Challenge Card Design Receives Contract to Deliver Turnkey Card Factory to Golden Chip Company

Challenge Card Design GmbH, a wholly owned subsidiary of LaserCard Corporation (NASDAQ:LCRD), a leader in highly secure multi-biometric ID cards, today announced that it signed a €5.9 million ($8.5 million) contract with Golden Chip Company, based in the Kingdom of Saudi Arabia, to deliver a turnkey card manufacturing facility by the end of 2008. Golden Chip Company is a subsidiary of Al Jabr Trading Co., one of the largest private companies in the eastern province of Saudi Arabia. The contract includes the supply and installation of state-of-the-art plastic card production equipment, transfer of manufacturing know-how, training, and production support. It does not include constructing or preparing the building that will house the equipment. The new factory will be used to produce and personalize high quality scratch-off cards, loyalty cards, SIM cards and credit cards for the telecommunication and banking sectors. Rights to optical memory card technology or manufacturing are not included in the arrangement. "We are very proud to have been selected by Golden Chip Company for this project based on our twenty years of card manufacturing experience and our expertise in providing consulting services for manufacturing operations,” said LaserCard’s Uwe Ludwig, Director of Sales, EMEA & Asia. "We look forward to a very productive relationship with Golden Chip Company as we support the implementation of their state-of-the-art card manufacturing facility and its on-going operation.” The contract signing ceremony was held at Al Jabr offices in Dammam. The contract was signed by Abdullatif Al Jabr, CEO of Al Jabr Trading Co. and of National Arabic Bank. "We are always looking to diversify our investments, and this card factory has a bright future,” said Abdullatif Al Jabr. "We are very happy to have selected CCD as the turnkey solution provider and we look forward to a long and healthy relationship with them. We set high standards in our Request for Proposal and are pleased to announce that CCD’s proposal met our expectations,” said Adel Al Jabr, General Manager of Golden Chip Company. "Golden Chip Company will have the potential and the resources to fulfill the ever growing demand for the card industry in the Middle East,” said Jamal Elhably, the consultant hired by Golden Chip Company to evaluate turnkey solution providers. Challenge Card Design and LaserCard will be attending CARTES 2007, November 13-15, in Paris (www.cartes.com, booth: Hall 4 K60). To speak directly with LaserCard about their innovative ID technology or to schedule a meeting with LaserCard at CARTES please contact Lisa Hanna at 202-326-1734 or at lisa.hanna@edelman.com. About Challenge Card Design Plastikkarten GmbH Challenge Card Design Plastikkarten GmbH is a wholly owned subsidiary of LaserCard Corporation, a leader in secure ID solutions; it manufactures specialty cards, and markets cards, system solutions, and card personalization printers under the CCD and Cards & More brands. About LaserCard Corporation LaserCard Corporation, a leader in secure ID solutions, manufactures and markets LaserCard® optical memory cards, LaserPASS™ Optical/RFID cards and chip-ready Optical/Smart™ cards, all featuring Optical IDLock™ technology, and other advanced-technology secure identification cards. The Company’s secure ID cards are used in countries around the world, including the United States, Canada, Italy, India and the Middle East for demanding security credentialing requirements such as border security, immigration and national identification. In addition, the Company provides optical card read/write drives, optical card system software, card-related ID subsystems and card issuance enabling services. For more information, please visit www.lasercard.com. Forward-Looking Statements All statements contained in this press release that are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are not historical facts or guarantees of future performance or events. Rather, they are based on current expectations, estimates, beliefs, assumptions, and goals and objectives and are subject to uncertainties that are difficult to predict. As a result, our actual results may differ materially from the statements made. Often such statements can be identified by their use of words such as may, will, intends, plans, believes, anticipates, visualizes, expects, and estimates. Examples of forward-looking statements in this release include the implication that the Company will be able to help Golden Chip Company open a state-of-the-art card manufacturing facility. These forward-looking statements are based upon our assumptions about and assessment of the future, which may or may not prove true, and involve a number of risks and uncertainties including, but not limited to whether Golden Chip Company follows through on its contractual commitments to order equipment and services from the Company and whether the Company and Golden Chip Company are successful in outfitting the facility as well as the risk factors detailed in the Company's Form 8-K, 10-K, and 10-Q filings with the Securities and Exchange Commission. Due to these and other risks, future actual results could differ materially from the Company’s expectations. These forward-looking statements speak only as to the date of this release, and, except as required by law, the Company undertakes no obligation to publicly release updates or revisions to these statements whether as a result of new information, future events, or otherwise.