IDEX Biometrics ASA — Earnings Release 2014

Jun 30, 2014

IDEX business update 30 June 2014

IDEX business update 30 June 2014

IDEX has made significant progress in the second quarter of 2014, executing on

our strategy to commercialise our advanced fingerprint sensor solutions for mass

market opportunities.

We have already supplied samples of our products to over 10 consumer device

customers in Asia and USA, after we recently launched the first generation of

IDEX highly competitive, small-area touch and swipe fingerprint sensors. To

support these products into commercial volumes, we have also implemented a high

volume manufacturing and supply capability with our partner CrucialTec, who is

an established fingerprint sensor module integrator for the mobile device

industry.

Following from this product sampling activity, in the second quarter of this

year, our first generation of sensors have been selected for qualification by a

number of customers as part of the design in specific mobile device

developments. This may lead to IDEX sensors being inserted in these devices, if

and when these devices are launched by the OEM customers in the market.

As a result, we expect mobile devices with our integrated first-generation IDEX

sensors to be launched later in 2014 or the first quarter of 2015 based on the

current customer plans. This means we continue to expect initial revenues to

begin to flow in the second half of 2014 both from these opportunities and the

volume order IDEX has already won from World Wide Touch Technologies.

Based on our wider engagements with the mobile device ecosystem following the

launch of our products, we see a clear trend for smaller touch fingerprint

sensors that can be built into the front of the mobile device. This has been

triggered by the successful introduction of the small area touch sensor into the

design of the Apple iPhone 5S. Following the launch of the Samsung S5 Galaxy

fingerprint sensor and other Android handsets, we also see that for their next

generation of handsets, these device manufacturers expect improved security

levels and better user performance than is provided by sensors they are

currently deploying.

These reasons are why potential customers are responding positively to our

compelling patent-protected IDEX product roadmap. There is clear industry

understanding why IDEX's next-generation two-part touch sensors can deliver

better price, security and accuracy in small form factors than traditional one-

part silicon sensors that are being used today.

The IDEX team is now rapidly commercialising our second-generation two-part

fingerprint touch sensors based on our patented flexible circuit technology. Our

partnership with Cypress ensures that we will be able to deliver this new family

of sensors in the volumes and at the levels of quality demanded by first-tier

handset manufacturers. Our licence agreement with Cypress secures rapid

semiconductor development to expedite product sampling, supported by high volume

manufacturing capacity. This positions IDEX with an established solutions

supplier to first-tier mobile customers. This second generation of IDEX sensors

will deliver market disruptive cost reduction, whilst dramatically improving

form factor flexibility, accuracy and security features which will address the

explosive growth of mobile payment transactions.

We are already planning to extend this second-generation sensor family by

implementing these products in glass. We believe that this revolutionary sensor

implementation is unique to IDEX and will provide the ultimate solution for

integration of fingerprint recognition in the mobile device. We are experiencing

very strong interest for this in-glass solution, which technology was

successfully demonstrated at the Mobile World Congress this year, whilst

engaging potential customers with our first generation products. IDEX is also

seeing increased customer activity for secure card products for ID, access

control and payment applications, where our flexible sensor is ideally suited.

As a result of this strong interest in our differentiated, patented products and

solutions, supported by the solid partnerships we now have in place to take

these to market, and with an expanding, highly experienced team from the

biometric and mobile industry, we expect to gain a strong share of the

multibillion dollar market opportunity that advanced biometric sensors offer in

the near future.

We at IDEX will continue to build on this strong momentum, and are confident we

will be able to communicate further major positive developments in the second

half of 2014.

30 June 2014

IDEX ASA

Web: www.idex.no

Twitter: http://www.twitter.com/idexasa

LinkedIn: http://www.linkedin.com/company/idex-asa

Contacts

Hemant Mardia, CEO,  +44 7788 922 171, hm(at)idex.no

Kristian Wiermyhr, VP Strategy and Sales,  +47 4127 3360, kw(at)idex.no

About IDEX

IDEX ASA specialises in fingerprint imaging and recognition technology. IDEX's

vision is to ensure individuals a safe, secure, and user-friendly use of

personal ID. IDEX has developed the award-winning SmartFinger technology

platform based on the Company's core intellectual property, including the

patented fingerprint imaging principle, sensing scheme and chip design. Combined

with core software solutions for imaging and authentication, the SmartFinger

technology enables on-device enrollment, template storage and verification

within the very same module. SmartFinger solutions can be seamlessly integrated

into a variety of embedded applications such as mobile phones, one-time password

devices, Smartcards, payment and ID cards, payment terminals, access control

devices and biometric security and login tokens.

IDEX ASA (ticker IDEX) is a Norwegian public company listed at the Oslo Axess

marketplace on the Oslo Børs (Oslo stock exchange). For more information, please

visit www.idex.no or contact IDEX at mailbox@idex.no

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This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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