Viisage Reports First Quarter Results; Exceeds Previous Guidance

Revenue for first quarter of 2006 was $23.4 million compared to$16.8 million in the first quarter of 2005, and was above the high-endof the Company's previously provided guidance of $20.0 million to$22.0 million. Revenue from Integrated Biometrics Technology (IBT) andSecuriMetrics that were acquired December 16, 2005 and February 17,2006, respectively, are reflected from their dates of acquisition. TheCompany reported a first quarter net loss of $2.2 million, or $0.07per diluted share, compared to a net loss of $1.6 million, or $0.09per diluted share in the first quarter of 2005. The Company hadpreviously guided to a loss between $0.10 and $0.14 per diluted share.The Company is reporting a non-cash charge of $626,000 for stock-basedcompensation in connection with the adoption of FAS 123(R) in the 2006first quarter.

Gross margin in the first quarter was 27 percent, compared to 32percent in the first quarter of 2005, reflecting the IBT andSecuriMetrics acquisitions. The Company expects gross margin toimprove to a target in excess of 35 percent for the second half of2006. Earnings before interest, taxes, depreciation and amortizationand non-cash stock compensation expense, or Adjusted EBITDA, was $2.5million in the first quarter, up from $1.6 million in the prior yearperiod. Total cash at March 31, 2006 was $46.4 million, including $3.7million generated from operations during the quarter.

Bernard Bailey, president and CEO of Viisage, commented, "Withfirst quarter revenue above the top-end of our prior guidance, we aredemonstrating a commitment to the growth of the business. Furthermore,our determination to manage our costs allowed us to report abetter-than-expected bottom line, further strengthening the businessahead of the closing of the merger with Identix."

Earlier in the quarter, Viisage also completed its acquisition ofprivately held SecuriMetrics, Inc. The strategic acquisition enhancedViisage's product line, adding iris recognition, another criticalmodality to the Company's biometric capabilities.

Commenting on the pending merger and acquisition activity, RobertV. LaPenta, chairman of the board of Viisage, said, "Our plannedmerger with Identix is moving forward and we are eagerly anticipatingthe close to occur in late June or early in the third quarter. I amencouraged by our integration efforts thus far and applaud both theViisage and Identix management teams for their accomplishments to datein this important effort."

First Quarter Highlights

Momentum within federal and international government markets andcustomers continued to fuel the business in the first quarter forViisage. In the area of e-passports, the Ministry of Justice andEcclesiastical Affairs of Iceland selected Viisage identity solutionsto gather the multi-biometric data required to issue new electronicpassports for its citizens at all civil registration officesthroughout the country. The Brazilian SERPRO (Servico Federal deProcessamento de Dados) also selected Viisage solutions to ensure theauthenticity and accuracy of information stored in e-Passports,e-Visas, driver's licenses and ID cards at all airports, seaports andland crossing borders throughout the country. The SERPRO contractmarked the first industry deployment of a smart chip reader andincludes a provision to add an additional 25 percent to the originalcontract value through the exercise of add-on technologies. Finally,the Australia Department of Immigration and Multicultural Affairs(DIMA) selected the Viisage iA-thenticate(R) Smart Chip/RFIDElectronic Document Reader to improve security in more than 25Australian overseas locations worldwide. Australia has been a leaderin implementing the Viisage document authentication technologies andproducts, which include the world's largest document database.

Domestically, Viisage received a $56 million contract extensionfrom the US Department of State (DoS), bringing the total potentialcontract value to $121 million. The DoS expects demand for USpassports to increase by approximately 20 percent per year andestimates that the US will produce 17 million passports annually by2009.

The company also made traction in the commercial market,announcing that one of the world's largest banks, ABN AMRO, wasimplementing Viisage identity solutions to ensure regulatorycompliance with pending identity assurance regulations and plans onexpanding the capability company-wide. The solution represents thelargest commercial deployment of this technology and provides ashowcase for other commercial enterprises worldwide on the effectiveuse of identity solutions.

Guidance

As noted above, the Company is expecting to complete the mergerwith Identix late in the second quarter or early in the third quarter.As a result, the Company expects to reflect any adjustments resultingfrom the integration during the quarter when the transaction closes.Assuming the transaction is concluded during the second quarter, thecombined entity expects revenue for the second half of the year in therange of $120 to $125 million with adjusted EBITDA of between $23 and$27 million.

Conference Call Information

The Company will host a conference call with the investmentcommunity to discuss its operating results beginning at 5:00 p.m. ESTtoday. The dial-in number for the call is 800-510-9661, confirmationcode 58604124. Internationally, please dial 617-614-3452, using thesame confirmation code. The call also will be available via live audiowebcast, found under the Conference Calls page of the Investorssection of the company's Web site www.viisage.com. To access thewebcast, please go to the company's Web site at least 10 minutes priorto the start of the call and follow the directions. A replay of thewebcast will be available at Viisage's Web site beginning an hourafter completion of the call.

Adjusted EBITDA

Viisage uses Adjusted EBITDA as a non-GAAP financial performancemeasurement. Adjusted EBITDA is calculated by adding back to netincome (loss) interest, taxes, depreciation and amortization, andstock-based compensation expense. Adjusted EBITDA is provided toinvestors to complement results provided in accordance with GAAP, asmanagement believes the measure helps illustrate underlying operatingtrends in the Company's business and uses the measure to establishinternal budgets and goals, manage the business, and evaluateperformance. Management also believes that Adjusted EBITDA provides anadditional tool for investors to use in comparing Viisage's financialresults with other companies in the industry, many of which also useAdjusted EBITDA in their communications to investors. By excludingnon-cash charges such as amortization, depreciation and stock-basedcompensation, as well as non-operating charges for interest and incometaxes, Viisage can evaluate its operations and can compare its resultson a more consistent basis to the results of other companies in theindustry and to its operations in prior quarters. As noted above,Adjusted EBITDA excludes the effect of interest, taxes, depreciationand amortization, and stock-based compensation expense. BecauseAdjusted EBITDA eliminates these items, Viisage considers thisfinancial measure to be an important indicator of the Company'soperational strength and performance of its business and a goodmeasure of the Company's historical operating trend. Adjusted EBITDAshould not be considered in isolation or as a substitute forcomparable measures calculated and presented in accordance with GAAP.
A reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA follows:

For the Quarter Ended
-------------------------------------
March 31, April 3,
2006 2005
------------------ ------------------
Net Loss $(2,158) $(1,642)

Add:
Depreciation and Amortization 4,094 2,861
Interest (Income)/expense, net (665) 16
Provision for income taxes 565 358
Stock based compensation 659 --
------------------ ------------------
Adjusted EBITDA $2,495 $1,593
================== ==================

About Viisage

Viisage (NASDAQ: VISG) delivers advanced technology identitysolutions for governments, law enforcement agencies and businessesconcerned with enhancing security, reducing identity theft, andprotecting personal privacy. Viisage solutions include securecredentials such as passports and drivers' licenses, biometrictechnologies for uniquely linking individuals to those credentials,and credential authentication technologies to ensure the documents arevalid before individuals are allowed to cross borders, gain access tofinances, or granted other privileges. With over 3,000 installationsworldwide, Viisage's identity solutions stand out as a result of theCompany's industry-leading technology and unique understanding ofcustomer needs. Viisage's product suite includes IdentityTOOLS(R) SDK,Viisage PROOF(TM), FaceEXPLORER(R), Viisage iA-thenticate(R),BorderGuard(R), PIER(TM), HIIDE(TM), AutoTest(TM), FacePASS(TM) andFaceFINDER(R).

This news release contains forward-looking statements that involverisks and uncertainties. Forward-looking statements in this documentand those made from time to time by Viisage through its seniormanagement are made pursuant to the safe harbor provisions of thePrivate Securities Litigation Reform Act of 1995. Theseforward-looking statements reflect the Company's current views withrespect to the future events or financial performance discussed inthis release, based on management's beliefs and assumptions andinformation currently available. When used, the words "believe","anticipate", "estimate", "project", "should", "expect", "plan","assume" and similar expressions that do not relate solely tohistorical matters identify forward-looking statements.Forward-looking statements concerning future plans or results arenecessarily only estimates and actual results could differ materiallyfrom expectations. Certain factors that could cause or contribute tosuch differences include, among other things, in particular, the sizeand timing of contract awards, performance on contracts, performanceof acquired companies, availability and cost of key components,unanticipated results from audits of the financial results of theCompany and acquired companies, changing interpretations of generallyaccepted accounting principles, outcomes of government reviews,developments with respect to litigation to which we are a party,potential fluctuations in quarterly results, dependence on largecontracts and a limited number of customers, lengthy sales andimplementation cycles, market acceptance of new or enhanced productsand services, proprietary technology and changing competitiveconditions, system performance, management of growth, dependence onkey personnel, ability to obtain project financing, general economicand political conditions and other factors affecting spending bycustomers, and the unpredictable nature of working with governmentagencies. In addition, such risks and uncertainties include, amongothers, the following risks: that the merger with Identix will notclose, that the regulatory or shareholder approval will not beobtained, that the closing will be delayed, that customers andpartners will not react favorably to the merger, integration risks,the risk that the combined companies may be unable to achievecost-cutting synergies, and other risks described in Viisage's andIdentix' Securities and Exchange Commission filings, including theRegistration Statement on Form S-4 filed (on April 4, 2006) with theSEC in connection with the transaction, Viisage's Annual Report onForm 10-K for the year ended December 31, 2005 and its QuarterlyReport on Form 10-Q for the quarter ended March 31, 2006 under thecaptions "Risk Factors" and "Management's Discussion and Analysis ofFinancial Condition and Results of Operations." Viisage expresslydisclaims any obligation to update any forward-looking statements.

Additional Information and Where to Find It

Investors and security holders of both Viisage and Identix areadvised to read the joint proxy statement/prospectus regarding thebusiness combination transaction referred to in the material belowbecause it contains important information. Viisage and Identix expectto mail a joint proxy statement/prospectus about the transaction totheir respective stockholders. This joint proxy statement/prospectuswill be filed with the Securities and Exchange Commission by bothcompanies. Investors and security holders may obtain a free copy ofthe joint proxy statement/prospectus and other documents filed by thecompanies at the Securities and Exchange Commission's web site athttp://www.sec.gov. The joint proxy statement/prospectus and suchother documents may also be obtained from Viisage or Identix bydirecting such requests to the companies.

Participants In Solicitation

Viisage, Identix and their respective directors and executiveofficers and other members of management and employees may be deemedto be participants in the solicitation of proxies in respect of themerger. Information concerning Viisage's participants is set forth inthe proxy statement dated, November 21, 2005, for Viisage's specialmeeting of shareholders held on December 16, 2005 as filed with theSEC on Schedule 14A. Information concerning Identix' participants isset forth in the proxy statement, dated October 6, 2005, for Identix'2005 annual meeting of shareholders as filed with the SEC on Schedule14A. Additional information regarding the interests of participants ofViisage and Identix in the solicitation of proxies in respect of themerger will be included in the registration statement and joint proxystatement/prospectus filed with the SEC.
VIISAGE TECHNOLOGY, INC.
Condensed Consolidated Statements of Operations
(in millions, except per share amounts)
(unaudited)


Three Months Three Months
Ended Ended
March 31, April 3,
2006 2005
------------- -------------
Revenues:
Services revenue $ 15.2 $ 10.1
Product revenue 8.2 6.7
-------------- -------------
Total revenue 23.4 16.8
-------------- -------------
Cost of revenues:
Services cost of revenue 11.4 (a) 7.1
Product cost of revenue 3.8 3.1
Amortization of purchased intangible
assets 1.8 1.2
-------------- -------------
Total cost of revenue 17.0 11.4
-------------- -------------
Gross Profit: 6.4 5.4
-------------- -------------
Operating expenses:
Sales and marketing 2.4 (b) 2.1
Research and development 1.6 (c) 1.2
General and administrative 4.6 (d) 3.4
Amortization of purchased intangible
assets 0.1 0.1
-------------- -------------
Total operating expenses 8.7 6.8
-------------- -------------
Loss from operations (2.3) (1.4)
Interest income (expense), net 0.7 -
Other income (expense) - 0.1
--------------- -------------
Income (loss) before income taxes (1.6) (1.3)
Provision for income taxes (0.6) (0.3)
-------------- -------------
Net loss $ (2.2) $ (1.6)
============== =============
Net loss per share:
Net income (loss) per basic
and Diluted share $ (0.07) $ (0.09)
============== =============
Weighted average basic and diluted
shares 29.0 19.2
============== =============

(a) Includes $85,000 stock-based compensation in 2006
(b) Includes $171,000 stock-based compensation in 2006
(c) Includes $97,000 stock-based compensation in 2006
(d) Includes $306,000 stock-based compensation in 2006


VIISAGE TECHNOLOGY, INC.
Condensed Consolidated Balance Sheets (in millions)
(unaudited)

March 31, December 31,
2006 2005

------------- ------------
Current assets:
Cash $ 46.4 $ 72.4
Other current assets 24.3 20.5
------------- ------------
Total current assets 70.7 92.9

Property and equipment, net 19.5 19.5
Goodwill and net intangible assets 207.1 179.4
Other assets 4.4 2.3
------------- ------------
Total assets $ 301.7 $ 294.1
============= ============

Liabilities & Shareholders Equity

Current liabilities:
Accounts payable, accrued expenses
and other current liabilities 18.7 12.8
Current deferred revenue 3.4 2.6
------------- ------------
Total current liabilities 22.1 15.4
Deferred tax liability 2.5 2.0
Deferred revenue 1.8 1.7
Other liabilities 0.3 0.3
------------- ------------
Total Liabilities 26.7 19.4

Shareholders' equity 275.0 274.7
------------- ------------
$ 301.7 $ 294.1
============= ============