definitive agreement to combine with Mobilisa, Inc. The two companies intend to proceed on the basis of a merger of equals. In return for all assets, liabilities and equity of Mobilisa, Intelli-Check will be giving Mobilisa’s shareholders a number of shares equal to those held by Intelli-Check stockholders and Mobilisa’s option holders replacement options for those they now hold. The consummation of the transaction is subject to the approval of the stockholders of Intelli-Check approving the transaction and an amendment to Intelli-Check’s certificate of incorporation to increase the number of authorized shares of Intelli-Check’s common stock.

Upon merging, Dr. Nelson Ludlow will become the Chief Executive Officer of Intelli-Check – Mobilisa, Inc. while Mr. Peter Mundy will remain the Chief Financial Officer and Mr. Russ Embry will remain the Chief Technical Officer. The board of directors will be composed of four members named by Mobilisa and four members named by Intelli-Check. Intelli-Check will also name the Board Chairman while Mobilisa will select the Vice Chairman and the Audit Committee Chairman. As a means to transition, Intelli-Check will be retaining Dr. Ludlow to manage day-to-day operations at Intelli-Check pending the closing of the merger and his formal designation as CEO. Mr. Jeff Levy will retain the role and responsibility of interim CEO and Chairman pending the completion of the merger while delegating authority to Dr. Ludlow to lead the revenue generating activities of the company.

A merger prospectus is expected to be filed with the SEC as soon as practicable and, after allowing the minimum required period for review by the SEC and consideration by the parties’ respective security holders, Intelli-Check will schedule a stockholder meeting to approve and then consummate the merger.

Jeff Levy, Interim CEO, stated, “On behalf of the entire Intelli-Check team, I am very pleased to report the signing of our definitive agreement. The Intelli-Check board of directors is extremely pleased to make this announcement and we are very excited about our future prospects with Dr. Ludlow at the helm of the combined company.”

Dr. Ludlow said “The synergistic benefits of combining our two companies’ personnel, products and technologies will make us a stronger company. The merger will allow us to achieve our goal of providing a ‘total product offering’, while we will continue to emphasize customer service and technology innovation. This is a win for our two companies and a win for our customers.”