Under the terms of the agreement, L-1 Identity Solutions will pay ACI shareholders $71.5 million in cash. ACI shareholders have the opportunity to earn up to an additional $6.0 million in consideration if key performance thresholds are attained. ACI had revenues of $45 million in 2006. L-1 expects ACI's growth to be consistent with the L-1 model of 20 percent organic growth.

"Becoming a part of L-1 is the final piece of the puzzle for ACI," says John Register, president of Advanced Concepts, Inc "ACI has an outstanding clientele base, a highly specialized and experienced workforce, and a veteran management team. Now as part of L-1, we will have the size, depth, and experience to capture the larger programs and enable ACI to provide our customers with more capabilities and offer our employees more career opportunities"

More than 80 percent of ACI's approximately 300 employees have top secret and higher security clearances and average 23 years of experience supporting contracts critical to U.S. national security. ACI will operate as a division of L-1 Identity Solutions and maintain its current operations and headquarters.

"We have been successfully providing highly focused and specialized intelligence services, maximizing our combined resources with ACI we can offer the market even greater benefits," says Ann J. Holcomb, president of SpecTal, an L-1 Company "Our groups bring a depth of expertise, breadth of service, and a wide customer footprint that makes us the most qualified organization to help national security agencies address their identity-related and operational concerns"

The transaction is expected to close during the company's second quarter ending June 30, 2007 and is subject to customary regulatory approvals and closing conditions and is expected to be accretive to 2007 earnings. L-1 Identity Solutions will provide an update to its previously-provided full year 2007 guidance when 2007 first quarter results are released on May 9, 2007.