Innovative Card Technologies Announces Third Quarter Results

--59% reduction in Q3 year-over-year operating expense

--Successful completion of several customer pilot programs

--Expanding deployments on six continents

Innovative Card Technologies, Inc. (NASDAQ:INVC), developers of the breakthrough InCard DisplayCard(TM) security device for e-banking, e-commerce and data access, today announced third quarter financial results. The company reported its strongest quarterly revenue performance to date, taking in $840,098 in the third quarter of 2008, with only two months of production during the quarter due to a month-long holiday shutdown of a key European supplier, compared with $159 in the third quarter of 2007. The company achieved a 59% reduction in operating expense over the comparable 2007 period. After accounting for the revaluation of warrant liability and interest, InCard lost $1,561,843 in the third quarter, or $0.05 per diluted share, as compared with $0.16 per diluted share in the third quarter of 2007. The company's order backlog at October 30, 2008 was $1.2 million.

For the nine months ended September 30, 2008, InCard reported revenue of $1.86 million, versus $2,669 revenue in the prior year period. Also, for the comparable year-over-year period, the company reduced its operating expenses by 35%.

"InCard Technologies, having completed successful pilot programs and product performance testing by some of the world's most demanding financial institutions and security vendors, has built a foundation for continued quarterly revenue growth," said Steven R. Delcarson, President and CEO of InCard Technologies. "We are now fulfilling deployments by customers who have fully vetted the utility and market appeal of our product -- and who are now committing marketing dollars and personnel to their expanded rollout efforts, in some cases mandating use of the InCard DisplayCard to their end users. Even amidst difficult global financial market conditions, we expect to close out InCard's 2008 revenue performance with continued growth in the fourth quarter, and we have a strong revenue outlook for 2009." Delcarson continued, "We expect yield rates and margins to improve as we deploy higher volumes of cards and begin to see the impact of our new pricing structure. We maintain a conservative 10% warranty reserve, and expect this to improve as our products continue to perform reliably in the field through their service life warranty."

The InCard DisplayCard's success parallels the success of the quickly-growing hardware token market, which will be worth $764 million in 2009 per IDC. One-time passcode tokens, a subset of this market, generate a unique digital passcode that can only be used once. The passcode is entered into a database or website login along with the username and password, providing dual-factor authentication for each account login. This strong security prevents fraudulent access to electronic financial accounts, provides quick authentication of a caller's identity to call centers (thus allowing agents to handle more calls per hour), and prevents misuse of sensitive data.

Among one-time passcode authenticators, the InCard DisplayCard stands out with its ultra-portable credit card form -- a much easier-to-carry device than legacy keyfob tokens. The InCard DisplayCard has been deployed to authenticate access to VPN systems, corporate databases, government information systems, online gaming accounts, sensitive document storage, and, most notably, online banking and brokerage accounts. This format especially resonates with financial institutions, as the InCard DisplayCard is compatible with existing payment card infrastructure (ATM, distribution systems, point-of-sale), the card's artwork is fully branded to the issuing institution, and bank customers are familiar and comfortable with receiving card products from their bank.

Visit InCard Technologies at booth number 4Q080 at the CARTES Show, November 4-6 in Paris, France. For more details, contact Stephanie Edwards, Marketing Manager at +1-310-404-3764 or sedwards@incard.com.

About Innovative Card Technologies

Innovative Card Technologies, Inc. (NASDAQ:INVC) was founded in 1993 to add functionalities to payment cards. The company's InCard DisplayCard enables dual-factor authentication in a convenient card form. The cards can be configured to offer RFID physical access or payment capabilities, and feature a screen powered by an integrated battery, circuit, and switch. This screen displays a one-time password to verify the presence of the card during online and voice transactions or data systems login. www.incard.com.

This release may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements included in this document are based upon information available to InCard as of the date hereof, and InCard has not assumed any duty to update these forward-looking statements to reflect events or circumstances after the date of this document. A discussion of various factors that could cause InCard's actual results to differ materially from those expressed in such forward-looking statements is included in InCard's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-KSB, dated April 1, 2008.

INNOVATIVE CARD TECHNOLOGIES, INC. INCOME STATEMENT Three months ended September 30, 2008 Three months ended September 30, 2007 Nine months ended September 30, 2008 Nine months ended September 30, 2007 (unaudited) (unaudited) (unaudited) (unaudited) Revenues $ 840,098 $ 159 $ 1,857,523 $ 2,669 Cost of Goods Sold (984,024 ) (179,621 ) (2,054,232 ) (575,017 ) Gross Margin (143,926 ) (179,462 ) (196,709 ) (572,348 ) Operating expenses Administrative 1,306,148 1,856,756 4,355,576 5,224,297 Consulting fees 169,996 151,823 424,521 443,863 Professional fees 189,698 285,928 638,921 769,522 Research and development 98,230 442,130 396,585 911,540 Unrecoverable payments to suppliers - 1,546,428 - 1,546,428 Total operating expenses 1,764,072 4,283,065 5,815,603 8,895,650 Loss from operations (1,907,998 ) (4,462,527 ) (6,012,312 ) (9,467,998 ) Other income (expense): Change in fair value of warrant liability and other expense 841,513 - 2,745,273 - Interest income 2,978 31,609 26,535 174,301 Interest expense (498,336 ) (11,899 ) (1,083,695 ) (12,148 ) Total other income 346,155 19,710 1,688,113 162,153 Loss before provision for income taxes (1,561,843 ) (4,442,817 ) (4,324,199 ) (9,305,845 ) Provision for income taxes - (800 ) (800 ) (800 ) Net loss $ (1,561,843 ) $ (4,443,617 ) $ (4,324,999 ) $ (9,306,645 ) Basic and diluted loss per share $ (0.05 ) $ (0.16 ) $ (0.15 ) $ (0.33 ) Basic and diluted weighted-average common shares outstanding 28,495,256 28,420,616 28,471,681 28,416,981

INNOVATIVE CARD TECHNOLOGIES, INC. BALANCE SHEET September 30, December 31, 2008 2007 (unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 200,844 $ 339,600 Accounts receivable 670,757 13,077 Prepaids and other current assets 267,607 54,127 Deposits on raw materials held for production 361,350 605,662 Raw materials held for production 993,075 1,315,960 Work in progress inventory 2,560,965 886,259 Total current assets 5,054,598 3,214,685 Property and equipment, net 168,806 193,185 Deferred debt issuance cost 476,319 -- Deposits 90,944 177,747 Intangible assets, net 1,606,721 2,075,953 Total assets $ 7,397,388 $ 5,661,570 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ 1,625,410 $ 3,660,044 Accounts payable - related parties 595,365 657,254 Warranty reserve 164,592 27,816 Deferred revenue 1,036,494 898,585 Total current liabilities 3,421,861 5,243,699 8% convertible debenture, net of $5,715,737 discount 2,784,263 -- Warrant liability 221,238 -- Total liabilities 6,427,362 5,243,699 Commitments and contingencies -- -- STOCKHOLDERS' EQUITY Preferred stock $0.001 par value, 5,000,000 shares authorized, 0 -- -- (unaudited) and 0 shares issued and outstanding Common stock $0.001 par value, 75,000,000 shares authorized, 28,495 28,433 28,495,256 (unaudited) and 28,433,116 issued and outstanding Additional paid-in capital 33,333,713 28,456,621 Accumulated deficit (32,392,182 ) (28,067,183 ) Total stockholders' equity 970,026 417,871 Total liabilities and stockholders' equity $ 7,397,388 $ 5,661,570

SOURCE: Innovative Card Technologies, Inc.

Innovative Card Technologies, Inc. Investor Relations Jose Castaneda, 720-733-0052 ir@incard.com