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IDEX Biometrics ASA Earnings Release 2019

Feb 27, 2020

3633_rns_2020-02-27_cec9661c-6d4d-47de-b8a0-8887b1867052.html

Earnings Release

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IDEX Biometrics's report for the fourth quarter of 2019

IDEX Biometrics's report for the fourth quarter of 2019

2019 and Recent Highlights

Commercial and Sales

* Secured largest design win and supply agreement in the company's history, a

NOK 56 million, minimum commitment to supply the company's sensors and

software to a major global financial news and IT services company

* Selected by a leading global Tier 1 smartcard manufacturer to supply the

TrustedBio(TM) sensor for use in the manufacturer's next generation biometric

payment cards

* Selected by Feitian, a leading Chinese smartcard manufacturer for

exclusivity on biometric payment card opportunities in China

* Entered into license agreements for remote enrollment with two leading

smartcard manufacturers, IDEMIA and Chutian Dragon

* Secured additional design wins in Asia for both access control, payment and

brand loyalty smartcards

Product Development

* Launched TrustedBio(TM) - a new family of dual-interface products and solutions

designed to dramatically reduce biometric smartcard cost while improving

performance, security, and manufacturability

* IDEX's dual-interface technology including the sensor, software and

reference design was validated by independent labs to meet multiple global

payment schemes' certification requirements

* Received EMVCo security certification for IDEX's development site in the

U.K.; the first and only biometric sensor company to be EMVco security

certified

* Formed supply chain partnerships with Feitian, Silone Cardtech and others to

bring cost effective, mass produced biometric smartcards to market

* Strengthened its patent portfolio with granted broad patents for biometric

systems-on-chip and remote enrollment in key geographies

Financial

* Raised 304 million NOK (296 million NOK, net of expenses) in additional

capital during 2019

* Completed cost reductions expected to lower annual operating expenses by

30% and the company intends to re-invest these savings into critical

development projects and customer facing activities

* IDEX shares were listed on the U.S. OTCQB Venture Market (ticker: IDXAF)

Organizational

* Added individuals with significant experience in semiconductor technology,

payments, and global public companies

* Steve Skaggs joined the board of directors

* Derek D'Antilio joined as CFO, Pascal Dufour joined as Director of European

Sales, Marianne Boe joined in investor relations, and, just recently, the

company announced the addition of Vince Graziani as CEO

Market and Ecosystem Update

* Market interest in biometric smartcards continues to grow and leading

issuers have conducted pilots in Europe, Asia and the United States

* 2019 also marked the first commercial launch of biometric payment cards by

an issuer

* Many smartcard manufacturers have overcome the complexities associated with

the integration of a biometric sensor into the card

* The first dual-interface biometric payment card was certified by a major

global payment scheme

CEO Stan Swearingen's comment

Stan Swearingen, CEO of IDEX, commented: "I am proud of the progress we have

made at IDEX Biometrics during 2019 and in the first two months of 2020, we

significantly strengthened the team, helped solve some of the gating issues to

mass adoption of biometric smart cards, launched major product platforms, and

had our first significant customer wins. I am excited about the company's

prospects as IDEX moves forward in 2020, with a new CEO, a strong team, a

supportive shareholder base, and a family of products with demonstrated

technology and cost leadership."

Investor conference call

IDEX Biometrics' CEO Stan Swearingen and CFO Derek D'Antilio will host a

conference call today at 15:00 CET/14:00 GMT/09:00 EST. Dial-in numbers:

Norway:   +47 2350 0296

United Kingdom:   +44 (0) 330 336 9411

United States:    +1 929 477 0402

Confirmation code:   2993911

For further information contact:

Marianne Bøe, Investor Relations

E-mail: [email protected] (mailto:[email protected])

Tel: + 47 918 00186

Derek D'Antilio, Chief financial Officer

E-mail: [email protected]

(mailto:[email protected])

Tel: +1 197 827 31344

About IDEX Biometrics

IDEX Biometrics ASA (OSE: IDEX and OTCQB: IDXAF) is a leading provider of

fingerprint identification technologies offering simple, secure and personal

authentication for all.  We help people make payments, prove their identity,

gain access to information, unlock devices or gain admittance to buildings with

the touch of a finger.  We invent, engineer, and commercialize these secure, yet

incredibly user-friendly solutions.  Our total addressable market represents a

fast growing multi-billion-unit opportunity.

For more information, visit www.idexbiometrics.com

(http://www.idexbiometrics.com) and follow on Twitter @IDEXBiometrics

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act