Intelli-Check Announces Third Quarter 2004 Results

WOODBURY, N.Y.--Nov. 1, 20045, 2004--Intelli-Check, Inc. (AMEX:IDN), a leader in advanced identification-document-verification systems, announced that revenues for the third quarter ended September 30, 2004, were $232,661, compared with $345,685 for the same period in 2003. Sales, which represent shipments of products and contracted services, amounted to $228,152 and $327,579 for the 2004 and 2003 quarters, respectively. The Q3 2004 results include an inventory write-down of $200,000. Net loss was $(1,668,884), or $(.17) per share in the 2004 quarter, versus $(1,077,840), or $(.13) per share a year ago. Basic and diluted weighted average shares outstanding used in computing per-share amounts in both periods were 10,276,066 and 8,984,216, respectively.

"We are disappointed with this quarter's results, which reflect a longer-than-anticipated lead time to turn our many promising opportunities with marquis accounts into concrete sales," said Frank Mandelbaum, chairman and chief executive officer. "Nonetheless, we remain optimistic that, once these national accounts have completed their pilot-evaluation programs, we have significant prospects for widespread deployment of our technologies across many applications.

"For example, a major national wireless carrier, after a preliminary test with two of our systems, has ordered an additional 20 systems in order to complete their development, testing, and staging for a larger-scale pilot program, which will run through January 2005. If the pilot is successful, the customer has indicated that it may deploy our technology in many of its retail locations and will also consider moving forward with full deployment across its retail enterprises nationwide. Similarly, we continue to receive positive feedback from the ongoing pilot program at a major national retail chain. In both cases, these customers are looking to our technology to help improve productivity at the point-of-sale, ensuring speed and accuracy in data collection, as well as to prevent economic losses from the use of fake IDs and from identity fraud. Additionally, we have made significant progress in the integration of our technology with that of a major provider of global payment services, which has also purchased approximately 40 systems for use in one of its subsidiary companies. And we are pleased to report that the integration of our technology with that of SiVault Systems has proceeded to the point where it is capable of being demonstrated."

Mr. Mandelbaum continued, "We also believe we are very-well positioned in upcoming homeland-security applications. As we announced last week, we've introduced two new software products for "in-person proofing - ID-TRAVELERTM and IDENTITY-PASSTM, which are aimed at meeting the credentialing requirements of Presidential Directive HSPD-12 to help prevent the use of false IDs and identity theft to obtain legitimate government IDs."

Today at 4:30 pm EDT the company will host a conference call for shareholders and members of the investment community to discuss its financial results and corporate initiatives. Interested parties may participate in the call by dialing 1-800-540-0559 approximately 10 minutes before the call is scheduled to begin. International callers should dial 1- 785-832-0326. For anyone who is unable to participate in the live conference, access to a recording will be available for 48 hours after the call. The rebroadcast can be accessed domestically by dialing 1-888-274-8336. For international callers, the dial-in is 1-402-220-2328.

          Condensed Statements of Operations for Three Months
             Ended September 30, 2004 and 2003 (Unaudited)
 
                                             Q3 2004       Q3 2003   
 Revenues                                    $232,661      $345,685  
 Net Loss                                 $(1,668,884   $(1,077,840)  
 Net Loss Per Common Share
  -Basic and Diluted                          $ (0.17)      $ (0.13)
 
 Weighted Average Common Shares Used 
  in Computing Per-Share Amounts -Basic 
  and Diluted                              10,276,066     8,984,216 

About Intelli-Check

Intelli-Check, Inc. is the acknowledged leader in technology that assures the authenticity of driver licenses, state issued non-driver and military identification cards used as proof of identity. Its patented ID-CHECK technology instantly reads, analyzes, and verifies the encoded data in magnetic stripes and barcodes on government-issue IDs from approximately 60 jurisdictions in the U.S. and Canada to determine if the content and format is valid. Applications include:

-- security and access control to protect airports, government and commercial buildings, military installations, and other critical sites

-- identity theft, commercial and government fraud prevention to help stem the millions of dollars each year in losses from credit card, check-cashing, bank, insurance, healthcare and pharmacy fraud

-- age verification to protect bars and other retail establishments from the potential fines and penalties associated with selling age-restricted products to minors

-- productivity enhancement to eliminate inefficiencies and inaccuracies associated with manual data entry

The company has been the national testing laboratory for the American Association of Motor Vehicle Administrators (AAMVA) since 1999 and has access to all the currently encoded driver license formats. For more information, visit www.intellicheck.com.

Intelli-Check Safe Harbor Statement

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 "will," "believe," "expect," "encouraged" 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. Our actual results may differ materially from the information presented here. There is no assurance that the introduction of ID-TRAVELER and IDENTITY-PASS technology to our potential customers and partners, or government efforts to enhance security will lead to additional sales of our products. 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.