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L-1 Identity Solutions Awarded Expanded U.S. Passport Card Program Including New U.S. Border Crossing Card
Jul 22, 2008 (08:07 AM EDT)
STAMFORD, Conn., July 22 /PRNewswire-FirstCall/ -- L-1 Identity Solutions , a leading provider of identity solutions and services, today announced that the prime contract award first announced in March 2008 by L-1 for the U.S. Passport Card has a negotiated value of $215 million over five years. The in-scope expansion of this original contract is due to increased demand anticipated for the new credential that will facilitate the frequent travel of Americans living in border communities. Additionally, L-1 also was awarded $24.8 million over five years for the new U.S. Border Crossing Card (BCC) as part of an expansion to the U.S. Passport Card program. Together, the value of the prime contract award combined with the BCC award brings the value of the Department of State contract with L-1 to $239 million over five years.
The U.S. Passport Card is a convenient, wallet-sized document for land and sea travel between the United States and Mexico, Canada, the Caribbean and Bermuda. It is not valid for travel by air. Full production and distribution of the new U.S. Passport Card began in mid July 2008, with over 350,000 Americans pre-ordering the U.S. Passport Card. The card has a vicinity-read Radio Frequency Identification Device (RFID) chip that enables Customs and Border Protection inspectors to access photographs and other biographical information stored in secure government databases before the traveler reaches the inspection station. For privacy protection, there is no personal information written on the electronic chip itself. The chip has only a unique number pointing to a stored record contained in secure government databases.
The Department of State expanded the U.S. Passport Card contract to include the BCC specifically for Mexican Visa applicants. The Department of State anticipates issuing up to 10 million cards to qualified Mexican Visa applicants over the next five years. The BCC is modeled after the U.S. Passport Card and will incorporate an improved design, a vicinity-read RFID chip with read capacity consistent with other documents used by the Department of State and the Department of Homeland Security. Since the new BCC will be produced from the same card stock as the new U.S. Passport Card, it will incorporate the same overt, covert and forensic security features, making it one of the most secure credentials in the world. The BCC is the planned Phase 4 of the U.S. Passport Card contract and the new card is slated to begin issuance in Fall 2008.
"L-1 has a long history of helping State, federal and international governments to produce the most secure credentials possible for their citizens and our experience positions us ideally to partner with the DoS in the new border crossing card initiative," Robert V. LaPenta, Chairman and CEO of L-1 Identity Solutions.
L-1 companies have a long history of producing highly-secure identification cards and credentials on time and on budget. The contract award is a natural extension of L-1's current passport contract where L-1 is the sole source provider for the U.S. passport personalization printers. L-1 also supplies the Department of State Facial Recognition Systems for consular programs as part of the Department's ongoing efforts to support national security. Additionally, L-1 produces driver's licenses for one-third of all U.S. states.
About L-1 Identity Solutions
L-1 Identity Solutions, Inc. www.L1ID.com , together with its portfolio of companies, offers a comprehensive set of products and solutions for protecting and securing personal identities and assets. Leveraging the industry's most advanced multi-modal biometric platform for finger, face and iris recognition, our solutions provide a circle of trust around all aspects of an identity and the credentials assigned to it -- including proofing, enrollment, issuance and usage. With the trust and confidence in individual identities provided by L-1 Identity Solutions, government entities, law enforcement and border management agencies, and commercial enterprises can better guard the public against global terrorism, crime and identity theft fostered by fraudulent identity. L-1 Identity Solutions is headquartered in Stamford, CT. For more information, visit .
Forward Looking Statements
This news release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements in this press release and those made from time to time by L-1 Identity Solutions through its senior management are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect the Company's current expectations based on management's beliefs and assumptions and actual results could differ materially from these expectations. Certain factors that could cause or contribute to such differences include, among other things, the ability of the Company to maximize the potential dollar value of its prime contract with the Department of State, the continuing availability of funding for the products and services contemplated under the contract, and general economic and political conditions. Additional risks and uncertainties are described in the Securities and Exchange Commission filings of the L-1 Identity Solutions, including the Company's Form 10-K for the year ended December 31, 2007 and the Company's Form 10-Q for the quarter ended March 31, 2008. L-1 Identity Solutions expressly disclaims any intention or obligation to update any forward-looking statements.
CONTACTS: Doni Fordyce L-1 Identity Solutions 203-504-1109 dfordyce@L1ID.com Steve Lipin Brunswick Group 212-333-3810
CONTACT: Doni Fordyce of L-1 Identity Solutions, +1-203-504-1109, dfordyce@L1ID.com; or Steve Lipin of Brunswick Group, +1-212-333-3810, forL-1 Identity Solutions
Web site: http://www.L1ID.com/