SOURCE: Mobilisa, Inc.

August 10, 2007 13:28 ET

Mobilisa® & Intelli-Check Announce Agreement to Combine Companies

PORT TOWNSEND, WA--(Marketwire - August 10, 2007) - Mobilisa, Inc., a leader in innovative mobile and wireless technology, and Intelli-Check, Inc. (AMEX: IDN), a leader in technology that helps assure the authenticity of documents, today announced that they have reached an agreement in principle to combine the two companies.

The terms of the agreement in principle provide that Mobilisa will become a wholly owned subsidiary of Intelli-Check and that shares of Intelli-Check will be issued to the Mobilisa shareholders such that the two companies will each have 50%-ownership in the combined company. Mobilisa option holders will also exchange their options for Intelli-Check options. The combination is anticipated to be structured as a "tax-free reorganization" under Section 368 of the Internal Revenue Code of 1986, as amended.

Dr. Nelson Ludlow, CEO of Mobilisa, added, "After early discussions with Intelli-Check it became apparent that a combination of Mobilisa and Intelli-Check made sense from every aspect-technology, division of responsibility, markets served and personnel. We believe that a combined company will create an organization with enormous strength in identity verification and authentication as well as the emerging market of high-speed wireless communications. We believe that the potential opportunities are great and we are anxious to pursue them."

Jeff Levy, Interim Chairman of Intelli-Check, stated, "Mobilisa, Inc. has ID authentication technology, personnel, markets and customers that we believe mesh extremely well with Intelli-Check's ID-Check™ technology and the combination should prove invaluable in developing and implementing identification solutions across a wide spectrum of public and private sector opportunities. Mobilisa has also put together a world-class management team of former senior military and government officials and highly regarded entrepreneurs that have successfully negotiated multiple million dollar contracts with government/military agencies for advanced ID identification systems. We spent considerable time studying this opportunity and came away tremendously excited about a possible combination. We strongly believe that each company's shareholders will quickly realize the untapped potential to increase shareholder values as a result."

Mr. John Paxton, Chairman of Mobilisa, noted, "After extensive review of all the relevant information, it became apparent that the benefits to both companies were such that we would be remiss if we did not aggressively pursue this combination. I am very pleased that an agreement in principle has been reached that should be beneficial to both Mobilisa and Intelli-Check shareholders."

The agreement to combine the companies is subject to a number of conditions including, but not limited to, completion of satisfactory due diligence by the parties together with the approval of the parties' shareholders. Intelli-Check and Mobilisa are hopeful that the transaction will be completed in the fourth quarter of 2007.

About Mobilisa, Inc.

Mobilisa is a global leader in mobile and wireless technology, delivering innovative solutions for the government, military and business. Headquartered in Port Townsend, Washington with additional offices in Alexandria, Virginia and Dayton, Ohio, Mobilisa has approximately 30 employees. Based on its unaudited financial information, for the twelve months ended July 31, 2007, Mobilisa had revenues of approximately $5.2 million and earnings before taxes depreciation and amortization of approximately $1.0 million. For more information about Mobilisa and its products or services, visit: www.mobilisa.com.

About Intelli-Check, Inc.

Intelli-Check, Inc. is the acknowledged leader in technology that helps assure 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.

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