LaserCard Corporation announced that it has licensed Ritel S.p.A, a telecommunications and technology contract manufacturing company based in Rieti, Italy, to manufacture optical memory card encoders and read/write drives. Laser Memory Card S.p.A., LaserCard's Value-Added Reseller in Italy, was instrumental in facilitating this agreement.

Ritel starts its activities in 2006 with the spin-off of Rieti Alcatel-Lucent plant

The license, executed in March 2008, grants Ritel non-exclusive rights to manufacture optical memory drive products in Italy and distribute them worldwide. As a first step, LaserCard will supply an initial package of parts, tools and schematics for assembly of secure optical memory card encoders to support the Italian Citizen ID Card Program. LaserCard expects to record about $500,000 in revenue in the September quarter when the complete package is scheduled to be delivered. Once assembled by Ritel, the encoders are intended to be deployed as the first wave in the planned roll-out of the infrastructure to support the issuance of the national ID card to about 40 million Italian citizens.

A team of Ritel engineers has already visited LaserCard’s headquarters in Mountain View, California, to receive introductory training in drive assembly. It is anticipated that Ritel will apply its engineering and manufacturing expertise to the development of lower cost components for the encoders and, eventually, to the production of new, lower cost read/write devices.

“We are very pleased to be teamed with Ritel on this strategically important project. This move is a response to the Italian government’s plans to deploy the national infrastructure required to fully implement their Citizen ID Card program,” said Bernard C. Bailey, chairman of LaserCard’s board of directors. “LaserCard technology is the most secure in the world today. Our technology cannot be altered and the digital security of LaserCard ID cards has never been compromised. The Italian government’s choice to invest in LaserCard technology demonstrates the nation’s high level of commitment to its homeland security.”

“We at Ritel welcome the opportunity to work closely with LaserCard Corporation and Laser Memory Card on the implementation of the Citizen ID project,” said Sandro Piacentini, CEO of Ritel S.p.A. “Our engineering and production teams are already gearing up to produce optical memory card encoders for the project, initially from parts kits supplied by LaserCard and progressively from locally produced components. We are excited by the opportunity to address the potential market for optical card readers in Italy, which we anticipate to be extensive, and subsequently in other parts of the world.”

LaserCard Corporation has previously supplied approximately $18 million worth of optical memory cards and encoders for the Citizen and Foreign Resident ID programs, through its Rome based Value-Added Reseller, Laser Memory Card S.p.A.