Intelli-Check Settles Patent Infringement Suit Against CardCom; CardCom Agrees to Pay Royalties under Licensing Agreement

    WOODBURY, N.Y.--June 24, 2003--Intelli-Check, Inc. (AMEX:IDN), the acknowledged leader in advanced document and age verification systems, today announced that its patent infringement lawsuit filed against CardCom, Inc., doing business as CardCom Technology, Inc., has been settled with CardCom, Inc. agreeing to license terms which permit the use of some of Intelli-Check's patents for its ID-CHECK technology.
    In a suit filed in February 2003 in U.S. District Court for the Eastern District of New York, Intelli-Check maintained that CardCom had infringed on one of its patents for the Company's state-of-the-art ID-CHECK technology relating to CardCom's system for document identification.
    Under terms of the settlement, Intelli-Check has granted to CardCom a three-year patent license allowing it to use certain of Intelli-Check's patents in connection with the manufacture, use and sale of Cardcom's age verification products in the United States and Canada. It also provides that CardCom will pay royalties on its net sales pertaining thereto. Additionally, under terms of the agreement CardCom has agreed to cease all advertisements that state or imply that its products provide documentation authentication or verification.
    "We are pleased that we were able to amicably settle this litigation with CardCom on favorable terms," stated Frank Mandelbaum, Chairman and Chief Executive Officer of Intelli-Check. "As part of the settlement, CardCom acknowledged in all respects the validity and enforceability of our patent portfolio," Mr. Mandelbaum added. "This settlement further confirms the value of our patents and the potential future revenue stream that may arise from them."
    Mr. Mandelbaum stated that Intelli-Check, which has entered into a number of licensing agreements for its ID-CHECK technology, will continue to take whatever steps are deemed necessary to protect its intellectual property portfolio. Intelli-Check was granted a broader continuation patent in October 2002 on its original patent for document verification. Intelli-Check and its IDentiScan division currently hold four patents with three others pending, in addition to its trademarks and copyrights.
    In an unrelated matter, the Company announced that the Securities Exchange Commission has, as of 10:00 a.m. today, declared effective the S-3 registration statement registering the securities in connection with the transaction with Gryphon Master Fund L.P. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State.

    About Intelli-Check, Inc.

    Intelli-Check, Inc. (www.intellicheck.com) is a developer and marketer of an advanced state-of-the-art document verification system for authenticating the validity of U.S. and Canadian driver licenses, state-issued identification cards and military IDs that comply with accepted standards used as proof of identity. Intelli-Check's multi-purpose ID-CHECK(R) units are fully capable of increasing security and as a tool that can be used to deter terrorism at military installations, high profile buildings, airports and other critical infrastructure and are also an effective tool against "identity theft," which often is supported by fake IDs and is the fastest growing crime in the U.S. ID-CHECK(R) units enable a user to prevent economic loss from check-cashing, credit card and various other frauds utilizing fake IDs and the ID-CHECK(R) and IDentiScan units have the ability to determine whether purchasers of age-restricted products such as alcohol and tobacco meet minimum age requirements for their sale. ID-CHECK(R), with its patented technology, analyzes and displays information encoded in magnetic stripes and barcodes found on driver licenses, military identification and other forms of state and government-issued identification from more than 50 jurisdictions.

    Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. When used in this press release words such as "potential", "may" and similar expressions, as they relate to the Company or its management as well as assumptions made by and information currently available to the Company's management identify forward looking statements. Additional information concerning forward looking statements is contained under the heading of risk factors listed from time to time in the company's filings with the Securities and Exchange Commission. We do not assume any obligation to update the forward-looking information.