Intelli-Check Announces Second Quarter 2006 Financial Results; Sales Bookings for the Six Month Period Increase.

WOODBURY, N.Y. -- Intelli-Check, Inc. (AMEX: IDN) today announced financial results for the second quarter and six months ended June 30, 2006.

Revenues for the second quarter ended June 30, 2006 were $717,821 versus $996,967 for the same period in 2005. Sales bookings, which represent shipments of products and contracted services, were $850,699 for the three months ended June 30, 2006 as compared to $1,145,211. Revenues and sales bookings decreases for the 2006 period as compared to those reported for the 2005 period resulted from the fact that a large direct software only sale to a significant retailer was made during the second quarter of 2005, which did not occur in 2006.

The net loss attributable to shareholders, which included $263,765 of non-cash expenses, was $(937,729) or $(0.08) per share, in the second quarter ended June 30, 2006, versus a loss of $(181,843), which included $73,141 of non-cash expenses, or $(0.02) per share, in the prior year. At June 30, 2006, the Company's balance sheet included $5,095,679 in cash, cash equivalents and short-term marketable securities and other investments.

Revenues were relatively stable at $1,253,668 for the six months ended June 30 2006, versus $1,293,799 for the same period in 2005, which included the large direct software sale to the significant retailer. However, sales bookings increased from $1,516,871 (which includes the large direct sale to the significant retailer), for the six months ended June 30, 2005 to $1,587,130 for the six months ended June 30, 2006. Net loss attributable to shareholders for the six months ended June 30, 2006 improved to $(1,882,771), which included $503,605 in non-cash expenses, or ($0.16) per share, from a loss of $(1,948,990), which included $319,543 of non-cash expenses, or ($0.18) per share, in the prior year period.

Mr. Frank Mandelbaum, Chairman and CEO of Intelli-Check said, "I am pleased with the second quarter and six month results. After taking into account the very large direct software sale to the significant retailer recorded in both periods last year that positively impacted both revenue and sales bookings, it is evident that our customer base has grown significantly with contributions to revenue and sales bookings coming from a diverse customer base. This is a result of the many new initiatives and agreements signed in the last several quarters that are now providing significant contributions to revenue and sales bookings. I believe that sales bookings will continue to grow as a direct result of our recent successes in the retail market, positive results of certain marketing tests, and new agreements recently signed as well as the upcoming deadline for compliance with HSPD 12."

Mr. Mandelbaum continued, "Our recently introduced products, ID-Check BHO and ID-Check Portal, have been well received in the marketplace and we anticipate that they should also be strong contributors to future growth. We continue to see increased recognition of our patented technology in both the commercial and government markets and the requirement for Identity Management becoming increasingly important to certain segments of our customer base; therefore, we believe that we are well positioned to participate in this growing market."

"Our balance sheet remains strong and our cash burn rate remains manageable as we move closer to our goal of profitability," Mr. Mandelbaum concluded. "Additionally, we are making progress on all fronts and are expecting our various strategic agreements and initiatives to generate significant revenues at substantial margins going forward and continue to believe that we remain on target to meet our goal of $6 million in sales bookings for 2006."

The Company will host a conference call for shareholders and members of the investment community to discuss its financial results and corporate initiatives today at 4:30 pm (EDT). Interested parties may participate in the call by dialing [phone] approximately 10 minutes before the call is scheduled to begin. International callers should dial [phone].

For anyone who is unable to participate in the live conference, access to a recording will be available for 72 hours after the call. The rebroadcast can be accessed domestically by dialing [phone]. For international callers, the dial-in is [phone]. The passcode is 5428913.

Condensed Statements of Operations
      For Three Months & Six Months Ended June 30, 2006 and 2005
                              (Unaudited)

                      Three Months Ended         Six Months Ended
                            June 30,                  June 30,
                        2006         2005         2006         2005
                    -----------  -----------  -----------  -----------
REVENUE              $ 717,821    $ 996,967   $1,253,668   $1,293,799
  Net loss            (937,729)    (181,843)  (1,882,771)  (1,751,446)
  Net loss
attributable to
common shareholders   (937,729)    (181,843)  (1,882,771)  (1,948,990)
PER SHARE
 INFORMATION
  Net loss per
   common share -
  Basic and diluted  $   (0.08)   $   (0.02)   $   (0.16)   $   (0.18)
                     ==========   ==========   ==========   ==========
Weighted average
 common shares used
 in computing per
 share amounts -
  Basic and diluted 12,143,392   10,765,064   12,116,090   10,621,407
                    ===========  ===========  ===========  ===========

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About Intelli-Check, Inc.

Intelli-Check, Inc. is the acknowledged leader in technology that helps assure the authenticity of driver licenses, state issued non-driver and military identification cards used as proof of identity. Our patented ID-CHECK technology instantly reads, analyzes, and verifies the encoded data in magnetic stripes and barcodes on government-issue IDs from approximately 60 jurisdictions in the U.S. and Canada to determine if the content and format is valid. For more information, please visit www.intellicheck.com.

Non-GAAP Financial Measures

This release contains disclosure of the Company's "sales bookings" for certain periods, which may be deemed to be a non-GAAP financial measure within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Management of the Company believes that discussion of the Company's sales bookings provides investors with additional information regarding revenues it has received in respect of products and services that have been shipped to a customer, but which are required to be deferred for a period of less than one year under applicable principles of GAAP. The disclosure of "sales bookings" may not be comparable to similarly titled measures reported by other companies. "Sales bookings", while providing useful information, should not be considered in isolation or as an alternative to other financial measures determined in accordance with GAAP.

Intelli-Check Safe Harbor Statement

Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. When used in this press release, words such as "will," "believe," "expect," "anticipate," "encouraged" and similar expressions, as they relate to the company or its management, as well as assumptions made by and information currently available to the company's management identify forward-looking statements. Our actual results may differ materially from the information presented here. There is no assurance that the use of ID-CHECK technology by our potential customers and partners, or government efforts to enhance security or curtail the sale of age-restricted products to underage buyers will lead to additional sales of ID-CHECK technology. Additional information concerning forward looking statements is contained under the heading of risk factors listed from time to time in the company's filings with the Securities and Exchange Commission. We do not assume any obligation to update the forward-looking information.