LaserCard and Ritel Team on Production of Italian Citizen ID Card Encoders.
The license, executed in March 2008, grants Ritel non-exclusive rights to manufacture optical memory drive products in Italy and distribute them worldwide. As a first step, LaserCard will supply an initial package of parts, tools and schematics for assembly of secure optical memory card encoders to support the Italian Citizen ID Card Program. LaserCard expects to record about $500,000 in revenue in the September quarter when the complete package is scheduled to be delivered. Once assembled by Ritel, the encoders are intended to be deployed as the first wave in the planned roll-out of the infrastructure to support the issuance of the national ID card to about 40 million Italian citizens.
A team of Ritel engineers has already visited LaserCard's headquarters in Mountain View, California, to receive introductory training in drive assembly. It is anticipated that Ritel will apply its engineering and manufacturing expertise to the development of lower cost components for the encoders and, eventually, to the production of new, lower cost read/write devices.
"We are very pleased to be teamed with Ritel on this strategically important project. This move is a response to the Italian government's plans to deploy the national infrastructure required to fully implement their Citizen ID Card program," said Bernard C. Bailey, chairman of LaserCard's board of directors. "LaserCard technology is the most secure in the world today. Our technology cannot be altered and the digital security of LaserCard ID cards has never been compromised. The Italian government's choice to invest in LaserCard technology demonstrates the nation's high level of commitment to its homeland security."
"We at Ritel welcome the opportunity to work closely with LaserCard Corporation and Laser Memory Card on the implementation of the Citizen ID project," said Sandro Piacentini, CEO of Ritel S.p.A. "Our engineering and production teams are already gearing up to produce optical memory card encoders for the project, initially from parts kits supplied by LaserCard and progressively from locally produced components. We are excited by the opportunity to address the potential market for optical card readers in Italy, which we anticipate to be extensive, and subsequently in other parts of the world."
LaserCard Corporation has previously supplied approximately $18 million worth of optical memory cards and encoders for the Citizen and Foreign Resident ID programs, through its Rome based Value-Added Reseller, Laser Memory Card S.p.A.
About LaserCard Corporation
LaserCard Corporation is a leading provider of secure ID solutions to governments and commercial clients around the world, and also manufactures a wide range of advanced, secure identity documents. These ID documents include the LaserCard[R] optical memory card and hybrid cards combining optical memory with contact, contactless and RFID chip technology. The Company's cards and systems are widely used in countries around the world, including the United States, Canada, Italy, India and the Kingdom of Saudi Arabia, for demanding applications including border security, government service provision and facility access. LaserCard's wholly-owned German subsidiary, Challenge Card Design Plastikkarten GmbH, manufactures and offers a wide range of high quality specialty cards, plus card personalization and ID management solutions under the CCD and Cards & More brands.
About Ritel S.p.A.
Ritel S.p.A. is a high technology research & development and manufacturing organization, specializing in electronic systems, especially for the security, telecommunications and energy industries. The company is focused on business sectors where its core competencies, continuous innovation and high service levels give it a competitive edge over market leaders.
All statements contained in this press release that are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are not historical facts or guarantees of future performance or events. Rather, they are based on current expectations, estimates, beliefs, assumptions, and goals and objectives and are subject to uncertainties that are difficult to predict. As a result, our actual results may differ materially from the statements made. Often such statements can be identified by their use of words such as may, will, intends, plans, believes, anticipates, visualizes, expects, and estimates. Examples of forward-looking statements in this release include that the initial package of materials we are to deliver to Ritel is to support the Italian Citizen ID Card program, with Ritel expected to supply encoders for the first wave of the planned Italian infrastructure roll-out; our expectation that we will record revenue of about $500,000 during the September quarter when the complete package of materials is expected to be delivered; our anticipation that Ritel will use its expertise to develop lower cost components for the encoders and eventually to produce lower cost read/write devices; and that the planned rollout of infrastructure will lead to card issuance to about 40 million Italian citizens. This and other forward-looking statements in this press release are based upon our assumptions about and assessment of the future, which may or may not prove true, and involve a number of risks and uncertainties including, but not limited to whether Ritel attempts to delay or cancel deliveries under the current order; whether political forces put a hold on the Italian Citizen ID program and infrastructure roll-out, and whether we encounter difficulties in assembling the kits or the parts have quality or other issues which cause a delay in their acceptance, whether Ritel devotes substantial resources and expertise to develop encoder components and design and produce lower cost read/write devices and achieves success from such efforts as well as the risk factors detailed in the Company's Form 8-K, 10-K, and 10-Q filings with the Securities and Exchange Commission. Due to these and other risks, future actual results could differ materially from the Company's expectations. These forward-looking statements speak only as to the date of this release, and, except as required by law, the Company undertakes no obligation to publicly release updates or revisions to these statements whether as a result of new information, future events, or otherwise.
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|Date:||Jun 2, 2008|
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