Drexler Technology Corporation (Nasdaq:DRXR), the leading supplier of multi-biometric ID cards for U.S. homeland security applications, has been invited to speak at the “Fifth Annual Needham Growth Conference,” January 7-9, 2003, at the New York Palace Hotel.
Needham & Company, Inc. is an investment banking and securities firm headquartered in New York City. Drexler Technology’s presentation is scheduled for Thursday, January 9.
Drexler’s multi-biometric ID is a LaserCard(R) optical memory card which is capable of storing all or any combination of biometric identifiers currently being used commercially throughout the world, including fingerprint, hand geometry, iris or retina scan, facial image recognition, digitized signature, and photograph. This technological capability is enabling Drexler Technology to establish a leadership position in the high-security government ID card markets in the U.S.A., Canada, Europe, Middle East, and Asia. Optical memory card shipments are expected to increase to approximately 8 million cards for fiscal 2003, ending March 31, 2003, compared with 5.6 million cards for the previous fiscal year. For fiscal 2004, which begins April 2003, the Company expects a significant increase in foreign business over the fiscal 2003 level.
Drexler Technology will present its updated LaserCard marketing objectives, as indicated below:
– U.S.A. – The “Enhanced Border Security and Visa Entry Reform Act” multi-biometric card program under the INS/Homeland Security Department. Two dozen of Drexler’s LaserCard Biometric ID Verification Systems are in the testing phase at least through the end of February at six U.S. border entry points.
– U.S.A. – The “Transportation Workers ID Card” (TWIC) program under the Transportation Security Administration is in the planning stage, and several card technologies are expected to be evaluated.
– U.S.A. – A “Registered Traveler” or “Trusted Traveler” ID card for airline passengers, under the Transportation Security Administration, is under consideration.
– Canada – Canadian CITIZEN ID card program. (Four months ago, Drexler received an order for 750,000 of Canada’s NON-CITIZEN Permanent Resident Card and has delivered about 290,000 thus far.)
– Italy – Second phase of the new Italian national ID card program. The first phase uses Drexler’s LaserCard Smart/Optical(TM) cards.
– European Union countries and NATO countries – Drexler strategy is to use the Italian national ID card and U.S. and Canadian Permanent Resident Cards as “showcase” cards for marketing to European governments.
– Balkan Country – National ID card and Permanent Resident Card programs (systems funding initiated).
– European Union – A standardized Permanent Resident Card for non-citizens residing within the European Union countries is under consideration by the EU.
– China – Expansion of the LaserCard-based “PandaCard” healthcare program beyond Beijing.
– India – State of Gujarat’s motor vehicle registration card program using Drexler’s Smart/Optical cards may be revived through the Indian joint venture of Computer Associates International, Inc. (NYSE) and Satyam Computer Services Ltd. (NYSE).
– Middle Eastern Country – LaserCard Smart/Optical card national ID card evaluation underway.
The Drexler presentation will also touch upon new business activities including the marketing of optical memory card manufacturing licenses and offering related card-manufacturing materials that would permit manufacturing participation by foreign governments, as follows:
– Roll-process card-finishing licenses in conjunction with selling 2,000-foot-long rolls of laminated optical memory card media, containing about 6,000 card images, to foreign governments for local card finishing (provided that the customer first purchases a LaserCard finishing license from Drexler Technology).
– Sheet-process card-finishing licenses in conjunction with selling sheets of partially finished cards, containing multiple card images, to foreign governments for local card finishing (provided that the customer first purchases a LaserCard finishing license from Drexler Technology).
– Providing a package of optical memory recording materials, R/W systems, and knowhow for using a laser-engraved image of the cardholder to upgrade the ID security of smart cards manufactured by other companies.
Because the real and potential card programs mentioned above are subject to evolving technical requirements, budget approvals, and political considerations, there is no assurance that the indicated card programs will be implemented as visualized.
Drexler Technology Corporation (www.lasercard.com) and its wholly owned subsidiary, LaserCard Systems Corporation, are based in Mountain View. Drexler develops and manufactures LaserCard(R) optical memory cards and chip-ready Smart/Optical(TM) cards (a combination of optical memory card and smart card). LaserCard Systems manufactures optical card read/write drives, develops optical card system software, and markets card-related data systems and peripherals. The Company’s markets include identification ID cards, electronic visas, homeland security, digital governance, child healthcare, vehicle registration, construction licenses, and immigration cards. The Company owns approximately 40 U.S. patents and 60 foreign patents in 12 countries, involving optical memory cards and systems and related technology.
Forward-Looking Statements: Except for the historical information contained herein, the matters set forth in this press release and the referenced conference presentation contain forward-looking statements – including statements as to the Company’s marketing objectives, current or potential customers, applications, and market segments; expectations as to potential or ongoing government programs including U.S. government LaserCard programs and foreign government programs; statements as to the plans, status, or scope of existing or potential card programs; statements as to license and product offerings; estimate of card shipment volume for fiscal 2003 and expectations of increased foreign business for fiscal 2004; and the Company’s plans, objectives, and anticipated economic performance. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including, but not limited to, the impact of governmental or regulatory proceedings; general economic trends; risks associated with doing business in and with foreign countries; lengthy sales cycles and reliance on government policy-making; the Company’s reliance on value-added resellers, licensees, or other third parties; risks, difficulties, and uncertainties associated with development, manufacture, and deployment of optical memory cards, drives, and systems; the impact of technological advances and competitive products; government rights to withhold order releases, reduce the quantities released, and extend delivery dates; and other risks detailed from time to time in the SEC reports of Drexler Technology Corporation, including its annual report on Form 10-K for the year ended March 31, 2002. These forward-looking statements speak only as of the date hereof. Drexler Technology disclaims any intention or obligation to update or revise any forward-looking statements.
CONTACT: Drexler Technology Corp., Mountain View
J. P. Protsik, 650/969-7277