amicable settlement of all pending litigation between the companies.

"The new alliance between Sony Chemicals and Fargo will link technologies from both companies to help produce innovative, technologically advanced ID card printers/encoders," said Satoshi Kondo, President of Sony Chemicals Corp. of America. "Sony will provide technical assistance, know-how, and expertise in such areas as manufacturing, smart card, and other electronic and chemical technologies. Fargo`s global network of Professional Series Distributors (PSD`s), Fargo Solution Providers (FSP`s) and Fargo Import Suppliers will benefit from the ties between our two companies."

"We are very pleased that Fargo and Sony have been able to achieve this alliance and end our litigation," said Gary R. Holland, President and CEO of Fargo. "Sony Chemicals has agreed that they will sell ribbons for Fargo printer/encoders only to Fargo. By forging these new ties, we will be able to apply the very best expertise and technical knowledge to the important task of advancing personal information and transaction security through the use of personalized plastic ID cards. Our distribution system will be enhanced by Fargo`s addition of Sony technology, and end users will benefit from new innovative technologies we develop as a result of this alliance."

Sony Chemicals has, as one of its core business technologies, dye-sublimation ribbon development and manufacturing for use in ID card printers. Sony Chemicals also has advanced RF chip and smart card technology for use in a variety of security-related applications. Sony has, within its many corporate entities, advanced electronics technology along with strong, innovative knowledge of printing mechanisms design.

Fargo is the world's leading manufacturer of desktop card printing and encoding systems used to produce plastic identification cards.

As a result of the alliance, the companies have amicably resolved the litigation that was filed by Fargo on April 24, 2002 in Federal District Court of Minnesota. The specific terms of the settlement are required to be kept confidential.

About Fargo

Fargo Electronics, Inc. (Nasdaq:FRGO) is the world's leader in innovative technologies for desktop plastic card personalization systems. Based in Eden Prairie, Minnesota, Fargo is the only manufacturer to offer three distinct technologies in printing systems - High Definition Printing(TM) (reverse image), traditional Direct-to-Card printing (dye-sublimation), and CardJet Printing Technology(TM) (inkjet) - to personalize plastic identification cards, complete with digital images and text, lamination, and electronically encoded information.

Personalized identification cards provide physical, information, and transaction security for a wide variety of applications including Corporations, National IDs, Drivers' Licenses, Universities, Schools, Government Installations, Transportation, Casinos, Healthcare Facilities, E-commerce, Retail Stores, Correctional Institutions, Associations, Sports Events and Recreation Sites. More than 60,000 Fargo systems have been sold in the U.S. and over 80 other countries. For more information, visit Fargo's Web site at http://www.fargo.com.

Forward-looking Statements

Statements made in this release concerning the company's expectations about future results or events are "forward-looking statements." Such statements are subject to the safe harbor created by the Private Securities Reform Act of 1995, and are necessarily subject to risks and uncertainties. Actual results may differ materially from those reflected in these forward-looking statements.

These risks include: product acceptance and customer demand for Fargo's card personalization systems and proprietary supplies; actions taken and alternative products marketed by Fargo's competitors; supplier relationships, including reliance on sole and single-source suppliers; lack of inventories of component parts or finished goods; our focus on the identification card personalization market; continuing technological changes in our industry; our dependence on a distribution network; domestic and international regulations and standards; our dependence on international sales; material changes in orders placed by end users; the speed of multiple system installations by large end users; challenges in effectively managing growth; our dependence on technologies we do not own; complex design and manufacturing delays; protecting and enforcing intellectual property rights; inadequate protection against infringement claims; adverse economic and business conditions, including conditions resulting from the terrorist attack on the U.S. on September 11, 2001 and the resulting hostilities; adverse changes in the Company's business and distribution network as a result of the announcement of the now-terminated acquisition of the Company by Zebra Technologies Corporation. For more detail, see the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2001, and Form 10-Q for the quarters ended March 31, 2002 and June 30, 2002.