Category: Uncategorized
July 23, 2002

News Release: Continued Growth of Client Base and Penetration Into Healthcare - and Financial Services Sectors

SAFLINK(TM) Corporation, a leading developer, marketer, and integrator of multi-biometric security solutions, announced today that it has acquired 18 client accounts since May of 2002. These additional accounts bring the total number of active SAFLINK clients to more than 140, based on products and evaluation kits shipped since January 2001. "We are pleased to see continued growth in our client base," said Joshua Grantz, Vice President of Sales and Marketing for SAFLINK. "We believe that businesses are beginning to understand that biometrics can be a convenient and cost-effective means of providing network security -- not just a nifty device in a science fiction movie."

Since the third quarter of 2001, the Company has been focusing its efforts on four specific industry sectors: Healthcare, Financial Services, Government, and Education. As of July 2002, the company's two strongest sectors are Financial Services and Healthcare, with 46 and 16 clients, respectively.

"We have focused on these sectors because we believe there are strong external market forces -- such as federal regulations mandating the protection of patient records in the Healthcare industry -- which are driving these companies to improve their level of security," said Grantz. "Our solutions are designed to provide the level of security these companies need, while increasing convenience for the user."

In addition to external market forces, the Company believes there are significant business reasons for companies in these sectors to adopt biometric security solutions.

"One of our financial services clients has brokers accessing as many as 30 applications in a given day. That means each broker needs as many as 30 unique usernames and passwords," said Walter Hamilton, Vice President of Business Development for SAFLINK. "Through our partnership with Single Sign-On software providers, we can bypass these passwords entirely by enabling the user to log on to all of these applications using his or her fingerprint, iris, face, or voice. We believe this can eliminate an enormous hassle for users and administrators in one solution, while simultaneously increasing a company's level of network security."

Moving forward, the Company plans to continue to focus on its four primary industry sectors, dedicating development, sales, and marketing resources to each industry.

"Because of the specific needs that customers in each of these industries have, we plan to offer solutions which are tailored to each industry," said Grantz. "We are now working to develop features and functionality to meet the individual needs of each customer segment."

About SAFLINK

SAFLINK Corporation brings "The Power of Biometric Authentication(TM)" to workstations and enterprise networks through biometrics. The Company provides cost-effective multi-biometric software solutions to verify individual identity, protect valuable information, and eliminate passwords. These solutions are designed to safeguard and simplify access to electronic systems and online services.

NOTE: "SAFLINK" and "The Power of Biometric Authentication" are trademarks of SAFLINK Corporation. All other trademarks are the trademarks or registered trademarks of their respective holders.

This press release contains information about management's view of the Company's future expectations, plans and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with the Company's financial condition, its ability to sell its products, its ability to compete with competitors, the propriety of its decision to focus its sales resources on the healthcare, financial service, government, and education sectors, promulgation of certain federal regulations that would increase the market for biometrics within certain sectors, and the growth of the biometrics market as a whole, as well as other factors that are discussed in the Company's 424(b)(3) Prospectus filed with the SEC December 14, 2001, as supplemented, and in its Annual Report on Form 10-K, as well as other documents periodically filed with the Securities and Exchange Commission.

TEL: +1-800-762-9595 Thomas Doggett, Marketing & Comm. Mgr.
SAFLINK Corporation
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