Citizens to Benefit from Protection Offered by Optical Memory ID Cards 

MOUNTAIN VIEW, Calif. – July 14, 2009 – LaserCard Corporation (NASDAQ:LCRD), a leading provider of secure ID solutions, today announced that the Angolan government has officially approved the design of its new national ID card, triggering production start-up by LaserCard for the initial supply of secure optical memory cards for the country’s national ID program. Issuance of cards to Angola’s adult citizens is scheduled to begin in Luanda, the nation’s capital, by this fall. 

Delivery of the $8.8 million card backlog will begin this quarter and is scheduled to be completed this fiscal year. The cards will be issued as secure wallet-size ID credentials to citizens nationwide and will store personal data including personal and biometric identification. The cards are based on the same tamperproof, highly counterfeit-resistant optical memory technology used in the U.S. Department of Homeland Security’s “Green Card” program.  

“Building a successful national ID program of this complexity is a large-scale and long-term undertaking,” said Robert DeVincenzi, president and chief executive officer at LaserCard. “The Angolan government and our team of partners have demonstrated extraordinary commitment to ensuring that each phase of this process has been properly executed, which bodes well for the long-term success of the program. We look forward to seeing our highly secure ID cards in the hands of the people of Angola and protecting their security and rights as citizens.”    

Card production follows the build-out of the nationwide fixed and mobile infrastructure required for card issuance. LaserCard recently completed delivery of the card personalization equipment that forms the core of this system. LaserCard is a subcontractor to the Angolan government’s prime contractor, DGM-Sistemas of L.D.A. DGM-Sistemas and other team partners have been engaged in the implementation of the national IT infrastructure and criminal registry database to support the personal data capture, card issuance and downstream application processes.

About LaserCard Corporation
LaserCard Corporation, together with its subsidiaries, is a leading provider of secure ID solutions to governments and commercial clients worldwide. It develops, manufactures, and integrates LaserCard® optical memory cards, encoders, peripherals, smart and specialty cards, biometrics, and modular software. The company’s cards and systems are used in various applications, including citizen identification, border security, government service delivery, and facility access.

Forward Looking Statement Disclaimer
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 the expected schedule for the Angola ID card issuance and the expected delivery of the $8.8 million worth of cards per the requested schedule and the implication that additional orders will be received.  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 the customer’s scheduled delivery dates are rescheduled or canceled in whole or in part and whether the Company encounters card production difficulties 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 under the caption “Risk Factors” and elsewhere in such reports.  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.

FOR FURTHER INFORMATION:
STEVEN G. LARSON, VP-FINANCE
(650) 969-4428

or

investorrelations@lasercard.com