LaserCard: 3Q08 Financial Results

LaserCard Corporation announced the financial results for its fiscal 2008
third quarter ended December 31, 2007.

Revenues for the third quarter of fiscal 2008 were $11.2 million,
compared with $10.7 million in the prior quarter and $6.2 million in the
same quarter a year ago. The net loss for the third quarter of fiscal
2008 was $1.1 million, or ($0.09) per diluted share, compared with a net
loss of $498,000 or ($0.04) per diluted share in the prior quarter, and
net loss of $3 million or ($0.25) per diluted share in the same quarter
a year ago.

LaserCard optical memory card revenues for
the quarter were $7.9 million compared with $6.7 million in the second
quarter of fiscal 2008 and $3.1 million in the third quarter last year.
Revenues from specialty cards and printers were $3.1 million for the
third quarter of fiscal 2008 compared with $3.3 million in the prior
quarter and $2.9 million in the same quarter a year ago.

LaserCard Corporation’s cash, cash
equivalents, and short-term investments were $18.6 million at December
31, 2007 compared with $18.5 million at September 30, 2007.

“Our continued focus on expanded client
service offerings is paying off. During the December quarter we were
granted a $1.7 million contract by the government of Costa Rica for
optical memory cards and a complete Foreign Resident ID Management
system,” said Richard Haddock, president and
CEO of LaserCard. “We are developing and
supplying a full suite of solutions covering data capture for client
enrollment, card issuance, quality assurance, and our new fingerprint
biometric ID check system to detect and prevent duplicate enrollments.
This project builds upon the experience we gained integrating and
installing card issuance systems in cities throughout a Middle Eastern
nation."

“We are encouraged that the Italian government
has further progressed toward the full implementation of the citizen ID
card program during 2008 and beyond,” said
Haddock. “The state printing office,
Poligrafico, issued an invitation to vendors to apply to qualify for
supplying and supporting more than 9,000 data capture stations for the
enrollment of citizens in the program. The anticipated contract will
include the installation and support of approximately 1,300 optical
memory card encoders, which we believe will be sourced from us."

“We are also on the winning team for a
national ID card program in Angola, our first national-level optical
memory card program in the African continent. Revenues could reach $90
million over five years if the prime contract is fully implemented,"
said Haddock.

LaserCard Corporation