Intelli-Check Announces that Gryphon Master Fund Converts Series A Convertible Preferred Stock into Common Stock

WOODBURY, N.Y.--March 4, 2005--Intelli-Check, Inc. (AMEX:IDN), a leader in advanced identification-document-verification systems, announced today that on February 25, 2005, Gryphon Master Fund, L.P. converted the company's Series A 8% Convertible Redeemable Preferred Stock into 454,545 shares of the company's common stock. The conversion price was $6.60 per share. Annual dividend payments to Gryphon Master Fund of $240,000 have ceased as of February 25, 2005. The preferred stock was previously carried as debt on the Company's balance sheet. As a result of the conversion, Intelli-Check will now treat this issuance of common stock as equity. Additionally, the company is no longer required to make the $3 million redemption payment which would have been due March 27, 2008 had the Company been unable to force conversion under the terms of the agreement.

On March 27, 2003, pursuant to a Securities Purchase Agreement, Intelli-Check sold 30,000 shares of its Series A 8% Convertible Redeemable Preferred Stock, par value $.01 per share, for $3,000,000 before expenses to Gryphon Master Fund, L.P. Each share of Preferred Stock entitled the holder to receive dividends of 8% per annum convertible into 15.1515 shares of the company's common stock. Additionally, each investor received one (1) five year warrant to purchase 3.787875 shares of common stock at an exercise price of $6.78 with each share of Preferred Stock purchased.

About Intelli-Check, Inc.

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. Our 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, please 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 use of ID-CHECK technology by our potential customers and partners, or government efforts to enhance security will lead to additional sales of ID-CHECK technology. 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.