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FLO Corporation Announces Completion of $7.1 Million Financing

CHANTILLY, Va., May 2 PRNewswire-FirstCall — FLO Corporation (OTC Bulletin Board: FLRP), a leading Registered Traveler (RT) services provider, today announced that it has entered into agreements to sell an additional $5.5 million in principal of its 12% senior convertible notes in a private placement to accredited investors consisting of new and existing investors. When combined with FLO's initial closing of a private placement of the notes for $1.6 million in principal on April 3, 2008, the aggregate principal amount raised in the note financing is $7.1 million. The notes are convertible by the holders at an initial conversion rate of $0.80 per share, subject to customary anti-dilution adjustments. FLO also agreed to issue warrants to purchase 125,000 shares of common stock at an exercise price of $0.75 per share, and short-term warrants to purchase 100,000 shares of common stock at an exercise price of $0.60 per share, for every $100,000 of principal invested.

The proceeds from the financing will be used to fund company expansion and complete the previously announced acquisition of Unisys Corporation's (NYSE: UIS) RT solution, rtGO(sm). rtGO(sm) is a world-class, scalable technology that is certified by the U.S. Transportation Security Administration (TSA). The acquisition of the rtGO RT solution will help position FLO as a leading player in the RT industry and strengthen its standing as the only public company focused exclusively on the RT initiative.

In connection with the financing, FLO agreed to exchange all of its outstanding Series A preferred stock, with a stated value of approximately $13.3 million plus accrued dividends, for approximately $13.6 million stated value of Series B preferred stock, which does not pay any dividends, and an aggregate of approximately 500,000 shares of common stock. In connection with the exchange, FLO agreed to issue to the holders of Series A preferred stock short-term warrants to purchase an aggregate of approximately 13.6 million shares of common stock at an exercise price of $0.60 per share, and to amend the holders' Series A-1 and Series A-2 warrants to reduce the per share exercise prices from $3.00 to $1.50, and from $4.00 to $2.00, respectively.

"The completion of this financing provides FLO with the resources necessary to aggressively pursue its enrollment campaigns," said Glenn Argenbright, FLO's Chief Executive Officer. He continued, "We are focused on providing the best possible offering in this industry and this financing allows us to bring more value to our customers and partners."

Business Travel Coalition Chairman and FLO Board member Kevin Mitchell observed, "As a long-time Registered Traveler proponent, I am gratified that a new competitive industry force is now positioned for its aggressive commercial launch. Corporations that field millions of travelers, individual consumers and airports now have real choices and alternatives. Importantly, as the only pure-play, publicly-traded Registered Traveler company, FLO gives investors a way to participate in this new and growing industry."

For additional information, please refer to FLO's current report on Form 8-K to be filed with the Securities and Exchange Commission with respect to this transaction.

About FLO

FLO Corporation provides a comprehensive solution for the Registered Traveler program that is built on world-class, scalable technology and administered by the U.S. Transportation Security Administration. The Registered Traveler program is designed to identify air passengers who pose a minimal security risk and then to provide those passengers with access to faster and simpler processing at airport security checkpoints. FLO Corporation has formed the "FLO Alliance" - strategic relationships with several companies with extensive expertise in credentialing, security, access control, customer service, travel services, political lobbying and corporate and consumer marketing - designed to develop, market, sell and deploy an end-to-end solution and to provide Registered Traveler benefits to qualified individuals for expedited security screening in designated lanes at participating airports in addition to receiving promotional offers and discounts offered by retail partners. The FLO Alliance consists of strategic relationships FLO has with Johnson Controls Federal Systems, Inc., JPMorgan Chase Bank, N.A., Smiths Detection Inc., Unisys Corporation and International RAM . For more information about the FLO program and Alliance visit http://www.flocard.com.

NOTE REGARDING FORWARD-LOOKING STATEMENTS

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 business will depend on our ability to establish and maintain strategic relationships with travel services, technology, and other companies. If we are unable to establish and maintain such relationships or if current relationships were to weaken, our actual results may differ materially from those indicated by the statements made in this release and our business could suffer. In addition, if we do not close the rtGO acquisition in a timely manner, our business and future prospects could be harmed. Even if we are able to close this transaction, we expect to incur substantial transaction and restructuring charges as we integrate the rtGO solution with our solution, and there may be additional unanticipated costs. The integration of any acquisition involves numerous risks, including, among others, difficulties in assimilating operations and products, diversion of management's time and attention from other business concerns, potential exposure to unknown or contingent liabilities and possible loss of significant customers or impairment of relationships. We may not achieve the expected benefits of the transaction in the near term, or at all. Our failure to successfully, timely integrate the Unisys rtGO solution with our business could harm our business and future prospects. Other factors that could cause actual results to differ materially from historical results or those indicated by the statements in this release include, but are not limited to, risks and uncertainties associated with our financial condition and our efforts to meet the TSA's requirements to offer Registered Traveler services to sponsoring entities as well as those included in our annual report on Form 10-K filed with the Securities and Exchange Commission on April 15, 2008, and other documents we periodically file with the Securities and Exchange Commission.

NOTE REGARDING TRADEMARKS

"FLO" is a trademark of FLO Corporation. The names of actual companies mentioned herein may be the trademarks of their respective owners.

Media Contact:

Kevin Mitchell - 610.341.1850

SOURCE FLO Corporation

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