Fargo Electronics Announces Common Stock Offering.

Business Editors

MINNEAPOLIS--(BUSINESS WIRE)--June 6, 2002

Fargo Electronics, Inc. (Nasdaq:FRGO) today announced that it intends to offer for sale 3,865,000 shares of its common stock in an underwritten public offering. The company has filed a preliminary prospectus supplement to its previously effective shelf registration statement for this proposed offering.

Of the 3,865,000 shares to be offered, selling stockholders are offering 2,915,000 shares and the company is offering 950,000 shares. The selling stockholders for this proposed offering include TA Associates and St. Paul Venture Capital. It is anticipated that the underwriters will be granted an over-allotment option of 572,500 shares in connection with the proposed offering, all of which would come from these two selling stockholders. Fargo will not receive any proceeds from the sales of shares by the selling stockholders.

Fargo is undertaking this offering to facilitate the orderly sale of Fargo shares by TA Associates and St. Paul Venture Capital, Fargo's two largest stockholders. "We are looking to facilitate the sale of shares by these funds, increase our public float of shares, attract new institutional investors and increase the number of stock market analysts that follow Fargo," said Gary R. Holland, Fargo's CEO. "By selling some of our stock at the same time, we can also raise funds for corporate purposes, including repayment of debt," added Mr. Holland.

The Company anticipates that it will commence this offering during the week of June 24, 2002, subject to market conditions. The underwriting group will be led by Raymond James and will include Robert W. Baird & Co. and Needham & Company, Inc. A copy of the preliminary prospectus supplement and accompanying base prospectus relating to this proposed offering may be obtained from Fargo or any of the managing underwriters. These documents will also be filed with the SEC and will be available over the Internet at the SEC's web site at http://www.sec.gov.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful under the securities laws of any such state or jurisdiction.

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 creates printing systems that 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 retail stores, e-commerce, government installations, schools, sports and recreation facilities, clubs and associations, and correctional facilities. More than 60,000 Fargo systems are currently installed throughout the U.S. and in over 100 other countries. For more information, visit Fargo's Web site at http://www.fargo.com.