On Track Innovations Ltd. Joins Fargo Technology Alliance.

Business Editors/High-Tech Writers

ISC West 2003

LAS VEGAS--(BUSINESS WIRE)--March 26, 2003

Fargo Electronics, Inc. today announced that On Track Innovations Ltd. (OTI) has joined the Fargo Technology Alliance (FTA), a global technology group that promotes effective, advanced smart card solutions.

OTI is a leader in contactless microprocessor-based smart card solutions, with headquarters in Israel and offices in the U.S., Europe, South Africa and Asia Pacific. Fargo creates innovative printing systems that personalize plastic identification cards, complete with digital images and text, lamination, and electronically encoded information. The announcement came at the International Security Conference West 2003 (ISC West), which runs March 26-28 at the Sands Expo & Convention Center here.

The Fargo Technology Alliance now unites 31 smart card solution providers with Fargo's network of international and domestic distribution partners. Together with the Alliance members -- smart, optical, and proximity card application software developers and manufacturers -- Fargo's distribution partners are able to provide a wide range of complete solutions for end users.

"Fargo and OTI have already worked together on an international ID project involving Fargo's Pro-LX printer and OTI's Saturn reading and encoding product line," says Neil O'Mara, Fargo's Director of E-card Business Development. "Joining the Fargo Technology Alliance will strengthen the relationship already established and make their solutions more widely available."

Ohad Bashan, CEO of OTI, commented, "We are proud to be become a member of the Fargo Technology Alliance. This prestigious global technology group is in the forefront of advocating adoption of innovative smart card solutions. This recognition is part of OTI's strategic drive to become the leading provider of contactless microprocessor-based smart card solutions."

About OTI

Established in 1990, OTI (Nasdaq:OTIV)(Prime Standard:OT5), designs, develops and markets contactless microprocessor-based smart card technology to address the needs of a wide variety of markets. Applications developed by OTI include product solutions for micropayments, mass transit, parking, petroleum payment systems, loyalty programs, ID and secure campuses. OTI has a global network of regional offices to market and support its products. The company was awarded the prestigious ESCAT Award for smart card innovation in both 1998 and 2000. OTI has numerous successful installations of its products around the world, including access security for Amsterdam's Schipol Airport and the technology for the Chinese National ID card. Major clients include: MasterCard, BP, EDS, First Data Resources, Xerox, Repsol, the Government of Israel and ICTS.

For more information on OTI, visit their website at www.otiglobal.com.

About Fargo

Fargo (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 card printing systems -- High Definition Printing(TM) (reverse image), traditional direct-to-card printing (dye-sublimation/resin thermal transfer), 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, Drivers' Licenses, Universities, Schools, Government Installations, Transportation, Casinos, Healthcare Facilities, E-commerce, Retail Stores, Correctional Institutions, Associations, Sports Events and Recreation Sites. More than 70,000 Fargo systems have been sold in the U.S. and in over 80 other countries. For more information, visit Fargo's Web site at http://www.fargo.com.