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SAFLINK™ Biometric Security Software Chosen By Blue Cross & Blue Shield of Rhode Island For Network Security Solution

SAFmodule for NMAS will Enable Fingerprint Access to Patient Records, Other Critical Corporate Data; Over 1,000 BCBSRI Employees will Ultimately be Enrolled

Bellevue, WA (August 1, 2002) - SAFLINK™ Corporation (OTC Bulletin Board: SFLK), a leading developer, marketer, and integrator of biometric security solutions, announced today that Blue Cross & Blue Shield of Rhode Island (BCBSRI) has selected SAFLINK's SAFmodule™ biometric software for Novell® Modular Authentication Service (NMAS®) to secure an enterprise-level computer security system. The technology, which replaces existing password protection with fingerprint authentication, will control access to the health insurance provider's main computer network and is expected to ultimately include over 1,000 BCBSRI employees.

By creating stronger authentication, SAFLINK's solution will help BCBSRI safeguard patient medical records and sensitive company data and meet the patient protection requirements of the Federal Government's Healthcare Insurance Portability and Accountability Act (HIPAA), which will go into effect in 2003. SAFmodule will be used as an extension of the company's existing NMAS security framework, adding fingerprint authentication capability through the use of SecuGenÒ fingerprint sensors. NMAS provides login protection to Novell eDirectory™, a key infrastructure component of BCBSRI's Novell-powered computer network.

Implementation of the new biometric security solution will occur in several phases. Phase one, recently completed, involved a one-year pilot test of the SAFLINK SAFmodule biometric authentication solution among BCBSRI employees. The favorable results of that test led to today's announcement and will trigger phase two, a permanent deployment. Although the timeline for phase two is to be determined, rollout began in July of 2002.

"The results of the pilot project confirmed that we can provide increased convenience for our employees, while securing our networks and gaining a number of other organizational benefits, such as reducing the burden of password management for our help desk administrators," said Victor Pigoga, Director, Data/Voice Communications for BCBSRI. "It also assures our customers that we are committed to investing in cutting-edge technology to protect the privacy of their health information."

"BCBSRI's decision to commit to SAFmodule is a significant endorsement for our company and for our partners on this project," said Walter Hamilton, Vice President of Business Development for SAFLINK Corporation. "We have designed our biometric solution to meet the needs of Healthcare companies like BCBSRI, and are pleased to have been selected as their provider of choice."

Assisting SAFLINK on the project as sales agent for the new system is Goldtouch Technologies, Inc. Goldtouch, a trusted BCBSRI vendor, is an Irvine, CA-based provider of ergonomic desktop products.

"Goldtouch is excited to be an integral part of the biometric solution that BCBSRI has chosen to implement," said Mark Goldstein, President of Goldtouch. "Goldtouch is pleased that our long standing relationship with BCBSRI helped pave the way for the introduction of the SAFLINK solution."

SecuGen® Corporation's Hamster fingerprint sensor has also been selected to provide the fingerprint device technology for the biometric platform. "We are happy that our fingerprint sensor and identification algorithms have been chosen for use with SAFLINK's outstanding biometric security software. The success of the pilot test was yet another verification of the superior performance of this combination," said Robert Kyle, president and CEO of SecuGen.

About SecuGen SecuGen Corporation provides biometric solutions for physical and network security employing the most advanced fingerprint recognition technology. The company invents, develops, manufactures and markets a complete line of patented optical fingerprint recognition sensors that, combined with powerful, sophisticated algorithms, yield products with the highest resolution and longest warranty in the industry. Businesses worldwide implement SecuGen's proven hardware and software products for Internet, enterprise network and desktop security, physical access control, time and attendance and medical record control applications. SecuGen's cost-effective products are sold as complete solutions, OEM components, or integrated into ready-to-use PC peripherals such as optical mice, keyboards and standalone desktop devices. Partnerships with key network security software suppliers assure compatibility across multiple platforms and applications.

About SAFLINK SAFLINK Corporation brings "The Power of Biometric Authentication™'' to workstations and enterprise networks through biometrics. The Company provides cost-effective multi-biometric software solutions to verify individual identity, protect valuable information, and eliminate passwords. These solutions are designed to safeguard and simplify access to electronic systems and online services. SAFLINK Corporation Contact: Thomas Doggett, Marketing & Comm. Mgr. tdoggett@saflink.com (800) 762-9595.

About Goldtouch Goldtouch provides cutting-edge computer security and ergonomic safety products to the US Government and Fortune 500 companies. Goldtouch is a leader in ergonomic computer peripherals as well as providing an array of Smart Card and Biometric security products.

About Blue Cross & Blue Shield of Rhode Island Blue Cross & Blue Shield of Rhode Island has been the state's leading health insurer for 63 years, and now covers more than 600,000 customers. Blue Cross & Blue Shield of Rhode Island is an independent licensee of the Blue Cross and Blue Shield Association.

SecuGen is a registered trademark of SecuGen Corporation. "SAFLINK," "SAFmodule," and "The Power of Biometric Authentication" are trademarks of SAFLINK Corporation. Novell, Novell Directory Services, and NDS are registered trademarks, and NMAS and eDirectory are trademarks, of Novell, Inc. in the United States and other countries. All other brands and products referenced herein are acknowledged to be trademarks or registered trademarks of their respective holders.

© 2002 SecuGen Corporation. All rights reserved.