LaserCard: Fiscal 4Q08 Financial Results

LaserCard Corporation announced the financial results for its fiscal
2008 fourth quarter and fiscal year ended March 31, 2008.

Revenues for the fourth quarter of fiscal 2008 were $7.3 million,
compared with $11.2 million in the prior quarter and $9.2 million in
the same quarter a year ago. The net loss for the fourth quarter of
fiscal 2008 was $3.3 million, or ($0.27) per diluted share, compared
with a net loss of $1.1 million or ($0.09) per diluted share in the
prior quarter, and a net loss of $6.9 million, or ($0.59) per diluted
share, in the same quarter a year ago.

For the fiscal year ended March 31, 2008, LaserCard reported
revenues of $37.0 million, compared with prior fiscal year revenues of
$32.3 million. Net loss for fiscal 2008 was $7.2 million, or ($.60)
per diluted share. For fiscal 2007, the Company reported a net loss of
$12.4 million, or ($1.05) per diluted share.

Revenue from optical memory cards totaled $22.1 million in fiscal
2008, compared with $19 million in fiscal 2007. Revenue from specialty
cards and printers totaled $13.2 million in fiscal 2008 versus $11.8
million in fiscal 2007, with the remaining revenues coming from the
enabling services and other products and services within the drive
systems and services segment. Optical memory card revenues in fiscal
2008 were mainly from sales of citizen ID cards (CIE) and foreign
resident cards (PSE) for the Italian government programs, Laser Visa
Border Crossing Cards and Green Cards for the U.S. Department of
Homeland Security, Permanent Resident Cards for the Canadian
government, national ID cards for a Middle Eastern country, and
vehicle registration cards in three Indian states.

"I am pleased with the progress made in strategic diversification
over the past year," said Bernard C. Bailey, chairman of LaserCard’s
board of directors. "We have continued to evolve our company from a
technology supplier to a more comprehensive identity solutions
provider. While we realize that there is still much work to be done to
realize our full potential, I am excited by the commitment and passion
that our people have demonstrated towards this goal."

Highlights of FY2008:

• On April 2, 2007 announced the receipt of a new follow-on
  subcontract from General Dynamics for U.S. Department of
  Homeland Security "Green Cards" Permanent Resident Cards and
  "Laser Visas" Border Crossing Cards for an initial 12-month
  period with optional extensions up to a total of five years
• Received a subcontract extension and $2.0 million order for
  Canadian permanent resident cards
• Awarded a $1.7 million contract with the Costa Rican
  government for a secure foreign resident ID management system,
  furthering LaserCard’s integrated solutions approach
• Completed the enabling services phase of an $11 million
  subcontract for distributed issuance of optical memory based
  National ID cards for a Middle Eastern country
• Received a $2.3 million order for optical memory cards to be
  used in the expansion of a Middle Eastern country National ID
  card program
• Awarded an $8.5 million contract with Golden Chip Company of
  Saudi Arabia for LaserCard’s delivery of a turnkey plastic
  card manufacturing facility
• Reported progress in Italy related to the National Citizen ID
  card program whereby IPZS, the program prime contractor,
  issued an RFP for expansion of the data collection and card
  issuance infrastructure which could lead to full
  implementation of the program
• Delivered on a $200,000 card encoder order for the National ID
  card program in Italy
• Licensed Ritel SpA in Italy to manufacture read/write drives,
  act as a European source for drives and help propel
  technological improvements
• Won Angola National ID card project, which could lead to up to
  $90 million in revenue over five years
• Received initial orders for recently launched high durability
  laser engravable passport data pages
• Assisted Prevent Global (PG) to develop plans for LaserCard’s
  transfer of manufacturing equipment to PG facility in
  Slovenia; installation to be part of the establishment of a
  factory for the licensed manufacture of optical memory cards;
  $26 million in revenue would be recognized by LaserCard upon
  completion of the factory

Cash and Investments
LaserCard Corporation’s cash, cash equivalents, short-term
investments and long-term investments were $18.6 million at March 31,
2008, compared with $20.5 million at March 31, 2007. The Company has
no significant debt.

LaserCard Corporation