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Saflink and IdentiPHI Announce Merger Agreement
Date:9/22/2007

Merger Expected to Strengthen Position in Enterprise Security Solutions Market by Combining Rich Technology Portfolio with Established and Growing

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KIRKLAND, Wash., and AUSTIN, Texas, Sept. 4 /PRNewswire-FirstCall/ -- Saflink Corporation (OTC Bulletin Board: SFLK), a leading provider of solutions designed to verify identity, secure access and increase productivity, and IdentiPHI, Inc., a privately held provider of enterprise security solutions and consulting services, jointly announced today that they have entered into a definitive merger agreement under which Saflink and IdentiPHI will combine into a single, publicly held company.

Under the terms of the merger agreement, Saflink will acquire all of the outstanding shares of IdentiPHI in a stock-for-stock transaction where all of the outstanding shares of IdentiPHI common stock will be exchanged for an aggregate of 614,981,516 shares of Saflink common stock. Upon completion of the merger, the former security holders of IdentiPHI would hold approximately 75 percent of Saflink's common stock and the security holders of Saflink would continue to hold the remaining 25 percent of Saflink's common stock. The merger agreement has been unanimously approved by both companies' boards of directors and by IdentiPHI's stockholders. The merger is subject to customary closing conditions, including the approval of Saflink's stockholders, and is expected to close by the end of 2007.

Following the completion of the merger, the combined company will operate as IdentiPHI, Inc. with its headquarters in Austin, Texas. The existing management teams will combine as a result of the merger with Steve Oyer, who took on the role of interim CEO with Saflink last September, to serve as Chairman and CEO of the combined company, and Peter Gilbert, current IdentiPHI CEO, as Vice Chairman and Senior Vice President of Sales and Marketing. From the IdentiPHI management team, Jo
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SOURCE Saflink Corporation
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