Fargo Electronics Receives Order For Ukrainian Driver's License Project.

Business Editors/High-Tech Writers

MINNEAPOLIS--(BUSINESS WIRE)--June 13, 2002

Fargo Electronics, Inc. (Nasdaq:FRGO) today announced that it has received an order for its printer/encoders and accompanying ribbons to be incorporated into a project to print driver's licenses for Ukraine. An initial shipment will be made in third quarter 2002, with the balance of the order completed in 2003. Based in Eden Prairie, Minnesota, Fargo Card Printer/Encoders create personalized plastic identification cards complete with digital images and text, lamination, and electronically encoded information.

Ukraine had previously issued its driver's licenses on paper cards, but with this project moves to more secure plastic cards. For added card security, a holographic overlay which covers both sides of the card is added during the printing process.

"The cards will initially be issued in 40 locations throughout Ukraine," said Gary R. Holland, Fargo's President and CEO. "Upon full adoption of the project, that number is expected to be much greater."

INTRAPROC GmbH of Ratingen, Germany, Fargo's Import Supplier, worked closely with BIS Bundesdruckerei International Services, GmbH, the German prime contractor, to develop this project for the Ukrainian government.

"This order reflects the growing concern governments and organizations worldwide are expressing in regard to identification and security," said Holland. "These international initiatives are consistent with domestic programs, such as the U.S. Department of Defense `Common Access' Identification Card Project and the rebadging of employees and workers at airports such as Los Angeles International, where Fargo products have been chosen to supply secure, durable, functional cards."

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, driver's 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 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.

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, including Zebra Technologies; 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; 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 quarter ended March 31, 2002.