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L-1 Identity Solutions Selected as Biometric Service Provider for India’s Unique Identification Number Program

2010-07-28 17:56
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ABIS 7 Software to De-Duplicate Identities of Indian Residents

STAMFORD, Conn.--(BUSINESS WIRE)--L-1 Identity Solutions (NYSE:ID), a leading provider of identity solutions and services, today announced it received a notification of award as one of the Biometric Service Providers (BSPs) to India’s Unique Identification Number (UID) program, or AADHAAR. The notice was received after a thorough competitive process involving multiple bidders.

The UID program seeks to gather basic demographic and biometric (iris and finger) information from residents in India to establish the uniqueness of that individual in order to issue them a twelve digit identification number that will serve as verification of identity anywhere in the country. The UID can be used for access to goods and services, such as food, education, telecom, medical care, banking and financial services. This is particularly critical as much of the poor and underserved population of India lack identification documents and the UID may become the first form of identification these individuals receive.

L-1 was one of three providers notified of an award, which is expected to include a two-year prime contract in favor of L-1 from the Unique Identification Authority of India (UIDAI) as part of the first stage of the program. With it, L-1 intends to use the ABIS 7 multi-biometric platform to perform a one-to-many search of new enrollments against those already in the database to ensure that the identity does not already exist under another name or alias, eliminating identity fraud and preserving the integrity of various entitlement programs. A total of 200 million identities are expected to be de-duplicated by a combination of the three BSPs in the first stage of the program. The specific allocation of transactions among providers will be determined based on the throughput performance of each system. Each BSP will receive Rs 2.75 per de-duplicated identity for the service. Upon expiration of the two year contract, which is in the final process of negotiation, it is expected that L-1 and the other two BSPs will exclusively compete for the de-duplication of the remaining one billion identities included in this voluntary program.

L-1’s consortium members on the UID program are 4G Identity Solutions, which is providing L-1 with critical services, and Hewlett-Packard India Sales Pvt. Ltd., which is providing L-1 with middleware and hardware. Funding for the hardware required as part of the de-duplication process is provided by the Indian government and is in addition to the Rs 2.75 per enrollment transaction.

Separately, L-1 is marketing its Mobile Eyes iris cameras and Agile 10-fingerprint slap devices for use in the enrollment process. The devices will be available for purchase by authorized Registrars and Enrollment Agencies throughout the period of the enrollment process, which is expected to continue over the next five years.

Robert V. LaPenta, Chairman, President and CEO of L-1 Identity Solutions said, “With UID, one of the most heavily populated countries in the world is signaling that it is embracing biometrics as a means to deliver enhanced services to its citizens. As such, this is a truly revolutionary identity infrastructure program that will serve as the foundation for all day-to-day interactions of Indians and will impact all other aspects of society including banking, healthcare and more. Our selection reflects our position as a world leader in multi-modal hardware and software technology and represents a tremendous opportunity for L-1 in that it ensures we will be a key player in what is expected to be the world’s largest identity market over the next five years, leveraging our ABIS 7 software, Mobile Eyes iris cameras and Agile fingerprint capture devices.”

About L-1 Identity Solutions

L-1 Identity Solutions, Inc. (NYSE: ID) protects and secures personal identities and assets. Its divisions include Biometrics / Enterprise Access and Secure Credentialing solutions, as well as Enrollment and Government Consulting services. With the trust and confidence in individual identities provided by L-1, international governments, federal and state agencies, law enforcement and commercial businesses can better guard the public against global terrorism, crime and identity theft fostered by fraudulent identity. L-1 Identity Solutions has more than 2,200 employees worldwide and is headquartered in Stamford, CT. For more information, visit www.L1ID.com.

Forward Looking Statements

This news release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and reflect the Company's current views based on management's beliefs and assumptions and information currently available. Forward-looking statements concerning future plans or results are necessarily only estimates, and actual results could differ materially from expectations. Certain factors that could cause or contribute to such differences include, among other things, the unpredictable nature of working in rapidly evolving emerging international markets, such as India, the ability of the Company to successfully finalize, execute and perform on the subject contract, and general economic and political conditions. Additional risks and uncertainties are described in the Securities and Exchange Commission filings of L-1 Identity Solutions, including its Form 10-K for the year ended December 31, 2009 and the Company's Form 10-Q for the quarter ended March 31, 2010. L-1 Identity Solutions expressly disclaims any intention or obligation to update any forward-looking statements.

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Contacts

L-1 Identity Solutions
Doni Fordyce, 203-504-1109
dfordyce@L1ID.com