L-1 Identity Solutions to acquire Advanced Concepts Inc.

STAMFORD, Conn., 4 May 2007. L-1 Identity Solutions Inc. has entered into an agreement to acquire Advanced Concepts Inc. (ACI). Based in Columbia, Md., ACI provides information technology and network security solutions, and systems engineering and development services, for the U.S. Intelligence and military communities. The acquisition of ACI will provide L-1 with access to a wider customer base within the U.S. government and will add a greater depth of complementary services.

STAMFORD, Conn., 4 May 2007.L-1 Identity Solutions Inc. has entered into an agreement to acquire Advanced Concepts Inc. (ACI). Based in Columbia, Md., ACI provides information technology and network security solutions, and systems engineering and development services, for the U.S. Intelligence and military communities. The acquisition of ACI will provide L-1 with access to a wider customer base within the U.S. government and will add a greater depth of complementary services.

Under the terms of the agreement, L-1 Identity Solutions will pay ACI shareholders $71.5 million in cash. ACI shareholders have the opportunity to earn up to an additional $6 million in consideration if key performance thresholds are attained. ACI had revenues of $45 million in 2006.

More than 80 percent of ACI's approximately 300 employees have top secret and higher security clearances and average 23 years of experience supporting contracts critical to U.S. national security. ACI will operate as a division of L-1 Identity Solutions and maintain its current operations and headquarters.

The transaction is expected to close during the Company's second quarter ending June 30, 2007 and is subject to customary regulatory approvals and closing conditions and is expected to be accretive to 2007 earnings.

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