Team of Industry Experts
5
Professional Management Team Led by
Robert V. LaPenta, Chairman, President and CEO
Dr. Joseph Atick
EVP and Chief Strategic Officer
James A. DePalma
EVP, Chief Financial Officer and Treasurer
Mark S. Molina
EVP, Chief Legal Officer and Secretary
Joe Paresi
EVP and Chief Marketing Officer
Doni Fordyce
EVP of Corporate Communications
Vincent A. D’Angelo
SVP of Finance
James H. Moar
President of Identix, Inc.
Bruce Hanson
President of SecuriMetrics, Inc. & Iridian Technologies
Jim Ebzery
President of the Secure Credentialing Division
(formerly Viisage Technology, Inc.)
Charlie Carroll
CEO of IBT
Team of Industry Experts
Board of Directors Who Have Solved the World’s
Toughest Security Challenges
Louis Freeh, former director of the FBI
George Tenet, former Director of the CIA
Admiral James Loy, former Deputy Secretary of the Department of
Homeland Security, TSA Administrator and Commandant of the
US Coast Guard
Robert Gelbard, former Assistant Secretary of State and U.S. Ambassador
Buddy Beck, founder of Trans Digital Technology and member of the U.S.
Defense Science Board (DSB)
6
Biometric Industry Revenue Forecasts*
*Source: Frost & Sullivan
Percent of Revenue by Segment (2008)*
Our Biometric Community’s Combined Capabilities Can Address
This Growing Market
Voice
Verification
6%
Signature
Verification
2%
Non-AFIS
26%
AFIS
35%
Facial
Recognition
17%
Eye
Scan
10%
Hand
Geometry
4%
Combined Companies
Growing Demand
7
Government is Driving Mass Adoption
of Identity Solutions
8
Solution-Based Approach to Customer Needs
Federal / State
ABIS
Enrollment /
Credentialing
Facilities Access
Civil ID
Enrollment
ABIS
Card Production
Verification
Driver’s License
Criminal
Booking
Investigations
Mobile ID
ABIS
Inmate ID
Commercial
Financial
Casino and
Gaming
Healthcare
Border Management
Watch List Screening
Document
Authentication
Mobile ID
9
Sagem (Safran)
Saflink
Printrak (MOT)
NEC
Cross Match
Cognitec
Cogent
L-1 ID
Iris
Credentialing
(Pay-by-Click)
Facial
Recognition
Biometric
Data-Mining
ABIS
AFIS
Mobile
ID
Full
Hand
Live
Scan
Strong Presence
Limited Presence
No Presence
Competitive Landscape
Intel
Svcs
10
Combined Market Leadership
Recognized leader in multi-biometric capabilities for finger, face and iris
Delivering the first fully-integrated multi-modal ABIS system for the DoD ( via
Northrop Grumman team) expected to support up to 2.4 million finger, face,
palm and iris records, and a lesser number of unsolved latent prints
Produce more than 35 million secure credentials annually at over 3,000
locations
Second largest producer of driver’s licenses in the U.S.
Sole provider of U.S. passport production capability
Leading provider in the US live scan market, including for the US
Department of Homeland Security for use at the nation’s border crossings
11
Combined Market Leadership
Built largest install base of document authentication readers globally
Sole provider of State Department visa issuance system -- the largest facial knowledge
discovery system of its kind with more than 50M records
Serve as the production platform for U.S. DOD Common Access Card (CAC)
Used by the Department of State in one of the largest implementations of facial
recognition worldwide, with more than 51 million records searched at a rate of 2000 per
hour
More than 3,500 PIER™ / HIDE iris recognition mobile devices deployed throughout Iraq,
Afghanistan, Pakistan, Cuba, Bosnia and other areas of conflict
AFIS fingerprint technology among top 3 in recent NIST testing
Operate more than 500 Live Scan fingerprinting centers; electronically fingerprint one
million applicants annually
12
Core Strengths
13
Actively sought by prime contractors to partner on large federal
contracts
- Accenture
- Booz Allen Hamilton
- CSC
- EDS
- IBM
- Lockhead Martin
- Motorola
- Northrop Grumman
- SAIC
- Unisys
Printing and Document Authentication
L-1 has delivered over 165 million secure credentials
30M cards/year at more than 2000 locations
High resolution, non-fading image printing
Central issuance and over-the-counter solutions
iA-thenticate® detects fraudulent documents
Largest database of authentic ID documents
Border crossing for 20 countries
iA-thenticate®
14
AFIS Software
Finger and Hand Imaging and ABIS Solutions
Live Scan
Stations
Mobile Capture
Devices
Self-Enrollment
Kiosks
TP-4100 Slap and Roll
Ten Print Capture
Single Finger Capture
15
Unparalleled Facial Recognition Solutions
DoD ABIS
State driver’s licenses
Visa and green card applications
DoS database of > 51 million records
Largest in the world
16
Leading Iris Solutions
L-1 is the Industry Standard for Iris Recognition
Registered Traveler
Border
Crossings
Pier-T
Pier 2.3
HIIDE
17
Automated Biometric Identity System (ABIS)
Integrated multi-biometric technologies
Fingerprint/handprint (10 print, slap, 20-print, palm, 1:1,
1:N) / Top tier technology validated by NIST
Face / Top tier technology validated by NIST
Iris / Top tier technology validated by NIST
Biometric data fusion
Modular, open architecture
Lower cost to maintain and manage
More flexibility
Multi-Biometric ABIS Software
18
Enrollment and Consulting Services
Total business & technology infrastructure
for outsourcing biometric capture
500+ locations across the USA and Canada
4 million people fingerprinted to-date
1 million per year
Consulting services
Comprehensive security and intelligence
solutions
Government consulting, training and staffing
IBT/IIS
SpecTal
19
Key Addressable Markets and Industry Opportunities
$2-5B
$1-2B
Financial Institutions
Health Care
Commercial
$100M
$150 - $200M
$325 - $1B
$5 - $10B
Passcard
U.S. Passports
US-VISIT / EU Program
Global Initiatives
• e-passports, e-borders
Border Management
$1-$2B
Finger and Face Recognition
ID Database Information
Sharing Mobile Identification
Criminal
$1B
$250 - 500M
$70 - $500M
$200M
$500M
$100 - $200M
$1B
$5 -$10B
Real ID Act
First Responder Credentialing
Transportation Worker
Identification Credential (TWIC)
Registered Traveler
HSPD-12/FIPS-201
ABIS, BISA, MEPCOM, MIBS
NGI
Day Worker Program
Civil and Federal
20
Q4’06 Review - Financial Highlights
21
Q4 ‘06 (A)
Q4 ‘05 (A)
Revenue
$76.3
$15.0
Gross Margin
36%
21%
EBITDA
$15.2
$0.5
FY’06 Review - Financial Highlights
*After excluding non-recurring charges of $3.6 million
22
FY ‘06 (A)
FY ‘05 (A)
Revenue
$164.4
$66.2
Gross Margin
31%
27%
EBITDA
$23.7
$6.5
Recurring Base of Business Provides Strong
Visibility for CY2007
CY2007 Est
CY2007 Estimated Revenues
335
$
Est. Sales From Recurring:
Drivers License States
30
PassPort / CAC
30
Services for Livescan
35
Enrollment / Vetting
65
Government Services / Intel
70
Funded Iris Development and Other
30
Total Recurring
260
$
% of Total Revenue
75%
23
Financial Guidance
Q1 ending March 31, 2007
Revenue of $73 - $75 million
Adjusted EBITDA of $9.0 - $11.0 million
Gross margins approximately 35%
Loss per share in the range of $0.04 - $0.06
2007
Revenue $330 - $340 million
Adjusted EBITDA of $58 - $62 million
Gross margin to be approximately 35%
Earnings per share in the range of $0.08-$0.12
24
Summary
Experienced, proven Management team
Board of Directors with direct experience in solving
identity-related security challenges in the public
sector
Large, growing, global target market
Capabilities to address 88% of the potential biometric
market segments
Only player with “end-to-end” multi-modal product
capabilities
Organic revenue growth expected to be 20%
EBITDA growth expected over 100 percent in 2007
25
