U.S. Department of State Signs with XTec

Enterprise License for the AuthentX™ Credentialing Module

Miami, FL, October 31, 2005 -- XTec Incorporated has been awarded a contract from the State Department to provide identity management, credential management and badge production to the State Department on a worldwide basis. XTec has historically provided these services in the United States for the Diplomatic Security Bureau. The new contract will cover over 200 embassies around the world.

Under the contract, XTec Incorporated's Government Initiatives Division of Reston, Virginia, will support the Diplomatic Security Bureau by providing an Enterprise License of AuthentX™ Badging Module and converting the existing overseas data into the AuthentX™ Credential Management System.

Additional services to be performed include setup, configuration, installation, customization, support and training.

"This is an important step for the State Department to integrate the various systems worldwide to meet Homeland Security Presidential Directive 12 (HSPD-12) for the use of the Personal Identity Verification (PIV) card in gaining physical and logical access to federally controlled facilities and information systems," said Kevin Kozlowski, Vice President, Government Initiatives at XTec. "This is just another area where the State Department is charging forward to comply with the Presidential Directive in all of its facilities and systems."

XTec's AuthentX™ Credential Management System is leading the market in credential management and authentication systems. This state-of-the-art, web-based enterprise system has the ability to issue and manage smart cards in a distributed or centralized card production capacity. AuthentX™ Badging Module was chosen by the State Department for its Enterprise approach to manage large-scale programs, built-in security, and for its cost-effectiveness.

About XTec

XTec is a leader in secure, interoperable authentication and verification systems. XTec develops, produces, and licenses enterprise level security solutions for Credentialing, Access Control, Information Systems, and Electronic Commerce for a wide range of government and commercial uses. XTec's focus is on providing a secure foundation from which customers can build secure enterprise web-based applications and cryptographic systems. XTec has a long-standing relationship with the Department of Homeland Security (formerly the United States Secret Service or USSS) for document security using XTec equipment to assist in the forensic tracing of counterfeit cards. XTec is a recognized leader in both government and commercial circles for its expertise and products for credentialing, identity, secure payment, and access control.