Laser Card Systems Corporation LASERCARD Secure identification tool

Laser. Card Systems Corporation LASERCARD Secure identification tool for banking services Alessandro Bignozzi Executive Director Bucuresti 22 th of October 2002 L. C. Sistemia S. p. A. - ITALY: Via Della Giustiniana, 630 - ROMA tel. : +39 06 33616091 fax: +39 06 33616573 e-mail: lasercard@lasercard. it web: www. lasercard. it

Outline of Presentation • Company Profile • Optical Memory Card Technology • Standards and Durability Testing • Card Characteristics, Benefits, and Security • Spotlights of Laser. Card Applications • Comparison with IC Smart Card Technology • Optical Card Future View

Company Profile • Drexler Technology Corporation created optical memory cards in 1981, and currently owns over 50 U. S patents related to optical data storage • Drexler Technology’s manufacturing facility in Mountain View, California has an annual production capacity of up to 25 million cards • Laser. Card Systems Corporation was founded by Drexler Technology in 1991 to develop, market and sell optical card based systems • Laser Memory Card S. r. l. of Italy is since 1994 the most representative partnership. • L. C. Sistemia S. p. A. is the unique European manufacturer of the Optical Memory Card reader/writer and Optical Memory cards. • Genesys Software Romania is the unique Partner for the Countries in East Europe: Romania, Bulgaria, Moldova, Ucraina.

Key Benefits of Optical Cards • Permanent - non-erasable media provides excellent data security against fraud and alterations • High data capacity - 4. 1 Mbytes at low cost allows a wide range of applications • Updateable - Card is writable, allowing updating without the need to always re-issue new cards

Additional Benefits • Durable - Card structure is all polycarbonate, with excellent physical properties for long life • Construction - Data is contained in the center core of the card, protecting it from surface damage and counterfeiting • Multi-Tech - Cards can be manufactured with multiple technologies (i. e. , barcode, magnetic strip, chip, OCR-B, serial #)

Laser. Card® Manufacturing • Made of polycarbonate plastic – Polycarbonate is estimated to be 1, 000 times more durable than PVC credit cards • E-Beam cured (300 KVolts) adhesive lamination technique Hard-Coat Clear Polycarbonate Optical WORM media and substrate Custom Artwork • Cards can be manufactured to include: – – – Custom artwork Magnetic stripe Signature panel Laser-engraved serialization IC chip Polycarbonate backing (Not To Scale)

Security Features • Biometrics - Laser recorded data files verified by photo, fingerprint or signature • The Embedded Hologram - personalized, eye-readable image embedded in the optical media. • Security Key - unique serial #’s in the pre-formatted area • Preformatted ROM Data - Upon card insertion, software searches to match data in the pre-formatted ROM • Micro Imaging - Physical security similar to currency printing offered from fine details in the optical media • Optical Watermarks - are eye readable images that are formatted into the media, and protected under hardcoat

Anti-Counterfeiting Features • Eye-Readable features require no equipment to validate authenticity: – Optical WORM media – Micro Optical Imaging – Optical Watermark – Subsurface Serialization – Custom Artwork • Machine-Readable validation through multiple technologies: – Pre-formatted ROM data – Security Format – Personalization files – Laser-Engraved Barcode – OCR-B

Embedded Hologram™ • The same files used to print a document are laser-encoded on the optical media as diffraction pattern image. • Cannot be removed or erased and cannot be duplicated or simulated by photocopying, photography or scanning. • Provides visual verification and authentication of printed information. • Can interleave a copy of the digital file within the laser-encoded optical image for covert machine-readable verification.

Micro Optical Imaging • Images are engineered into the optical WORM media format at a resolution over 12, 000 dpi. • Images cannot be removed or erased. • Can incorporate digital data for added covert, machine-readable protection. • Conventional secure printing and copying techniques cannot simulate the reflective optical media or micro optical images.

System Implementation - Drive DISA 2000 Cardholder verification for: • Security purpouses • Access controls • Banking services • First Aid • Certifications • Police Check This is a Stand-Alone unit that does not require network connection (optional)

System Implementation - Read/Write Drive Laser. Card Optical Card Drive w Industry standards compliance w. ISO standards w. Safety regulations w. Interfacing standards w Standard software environments w. Laser. Card Filing System w. O/S independent w. Unique security features w Special security options w Kiosks/terminal applications

Optical Card Portable Reader – IC 400 PALM OPTICAL READER IC – 400 The Smart Optical Reader IC-400 will be ready for the end of year 2002. Windows CE Operative System on board, network and infrared connctions, 266 Mhz processor, LCD color monitor and personalized function buttons. Battery and AC power supply.

Card Technology Factors # Digital Photos (6 KB Compressed) # Text Pages 2 KByte Updateable No Data Security Digital Capacity Eye Readable paper, plastic none n/a n/a Digital magnetic stripe barcode 2 D Symbology Memory chip Smart IC chip Optical encryption PIN, format up to 900 bytes 50 bytes 3, 000 bytes 8 KBytes 32 KBytes 1. 5 MBytes 4. 1 MBytes none 1 image 2 images 180 images 465 images 13 lines No < 1 line No 1. 5 pages No 4 pages Yes 16 pages Yes 550 pages Yes 1, 430 pages. Yes

Laser. Card® Applications • • • Immigration & Travel Refugee Card Removal Cases Permanent Resident Card Foreign Student Card Employment Authorization Single/multiple-entry visa Passport Card Automated border entry • • • National ID Citizenship Card Multiple Application • • Interdiction Airline check-in Immigration Control Foreign Missions

Permanent Resident Card In 1997, Laser. Card® optical memory cards were selected by the United States Immunization and Naturalization Service (INS) for the current “Green Card”. Laser. Card characteristics that influenced the INS’s decision include: • • Counterfeit Resistance High Data Capacity Low Cost High Performance High Data Durability Updateable Information Embedded Hologram™

Other OMC Secure ID Programs - Canada Expedited border clearance w CANPASS Pilot operated by Canadian Government since 1996 w Canadian Airports Council to expand system across Canada in 2002 Permanent Resident Card w Citizenship & Immigration to replace IMM 1000 w Program started year 2002 w Annual requirement of 750, 000 Passport Card w Concept sponsored by Passport Office in ICAO forum w Program start mid-2002 w Annual estimate of 300, 000 500, 000

Other OMC Secure ID Programs - Canada Overview The Permanent Resident Card (also known as the Maple Leaf Card or the PR Card) is a new, wallet-sized, plastic card. Security features of the new PR Card will simplify the screening process of Permanent Residents when boarding a commercial carrier going to Canada. The card also increases Canada's border security and improves the integrity of Canada's immigration process. Beginning on June 28, 2002, PR Cards will be mailed to new Permanent Residents of Canada as part of the landing process. People who are already in Canada as Permanent Residents can apply for the new PR Card beginning October 15, 2002. Card Security The card will give holders reliable documentation of their permanent residence status. The high-tech security features will make the card extremely resistant to tampering or duplication. The requirement for Permanent Residents to produce this card when boarding a commercial carrier going to Canada will simplify the job of transportation officials in screening people for proper documentation.

Other OMC Secure ID Programs - Italy National ID Card • Coexistent technology card – Optical Memory – IC chip – OCR-B data w To be introduced in 2002 w Annual requirement 10, 000 • Partial on-shore production

Other OMC Secure ID Programs - Italy

Automated Manifest System • • Winner of the “Hammer” Award for new technology Cost Reduction of 67% for Army logistics System in place over 5 years Optical card is the standard for Defense Logistics Worldwide deployment Data is downloaded from networked database Card provides a on-site, off-line local database to reconcile shipment inventories • The DLA (Defence Logistics Agency – USA) employes Laser. Cards since 1991

Novus Image/Archive Card • Cost Control - FDA approved system to capture, display, archive and transport up to 80 MRI and CT scans on an optical memory card. Reduces incidence of lost film. Reduces storage and film duplication costs. • Physician & Patient Satisfaction Faster retrieval of film studies. Patient confidence in having card and not losing scans. • Revenue Generation - New and repeat referrals to imaging center

Honda Card - Vehicle Records • • Contains complete card build history All part numbers are stored on card Warranty and service records Owner information and registration Provided by Honda with each new car Adds value by providing service/maintenance history Marketing value by visible high tech message to Honda owners

Health Care OMC Applications • • Regimed Vital Plus Card - IC chip & optical memory Italian Social Security Insurances INPS & INAIL Hong Kong Hospital Authority Belgium Army Medical Card Keesler Medical Center – Biloxi (USA) Italian Red Cross blood donors Italian National Neurologic Institute Italian Carabinieri Army

Zerco Systems POS card • • Point of Sale application Uses optical stripe and magnetic stripe Multiple transaction applications on one card Tracks all food stamp, WIC, and other benefits Complete transaction history on optical stripe Biometric fingerprint verification of card holder Uses magnetic stripe for ATM transfer to optical Integrated terminal for point of sale applications

Banking and Financial Applications - positive identification, security access, transactions certification, transaction records, - property ownership certification, savings account, pensioners card, credit card - insurance card, social security/fiscal code card, local or national services card, commercial fidelity and sponsorhip card - hybrid “all-in-one” use card (credit, health, insurance, social security, pension, transport, sponsorhip, etc. )