U.S. Department of Defense Taps Fargo Electronics for Additional FIPS 201-Compliant Printer/Encoders to Support the Common Access Card Program

Minneapolis, MN (June 20, 2006) – Fargo Electronics, Inc. (NASDAQ: FRGO), a global leader in secure technologies for card identity systems, today announced that it has received a follow-on order for its High Definition Card Printer/Encoders for the U.S. Department of Defense (DoD).

“Fargo is proud to serve the federal government to secure critical locations and systems,” said Gary Holland, president and CEO of Fargo Electronics. “The continued relationship with the DoD emphasizes our commitment to providing secure identification solutions to meet their needs as they put into action their plan to meet FIPS 201.”

The DoD order includes 66 HDP600-LC laminating card printer/encoders and is expected to ship in the second quarter of 2006. The order will supply printer/encoders to the Defense Manpower Data Center (DMDC), to be used to create ID cards for active and reserve Guard personnel as part of the DoD’s Common Access Card program. Fargo has supported this program since 2001.

DMDC collects and maintains the most comprehensive repository of automated manpower, personnel and training for the DoD. The primary function is to support the management information requirements of the Office of the Under Secretary of Defense for Personnel and Readiness (OUSD/P&R).

The Fargo systems will be incorporated into the card project by Telos Corporation of Ashburn, Virginia, a government contractor specializing in secure and managed enterprise solutions.

About Fargo
Founded in 1974, Fargo Electronics, Inc. is a global leader in the development of secure technologies for identity card issuance systems, including secure card printer/encoders, materials and software. The company has sold more than 120,000 systems in the U.S. and over 80 other countries worldwide. Fargo card issuance systems reduce vulnerabilities and potential for loss of time, money and lives by continually improving the security of identity credentials. Fargo provides physical, information, and transaction security for a wide variety of applications and industries, including government, corporate, national IDs, drivers' licenses, universities, schools and membership. Based in Minneapolis, Minnesota, USA, Fargo markets its products through a global distribution network of professional security integrators.