FLO's Recent Equity Financing Enables Payment of Promissory Note Issued to Saflink KIRKLAND, Wash., Aug. 24 /PRNewswire-FirstCall/ -- Saflink Corporation(R) (OTC:SFLK) (BULLETIN BOARD: SFLK) today announced that, as a result of FLO Corporation's recent equity financing transactions, FLO paid Saflink the remaining principal balance of the promissory note FLO issued in connection with FLO's acquisition of all of Saflink's Registered Traveler assets in April 2007. On August 24, 2007, FLO raised approximately $4.5 million through the private placement of shares of its Series A preferred stock to accredited investors. From these proceeds, FLO has paid off the remaining principal balance of the $6.3 million promissory note FLO issued to Saflink. The aggregate principal payments under the promissory note consisted of approximately $4.4 million in cash and the cancellation of approximately $1.9 million in outstanding debt and debentures issued by Saflink in June 2006. As a result of FLO's issuance of shares of its capital stock in recent financings, Saflink now holds approximately 23% of the capital stock of FLO. Saflink expects FLO to file the necessary forms with the Securities and Exchange Commission to become a reporting company under the Securities Exchange Act. After FLO becomes a reporting company, Saflink expects to spin-off its remaining stake in FLO through a distribution, as a dividend to its stockholders on a pro-rata basis, of its shares of FLO stock. Following the distribution, Saflink's stockholders would hold stock of both Saflink and FLO. Steve Oyer, Chief Executive Officer of Saflink Corporation, stated, "The completion of this transaction represents the continuation of our financial restructuring and allows us to move forward exclusively focused on monetizing the assets in our core technology portfolio. We appreciate the efforts and energy that have gone into securing the appropriate capital for FLO. We believe the distribution of our residual ownership interest in FLO to the Saflink shareholders will give our shareholders the opportunity to realize the upside potential of the FLO Alliance's unique position within the growing Registered Traveler market." In order to focus his time and efforts more fully on FLO activities and its opportunities in the Registered Traveler market, Glenn Argenbright has informed Saflink that he has resigned from the Saflink board of directors, effective as of Friday, August 24, 2007. Saflink plans to discuss the details of this transaction and other recent events on an upcoming conference call. The planned conference call on August 28, 2007, has been postponed and is planned to be rescheduled for the first week of September to allow representatives of FLO to participate on the call. About Saflink Saflink Corporation offers biometric security, smart card and cryptographic technologies that help protect intellectual property and control access to secure facilities. Saflink security technologies are key components in identity assurance management solutions that allow administrators and security personnel to positively confirm a person's identity before access is granted. Saflink cryptographic technologies help to ensure that sensitive information is accessed only by the intended recipient(s). For more information, please visit http://www.saflink.com/ or call 800-762-9595. NOTE: "Saflink" is a registered trademark and "FLO" is a trademark of FLO Corporation. The names of actual companies mentioned herein may be the trademarks of their respective owners. This release contains information about our management's view of our future expectations, plans and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors. For example, our spin-off of shares of FLO Corporation must meet the requirements outlined in the SEC's Staff Legal Bulleting #4, including that FLO becomes a public reporting company under the Securities Exchange Act. In addition, we cannot make a distribution of shares of FLO stock we hold if such a distribution would cause us to be insolvent under Delaware corporate law. If FLO does not become a reporting company under the Exchange Act or if a distribution of FLO's shares would cause us to be insolvent, we would not be able to spin-off our shares of FLO. Other factors include, but are not limited to, risks and uncertainties associated with our financial condition, our ability to sell our products, our ability to compete with competitors and the growth of the security market, and those included in our annual report on Form 10-K, as well as other documents we periodically file with the Securities and Exchange Commission. Saflink MEDIA CONTACT: Sterling Communications, Inc. Katie James (206) 388-5758 Saflink INVESTOR RELATIONS CONTACT: Investor Awareness, Inc. Tony Schor (847) 945-2222 DATASOURCE: Saflink Corporation CONTACT: Media, Katie James of Sterling Communications, Inc., +1-206-388-5758, , for Saflink Corporation; or Investors, Tony Schor of Investor Awareness, Inc., +1-847-945-2222, , for Saflink Corporation Web site: http://www.saflink.com/

Copyright