InsideIdentixInformation. News. Product Updates. Winter 2005

© 2005 Identix Incorporated. All rights reserved.

WHAT’S INSIDE

Kansas is the newest state to join the fight against identity theft and fraud by making its driver’s license

harder to duplicate with the aid of facial recognition technology.

Prompted by the alarming growth of identity theft crimes and by new legislation such as the Intelligence Reform and Terrorism Prevention Act of 2004 and the Real ID Act recently passed by the House of Representatives, more driver licensing agencies in the U.S. are adopting new technologies such as biometrics to increase the security of driver’s licenses which are widely accepted as personal identification cards for airline boarding, cashing checks, claiming government benefits, buying firearms, tobacco and alcohol, and obtaining credit.

In July 2004, the Kansas Department of Motor Vehicles started a pilot program comparing new driver’s license applicants and renewals against a 6.2 million facial image database to protect against fraudulent IDs using Identix® facial recognition technology. Since that time, Kansas DMV, has scaled the system to

full application and processes 3500-5000 applicants per day, and credits the technology for helping to identify an estimated one to two fraudulent ID applications on a nearly daily basis.

The system was deployed by Digimarc ID Systems for the Kansas DMV using an image database verification solution based upon Identix’ leading FaceIt® facial recognition technology. The system works by comparing a digital formula of the applicant’s face to the other pictures in the State’s license database and returns a list of possible matches. A human operator then reviews the matches and determines if the applicant has already applied under another name.

According to the customer, the integrated solution developed by Digimarc and powered with facial recognition technology, has given them a much needed tool in preventing the issuance of multiple driver applications, false breeder documents to professionals engaged in identity fraud and terrorism who exploit the difficulty that most DMVs face in effectively detecting fraud prior to issuance.

Driver License SecurityDigital Identity Verification using Identix® Facial Biometrics

Identix® FaceIt technology has consistently performed at the top of independent government evaluations and has been deployed worldwide in government, commercial and law enforcement applications. The latest generation FaceIt technology combines traditional facial geometry technologies with skin biometrics to deliver maximum accuracy.

Kansas joins Colorado and the District of Columbia in using this solution. Other states that have adopted Digimarc’s leading secure ID solutions enabled by Identix® fingerprint technology include Alabama, California, Florida, Georgia, Hawaii, Michigan, New Jersey and Texas.

“We are committed to providing the most secure ID solutions in the industry and customizing these solutions to our customers’ exacting requirements. Partnering with companies like Identix boosts our ability to deliver solutions that help not only in stopping identity theft but also in stopping people from getting licenses illegally and using these fraudulent documents to commit other crimes,” says Mr. Robert Durst, Senior Vice President, Worldwide Marketing and Business Development for Digimarc. For more information on Digimarc, visit www.digimarc.com.

CEO Letter

Product Spotlight: TouchPrint™Enhanced Definition 3000 Series

Customer Service: Your Success is Our Success

Law Enforcement Update: Puerto Rico Department of Corrections

TOP 100 INNOVATORS

Enhanced Definition Product Spotlight: TouchPrint™

Live Scan SeriesAt Identix, we recognize that the success of any fingerprint program hinges on perhaps one single factor – image quality. To get maximum AFIS hits and minimal rejections for the lowest cost of ownership you need a live scan that consistently delivers the clearest fingerprint images, even in busy, high traffic environments and under the most varying conditions.

Identix created the TouchPrint Enhanced Definition 3000 Series to provide its customers with a product set that goes beyond the FBI Appendix F standard, taking into account the challenges that exist in real-world environments. The result is a higher level of image quality and advantages not available with other live scan systems.

The TouchPrint Enhanced Definition 3000 Series translates into tremendous value for customers because they experience

better results: better AFIS performance, minimal rejections, more accurate background and criminal checks. But don’t just take our word for it …

According to Major Victoria Connor of the Denver Sheriff Department, which oversees the city jail, “having been a user of Identix live scans for ten years, the Denver City Jail has always been impressed with the emphasis that Identix has placed on providing high quality fingerprint images, which is critical to the optimal performance of our AFIS system and our ability

Red Herring’s Top 100 Innovative Companies for 2005 http://www.redherring.com/Article.aspx?a=11059

Sweden-based Snabbfoto to deliver the facial enrollment solution for the new Swedish biometric passports to help ensure compliance with international standards for machine-readable travel documents.

Here at home, the State of Kansas has become the latest to adopt Identix FaceIt® technology to help eliminate the issuance of fraudulent driver licenses. Similar to the results in Colorado, the technology is being attributed to catching one to two attempted cases of fraud per day. As noted in the 9/11 Commission Report, false driver licenses are breeder documents that can lead to more sinister crimes. We believe that our superior technology solutions coupled with our strong partnership with Digimarc, the provider of driver licenses to 33 states, will drive further adoption of our combined solution.

We are proud of these accomplishments and we are happy that all our hard work do not go unnoticed. Last December, Red Herring magazine named Identix among its Top 100 Innovators, identifying the company as a driver of change, upsetting the status quo and creating new markets.

As 2005 progresses, we consider ourselves to be very well positioned to address the growing demand for identification solutions around the world. But it is you, our customers and partners, who make our success possible and our commitment to provide you with new innovations, best of breed solutions and the best customer service continues.

Regards, Dr. Joseph Atick President and Chief Executive Officer

At Identix, we continually reaffirm our commitment to innovation not only in bringing

to market solutions that create enormous value to the customer but also in developing standards and open architecture systems that promote interoperability and easy integration. Our commitment to you also underlies our strategy to partner only with like-minded innovators to bring you the best solutions – important qualities as we blaze new trails in the deployment of large-scale identity systems and solutions.

The launch of our newest live scan product family, the TouchPrint™ Enhanced Definition 3000 Series, is an example of our commitment to delivering high-value solutions. This product introduction is a direct result of our first-hand understanding of the real world challenges of fingerprinting – capturing a high quality fingerprint regardless of the condition of a subject’s fingers or operator skill. The difference in our offering is clear and obvious, and we challenge users to compare images captured on these new systems versus those captured on competitive live scans. For our TouchPrint Enhanced Definition 3000 Series customers, this difference translates into better results: better AFIS performance, minimal rejections, more accurate background and criminal checks.

The adoption of our ABIS™ search engine platform and our facial recognition technology continues as well. In the Middle East, the ABIS™ system was selected as the core biometric search engine for one country’s national ID program, to assist in national security efforts and provide a highly accurate, user-friendly means of ensuring its citizens receive all the benefits to which they are entitled. We’ve also been recently selected as part of a team led by

Commitment  and Collaboration.  Just two of the words Identix live by. 

CEO Letter

Enhanced Definition Product Spotlight: TouchPrint™

3000 What is Enhanced Definition? Other live scan systems on the market are designed to capture 500 ppi resolution ‘standard definition’ fingerprint images per the FBI’s Appendix F requirements. Identix’ TouchPrint™ Enhanced Definition 3000 Series goes far beyond the FBI Appendix F standard by providing:

More Imaging Power 3.5 times the pixel density

Clean Image View™ 70% greater signal-to-noise ratio for increased ability to read fine features and detail in fine ridge structures

Precise Image Distribution™ 200% less geometric distortion for enhanced accuracy of minutiae and ridge detail location

Fine Feature Contrast™ 300% more contrast and ability to read fine ridge detail

Moisture Discriminating Optics™ Ignores moisture and sweat to prevent blobs

Dual Beam Illumination™ Provides greater uniformity across platen region

AntiSmear™ Technology Prevents smudging and smearing during finger rolls

Uncoated Platen Helps to ensure consistent image quality over time

In addition, these unique technologies help the TouchPrint Enhanced Definition 3000 Series take into account differences between subjects: finger sizes, conditions and skin colors and differences between operators, who mayroll fingers at different speeds. The results are clear, crisp images with virtually no distortion or false minutiae, and more consistency in the capture process for maximum AFIS performance – the reason for buying a live scan system in the first place.

to accurately and rapidly identify subjects. We had the privilege to thoroughly test the TouchPrint Enhanced Definition 3000 Series at our facilities prior to Identix’ official release.

We believe the product addresses the fundamental challenges of successfully imaging difficult to capture fingerprints and that it will be embraced by live scan users worldwide, further positioning Identix as the image quality provider of choice when it comes to live scan.”

Identix’ commitment to customer success begins at the R&D stage of product development. On the front lines are our Professional and Field Services teams, working to get customer input and feedback that is shared across virtually all units of the company.

This commitment was made more apparent with the recently introduced Identix® TouchPrint™ Enhanced Definition 3000 Live Scan. To ensure product success, pilot systems were installed in Colorado to gauge real world performance. Field Service and Sales Engineering installed, trained and supported three beta systems in the Denver City Jail, Aurora City Jail and Louisville Police Department, to get feedback on image quality, reliability and usability across different subjects and operators.

“Colorado was an excellent beta test site. It was a perfect match between what the customer was looking for in a new live scan system and what we believed the TouchPrint Enhanced Definition 3000 Series could deliver,” said Matt Diederich, Identix Call Center & Tier III Support Group Manager, who led the effort, along with Richard Azuero, Senior Sales Support Engineer; Nick Klinger, Jr., Field Service Engineer; Hal Morvee, Field Service Engineer, Paul Thomson, Live Scan Tier III Lead; Randy Ratliff, Tier III Support Engineer; and Warren Grantham, Sr. Training Specialist.

“Having open lines of communication allowed us to receive quick and proper responses from the customers on early issues. By resolving them quickly and showing our willingness to respond, we gained their trust and support, which in turn gave us the confidence that we had the right product to meet the real world challenges that our customers face daily,” Richard Azuero said.

The testing consisted of live/real-time processing of suspects and inmates. Officers at the three sites collected demographics and fingerprints from the subjects and submitted said records to the Colorado Bureau of Investigation (CBI) for processing against the state AFIS and FBI’s database. In the eight weeks of testing, no records were rejected by either CBI or the FBI.

“When one of the agencies didn’t want to part with the testing unit after the eight-week beta, we knew that we hit the jackpot with this product. There’s no greater feedback or reward,” Matt added.

Pictured left to right: Richard Azuero,  Hal Morvee,  Nick Klinger, Jr.

Customer Service: We Listen. You Succeed. Customer Success Begins with Our Commitment.

Standard DefinitionShredded ridges

Fine details lost

Accurate ridge flowTouchPrint™ Enhanced Definition

Clearer ridge definition

Experience the Image Quality Difference

full criminal history and correctional record of the detainee. The system then tracks the provision of services to the inmates such as food and medical services, log visits and inmate violations.

According to Gabriel Fernandez, Executive Director of Truenorth, “We required all potential providers to demonstrate the effectiveness of their technology with a pilot and Identix outperformed its competitors by a wide margin. We were also impressed with their support and the cost-effectiveness of their product.”

LAW ENFORCEMENT UPDATE

Puerto Rico Department of Corrections: Criminal Identity Management Powered by Identix® BioEngine® Technology

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Contact us at: info@identix.comVisit us on the Web at: www.identix.com

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See us at these events: For an up-to-date event listing, visit: www.shareholder.com/identix/calendar.cfm

April 1 : Orlando, FL Speaking Engagement SPIE Homeland Security Conference

10-12 : Mystic, CT Tri-State IAI

10-13 : San Diego, CA Speaking Engagement NIGA

11-14 : Las Vegas, NV Speaking Engagement CardTech SecurTech

St. Cloud, MN MN Chiefs of Police

June 5-7 : Dubai, UAE ID Summit Silver Sponsor

In a move to create a more secure corrections system and make inmate processing faster, the Puerto Rico Department of Corrections and

Rehabilitation decided to fully automate its prison management system and incorporate biometric technology in the criminal identification process.

Truenorth Corporation, a leading Puerto Rico firm specializing in Public Safety Systems has developed and integrated the Inmate Tracking System for the agency to help in the identification of criminals and to determine recidivism among the prison population of 17,000 inmates and over 50,000 parolees across the 50+ penal facilities and divisions in the island territory.

The Inmate Tracking System is powered by Identix® BioEngine® Technology which is a proven, minutiae-based algorithm that can discern images over an extended period of time.

According to Raul Carreira, Supervisor of the Puerto Rico Department of Corrections Criminal Identification Processing Center, “Using Identix fingerprint technology we routinely detect fifteen percent of our intake population as having committed identity fraud. The system has also

allowed us to detect a 34% recidivism rate since its implementation a year ago. The system helps us reduce the criminal identification process from weeks to just hours.”

The system works as follows: During inmate processing, the prisoner is enrolled into the system with his digital photos and fingerprints, captured using an Identix® DFR® 2090 Forensic Quality Single Fingerprint Reader, along with complete biographical data and aliases. This becomes the basis of a permanent record containing the complete historical file of the inmate.

The intake transaction is then sent to a central Criminal Identification Processing Center, thereby consolodating the criminal identification function. The Inmate Tracking System using Identix fingerprint technology allows for the searching of a detainee’s record against national and local criminal history databases, which is very helpful in detecting identity fraud, a common problem in Puerto Rico.

After the database searches, the criminal identification transaction is sent back to the intake center for classification and bed assignment with a