LaserCard Systems Corporation

LASERCARD

Secure identification tool for banking services

L.C. Sistemia S.p.A. - ITALY: Via Della Giustiniana, 630 - ROMA tel.: +39 06 33616091 fax: +39 06 33616573 e-mail: lasercard@lasercard.it web: www.lasercard.it

Alessandro BignozziExecutive DirectorBucuresti22th of October 2002

Outline of Presentation

• Company Profile

• Optical Memory Card Technology

• Standards and Durability Testing

• Card Characteristics, Benefits, and Security

• Spotlights of LaserCard Applications

• Comparison with IC Smart Card Technology

• Optical Card Future View

Company Profile • Drexler Technology Corporation created optical

memory cards in 1981, and currently owns over 50 U.S patents related to optical data storage

• Drexler Technology’s manufacturing facility in Mountain View, California has an annual production capacity of up to 25 million cards

• LaserCard Systems Corporation was founded by Drexler Technology in 1991 to develop, market and sell optical card based systems

• Laser Memory Card S.r.l. of Italy is since 1994 the most representative partnership.

• L.C. Sistemia S.p.A. is the unique European manufacturer of the Optical Memory Card reader/writer and Optical Memory cards.

• Genesys Software Romania is the unique Partner for the Countries in East Europe: Romania, Bulgaria, Moldova, Ucraina.

Key Benefits of Optical Cards

• Permanent - non-erasable media provides excellent data security against fraud and alterations

• High data capacity - 4.1Mbytes at low cost allows a wide range of applications

• Updateable - Card is writable, allowing updating without the need to always re-issue new cards

Additional Benefits

• Durable - Card structure is all polycarbonate, with excellent physical properties for long life

• Construction - Data is contained in the center core of the card, protecting it from surface damage and counterfeiting

• Multi-Tech - Cards can be manufactured with multiple technologies (i.e., barcode, magnetic strip, chip, OCR-B, serial #)

LaserCard® Manufacturing

Polycarbonate backing

Optical WORM media and substrate

(Not To Scale)

Clear Polycarbonate

Hard-Coat

Custom Artwork

• Made of polycarbonate plastic

– Polycarbonate is estimated to be 1,000 times more durable than PVC credit cards

• E-Beam cured (300KVolts) adhesive lamination technique

• Cards can be manufactured to include:

– Custom artwork– Magnetic stripe– Signature panel– Laser-engraved serialization– IC chip

Security Features

• Biometrics - Laser recorded data files verified by photo, fingerprint or signature

• The Embedded Hologram - personalized, eye-readable image embedded in the optical media.

• Security Key - unique serial #’s in the pre-formatted area

• Preformatted ROM Data - Upon card insertion, software searches to match data in the pre-formatted ROM

• Micro Imaging - Physical security similar to currency printing offered from fine details in the optical media

• Optical Watermarks - are eye readable images that are formatted into the media, and protected under hardcoat

Anti-Counterfeiting Features

• Eye-Readable features require no equipment to validate authenticity:

– Optical WORM media

– Micro Optical Imaging

– Optical Watermark

– Subsurface Serialization

– Custom Artwork

• Machine-Readable validation through multiple technologies:

– Pre-formatted ROM data

– Security Format

– Personalization files

– Laser-Engraved Barcode

– OCR-B

Embedded Hologram™

• The same files used to print a document are laser-encoded on the optical media as diffraction pattern image.

• Cannot be removed or erased and cannot be duplicated or simulated by photocopying, photography or scanning.

• Provides visual verification and authentication of printed information.

• Can interleave a copy of the digital file within the laser-encoded optical image for covert machine-readable verification.

Micro Optical Imaging

• Images are engineered into the optical WORM media format at a resolution over 12,000 dpi.

• Images cannot be removed or erased.

• Can incorporate digital data for added covert, machine-readable protection.

• Conventional secure printing and copying techniques cannot simulate the reflective optical media or micro optical images.

System Implementation - Drive DISA 2000

Cardholder verification for:

•Security purpouses

•Access controls

•Banking services

•First Aid

•Certifications

•Police Check

This is a Stand-Alone unit that does not require network connection (optional)

System Implementation - Read/Write Drive

LaserCard Optical Card Drive

Industry standards complianceISO standardsSafety regulationsInterfacing standards

Standard software environmentsLaserCard Filing SystemO/S independentUnique security features

Special security options

Kiosks/terminal applications

Optical Card Portable Reader – IC 400

PALM OPTICAL READER IC – 400

The Smart Optical Reader IC-400 will be ready for the end of year 2002.

Windows CE Operative System on board, network and infrared connctions, 266 Mhz processor, LCD color monitor and personalized function buttons.

Battery and AC power supply.

Card Technology Factors

# Digital # Text Data Digital Photos (6KB Pages Security Capacity Compressed) 2 KByte Updateable

Eye Readablepaper, plastic none n/a n/a n/a No

Digital

magnetic stripe encryption up to 900 bytes none 13 lines No

barcode encryption 50 bytes none < 1 line No

2D Symbology encryption 3,000 bytes none 1.5 pages No

Memory chip encryption 8 KBytes 1 image 4 pages Yes

Smart IC chip PIN, format 32 KBytes 2 images 16 pages Yes

Optical PIN, format 1.5 MBytes 180 images 550 pages Yes

Optical PIN, format 4.1 MBytes 465 images 1,430 pages Yes

LaserCard® Applications

• Immigration & Travel• Refugee Card• Removal Cases• Permanent Resident Card• Foreign Student Card• Employment Authorization• Single/multiple-entry visa• Passport Card• Automated border entry

• National ID• Citizenship Card• Multiple Application

• Interdiction• Airline check-in• Immigration Control• Foreign Missions

Permanent Resident Card

• Counterfeit Resistance• High Data Capacity• Low Cost• High Performance• High Data Durability• Updateable Information• Embedded Hologram™

In 1997, LaserCard® optical memory cards were selected by the United States Immunization and Naturalization Service (INS) for the current “Green Card”. LaserCard characteristics that influenced the INS’s decision include:

Other OMC Secure ID Programs - Canada

Expedited border clearance CANPASS Pilot operated by

Canadian Government since 1996 Canadian Airports Council to

expand system across Canada in 2002

Permanent Resident Card Citizenship & Immigration to

replace IMM1000 Program started year 2002 Annual requirement of 750,000Passport Card Concept sponsored by Passport

Office in ICAO forum Program start mid-2002 Annual estimate of 300,000 -

500,000

Other OMC Secure ID Programs - Canada

Overview

 The Permanent Resident Card (also known as the Maple Leaf Card or the PR Card) is a new, wallet-sized, plastic card.

Security features of the new PR Card will simplify the screening process of Permanent Residents when boarding a commercial carrier going to Canada. The card also increases Canada's border security and improves the integrity of Canada's immigration process.

Beginning on June 28, 2002, PR Cards will be mailed to new Permanent Residents of Canada as part of the landing process. People who are already in Canada as Permanent Residents can apply for the new PR Card beginning October 15, 2002.

Card Security

The card will give holders reliable documentation of their permanent residence status. The high-tech security features will make the card extremely resistant to tampering or duplication. The requirement for Permanent Residents to produce this card when boarding a commercial carrier going to Canada will simplify the job of transportation officials in screening people for proper documentation.

Other OMC Secure ID Programs - Italy

National ID Card

• Coexistent technology card

– Optical Memory

– IC chip

– OCR-B data

To be introduced in 2002

Annual requirement 10,000,000

• Partial on-shore production

Other OMC Secure ID Programs - Italy

Automated Manifest System

• Winner of the “Hammer” Award for new technology• Cost Reduction of 67% for Army logistics• System in place over 5 years• Optical card is the standard for Defense Logistics• Worldwide deployment• Data is downloaded from networked database• Card provides a on-site, off-line local database to

reconcile shipment inventories• The DLA (Defence Logistics Agency – USA) employes

LaserCards since 1991

Novus Image/Archive Card

• Cost Control - FDA approved system to capture, display, archive and transport up to 80 MRI and CT scans on an optical memory card. Reduces incidence of lost film. Reduces storage and film duplication costs.

• Physician & Patient Satisfaction Faster retrieval of film studies. Patient confidence in having card and not losing scans.

• Revenue Generation - New and repeat referrals to imaging center

Honda Card - Vehicle Records

• Contains complete card build history

• All part numbers are stored on card

• Warranty and service records

• Owner information and registration

• Provided by Honda with each new car

• Adds value by providing service/maintenance history

• Marketing value by visible high tech message

to Honda owners

Health Care OMC Applications

• Regimed Vital Plus Card - IC chip & optical memory

• Italian Social Security Insurances INPS & INAIL

• Hong Kong Hospital Authority

• Belgium Army Medical Card

• Keesler Medical Center – Biloxi (USA)

• Italian Red Cross blood donors

• Italian National Neurologic Institute

• Italian Carabinieri Army

Zerco Systems POS card

• Point of Sale application

• Uses optical stripe and magnetic stripe

• Multiple transaction applications on one card

• Tracks all food stamp, WIC, and other benefits

• Complete transaction history on optical stripe

• Biometric fingerprint verification of card holder

• Uses magnetic stripe for ATM transfer to optical

• Integrated terminal for point of sale applications

- positive identification, security access, transactions certification, transaction records,

- property ownership certification, savings account, pensioners card, credit card

- insurance card, social security/fiscal code card, local or national services card, commercial fidelity and sponsorhip card

- hybrid “all-in-one” use card (credit, health, insurance, social security, pension, transport, sponsorhip, etc.)

Banking and Financial Applications