SAFLINK Corp. (SFLK)

[Fati]

Saflink and IdentiPHI Announce Merger Agreement



Merger Expected to Strengthen Position in Enterprise Security Solutions
Market by Combining Rich Technology Portfolio with Established and Growing
Distribution Channels

KIRKLAND, Wash., and AUSTIN, Texas, Sept. 4 /PRNewswire-FirstCall/ --
Saflink Corporation (OTC Bulletin Board: SFLK), a leading provider of
solutions designed to verify identity, secure access and increase
productivity, and IdentiPHI, Inc., a privately held provider of enterprise
security solutions and consulting services, jointly announced today that
they have entered into a definitive merger agreement under which Saflink
and IdentiPHI will combine into a single, publicly held company.
Under the terms of the merger agreement, Saflink will acquire all of
the outstanding shares of IdentiPHI in a stock-for-stock transaction where
all of the outstanding shares of IdentiPHI common stock will be exchanged
for an aggregate of 614,981,516 shares of Saflink common stock. Upon
completion of the merger, the former security holders of IdentiPHI would
hold approximately 75 percent of Saflink's common stock and the security
holders of Saflink would continue to hold the remaining 25 percent of
Saflink's common stock. The merger agreement has been unanimously approved
by both companies' boards of directors and by IdentiPHI's stockholders. The
merger is subject to customary closing conditions, including the approval
of Saflink's stockholders, and is expected to close by the end of 2007.
Following the completion of the merger, the combined company will
operate as IdentiPHI, Inc. with its headquarters in Austin, Texas. The
existing management teams will combine as a result of the merger with Steve
Oyer, who took on the role of interim CEO with Saflink last September, to
serve as Chairman and CEO of the combined company, and Peter Gilbert,
current IdentiPHI CEO, as Vice Chairman and Senior Vice President of Sales
and Marketing. From the IdentiPHI management team, John Atkinson will serve
as President and Mark Norwalk as CTO for the combined company, while from
the Saflink team, Jeff Dick will serve as the CFO and Brian Wilchusky as
Vice President of Marketing.
The seeds of the merger were sown following the successful
collaboration on the sale of Saflink's market-leading biometric middleware
product lines -- SAFsolution(R) and SAFmodule(R) -- to IdentiPHI earlier
this year. Subsequently, IdentiPHI was able to upgrade and seamlessly
integrate this technology into its security software suite and has begun an
aggressive global sales and marketing campaign. This merger brings together
IdentiPHI's reputation as a trusted provider of "best in class" enterprise
security solutions to major computer manufacturers, integrators and
customers with Saflink's biometric security, smart card and cryptographic
technologies and related patent portfolio. The combined resources create a
powerful and flexible platform to launch additional integrated biometric
and security solutions into the commercial and government markets.
"Our strategy over the last ten months has remained consistent and
clear -- stabilize Saflink's financial condition, restructure our
businesses and find the best way to monetize our core technology portfolio.
This merger is the culmination of these efforts," said Steve Oyer, CEO of
Saflink. "I expect the combination with IdentiPHI to provide a unique
alchemy of world class sales and distribution infrastructure, state of the
art security software expertise and proprietary products and technology
that will be a winning combination for the customers, stockholders and
employees of both companies. I appreciate the vote of confidence and
significant opportunity that IdentiPHI's shareholders along with Peter
Gilbert and the management team have given to me when they asked me to lead
the organization. I look forward to working with this exceptional team and
believe we are poised to capitalize on the tremendous growth of security
initiatives worldwide."
Peter Gilbert, CEO of IdentiPHI, added, "With the growth of our
business over the last few years we believe the combination of the two
companies is the next logical step to accomplish our strategic objectives.
As a public company we believe we will have the liquidity, transparency and
access to the capital markets to provide us with the resources to continue
the trajectory we have been on. By uniting Saflink's strong portfolio of
complementary intellectual property with our current solutions, we have the
opportunity to create competitive advantages within the marketplace and the
ability to get them to customers through our established distribution
relationships." Mr. Gilbert continued, "In addition to the strategic
advantages of the merger, Steve Oyer's steady hand at Saflink during its
transition was a critical factor in our decision to pursue this
transaction. I strongly believe the combined company will benefit from his
leadership as we continue to exploit the enormous growth potential in the
enterprise security arena."
Saflink will hold a conference call to discuss this announcement and
other recent events at 4:30 pm EDT on Thursday, September 6, 2007. Saflink
may provide forward-looking information on this call. To listen to the
conference please call 1-888-694-4676, domestically, or 973-582-2737,
internationally. A recording of the call will be available on the Investors
page of the Saflink website for thirty days after the call.
About Saflink
Saflink Corporation offers biometric security, smart card and
cryptographic technologies that help protect intellectual property and
control access to secure facilities. Saflink security technologies are key
components in identity assurance management solutions that allow
administrators and security personnel to positively confirm a person's
identity before access is granted. Saflink cryptographic technologies help
to ensure that sensitive information is accessed only by the intended
recipient(s). For more information, please visit http://www.saflink.com or
call 800-762-9595.
About IdentiPHI
Headquartered in Austin Texas, IdentiPHI is an innovative technology
company offering a comprehensive suite of enterprise security solutions and
consulting services. Comprised of experienced partners and thought-leaders
in the industry, IdentiPHI is setting the standard for what companies are
looking for in security solution. IdentiPHI provides flexible tools that
meet or exceed current legislation requirements to strengthen identity
management and authentication systems. We are defining security technology
to meet the evolving challenges of today's fast-paced business needs. For
more information please call our toll free line at 888-436-8744, or visit
http://www.identiphi.net.
NOTE: "Saflink" is a registered trademark of the Saflink Corporation.
"SAFsolution" and SAFmodule" are registered trademarks of IdentiPHI, Inc.
This release contains information about our management's view of our
future expectations, plans and prospects that constitute forward-looking
statements for purposes of the safe harbor provisions under The Private
Securities Litigation Reform Act of 1995. Actual results may differ
materially from historical results or those indicated by these
forward-looking statements as a result of a variety of factors. Some of
these factors include, but are not limited to, risks and uncertainties
associated with our financial condition, our ability to sell our products,
our ability to compete with competitors and the growth of the security
market, and those included in our annual report on Form 10-K, as well as
other documents we periodically file with the Securities and Exchange
Commission.
SAFLINK MEDIA CONTACT:
Sterling Communications, Inc.
Katie James
[phone]
[e-mail]

SAFLINK INVESTOR RELATIONS CONTACT:
Investor Awareness, Inc.
Tony Schor [phone]
[e-mail]

IDENTIPHI MEDIA CONTACT:
John Atkinson
[phone]
[e-mail]



SOURCE Saflink Corporation

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http://www.saflink.com

http://www.identiphi.net