InsideIdentixInformation. News. Product Updates. Spring 2006

© 2006 Identix Incorporated. All rights reserved.

WHAT’S INSIDE

As the October 27, 2006 deadline approaches, federal agencies are putting their implementation plans

for Homeland Security Presidential Directive 12 (HSPD-12/PIV), a credentialing system for federal employees and contractors which will manage physical and logical access to all federal facilities.

This sweeping identification program is the first of its kind for the federal government. Products are in the process of being certified through the General Services Administration, which is putting together an “approved products list” for agencies to buy from.

Many of the large agencies are on track with their implementation plans, according to a survey conducted by Acuity Market Intelligence in early 2006.

Twenty six respondents among IT, Physical Security and HR personnel involved with implementing their respective PIV programs rate the implementation of Phase I of PIV as successful. This means that agency level policies and procedures are now in place and the stage is set for the enrollment and verification of close to 10 million federal contractors and employees. However, some respondents feel that meeting the deadline is going to be very difficult especially among the smaller agencies.

Federal Agencies

Gear Up for PIV II with Identix®

They feel that the partnership between industry and government is critical in meeting the deadline especially in “deciphering and elucidating PIV II requirements.” According to those surveyed, “the best possible outcome is the development of one or two prototype systems at the larger agencies that will provide proof of concept and operational capability.”

Operational performance will ultimately be measured by the performance of the access control systems that the PIV card will be used for. Ensuring the best possible biometric accuracy begins with enrollment.

And with a significant install base of live scan equipment, Identix’ customers are at a significant advantage, since this equipment helps assure the best possible enrollment data. Identix provides an upgrade package that makes them PIV compliant and at the same time, preserves their investment in the equipment they already have.

For agencies who do not have Identix® live scan equipment, a full range of PIV compliant components are available for integration into a full solution, as demonstrated by several integrators including Northrop Grumman, EDS and Maximus.

“Identix is the recognized biometrics leader in the federal government. With our live scan and facial capture components slated for certification in short order, we believe that we are extremely well-positioned to serve our customers and provide them with the lowest risk means to meet the upcoming deadline,” says Terry LeDell, PIV Product Manager for Identix.

Product Spotlight: Easy-to-Implement PIV Solutions Identix Partner Aurora Computer Services Wins Two Prestigious Awards

Customer Service: Focus on Solutions

Facial Recognition Aid Casino Loyalty Program

CEO Letter: Identity Solutions Powerhouse

CEO LETTER

experiences. The success that we are having in the commercial and consumer sectors confirms our belief that there is significant potential for the technology beyond the standard law enforcement and government areas where our focus has primarily been.

There does continue to be enormous potential on the government and law enforcement side. And with our latest fingerprint algorithm performing better or equal than the AFIS players, we are getting ready to launch a new offering into this space that blends unique features and value propositions that we believe will be well received by the marketplace. These benefits will support our long standing culture of being customer centric and empowering the customer to be in charge of their own destiny. We have long been at the forefront of espousing open standards and architectures, and we are ready to begin building on our successful ABIS® software platform to enter new markets.

We look forward to the close of the merger with Viisage as we become the new L-1 Identity Solutions company, and at the same time, continue to offer the market place the best of breed solutions and support that you have come to expect from us.

My role in the new company will be Chief Strategy Officer, which will bring me ever closer to you, my partners and customers. I will look to your guidance as we build new solutions, and we will continue to listen to your needs and requirements. We have come a long way in the last 24 years here at Identix, and our next phase promises to be even more exciting for all of us. We appreciate your continued support.

– Regards, Dr. Joseph Atick President and CEO

There have been many developments at Identix in the last few months, most notably the announcement of the merger between Identix

and Viisage, to create L-1 Identity Solutions, an identity solutions powerhouse with multi-biometric capabilities including face, finger, iris, document authentication, mobile solutions and a nationwide fingerprinting services capability.

PIV is a perfect example of where the synergies for the combined company lie. Together, we will be able to offer the market three choices: (1) a solution based approach through Viisage who have built an end-to-end offering complete with workflows for the registrar, sponsor and issuer, that allows each stakeholder to follow the status of an applicant going through the approval process; (2) a components based approach offered by Identix, based on the standards based interoperable modular philosophy we have long espoused, that ensures best enrollment quality for ultimate biometric performance at access control points; and (3) a services based approach for agencies who wish to outsource all or part of their enrollment needs.

At the same time we will build on the excellent reputation that we have developed in the marketplace for our facial recognition technology. Identix and our partners once again have been recognized for excellence, and continue to embrace new and exciting opportunities for deploying the technology. With pachinko gaming parlors in Japan and the Nikon® cameras now using FaceIt® technology, we have proven that facial recognition is not just for preventing identity fraud, but has applications to enhance our daily lives and maximize our conveniences and personalize our

IDENTITY PROOFING PIV Enrollment Station: One-stop biometric capture and identity proofing module. Designed for easy workflow management and customization. Handles all functions related to identity proofing:

NIST compliant fingerprint capture including a full range of slap and tenprint live scan systems as well as tenprint card scanners to help meet the challenges of capturing fingerprints in an applicant environment

Face capture, with automatic face finding and hands-off camera control for cropping, centering and measuring all aspects of facial quality in line with PIV requirements

Standard federal applicant demographic entry

Document scanning to verify the validity of ID documents presented (i.e., passport, driver’s license, etc.)

Export of fingerprint to ANSI 378 and 381 format and facial record to ANSI 385 format with CBEEF Patron PIV header as well as ANSI NIST records to IDMS

Submission of biometric for duplicate search at IDMS

Easy-To-ImplemenT pIV SoluTIonSAre you ready to become PIV compliant by October 2006? Identix® solutions can help. With end to end components that come together in a full solution, Identix makes your implementation worry- and hassle-free. Our solution components for PIV are entirely interoperable and modular. They can be used on their own or integrated into a seamless workflow environment. Each component can be customized to an agency’s specific requirements.

PRODUCT SPOTLIGHT

Identix’ business partner, AurOrA COmPutEr SErVICES Ltd., won two prestigious awards at this year’s InterbuildShow held at the National Exhibition Center in Birmingham, united Kingdom.

Aurora won the Best IT Product for the Interbuild New Product Awards and also won the Best Remote and Onsite IT Product.

Aurora has successfully deployed FaceIt® based applications throughout the UK for commercial time and attendance verification for the construction industry. The Interbuild Show is the biggest construction event in Europe.

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IDenTITYSoluTIonSPOWER-HouSe

MEET… Nick Pattakos VP Solutions Fairfax, VA

Solving customers’ business problems is Nick Pattakos’s new job at Identix.

After a successful 15-year stint at Oracle where he held various technical, management and executive positions, Nick came to Identix to apply the lessons he learned in his previous job to a place where he can truly make a difference in the way customer service is delivered.

I wanted to find a place where I could see the results of my work and be a change agent. I feel that Identix is that place, especially with its shift to creating complete solutions for the market place.

After spending a month traveling to the different Identix facilities, he is convinced that his task is challenging but achievable.

“I have divided my time between the Fairfax, Jersey City and Minnetonka offices and what I discovered is inspiring. What I have found are a bunch of really sharp, motivated people. And I know that when you have smart people who want to do ‘good’ you can accomplish great things. I think moving Identix to providing solutions is a very achievable goal, but it requires input and energy form each part of the company,” Nick continued.

CUSTOMER SERVICE HELPING TO HELP YOU: SOLUTIONS DEPaRTMENT

Industry analysts are predicting exponential growth for the identity management market in the next few years. To take advantage of this projected expansion and deliver the most value to its customers, Identix is now focused on providing end-to-end identity management solutions. In support of this new focus on creating state-of-the-art solutions, Proposal Management, Program Management, Professional Services, Advanced Solutions, Custom and Sales Engineering are now under one umbrella headed by Nick Pattakos, VP Solutions.

In the coming days, Nick will concentrate on the ABIS® software platform and the systems and integration technologies around it to deliver to customers the kind of solutions they expect from an industry leader like Identix.

According to Nick, “the reason we do this is the customer. By focusing the company on solutions, you can develop technologies that matter to your customer. Changing the focus to solutions, while still supporting current customers and technologies will be a challenge. But it must be done. Ultimately, the customer wins.”

ALTERNATIVE PROOFING OPTION Identix Identification Services: Full-service fingerprint capture services deliver large volume processing at remote locations for enrollment and verification of employees. Helps speed time an agency spends on enrollment and verification. Services include on-site volume processing, card scanning services and remote processing at 160+ IIS fingerprinting centers around the country.

IDMS COMPONENT ABIS™ System: Biometric data repository and search engineAccepts queries from MultiBiometric Capture Station

Provides biometric storage and search function within an IDMS

Supports storage and retrieval of PIV compliant finger and facial biometrics

Provides exceptional scalability and enterprise level performance to support an entire agency’s or department’s PIV biometric data

Maintains detailed audit trail of search and response activity

Provides biometric data support for terminated, lost or stolen credentials

CARD ISSUANCE VERIFICATION: Card Verification Station Simple, easy to use application for verifying PIV cardholders’ identity upon issuance.

Uses high quality DFR reader for maximum performance

The Identix® Workflow Manager ties all these components together by routing the information from the multiple PIV enrollment stations to the IDMS and Card Verification Station. The Workflow Manager provides storage and archival functionalities as well as transmission interfaces to federal criminal history files.

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IDENTITY PROOFING PIV Enrollment Station: One-stop biometric capture and identity proofing module. Designed for easy workflow management and customization. Handles all functions related to identity proofing:

NIST compliant fingerprint capture including a full range of slap and tenprint live scan systems as well as tenprint card scanners to help meet the challenges of capturing fingerprints in an applicant environment

Face capture, with automatic face finding and hands-off camera control for cropping, centering and measuring all aspects of facial quality in line with PIV requirements

Standard federal applicant demographic entry

Document scanning to verify the validity of ID documents presented (i.e., passport, driver’s license, etc.)

Export of fingerprint to ANSI 378 and 381 format and facial record to ANSI 385 format with CBEEF Patron PIV header as well as ANSI NIST records to IDMS

Submission of biometric for duplicate search at IDMS

Easy-To-ImplemenT pIV SoluTIonS

IDMS

LACS

CPS

CMS

PKI CertificateAuthority

Personal ManagementSystems

Card IssuanceVerification

Work FlowManager

PACS

Proofing

IDMS

LACS

CPS

CMS

PKI CertificateAuthority

Personal ManagementSystems

Card IssuanceVerification

Work FlowManager

PACS

Proofing

PRODUCT SPOTLIGHT

IDENTIx® PIV SOLUTION COmPONENTS

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InsideIdentix 5600 Rowland RoadMinnetonka, MN 55343 USAPhone: +1 952-932-0888 • Fax: +1 952-932-7181

3975 Fair Ridge DriveFairfax, VA 22033 USAPhone: +1 703-259-5000 • Fax: +1 703-259-5001

Contact us at: info@identix.comVisit us on the Web at: www.identix.com

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See us at these events: For an up-to-date event listing, visit: www.shareholder.com/identix/calendar.cfm

JULY 2-7 : Boston, mA International Association for Identification (IAI)

6-7 : Vienna, Austria Global Security Forum Speaking Engagement

9-13 : King of Prussia, PA PA Chiefs of Police

24-28 : Austin, tX texas Conference on Criminal Justice

Information System reporting

AUGUST 1-2 : rosemont, IL midwest Security and Police Expo

SEPTEmBER 18-21 : Baltimore, md Biometric Consortium

Facial Recognition Aids Casino Loyalty Program

Loyalty programs are no longer just for frequent fliers or credit card holders. The gaming industry has long showered its best customers

with free hotel stays and other perks. Now, they are going one step farther with a little help from facial recognition technology.

In Japan, System AV has integrated Identix® FaceIt® technology into custom gaming applications for the pachinko industry to help operators target their frequent customers. The move aims to provide a better, more personalized experience for the customer, and more revenue for the pachinko parlors.

“The application will help System AV’s customers increase sales by gathering strategic customer information to personalize offers and rewards to players. In addition, facial recognition technology will be used to help screen against watch lists of individuals who are banned in casinos,” says Frank Wu, CEO of PinnacleSoft Technologies, the Identix value-added reseller responsible for this deployment.

The integration of FaceIt® technology started in 2004 when Mr. Wu met with System AV at a trade

show in China. System AV, a Japan-based integrator specializing in delivering security solutions and services to the gaming industry, was looking for a solution for the pachinko industry. Pachinko, widely popular in Japan, is a cross between pinball and slot machines.

System AV wasted no time in inviting three companies including PinnacleSoft to a product demonstration. System AV chose FaceIt technology based on its superior algorithm.

“They went with us in the end because of the high degree of accuracy and the software’s flexibility in allowing them to create a highly customized application for a very specialized market. Their developers and programmers were immediately at ease with the SDK the moment they started using it,” said Mr. Wu.

Soon after the award of the project, System AV began piloting the system in one Tokyo pachinko parlor. The project is set to be rolled out in at least 300 casinos all over Japan in June of this year.