Veritec, Inc. Enters into VAR Relationship with Datacard Group.

Veritec, Inc., aligns with one of world's largest card personalization solution providers as a Value-Added Re-seller to introduce its multi-purpose VSCard with VISA debit capability

MINNEAPOLIS -- Van Tran, CEO of Minneapolis-based Veritec, Inc., today announced the formation of an anticipated long-term Value-Added Re-seller agreement with Datacard Group, a global provider of secure ID and card personalization solutions.

Datacard[R] ID Works[R] Identification Software is now VSCode[R]-enabled and Datacard[R] products will play a vital role to enhance and expand Veritec's VSCard[R] technology in reference to both positive identification for ID card-holders as well as VISA debit-card security.

"We believe with Datacard products, combined with VSCard[R] technology, card-holders will have a multi-use highly-secure identity card with VISA debit card capability. Veritec's codes, affixed to cards via patented software and electronically printed, with two-dimensional matrix symbology[TM], perform without using chips of any kind, making them robust and secure cards for any card holder, for any purpose, from positive identification to debit banking. Because the data contained in the code matrix acts as a portable database, this technology is already creating a paradigm shift for personal identity protection. We believe that our new relationship with Datacard can open many opportunities for both companies," Ms. Tran stated.

ABOUT VERITEC, INC.

Founded in 1982, Veritec offers a patented line of microprocessor-based encoding and decoding system products that utilize Matrix Symbology(TM) or 2-Dimensional Barcode technology owned by Veritec's wholly-owned subsidiary, VCode Holdings, Inc.

Veritec's encoding and decoding systems allow users to create and apply unique identifiers to the products in the form of a coded symbol which enable automated manufacturing control, as well as identification, tracking and collection of data through cameras, readers and scanners also marketed by Veritec. The collected data is then stored in the 2-D barcode available for contemporaneous verification or other user-definable purposes.

In 2007, Veritec introduced its new "universal multi-purpose-all-in-one" card, named the VSCard. The VSCard has combined both a Visa debit card and an identity card to create a multi-functional ID card with unique banking and security capabilities. The VSCode, with robustness, security features, and data storage capacity up to 4,000 bytes, stores the owner's fingerprint minutiae along with other critical personal information. The VSCode is placed on the back of the card along with a magnetic strip, a signature, and the name of the issuing bank. The front of the card has a picture ID and VISA logo.

Please visit Veritec's website at www.veritecinc.com. to learn more about the VSCard and its unprecedented capabilities.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

This news release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties affecting technology companies, our ability to successfully develop products, rapid technological change in our markets, changes in demand for our future products, legislative, regulatory and competitive developments and general economic conditions. Our SEC filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to revise or update publicly any forward-looking statements for any reason unless otherwise required to do so by SEC Regulations.