Fargo Electronics Receives Follow On Orders From the U.S Department of Defense and U.S. Department of State; Fargo's High Definition Printing(TM) Chosen by Both Federal Agencies.

MINNEAPOLIS -- Fargo Electronics, Inc. (NASDAQ:FRGO), a global leader in secure technologies for card identity systems, today announced that it has received orders for its High Definition Card Printer/Encoders for the U.S. Department of Defense (DoD) and the U.S. Department of State.

"We are pleased with our ongoing business with the federal government," said Gary Holland, Fargo's president and CEO. "Our FIPS 201-ready, High Definition technology continues to work around the world securing military and civilian government personnel with smart-card based credentials."

The DoD order includes 290 HDP600-LC laminating card printer/encoders and is expected to ship in 2005. The order will supply printer/encoders to the National Guard Bureau, a joint bureau of the departments of the Army and Air Force. The printer/encoders will be used to create ID cards for active and reserve Guard personnel as part of the DoD's Common Access Card program. The Fargo systems will be incorporated into the card project by Telos Corporation of Ashburn, Virginia, a government contractor specializing in secure and managed enterprise solutions.

Fargo also announced that it has received a second order for 50 HDP600 card printer/encoders from the U.S. Department of State for shipment in the current fiscal quarter. An initial order of 50 printer/encoders was shipped in June, 2005. The State Department initiative will provide smart cards for embassy employees throughout the world to securely access facilities and information systems.

The systems integrators involved in the State Department orders include ActCom Incorporated of Virginia Beach, Virginia; ColorID LLC of Cornelius, North Carolina; and Advanced Technology Systems International of McLean, Virginia.

Forward-looking Statements

Statements made in this release concerning the Company's expectations about future results or events, are "forward-looking statements". When used in this release and the documents referenced, words such as "anticipate," "believe," "estimate," "expect," and "forecast" as they relate to the Company or its management are intended to identify such forward-looking statements, but are not the exclusive means of identifying these statements. Such statements are subject to the safe harbor created by the Private Securities Litigation 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 statements are based on current expectations, forecasts and assumptions, and are subject to the risks and uncertainties inherent in general industry and market conditions, general domestic and international economic conditions, and other factors. These risks and uncertainties include, but are not limited to: 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; manufacturing or design defects that we may discover after shipment; 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 and the reaction of this network to changes in distribution programs; domestic and international regulations and standards; our dependence on international sales and foreign suppliers; material changes in orders placed by large end users; challenges in effectively managing growth; our dependence on technologies we do not own; complex design that could result in manufacturing delays; protecting and enforcing our 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 and the war with Iraq. For more detail of the risks, uncertainties and other factors that could affect the Company's future operations and results, see the Company's filings with the Securities and Exchange Commission, particularly the Annual Report on Form 10-K for the year ended December 31, 2004. The Company assumes no obligation to update the forward-looking statements or any other information contained in this release.

About Fargo

Founded in 1974, Fargo Electronics is a global leader in the development of secure technologies for identity card issuance systems, including secure card printer/encoders, materials and software. The company has sold more than 100,000 systems in the U.S. and over 80 other countries worldwide. Fargo card issuance systems reduce vulnerabilities and potential for loss of time, money and lives by continually improving the security of identity credentials. Fargo provides physical, information and transaction security for a wide variety of applications and industries, including government, corporate, national IDs, drivers' licenses, universities, schools and membership. Based in Minneapolis, Minn., Fargo markets its products through a global distribution network of professional security integrators. For more information about Fargo, visit www.fargo.com.