IDEX Biometrics ASA — Earnings Release 2015

Feb 26, 2016

IDEX%ASA%preliminary report%for%2015

Fourth%quarter%highlights – design%win%and%commercial production

• IDEX%touch%fingerprint%sensor%selected%by%tierCone%mobile%phone%OEM Major&milestone and&strong&reference&point&for&other&tier4one&customers&
• First%volume%production%order%from%tierCone%mobile%OEM%design%win Volume&production&order&validates&IDEX's&technology
• Initial%volumes%of%polymer%sensors%manufactured with%high%yields
• First%flexible%polymer%touch%sensor%for%standard%size%payment%and%ID%cards delivered%to%customer Targeting&leading&position&in&multi4million4unit&market with&initial&pilots&in&near&future
• Continued%progress%towards%commercialization%of%unique%inCglass%sensor IDEX&only&vendor&with&solution&for&sensing&in4glass&rather&than&under4glass
• IDEX%and%BioCKey%launches%USB%fingerprint%reader%for%Windows%devices Targeting the&growing&market&of&replacing passwords&with&biometric&authentication
• Invesco%Asset%Management%and%Woodford%Investment%Management exercised%warrants,%investing a%total%of%NOK%448%million Major&shareholders&demonstrate&confidence&in&IDEX technology,&products,&management&and&strategy

Other%highlights%in%2015 – partnerships and%customers%include leading%global%companies

• Strategic%partnership%with%global%payments%company%validated%potential%in%smartcards%market
• Agreement%with%Fortune%500%company%to%accelerate%commercialisation%of%inCglass%sensor
• Volume%manufacturing%established%in%partnership%with%Cypress%Semiconductor%and%Amkor%Technology
• First%production%order%for%Eagle touch sensor with%World%Wide%Touch%Technology
• Woodford%Investment%Management%invested%NOK%297%million%in%a%private%placement in the%second%quarter
• IDEX%upClisted%to the%Oslo%Børs%main%list in%May

Outlook%and%milestones for%2016 – additional%design%wins%and%production%orders%expected

• IDEX%positioned%for%accelerated%growth within%a multiCbillion%dollar%market%for%fingerprint%sensors%based%on%strong%product% portfolio%and%established%volume%manufacturing%partners
• Initial%production%order%for%tierCone%handset%expected%to%begin%shipping%in%second%quarter%and lead%to%additional%orders
• Positive%feedback%from%OEMs%on%diverse%range%of%siliconC and%polymerCbased%sensors,%expect%further%design%wins
• Significant%advancement%in%programme with%global%payments%company,%IDEX%ramping organisation%to support demand for% card%products
• Expects pilot%orders%of%new%card%sensor%in the second%quarter of%2016%and%volume%shipments%in%late%2016
• Expects%customer%evaluations of inCglass%sensor solutions in%the%second%quarter of 2016%and%industrialising%supply%chain%for%volume% by%the%end%of 2016

IDEX% touch% fingerprint%sensor%selected% by%tierCone%mobile%phone%OEM%

On% 21% December% IDEX announced% that% its Cardinal touch% sensor% product% has% been% selected% by% a% tier>one% smart> phone manufacturer%for%use%in%a%mobile% device%to%be%distributed%by%at%least%one major%wireless%carrier.

This%design%win%came as%a% result%of% IDEX% successfully completing% an% exten> sive% sensor% evaluation% and module% customisation% with% the% mobile% OEM. The%customer%chose%the%Cardinal%touch% sensor% over% competitor% offerings% be> cause%of%its%very% small% form% factor%and% its% excellent% combination% of% price% and% performance.%

"This% win% really% confirms% the% strength% of% our% industry>leading% technology%and%products, and%acts%as%a% strong%reference%point for%IDEX%at%other% tier>one% customers.%We% are% in% advanc> ed%discussions%with%a%number%of poten> tial% customers% about% our% suite% of% low> cost%high>performance%silicon%and poly> mer%touch%sensors.%We%fully%expect%this% activity to%lead%to%further%design wins,"% said% Dr. Hemant% Mardia,% CEO% of% IDEX,% when%the%design%win%was%announced.

Converted%tierCone%mobile%OEM%design% win%to%production%volume%order%

Subsequently,%after%the%end%of%quarter,% IDEX% announced% that% the% design% win% had% been% converted% into% a% production% order.%This%is%the%first%volume%order%for% the%Cardinal%touch%sensor.%IDEX%expects% to% commence% shipments% to% fulfil% the% first%order%during%the%second%quarter%of% 2016.

This% further% underscores% the% im> portance% of% the% original% design% win% announced% in% December,% and% IDEX% expects% to% gain% more% business% and% design% wins% from% the% mobile% OEM% based%on%this%first%order.

Completed% development% of first% flexible%polymer% touch%sensor%suitable% for%cards

During% the% fourth% quarter,% IDEX% com> pleted% development% of a% flexible% poly> mer% touch% sensor% suitable% for% card% integration. This% is% the% world's% first% flexible% touch% sensor% designed% for% ISO% ID1%cards.%

The% sensor% was% specifically% design>

ed% for% cost% and% volume% production within a%blue>chip%card%ecosystem.%The% achievement%is%a%result%of%the%strategic% partnership% with% a% leading% global% pay> ments%company%which IDEX%announced% in% June% 2015 and%leverages% the% unique% advantages% of% IDEX's polymer>based% sensors.

IDEX%has%successfully%demonstrated% its swipe%sensor%technology%on%thin%and% flexible% ISO>compliant% cards,% and% now% I0ffering%has%been expanded%to%include a% flexible% touch% sensor% for% ISO% ID1% cards.

The%card%market%represents%a%multi> million>unit% opportunity.% IDEX% is% pre> paring% for%a% pilot program%and%expects% volume%shipments%in 2016.

Continued%progress%on unique%inCglass% sensor

IDEX%continues to%develop%its unique%in> glass% product% with% a% Fortune% 500% company.% During% the% fourth% quarter,% IDEX participated%in%a%joint roadshow%to% promote% the% product% to% prospective% customers.% The% customer% interest% in% the%technology%has%been%tremendous.

IDEX% is% the% only% company with% a% solution%for%sensing in>glass%rather%than under>glass. IDEX's% in>glass% solution% overcomes the% physical% challenge% of% sensing% through% the% industry% standard% cover% glass% that% blurs the% image.% This% approach% provides% superior% image% quality and addresses%mobile%customer% demand% for% sensors% to% be% seamlessly% integrated%into the front%of%the%mobile% phone.

IDEX%and%BioCKey%launches USB%fingerC print%reader%for%Windows%devices

IDEX% and% Bio>Key% announced% at% the% Mobile% World% Congress 2016% that% the% companies introduced a% USB% finger> print% reader,% SideTouch that% operates% on% both% Windows% and% Android% plat> forms.%

The% SideTouch% fingerprint% reader% uses% the% IDEX% Eagle% touch% sensor,% and% was% developed% to%address% the% growing% demand for enterprise% and% consumer% users% to% replace% passwords% with% biometric%authentication%solutions%such% as%Windows%Hello,%on%existing%devices.

Major% shareholders% exercised% warrants

IDEX's% two% largest%shareholders,% funds% managed% by% Invesco% Asset% Mana> gement% and% by% Woodford% Investment% Management,% exercised% warrants% and% invested% a total% of% NOK% 448% million% in% IDEX% at% a% price% of% NOK% 7.50% and% NOK% 8.50 per%share respectively.

These% investments% significantly% strengthened IDEX's% balance% sheet% represent solid% statements of% con> fidence%from%major%shareholders.

Outlook

IDEX's% strategy% continues% to% focus% on% exploiting% its%sensor% technology% across% three%mass%markets:%mobile%devices,%ID% &% smart% cards% and% the% Internet% of% Things.%

IDEX% is% the% only% fingerprint% sensor% manufacturer in% the% market% that has% the%IP,%know>how%and%products%to%offer% both% conventional% silicon% sensors,% the% Cardinal% product% family,% and% next> generation% polymer% off>chip% sensors,% the% Eagle% product% family,% to% leading% OEMs.% The% Cardinal% sensor% provides% highly% competitive% price% and% per> formance%characteristics%within smaller% form% factors,%whereas%the%Eagle%sensor% has%a% unique% cost% position% for%medium% sized% sensors.% IDEX% now% has% received% production%volume%orders% for%both% the% Eagle% and% the% Cardinal% sensors in% various% market% segments.% The% ship>

Barcelona,%26 February 2016 The&board&of&directors&of&IDEX&ASA

A!financial!narrative!and!preliminary financial!statements!with!notes!are!enclosed.

Investor and%press%contacts:%

Hemant%Mardia,%CEO,%%+44%7788%922%171,% hm(at)idex.no;% Henrik%Knudtzon,%CFO,%%+47%9302%2827,%%hk(at)idex.no

ments% of% the% Cardinal% sensor% for% the% tier>one% mobile% OEM% is expected% to% commence%in%the%second%quarter. IDEX expects%these%market%breakthroughs%to% generate more% design% wins% and% pro> duction% orders% for% mobile% devices throughout%2016.

IDEX's strategic% partnership% with% a% major%global%payments%company%is%pro> ceeding%very%well,%and%IDEX%is%currently% building%out%its production%organisation% in% support% of demand.% IDEX% believes% that% its% world's% first% polymer% touch% sensor% for% cards% will% give% it a% leading% position% for% fingerprint% sensors% in% the cards market.% Customer% trials% with% the% sensor% will% be% conducted% during the% second% quarter, potentially% leading% to% initial%volume% shipments%by%the%end% of% 2016.

Work% on% IDEX's% unique% in>glass% sensor% technology% has% also% been% pro> gressing,% and% IDEX% expects evaluations% by lead% customers% in% the% second% quarter% of 2016. IDEX% believes% this% is% the% ultimate%biometric%solution%for% the% mobile%device%market,%offering%superior% biometric% performance% and% excellent% industrial%design%flexibility.%

Over% the% past% year,% adoption% of% fingerprint% sensors% in% mobile% devices% has%become%widespread,%and growth%is% expected to% accelerate.% Secure% pay> ment% services% are% among% the% leading% drivers% of% the% need% for% secure% and% convenient%authentication%in%the%digital% world.

IDEX% believes% that% its% portfolio of% high>performance% and% cost>effective% products,%supported%by%leading>edge%IP,% a% deeply% knowledgeable% organisation,% tier>one industry% partners,% and% a% solid% financial%position,%will%allow%the%compa> ny% to%capture%a%significant%share%of% the% fast>growing,% multi>billion% dollar mark> et%opportunity%for%fingerprint%sensors.

Consolidated!preliminary financial!statements as!at!31 December 2015 (Unaudited)

Profit!and!loss!statements

IDEX% earned% NOK% 349 thousand% reve< nue from% product% deliveries% in 2015 (Q4:%NOK%177 thousand).%The% revenue% in% 2014% amounted% to% NOK% 1.4% million (Q4/2014:% NOK% 1.2 million) The% reve< nue originated% from% sensor% deliveries% and% a% small% amount% of government% support of%research% and% development% (R&D) activities.% The% gross% margin in% 2015 was%NOK%212 thousand (Q4:%NOK% 73 thousand),% compared% to% NOK% 662 thousand% in% 2014% (Q4/2014:% NOK% 377 thousand). The%gross%margins%on%these% small% volumes% are% not% indicative% for% future%mass%volume%margins.

The% total% operating% expenses in% 2015 amounted% to% NOK% 219.8 million (Q4:% NOK%73.0 million),%up% from%NOK%126.7 million% in% 2014% (Q4/2014:% NOK% 42.8 million). IDEX's staff increase and% ex< pansion% of% all% activities% which% was% initiated in% 2014,% has% continued% through 2015.% IDEX% is% ramping% up% its% operational% capacity% across% all% key% functions% including% product% develop< ment,% supply% chain,% operations% and% sales,% in% preparation% for% commercial production.%The%total%operating%costs%in% the% fourth quarter% increased% by% NOK% 25.9 million over% the% first quarter in% 2015. The%increase%includes%an%effect%of% the%US%dollar%appreciating about%12%per% cent%while%cost%of%share<based%compen< sation,%which%often%varies%considerably% between% quarters,% was% the% same in% these%two%quarters.%

The% total% payroll% expenses increased significantly in% the% year,% to% NOK% 98.2 million% in%2015 (Q4:%NOK%32.1 million) compared%to%NOK%56.2 million%in%2014% (Q4/2014:% NOK% 16.9 million). The underlying% cost% of% salaries% including% payroll% taxes% and% other% personnel% expenses%relate%to%the increased num< ber% of% employees,% expanded% health% insurance%programme%in%IDEX%America as% well% as% the% appreciation% of% the% US% dollar,% and% amounted% to% NOK% 73.0 million%in%2015 (Q4:%NOK%23.8 million),% up% from% NOK% 46.5 million% in% 2014 (Q4/2014:% NOK% 15.6 million).% The balance to%the%total%payroll%expenses%is% the net% effect% of% the% share<based% remuneration. This effect may%vary sub< stantially%between%quarters. Firstly, the% notional% cost% of% incentive% subscription% rights, including% accrued% employer's% tax, varies% with% the% share% price,% and% may% even% cause%a% net% reversal% of% cost between%quarters.%The cost or%reversal% does%not%have%any%cash%effect.%Second< ly,% the% cash%cost%of social% security%due on%exercised%subscription%rights%occurs% only%on%exercise.%This%cost is%funded%by% the% proceeds% from% the% exercise.% The% cost% of% share<based% remuneration% in% 2015% was% NOK% 25.8 million (Q4:% NOK% 8.4% million),% compared% to% NOK% 10.2 million% in% 2014 (Q4/2014:% NOK% 1.7% million)%.

R&D%expenses%amounted%to NOK%102.6 million%in%2015 (Q4:%NOK%36.5 million),% virtually%doubled from%NOK%51.3 million in% 2014% (Q4/2014:% NOK% 17.8 million).% The%increase is%mainly%due%to%an%increase in% activity% level% related to% product% development% and% industrialisation of% fingerprint% sensors,% core% technology% and% new% sensor% materials (glass). The% amounts%in%the%fourth%quarter%and%the% year%2015 also include NOK%7.9%million% NOK% write<off% of inventoried% third< party%algorithm%licences,%because IDEX plans to use%other algorithms.

Other%operating%expenses amounted%to% NOK%19.0 million%in the%year (Q4:%NOK% 4.4 million),% compared% to% NOK% 19.2 million% in 2014 (Q4/2014:% NOK% 8.2 million).% Patenting% and% other% IP% activi< ties,% and%sales% and% marketing% activities were% temporarily% lower% in% the% fourth% quarter.

The% total% staff% of% employees% and% on< going% individual% contractors%was% 65 at% 31 December 2015,% up% from% 51 one% year% earlier and down% from 69 at%the% end% of% the%third quarter of 2015.%IDEX% had%52 employees%at%31 December 2015, and 13 technical/ scientific% individual% contractors% working full% time% or% regu< larly%as%part%of%the%development%team.% One sales% representative% works on% contract.%

Depreciation%amounted%to NOK%6.8 mil< lion% in 2015 (Q4:% NOK% 1.8 million),% nearly three% times the% depreciation% in% 2014,%which%amounted%to%NOK%2.3 mil< lion% (Q4/2014:% NOK% 0.7 million).% The% increase% was% mainly% caused% by% the% purchase% of% patents% and% other% IP% on% 30 December% 2014,% which% depreciate over% 9.5% years.% NOK% 2.6 million% was% invested% in% scientific% equipment% and% engineering%tools% in% 2015,% compared% to% NOK%4.8 million in%2014.%

EBIT%in the%year amounted%to%a%loss%of% NOK 226.4 million (Q4:% NOK% 74.8 mil< lion),%compared%to%a%loss%of%NOK%128.4 million in% 2014 (Q4/2014:% NOK% 43.1 million).% The% increased loss% year<on< year%was%caused%by a%major%step<up in% R&D% activities,% staff% additions,% the% ef< fect% of% share<based% remuneration and% the%appreciation%of%the%US%dollar (USD)% against%the%Norwegian%krone%(NOK).

Financial%items amounted% to a%net cost of NOK%1.9 million%in%2015 (Q4:%net%cost of% NOK% 0.6 million),% compared% to% an% income% of% NOK% 5.8 million% in% the% previous% year (Q4/2014:% NOK% 1.4 mil< lion).%Net%interest%income%was%NOK%2.8 million in% 2015% (Q4:% NOK% 0.4 million),% while%net foreign exchange%loss,%mainly% related% to% USD% payables% and% debt, amounted%to%NOK%4.7 million (Q4:%NOK% 0.9 million).

Because% IDEX's% wholly<owned subsidi< aries in% the%USA%and%UK make profits,% there% was% a tax% charge in% an% amount% of%NOK%0.5 million in%2015 (Q4:%0%(nil)),% on%par%with%the%previous%year. The%net% result% for% IDEX% in% the% year was% a% loss% amounting% to% NOK 228.8 million (Q4:% NOK% 75.4 million),% compared% to%a% loss% amounting%to%NOK%123.1 million in%2014 (Q4/2014:%NOK%42.3 million).%

Profit or% loss%per%basic%weighted%aver< age number% of% shares% amounted% to% a% loss% of% NOK 0.50 in 2015.% Per% share% results%are%not%directly%comparable%be< tween% quarters or% years because% the% number%of%shares%hasincreased%by share% issues.

Balance!sheets

IDEX% has% a% very% strong% balance% sheet because% of the% private% placements of% shares in% 2014 and% 2015,% which% raised% net%NOK%305.4 million%and%724.4 million% respecticely.%At%31 December 2015,%IDEX% held%a% cash% balance%amounting% to%NOK% 763.7 million, and% the% group had no% financial debt.

The% main% assets% held% on% the% balance% sheet%are%the%intangible%assets%acquired% from% PicoField in% 2013 and from Roger% Bauchspies% in% 2014,% inventoried% com< ponents%and%sensors,%and cash%in%bank. Cash%is the%dominant item,%representing% 92 per%cent%of%the%total%assets.

The% assets% and% intellectual% property% rights% acquired% from% PicoField% in% 2013% was capitalised%in%accordance%with%IFRS,% and% included goodwill% in% an% amount% of% NOK%8.3%million and%depreciating%assets% in%an%original%acquisition%amount%of%NOK 15.3%million. Most% of% the% assets% depre< ciate% over% 17.3 years% from% acquisition. On% 30% December% 2014,% IDEX% acquired% patents%and%other%IP%from%Roger%Bauch< spies%in%an%amount%of%NOK%28.3%million, which assets%depreciate%over%9.5%years.

IDEX's% own patents% and% other% intellec< tual% property% rights% are% generally% not% held%in% the%balance%sheet%because% they% do% not% satisfy% the% criteria% for% capitali< sation.% Development% costs have% in% the% past%largely%been%expensed%for%the%same% reason. In 2015,% IDEX% capitalised% own% development% expenses% related to% the% Cardinal%sensor%product,%in%an%amount%of% NOK%0.8%million,%the%same%amount%as%in% 2014.

Fixed%assets%amounted%to%NOK%6.6 million% at% 31 December 2015,% up% from%NOK% 5.6% million%at% the%end% of% 2014.%These%assets are%scientific%equipment%and%engineering% tools,% leasehold upgrades,% office% equip< ment%and%furniture with%useful%lives%of%3<5% years.

At the% end% of% 2015,% inventoried% third< party% algorithm% licences% amounting% to% NOK%7.9%million%were written%off%because% IDEX%plans use%other algorithms.

On%31 December 2015,% the%total%assets% amounted% to% NOK% 828.3 million,% of% which%NOK%763.7 million%were%cash.%The% total% assets amounted% to% NOK% 299.3% million% at% the% beginning% of% 2015.% The% balance% sheet% has% been% strengthened% by%several%share%issues during 2015.%The% cash% position% is% further% commented% upon%below.

The% major liabilities% are% various% opera< tional% payables% to% suppliers and% em< ployees,% and% amounted% to% NOK 69.1 million% at% 31 December 2015,% up from 45.9 million%at%31 December 2014. There% are%usually variations between%quarters due%to%fluctuating%payables%to%suppliers% and% accrued% liabilities. In% 2015,% the% payables% have% increased by% NOK% 8.8% million,% and% the% accrued,% nominal% em< ployer's% tax% on% share% incentices% has% increased% by% NOK% 11.7%million% because% of%the%share%price%increase%during%2015.

A% private% placement% was% conducted% in% the% second% quarter% of% 2015,% two% insti< tutional% shareholders% exercised% war< rants% in% the% fourth% quarter,% and% there% were two%rounds%of%employee%exercises% of%incentive%subscription%rights in%2015. In%total,%net%of%expenses,%NOK%724.4%new% equity% has% been% added% in% the% year. Equity%amounted%to%NOK%749.7 million%at% 31 December 2015,%up from%NOK%243.4 million%at%the%beginning%of%the%year.%

IDEX does% not% have% financial% debt.% The% company has% adequate% equity% and% liquidity%to%operate%as going%concern for% significantly% longer% than% 12% months% from%the%date of%this%report.

Cash!flow,!cash!position

The%operational%cash%outflow%in%the%year was%NOK% 187.4 million.%The%main%ope< rating%cash%item%was the%operating%loss in%the%period,%partly%offset%by%the%equity% part% of% the%share<based% compensation% and% depreciation. Working% capital% was% positive% in% the% fourth quarter% and% the% full% year because of an% increase% in% supplier% debt and% reduced% inventory.% There% are% usually% variations% between% quarters,% mainly due% to% fluctuating% payables% to% suppliers% and% accrued% liabilities.

NOK% 2.6 million% was% invested% in% scien< tific% equipment% and% engineering% tools% in% 2015,% down% from% NOK% 4.8 million% in% 2014.% Investments% vary% according% to% project%requirements%for%new%equipment% and% tooling.%IDEX%has%in%2015%capitalised% NOK% 0.8 million%of% its% own% development% expenses,the same%amount%as%in%2014.

In%2015,%new%equity%amounting%to%NOK% 724.4 million net% after% expenses was% raised%by a%private%placement of%shares, payables% settled% in% shares, two% exer< cises% of% warrants% and% two% rounds% of% exercises% of% incentive% subscription% rights.%IDEX%raised%NOK%305.4%million%in% 2014.

At%31 December 2015 the%cash%position% amounted% to% NOK% 763.7 million,% up% from%NOK%228.0%one%year%earlier,%while% net% of% receivables% less% payables% and% accruals%amounted%to%NOK%62.0 million% payable,% leaving% a% balance% sheet% sol< vency%of%NOK%701.7 million compared%to% NOK% 187.7%million% at% the%end% of% 2014.% IDEX%does%not%have%financial%debt.

IDEX!ASA! Condensed!consolidated!preliminary financial!statements!with!notes! 31 December 2015 (Unaudited)

Interim(consolidated(statements(of( comprehensive(income Amounts"in"NOK"1,000	1(October6 31(December 2015	1"October* 31"December 2014	1(January6 31(December 2015	1"January* 31"December 2014
Operating(income
Sales"and"services"income	((((((((((((((((((((( 177	""""""""""""""""""1"229	((((((((((((((((((((( 349	""""""""""""""""""1"423
Other"operating"revenue	((((((((((((((((((((((		((((((((((((((((((((((	""""""""""""""""""""""" 91
Total(revenue	((((((((((((((((((((( 177	((((((((((((((((((1(229	((((((((((((((((((((( 349	((((((((((((((((((1(514
Cost"of"goods"sold	((((((((((((((((((((((( 73	""""""""""""""""""""" 852	((((((((((((((((((((( 137	""""""""""""""""""""" 852
Gross(margin	((((((((((((((((((((( 104	((((((((((((((((((((( 377	((((((((((((((((((((( 212	((((((((((((((((((((( 662
Operating(expenses
Payroll"expenses	((((((((((((((((32(093	""""""""""""""""16"859	((((((((((((((((98(226	""""""""""""""""56"194
Research"and"development"expenses	((((((((((((((((36(524	""""""""""""""""17"773	((((((((((((( 102(567	""""""""""""""""51"298
Other"operating"expenses	((((((((((((((((((4(422	""""""""""""""""""8"152	((((((((((((((((18(972	""""""""""""""""19"233
Total(operating(expenses	((((((((((((((((73(039	((((((((((((((((42(784	((((((((((((( 219(765	((((((((((((( 126(725
Profit((loss)(before(interest,(tax,( depreciation(and(amortization((EBITDA)		(((((((((((((((72(935) (((((((((((((((42(407) (((((((((((((219(553) (((((((((((((126(063)
Depreciation Profit(before(interest(and(tax((EBIT)	((((((((((((((((((1(840	""""""""""""""""""""" 723 (((((((((((((((74(776) (((((((((((((((43(131) (((((((((((((226(388) (((((((((((((128(371)	((((((((((((((((((6(834	""""""""""""""""""2"307
Financial(income(and(expenses
Interest"income	((((((((((((((((((((( 341	""""""""""""""""""1"138	((((((((((((((((((2(810	""""""""""""""""""5"667
Other"financial"income	((((((((((((((((((((( 868	""""""""""""""""""1"527	((((((((((((((((((3(312	""""""""""""""""""2"096
Interest"expenses	((((((((((((((((((((((		"""""""""""""""""""""""" (1) (((((((((((((((((((((((((1) """""""""""""""""""""""" (4)
Other"financial"expenses		(((((((((((((((((1(777) """""""""""""""" (1"250) (((((((((((((((((8(023) """""""""""""""" (1"932)
Net(financial(items	(((((((((((((((((((((568) ((((((((((((((((((1(414		(((((((((((((((((1(902) ((((((((((((((((((5(827
Net(result(before(tax		(((((((((((((((75(344) (((((((((((((((41(717) (((((((((((((228(290) (((((((((((((122(544)
Income"tax"expense"(credit)	((((((((((((((((((((((( 27	""""""""""""""""""""" 563	((((((((((((((((((((( 541	""""""""""""""""""""" 563
Net(profit((loss)(for(the(period(		(((((((((((((((75(371) (((((((((((((((42(280) (((((((((((((228(831) (((((((((((((123(107)
Profit'(loss)'per'share'0'basic'and'diluted	NOK\$(0.15)	NOK'(0.10)	NOK\$(0.50)	NOK'(0.30)
Net(profit((loss)(for(the(period(		(((((((((((((((75(371) (((((((((((((((42(280) (((((((((((((228(831) (((((((((((((123(107)
Other"comprehensive"income		(((((((((((((((((((((517) """""""""""""""" (1"213) (((((((((((((((((1(006) """""""""""""""" (1"407)
Total(comprehensive(income(
for(the(period,(net(of(tax		(((((((((((((((75(888) (((((((((((((((43(493) (((((((((((((229(837) (((((((((((((124(514)

The%notes%are%an%integral%part%of%this%condensed%interim%financial%report.

Interim(consolidated(balance(sheets(	31(December	31#December#
Amounts#in#NOK#1,000	2015	2014
ASSETS
Long=term(assets
Goodwill	((((((((((((((((((((((((((((((((8(260	################################8#260
Other#intangible#assets	((((((((((((((((((((((((((((((39(172	##############################42#805
Fixed#assets	((((((((((((((((((((((((((((((((6(576	################################5#588
LongEterm#receivables	((((((((((((((((((((((((((((((((1(155	################################1#143
Total(long=term(assets	((((((((((((((((((((((((((((((55(163	((((((((((((((((((((((((((((((57(796
Current(assets
Inventory(and(receivables
Inventory	((((((((((((((((((((((((((((((((2(281	################################7#944
Accounts#receivable	((((((((((((((((((((((((((((((((((( 254	################################1#070
Other#receivables	((((((((((((((((((((((((((((((((4(319	################################2#498
Prepaid#expenses	((((((((((((((((((((((((((((((((2(531	################################2#044
Total#inventory#and#receivables	((((((((((((((((((((((((((((((((9(385	((((((((((((((((((((((((((((((13(556
Cash(and(bank(deposits
Cash#and#bank#deposits	((((((((((((((((((((((((((((763(716	############################227#961
Total#cash#and#bank#deposits	((((((((((((((((((((((((((((763(716	((((((((((((((((((((((((((((227(961
Total(current(assets	((((((((((((((((((((((((((((773(101	((((((((((((((((((((((((((((241(517
TOTAL(ASSETS	((((((((((((((((((((((((((((828(264	((((((((((((((((((((((((((((299(313
EQUITY(AND(LIABILITIES
Equity
Paid=in=capital
Share#capital#	((((((((((((((((((((((((((((((79(651	##############################61#948
Share#premium#	((((((((((((((((((((((((1(170(453	############################463#766
Other#paidEin#capital	((((((((((((((((((((((((((((((44(566	##############################32#787
Total(paid=in=capital	((((((((((((((((((((((((1(294(670	((((((((((((((((((((((((((((558(501
Other#equity	(((((((((((((((((((((((((((544(986) ##########################(315#150)
Total(equity	((((((((((((((((((((((((((((749(684	((((((((((((((((((((((((((((243(351
Liabilities
Long=term(liabilities
Other#longEterm#liabilities	((((((((((((((((((((((((((((((((9(445	##############################10#079
Total(long=term(liabilities	((((((((((((((((((((((((((((((((9(445	((((((((((((((((((((((((((((((10(079
Short=term(liabilities
Accounts#payable	((((((((((((((((((((((((((((((17(755	################################8#997
Public#duties#payable	((((((((((((((((((((((((((((((((4(012	################################2#207
Accrued#payable#income#tax	((((((((((((((((((((((((((((((((1(019	################################### 652
Notional#employer's#tax#on#share#incentives	((((((((((((((((((((((((((((((13(900	################################2#231
Other#shortEterm#liabilities	((((((((((((((((((((((((((((((32(449	##############################31#796
Total(short(term(liabilities	((((((((((((((((((((((((((((((69(135	((((((((((((((((((((((((((((((45(883
Total(liabilities	((((((((((((((((((((((((((((((78(580	((((((((((((((((((((((((((((((55(962
TOTAL(EQUITY(AND(LIABILITIES	((((((((((((((((((((((((((((828(264	((((((((((((((((((((((((((((299(313

The%notes%are%an%integral%part%of%this%condensed%interim%financial%report.

Interim(consolidated(	1(October5	1"October*	1(January5	1"January*
cash(flow(statements	31(December	31"December	31(December	31"December
Amounts"in"NOK"1,000	2015	2014	2015	2014
Cash(Flows(from(operating(activities
Profit"(loss)"before"interest"and"taxes		((((((((((((((((74(776) """""""""""""""(43"131) ((((((((((((((226(388) """""""""""""(128"371)
Share*based"remuneration"(equity"part)	(((((((((((((((((((1(459	"""""""""""""""""""2"717	(((((((((((((((((11(779	"""""""""""""""""12"604
Depreciation	(((((((((((((((((((1(840	""""""""""""""""""""""723	(((((((((((((((((((6(834	"""""""""""""""""""2"307
Interest"paid	(((((((((((((((((((((((	"""""""""""""""""""""""""(1)		((((((((((((((((((((((((((1) """""""""""""""""""""""""(4)
Change"in"working"capital"and"other"items	(((((((((((((((((33(210	"""""""""""""""""25"358	(((((((((((((((((20(413	"""""""""""""""""""8"425
Net(cash(flow(from(operational(activities	((((((((((((((((38(267)		((((((((((((((((14(334) ((((((((((((((187(363)	((((((((((((((105(039)
Cash(flows(from(investing(activities
Purchases"of"assets	((((((((((((((((((((((((19	"""""""""""""""(29"520)	((((((((((((((((((2(624)	"""""""""""""""(33"113)
Capitalised"development"costs		((((((((((((((((((((((172) """""""""""""""""""""(788) ((((((((((((((((((((((813) """""""""""""""""""""(788)
Change"in"long*term"receivables		((((((((((((((((((((((((11) """""""""""""""""""""""(18)		((((((((((((((((((((((((12) """""""""""""""""""""(697)
Interest"received	((((((((((((((((((((((341	"""""""""""""""""""1"138	(((((((((((((((((((2(810	"""""""""""""""""""5"667
Net(cash(provided(by(investing(activities	((((((((((((((((((((((177		((((((((((((((((29(188) ((((((((((((((((((((((639)	((((((((((((((((28(931)
Cash(flows(from(financing(activities
Share"issues"net"of"expenses	((((((((((((((423(317	"""""""""""""""""""""""(17)	((((((((((((((724(391	""""""""""""""305"377
Change"in"long*term"payable	((((((((((((((((((3(462) """""""""""""""""10"079		((((((((((((((((((((((634) """""""""""""""""10"079
Net(cash(provided(by(financing(activities	((((((((((((((419(855	(((((((((((((((((10(062	((((((((((((((723(757	((((((((((((((315(456
Net(change(in(cash(and(cash(equivalents	((((((((((((((381(766	"""""""""""""""(33"460) ((((((((((((((535(755		""""""""""""""181"486
Opening"cash"balance	((((((((((((((381(950	""""""""""""""261"421	((((((((((((((227(961	"""""""""""""""""46"475
Closing(cash(balance	((((((((((((((763(716	((((((((((((((227(961	((((((((((((((763(716	((((((((((((((227(961

				Retained(
Interim(consolidated(statements(of(			Other	earnings(
changes(in(equity	Share	Share	(paid,in	(uncovered	Total
Amounts(in(NOK(1,000	capital	premium	capital	loss)	equity
Balance(1(January(2015	(((((((((((( 61(948	(((((((((( 463(766	(((((((((((( 32(787	((((((((( (315(150)	(((((((((( 243(351
Share(issues	(((((((((((( 17(703	(((((((((( 706(688			(((((((((( 724(391
ShareEbased(compensation			(((((((((((( 11(779		(((((((((((( 11(779
Total(comprehensive(income(for(the(period				((((((((( (229(837)	((((((((( (229(837)
Balance(31(December(2015	(((((((((((( 79(651	((((((( 1(170(454	(((((((((((( 44(566	((((((((( (544(987)	(((((((((( 749(684
Balance(1(January(2014	(((((((((((( 51(706	(((((((((( 168(631	(((((((((((( 20(183	((((((((( (190(636)	(((((((((((( 49(884
Share(issues	(((((((((((( 10(242	(((((((((( 295(135			(((((((((( 305(377
ShareEbased(compensation			(((((((((((( 12(604		(((((((((((( 12(604
Total(comprehensive(income(for(the(period				((((((((( (124(514)	((((((((( (124(514)
Balance(31(December(2014	(((((((((((( 61(948	(((((((((( 463(766	(((((((((((( 32(787	((((((((( (315(150)	(((((((((( 243(351

The%notes%are%an%integral%part%of%this%condensed%interim%financial%report.

Notes!to!the!condensed!consolidated!interim!financial!statements! 31 December 2015!(Unaudited)

1!!IDEX!ASA!and!the!IDEX!group

IDEX ASA%is%a%public%limited%liability%company% incorporated%and%domiciled%in%Norway.%The% address%of%the%registered%office,%which%is%also% the% head% office, is% Martin% Linges% vei% 25 at% NO<1364 Fornebu, Norway.%IDEX%ASA%shares% have%been%listed%at%Oslo%Børs%since%12 March% 2010.%The%objective%of%the%company%as%stated% in% the% articles% of% association% is to% deliver% computer<based% identification%systems% and% other%related%activities.

IDEX%ASA holds%a%subsidiary%group in%the%USA,% established%in%2013,%which%provides develop< ment%services%as%well%as sales%and%marketing%

2!!Basis!of!preparation,!accounting!policies,!resolution.!Risks

This% condensed% consolidated% preliminary% financial%report%for%2015 has%been%prepared% in% accordance% with% IAS% 34% Interim% financial% reporting.%This condensed consolidated pre< liminary financial% report% should% be% read% in% conjunction%with% the%annual% financial%state< ments%for 2014. The%IFRS%accounting%policies% applied% in% this report% are% consistent% with% those% applied% and% described% in% the% annual% financial%statements%for%2014.

It%is%the%duty%of%the%board%of%directors%to%duly% present% the% principal% risks% of% IDEX% and% its% business.%IDEX%does%not%have%any%significant% assets% or% liabilities% with% financial%risk.% IDEX% does% not% hold% financial% instruments% or% noteworthy%financial%assets%or%liabilities,%and% has%limited%financial%risks%related%to%currency%

and%interest%rates.%

The% company's% major% long<term% risk% is% its% business% risk,% meaning% its% ability% to% earn% revenue.% This% risk% is% difficult% to% assess,% because% IDEX% hitherto% has% earned% in< significant%revenue%from%its%technology.%The% company's%ability% to%earn% revenue% depends% on% firstly,% its% ability% to% develop% and%market% successful% components% which% its% partners% will% embed% in% their% products% and% systems,% and%secondly,%the%company's%ability%to%legally protect% its% intellectual% property% rights,% and% finally,%to%maintain%a%competitive%advantage.% IDEX% considers% that% its% fingerprint% sensor% technology% has% one% of% the% best% biometric% services% to% IDEX% ASA.% IDEX% ASA% also% has% a% subsidiary%in%the%UK, established%in%2014, and% a% subsidiary% in% People's% Republic% of% China,% established in 2015. The%subsidiaries provide% various%services%to%IDEX ASA.

performances,%and%that%the%fingerprint%sen< sor%product%range%offers%unique%properties.

The% going% concern% assumption% has% been% applied%when%preparing%this%interim%financial% report.% IDEX% does% not% earn% recurring% reve< nue.% The% company% does% not% have% financial% debt,% and% IDEX% has% adequate% liquidity% and% equity% under% current% planning% assumptions% for% a% period% significantly% longer% than% 12% months%from%the%date%of%this%report.

This% interim% financial% report% has% not% been% subject%to%audit.%The%report%was%approved%by% the%board%of%directors%on%26 February 2016.

3!!LongMterm!assets!

		Other			Total
		intangible.	Tangible	Long@term.	long@term.
Amounts.in.NOK.1,000	Goodwill	assets	.fixed.assets	receivables	assets
Balance.1.January.2015	8.260	42.805	5.588	1.143	57.796
Additions		813	2.625	12	3.450
Disposals.at.cost
Depreciation.and.impairment.losses			(4.446) (2.388)		(6.834)
Effects.of.changes.in.foreign.currency			753		753
Balance.31.December.2015	8.260	39.172	6.576	1.155	55.163
Balance.1.January.2014	8.260	14.937	1.178	446	24.821
Additions	((((((((((((((((((	((((((((((( 29(077	((((((((((((( 4(824	(((((((((((((((( 697	34.598
Disposals(at(cost	((((((((((((((((((	((((((((((((((((((	((((((((((((((((((	((((((((((((((((((
Depreciation(and(impairment(losses	((((((((((((((((((		(((((((((((((1(209) (((((((((((((1(098) ((((((((((((((((((		(2.307)
Effects(of(changes(in(foreign(currency			(((((((((((((((( 684		684
Balance.31.December.2014	8.260	42.805	5.588	1.143	57.796

Under% IFRS% goodwill% is not amortised% but% impairment% tested%at%each%year%end. IDEX's% own%patents%and%other intellectual%property% rights% created% by% IDEX% are% not% held% in% the% balance% sheet% because% they% do% not% satisfy% the% criteria% for% capitalisation.% Development% costs%may%be expensed%for%the%same%reason.%

IDEX%has%in%2015%capitalised%NOK%0.8 mil< lion%development%expenses related%to the Cardinal%sensor%product.

2014:

IDEX% capitalised in% 2014 NOK% 0.8% million development%expenses related%to%the%Cardi< nal%sensor%product.

On% 30% December% 2014,% IDEX% purchased patents%and%other%IP%from%Roger%Bauchspies% in% an% amount% of% NOK% 28.3% million.% The% purchase%price%was%allocated%to%the%patents.% The% patents% depreciate% over% estimated% economic%useful%life,%viz.%the%lifetime%of%the% patents,%until%31%July%2024.

4!!Shares,!warrants!and!subscription!rights

	Incentive'
	subscription'
Number'of'financial'instruments	rights	Warrants	Shares
Balance'1'January'2015		'''''26'460'362'' '''''30'000'000'' '''413'488'862''
1'JanuaryC31'December:'Granted'incentive'subscription'rights	'''''''2'285'000''
1'JanuaryC31'December:'Exercised'incentive'subscription'rights	''''''(5'482'862)''		'''''''5'482'862''
1'JanuaryC31'December:'Expired'and'forfeited'incentive'subscription'rights	''''''(1'042'500)''
29'April'2015:'Private'placement'of'shares,'issue'of'warrants		'''''26'250'000'' '''''52'500'000''
13'May'2015:'Issue'of'board'remuneration'shares			''''''''''137'692''
2'July'2015:'Private'placement'of'shares			'''''''3'150'000''
16'November'2015:'Exercise'of'warrants		''''(30'000'000)'''''''30'000'000''
4'December'2015:'Exercise'of'warrants		''''(26'250'000)'''''''26'250'000''
Balance'31'December'2015		'''''22'220'000'' ''''''''''''''''''''''0 '' '''531'009'416''
Balance'1'January'2014		'''''28'186'345'' '''''''''''''''''''''0 '' '''344'707'732''
1"January)31"December:"Granted"subscription"rights	'''''''5'700'000''
1"January)"31"December:"Exercise"of"subscription"rights	''''''(5'817'233)''		'''''''5'817'233''
1"January)31"December:"Expired"and"forfeited"subscription"rights	''''''(1'608'750)''
29"January"2014:"Private"placement"of"shares		'''''30'000'000'' '''''60'000'000''
20"March"2014:"Private"placement"of"shares			'''''''2'400'000''
8"May"2014:"Issue"of"board"remuneration"shares			''''''''''''63'897''
30"December"2014:"Private"placement"of"shares			''''''''''500'000''
Balance'31'December'2014		'''''26'460'362'' '''''30'000'000'' '''413'488'862''

IDEX% has% granted% incentive% subscription% rights% (SRs)% to% employees and individual% contractors.% Unless% specifically% resolved otherwise,%25%per%cent%of%each%grant%of%sub– scription%rights%vest%12%months%following%the% date% of% the% grant,% and% expire% on% the% fifth% anniversary% following% the% general% meeting% that%resolved%the%programme.%Unvested%sub< scription% rights% terminate% on% the% holder's% last%day of%employment.%Vested%subscription% rights%may%be%exercised%up%to%90%days%after% the% holder's% last% day of% employment.% The% weighted% average% exercise% price% of out< standing%incentive%SRs%on%31 December 2015 was%NOK 3.48 per%share.

5!!Payroll!expenses

AmountsinNOK*1,000	1#October4 31#December 2015	1October1 31December 2014	1#January4 31#December 2015	1January1 31December 2014
Salary,payrolltax,benefits,other*expenses		###################### 23#778### *** 15600 ###################### 73#007### *** 46*461*
Capitalisedcostofdevelopmentwork				########################## (103)###**** (440)########################## (547)###**** (440)
Payrolltaxonexercisedsubscription*rights		######################## 2068### ***** 145 ######################## 3618### *** 5049*
Share1basedremun.,notionalsalaryexpense		######################## 1114### *** 2717 ###################### 10#479### *** 12604***
Share1basedremun.,accrual(rev.)ofemplr.'stax				######################## 5236### *** (1163)###################### 11#669### *** (7480)**
Payroll#expenses		###################### 32#093### ###################### 16#859### ###################### 98#226### ###################### 56#194###

The%fair% value%at%grant% date% of% subscription% rights% granted% to% employees% are% expensed over%the%vesting%period of%each%tranche.%The% fair%value%of the%subscription%rights is%deter< mined%using%a%Black%&%Scholes%option%pricing% model.

Employer's% social% security% tax% related% to% share<based% remuneration% is% calculated% on% the%balance%sheet%date%based%on%the earned intrinsic value%of%the%subscription%rights, and% the% adjustment% to% the% accrued amount% is% charged%or%credited%to%cost.

When%subscription% rights%are%exercised,% the% accrued%payroll%tax%is%reversed%and%the%actual% payroll%tax is%expensed.

6!!Income!tax expense

The%income%tax%expense%relates%to%estimated%income%tax%on%profit%in%IDEX%America and%IDEX%UK.

7!!Profit!(loss)!per!share

	1!January!– 31!December!2015	1%January%– 31%December%2014
Profit%(loss)%attributable%to%the%shareholders%(NOK%1 000)	(228!831)	(121%987)
Weighted%average%basic%number%of%shares	459 123 063	406%478%449
Weighted%average%diluted%number%of%shares	471 523 685	419%718%850
Profit%(loss)%per%share,%basic%and%diluted	NOK!(0.50)	NOK%(0.30)

When%the%period%result%is%a%loss,%the%loss%per% diluted%number%of%shares%is not%reduced%by% the% higher% diluted% number% of% shares% but% equals the%result%per%basic%number%of shares.% The% diluted% number% of% shares% has% been% calculated% by% the% treasury% stock%method.% If% the% exercise% price% of% subscription% rights% or warrants%exceeds%the%average%share%price%in% the% period,% the% subscription% rights% or% war< rants%are%not%counted%as%being%dilutive.

8!!Contingent!assets!and!liabilities

IDEX%does%not%have%any%contingent%assets%or%contingent%liabilities.%IDEX%has%not%issued%any%guarantees.

9!!Related!party!transactions

On%24%February%2015,%Ralph%W.%Bernstein,%CTO% at%the%time,%exercised%1,000,000%subscription% rights% and% acquired% the% corresponding% num< ber%of% shares%at%a%weighted%average%price%of% NOK% 1.16% per% share;% board% member% Hanne% Høvding%exercised% 26,532% subscription% rights% granted% as% board% remuneration% in% 2010% and% acquired%the%corresponding%number%of%shares% at% a% price% of%NOK% 1.20% per% share;% and% Erling% Svela,% VP of% Finance, exercised% 640,000% sub< scription%rights%and%acquired%the%correspond< ing%number%of% shares%at%a%price%of%NOK% 1.96% per%share.%

Following% the% annual% general% meeting% of% IDEX% on% 12% May% 2015,% chairman% Morten% Opstad%and%board%members%Hanne%Høvding% and% Andrew% James% MacLeod% elected% to% receive% part% or% full% board% remuneration% in% shares. Mr. Opstad%acquired 22,031%shares%at NOK%0.15%per%share%instead%of%NOK%100,000% of%his%cash%board%remuneration.%Ms.%Høvding% acquired 49,569% shares% at NOK% 0.15% per%

10!!Events!occurring!after!the!balance!sheet!date

Between%31 December 2015 and%the%resolution% of% these% condensed% consolidated% preliminary% financial% statements,% there% have% not% been% any% events% which% have% had% any% noticeable% impact% on% IDEX's% result% in% 2015% or% the% value% of% the% company's% assets% and% liabilities% at% 31 December 2015.

share% instead% of% receiving% a% cash% board% remuneration%of%NOK%225,000.%Mr. MacLeod% acquired% 66,092% shares% at NOK% 0.15% per% share% instead% of% receiving% a% cash% board% re< muneration%of%NOK%300,000.%

In% 2015 IDEX% has% recorded% NOK 5,168 thousand% for% services% provided% by IDEX's% legal% counsel,% law% firm% Ræder,% in% which% chairman% Morten% Opstad% is% a% partner.% Mr. Opstad's%work%beyond%board%duty%has%been invoiced% by% Ræder. The% services% in% 2015 include% legal% assistance% in% connection% with% the%private%placement%of%52.5%million%shares% on%29%April%2015, transfer%of%listing%from%Oslo% Axess%to%Oslo%Børs on%11 May%2015,%as%well% as% the% exercises of% warrants in% the% fourth% quarter%of%2015.

Larry%Ciaccia,%who%was%elected%board%mem< ber%at%the%annual%general%meeting%on%12 May% 2015,% served% on% IDEX's% nomination% com< mittee% 2014<2015,% for% which% service% the% annual%general%meeting%2015%resolved%a%re< muneration%of%NOK%15%thousand.%Mr.%Ciaccia% has% served% on% IDEX's% Strategy% Advisory% Committee% (SAC)% since% January% 2014% and% continues% his% tenure% on% the% SAC.% The% SAC% service%fee%is%USD%15%thousand%per%year.%Mr.% Ciaccia% also% provides% consulting% services% to% IDEX%for%a%fixed%fee%of%USD%50%thousand%per% year.

Robert%N.%Keith%assists IDEX%in%strategic%an< alysis% and% in% dealing% with% larger,% inter< national,% prospective% partners.% Mr.% Keith's% fee% for his% services% amounts% to% NOK% 2.0% million%per%year.

Charles% Street% International% Ltd,% which% is% a% shareholder%in%IDEX,%earned%fees amounting% to%NOK%14.9 million,%paid partly%in%shares,%for% providing%services to IDEX in 2015.