Project’s First Stage, valued at $500,000 has commenced

New York, NY, and Ra’anana, Israel, January 12, 2004–SuperCom, Ltd. (OTCBB: SPCBF.OB; Euronext: SUP), a leading provider of smart card and electronic identification (e-ID) solutions, today announced that it has signed an agreement with a European government to deploy a cutting-edge biometric visa issuance system in its embassies throughout the world. The project’s first stage, valued at approximately $500,000, has begun and involves installations in several of the government’s embassies.

The system will be built on SuperCom’s proprietary platform technology, and will be tailored to meet the customer’s specific requirements. To combat counterfeiting and fraud, the integrated system will capture the fingerprints of each visa applicant and store the images on a chip integrated in each visa, enabling automatic and positive identification of the person each time the visa is used. The system features an advanced and decentralized design that makes it fast and cost-effective to install while increasing its flexibility. The end-to-end solution meets all International Civil Aviation Organization (ICAO) standards for visas and passports.

“This contract demonstrates again that global demand is growing for proven biometric ID systems, and highlights the advantage of our positioning as one of the industry’s first and most experienced players,” commented Mr. Avi Schechter, CEO of SuperCom. “We are confident that our solution will significantly improve the control that this technology-savvy government has over its border activities and improve its ability to monitor the travel document issuance process. The success of the project will enhance our positioning as a leading provider of e-ID systems, boosting our efforts to sell to additional governments.”

About SuperCom, Ltd.

SuperCom, Ltd. provides innovative solutions in smart-card and e-ID technologies to the commercial and government sectors. The Company offers a wide range of standard and customized smart-card-based solutions for physical and logical security, education, corrections facilities and air & seaports. It is also a leader in the manufacturing of secure and durable documents such as national identity cards, passports, visas, drivers’ licenses and vehicle registration to improve homeland security, governmental efficiency and document ease of use. Headquartered in Israel, SuperCom has subsidiaries in the US and Hong Kong. For more information, visit our website at http://www.supercomgroup.com.

Safe Harbor

Certain of the statements contained in this news release may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such statements are subject to certain risks and uncertainties, such as market acceptance of new products and our ability to execute production on orders, which could cause actual results to differ materially from those in the statements included in this press release. Although SuperCom believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. SuperCom disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the date hereof, whether as a result of new information, future events or otherwise. SuperCom undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. For further information, refer to the discussion in reports that SuperCom has filed with the U.S. Securities and Exchange Commission.

Contact:

Eyal Tuchman, CFO
SuperCom, Ltd.
+972 9 775 0800
eyalt@supercomgroup.com