Fargo Electronics Awarded Two New Patents

Minneapolis (April 25, 2006) – Fargo Electronics, Inc. (NASDAQ – FRGO) today announced that it has received two patent grants, one in the United States and one in Europe that significantly enhance its patent portfolio. The company received United States Patent #7018117 entitled Identification Card Printer Ribbon Cartridge and European Patent #1481363 entitled Identification Card Manufacturing Security.

The ‘117 patent is for the ribbon cartridge design in Fargo’s DTC400 and C30 printers.  “This is one of the first of several patents we expect to issue that capture our innovative design in these two printers,” said Jeffrey Upin, Fargo’s General Counsel. “The card cartridge offers high ease of use to end users and increases the reliability of our printers. We expect to use this design in many of our current and future products. It helps ensure our secure printers and secure materials work together reliably, while continuing to grow our revenue stream on consumables. This patent has also been filed in numerous countries around the world.”

The European patent, which was previously noted as having received a notice of allowance, is the first software patent Fargo has received. “This patent describes a method of authorizing a consumable supply with a specific security code” said Upin. “This patent shows how Fargo is developing software, consumables and printers that are integrated to raise the level of security for end users. We believe that these patents provide a long-term competitive advantage as concerns about security continue to grow.”

Fargo was ranked among the top 25 patent holders in the state of Minnesota, according to the March 24 issue of Minneapolis St. Paul Business Journal. “All of the associates at Fargo are very proud of this achievement,” continued Upin. “This ranking, plus our extensive patent portfolio, emphasizes our commitment to innovation and growth.”

Forward-looking Statements

Statements made in this release concerning our expectations about future results or events, are “forward-looking statements”. When used in this release, words such as “anticipate,” “believe,” “estimate,” “expect,” and “forecast” as they relate to us or our management are intended to identify such forward-looking statements, but are not the exclusive means of identifying these statements. Such statements are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995, and are necessarily subject to risks and uncertainties. Actual results may differ materially from those reflected in these forward-looking statements. These statements are based on current expectations, forecasts and assumptions, and are subject to the risks and uncertainties inherent in general industry and market conditions, general domestic and international economic conditions, and other factors. These risks and uncertainties include, but are not limited to: product acceptance and customer demand for our card personalization systems and proprietary supplies; actions taken and alternative products marketed by our competitors; supplier relationships, including reliance on sole and single-source suppliers; manufacturing or design defects that we may discover after shipment; challenges in successfully implementing a new enterprise resource planning computer system; lack of inventories of component parts or finished goods; our focus on the identification card personalization market; continuing technological changes in our industry; our dependence on a distribution network and the reaction of this network to changes in distribution programs; domestic and international regulations and standards; our dependence on international sales and foreign suppliers; material changes in orders placed by large end users; challenges in effectively managing growth; our dependence on technologies we do not own; complex design that could result in manufacturing delays; protecting and enforcing our intellectual property rights; inadequate protection against infringement claims; the costs of implementing and complying with new regulations enacted in various countries requiring the reduction of hazardous substances in electrical and electronic equipment, including the European Union Waste Electrical and Electronic Equipment Directive and Restriction of Hazardous Substances Directive; and adverse economic and business conditions, including conditions resulting from the terrorist attack on the U.S. on September 11, 2001 and the resulting hostilities and the war with Iraq. For more detail of the risks, uncertainties and other factors that could affect our future operations and results, see our filings with the Securities and Exchange Commission, particularly the Annual Report on Form 10-K for the year ended December 31, 2005.

The Company assumes no obligation to update the forward-looking statements or any other information contained in this release.

About Fargo

Founded in 1974, Fargo Electronics 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.