Intelli-Check Says Lawsuit Allegedly Filed Against Company is Without Merit.

Business Editors

WOODBURY, N.Y.--(BUSINESS WIRE)--Oct. 19, 2001

INTELLI-CHECK, INC. (AMEX:IDN), a developer of advanced document verification systems, commented today on a press release announcing the filing of a class-action suit against the Company on behalf of short sellers.

"Although we have not yet seen the complaint, we are confident that the allegations set forth in the press release are totally without merit and that the Company has complied with all applicable securities laws," stated Frank Mandelbaum, Chairman and Chief Executive Officer of Intelli-Check.

Mr. Mandelbaum said that one short seller who allegedly shorted hundreds of thousands of shares of the Company's stock had threatened to bring this lawsuit unless the Company sold him stock below the current market price. The Company refused his demand.

Intelli-Check(R), Inc. (www.intellicheck.com) is a developer and marketer of an advanced state-of-the art document verification system for authenticating the validity of driver licenses and ID cards used as proof of identity. Intelli-Check's multi-purpose ID-CHECK(R) units are fully capable of increasing security and deterring terrorism at military installations, high profile buildings, airports and other sites and are also an effective tool against "identity theft," which often is supported by fake IDs and is the fastest growing crime in the U.S. ID-CHECK units enable a user to prevent economic loss from check-cashing, credit card and various other frauds utilizing fake IDs and to determine whether purchasers of age-restricted products such as alcohol and tobacco meet minimum age requirements for their sale. ID-CHECK, with its patented software, analyzes and displays information encoded in magnetic stripes and barcodes found on driver licenses, military IDs and state and government-issued identification cards from more than 50 jurisdictions.

Certain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Intelli-Check cannot guarantee a successful outcome in the defense of legal actions brought against the Company. It also cannot determine at this time whether such legal actions will have any substantial financial impact on the Company. 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.

This announcement does not constitute or form part of an offer, or any solicitation of an offer, for securities.