NEXT Biometrics Group ASA — M&A Activity 2014

Sep 19, 2014

NEXT Biometrics signs Strategic Partnership and receives initial order for 75.000 sensors

NEXT Biometrics signs Strategic Partnership and receives initial order for 75.000 sensors

NEXT Biometrics signs Strategic Partnership and receives initial order

for 75.000 sensors - September 19th 2014

NEXT Biometrics Group ASA and US-based BIO-key International, Inc.,

today announced that they have entered into a strategic partnership

agreement which will enable both companies to strengthen their

already market leading offerings. NEXT has licensed BIO-key's

fingerprint algorithm for inclusion with their new reduced-area, low

cost sensors, and BIO-key has placed a purchase order for NEXT area

sensors for use in BIO-key's new line of low-cost and high

performance fingerprint scanner devices.

HIGH QUALITY ALGORITHM FOR MEDIUM-SIZED SENSORS

As a part of NEXT's commitment to become a leading fingerprint

sensor provider in the Smartphone and Tablet space, the company

requires a superior algorithm to pair with its new down-sized

fingerprint imaging sensors. After a comprehensive evaluation, NEXT

entered a licensing agreement with long-time biometric algorithm

innovator BIO-key International Inc. The BIO-key software allows

NEXT to offer moderate, but key sensor size reductions, without

compromising system level security or user experience. Combining

BIO-key's algorithm with NEXT's new reduced-area sensors further

enhances NEXT's competitiveness in the size and price focused

Smartphone and Tablet markets.

PURCHASE ORDER FOR 75,000 NEXT SENSORS IN 2014

BIO-key and its channel partners are volume distributors of

fingerprint sensors for OEM and enterprise access. For their short and

medium term needs, BIO-key has placed a purchase order for 75.000

NEXT sensors. This contract is at NEXT's game changing sensor

pricing levels - representing both significant savings and increased

competitiveness for BIO-key their partners and customers.

Tore Etholm-Idsøe, CEO NEXT Biometrics said : " This deal is a

perfect match for both parties. NEXT Biometrics will, by including

BIO-key in our "NEXT Certified Partner Program," further enhances its

offering in the design- and price-focused Smartphone and Tablet

space. At the same time, we get a new, attractive, sensor customer.

Michael DePasquale, Chairman and CEO of BIO-key, stated "We are

proud to have been selected by NEXT to complement their

breakthrough sensor technology. The NEXT sensor line comes at the

perfect point of inflection in fingerprint biometric adoption and

complements existing offerings in our product line. Consumers have

accepted the value proposition of fingerprint authentication, as

evidenced by the success of Apple's Touch ID, yet there has never

been a high quality area sensor package available for the mass market

below a $25 price point. Our customers in the financial services,

retail and healthcare verticals are requesting high quality, low cost

area placement sensors to be deployed in volume, and this

partnership with NEXT will facilitate that into 2015," continued

DePasquale.

ABOUT NEXT BIOMETRICS

Enabled by its patented Active Thermal Principle, NEXT offers high

quality area fingerprint sensor at a fraction of the prices of

comparable competitors. A wide range of product formats including

Smartphones, Tablets, PC's, Doors, Time registration systems, Payment

terminals, Flashdrives, Usb-tokens, Key fobs and many more are

targeted. NEXT BIOMETRICS GROUP ASA is a publically listed company

headquartered in Oslo, Norway, with sales, support and development

subsidiaries in Seattle, Silicon Valley, Taipei and Shanghai.

Investor & Press contacts :

Tore Etholm-Idsoe / CEO, mob + 47 922 32 439, e-mail

tore.idsoe@nextbiometrics.com

Knut Stålen / CFO, mob + 47 920 43 458, e-mail

knut.stalen@nextbiometrics.com

ABOUT BIO-KEY INTERNATIONAL INC

BIO-key International, Inc., headquartered in Wall, New Jersey,

develops and delivers advanced identification solutions to commercial

and government enterprises, integrators, and custom application

developers. BIO-key's award winning, high performance, scalable,

cost-effective and easy-to-deploy biometric finger identification

technology accurately identifies and authenticates users of wireless

and enterprise applications. Our solutions are used in local embedded

OEM products as well as some of the world's largest identification

deployments to improve security, guarantee identity, and help reduce

identity theft. BIO-key's technology is offered directly or by market

leading partners around the world. (http://www.bio-key.com)

Press contact:

Jay Meier, VP Corporate Development -