Robert V. LaPenta PLAY INTERVIEW VIEW BIO www.L1ID.com Rick Genoni ETF Product Manager, Vanguard Jim McCluney President and Chief Executive Officer, Emulex Corporation Jeff Carbiener President & CEO, Lender Processing Services, Inc.		PRINT-FRIENDLY VERSION Robert V. LaPenta Chairman of the Board, CEO & President L-1 Identity Solutions Interviewed on 08/16/2006 What are the synergies of all the combined companies and how does that make L-1 unique? The first platform of this new company, L-1, was Viisage. And that’s a company that incorporates facial recognition; and they also are the number one provider of passports, which we all know are becoming a very important document. And they own about 30 percent of the driver’s license business. Both of those platforms are gonna be the basis for US and international identity solutions. Identix, on the other hand, had hardware and live-scan fingerprint identification products—and software to incorporate them. They also had facial. And the combination of Viisage’s facial and Identix created a terrific end-to-end solution in facial. We then bought SecuriMetrics, which has iris; and, most recently, we concluded the acquisition of Iridium, which also has all the IT for iris. So now we have a company that has facial, iris, and fingerprints and the software to incorporate it. And we produce the platforms on which all of those biometrics are incorporated. What are the federal and international mandates and initiatives that drive L-1 business? Post 9/11 there was a lot of promise. There were a lot of federal programs that were mandated. The products weren’t ready and politically I think the country wasn’t ready to start implementing a lot of these solutions. That now is beginning to unfold. And we’re seeing initiatives like HSPD Club, which is the Presidential directive where all government employees now have to have biometrically-enabled credentials. We’re seeing the US Visit Program, where anybody that enters or leaves the country needs an E-Passport. We’re seeing the initiative for Real ID, where when you go get your driver’s license no longer will you be able to just present your old driver’s license. You’ll have to have a birth certificate and a photo ID, which will now be incorporated into your driver’s license. So these are programs that are moving forward around the world. They’re international programs which are very large. There’s a program called TWIP, which is the Transportation Worker Identification Program. It recently came to the forefront because of the controversy involving the ports, where Dubai was gonna take over management of the US ports. That initiative now is gonna involve credentialing all of the port workers and all of the merchant marines that come into the ports and the truck drivers that go in and out of the ports. That could be a multi-billion dollar program when it’s all over. L-1 is uniquely situated—positioned--to be able to participate in every level of those large programs. What are the challenges L-1 is faced with as the business continues to grow and evolve? The problems are political and, in some cases, they’re funding. We all know that there’s a big budget deficit in the country. We know we’re spending over $500 billion a year in defense, including the supplementals that are incorporated to fund the operations in Afghanistan and Iraq. So one of the issues of funding. Will these programs be funded? Will people and the government want to subsidize the additional cost that’s gonna involve in putting biometrics on a driver’s license, putting biometrics on a passport? Or requiring truck drivers and merchant marines to have a credential that they’re gonna have to pay for. So, like anything else, financing is gonna be an issue. The other issues that I think are unique in the space are privacy issues. There’s a lot of talk and concern will the added information that people will be providing, fingerprints, iris—these are considered to be personal things. And many privacy advocates are indicating that these are an additional issue. The real answer is that this improves your privacy. Unlike somebody being able to steal your Social Security Number of your credit card on the Internet, they can’t steal your biometric because you’re the only one that has it. Where are growth opportunities for L-1? We initially are gonna concentrate on the federally-mandated programs, along with the state and local. So we’re looking to prisons and we’re looking to police departments and we’re looking to the federal government—Department of Homeland Security. Beyond this, as the technology becomes better accepted and deployed, there will be a major opportunity in the commercial space. So we think credit cards, as an example, will be a huge opportunity; where we’ll incorporate a biometric, whether it’s a facial imprint or whether it’s a fingerprint. So no one will be able to steal your credit card. That’s a $50 billion a year problem in The United States. So that’s an enormous opportunity for us to work with the banks to incorporate those things onto our credit cards. You may have heard of Registered Traveler, where the lines are long at airports and, particularly, post-9/11 and post the event or the close event that we saw last week in the UK. The lines are incredibly long at airports. We can give you a biometrically-enabled clear card or a card to enable you to bypass the long lines at the airport and go to a special line. This is a big opportunity. Healthcare is another big opportunity, where now people are stealing their health records and impersonating other people in filing insurance claims. And then I think the financial community; access security in the commercial world. These are all large opportunities that haven’t been tapped and we think they represent future big up-side opportunity for us. About NYSE 4 ON THE FLOOR: The New York Stock Exchange is proud to produce NYSE 4 ON THE FLOOR, an exclusive web-cast interview program featuring the foremost decision makers, executives and leaders of our time. As the center of global business, the NYSE is in a unique position to bring you unparalleled access to these extraordinary men and women. Now, through NYSE 4 ON THE FLOOR, we are able to share their expert industry perspectives, as well as candid thoughts about issues that affect us all, such as management, communication, learning, growth and professionalism.