AuthenTec Expanding Operations 50 Percent; Opening New Offices in U.S., Europe and Asia, Establishing First Biometric R&D Center in China.

SAN JOSE, Calif. & MELBOURNE, Fla. -- Responding to the growing worldwide demand for biometric fingerprint sensors, AuthenTec is rapidly expanding its worldwide operations by 50 percent - increasing its technical and marketing staff; opening new offices in the U.S., Europe, and Asia; and establishing one of China's first dedicated biometrics research and development centers. The increase is in addition to a 20 percent expansion announced late in 2004 by AuthenTec, which is the largest semiconductor provider of biometric fingerprint sensors to the global PC and wireless markets.

In the U.S., AuthenTec will open a new office in San Jose, California, and expand its marketing and technical facilities in Central Florida beginning in March. The new California office will be staffed by an experienced biometrics marketing and technical team, which will support customers throughout the western region of the United States. It will be headed by Chris Lister, vice president of worldwide sales from AuthenTec. In Central Florida, the company is expanding the size of its Melbourne facility to house recent staff additions and the extra marketing and technical staff that it plans to hire during 2005.

In Asia, AuthenTec will open the AuthenTec-Shanghai Development Center in Shanghai, as well as multiple marketing and customer technical support offices in Japan, Korea, Taiwan and China. The multi-million dollar AuthenTec-Shanghai Development Center will serve as a combined regional headquarters and research and development center - becoming one of the first R&D centers in China specifically dedicated to biometric fingerprint sensors. The company will direct its overall initiatives throughout Asia, oversee new developments for the region's local biometric applications, and manage manufacturing from the center. AuthenTec's other new offices in Japan, Korea, Taiwan and China will provide marketing and technical support; working with its network of dealers and representatives to help service AuthenTec's existing base of Asian customers, as well as the ever expanding list of companies seeking to add fingerprint sensors to their PC and wireless devices.

In Europe, AuthenTec recently opened an office in Germany, named a new director of European operations, and announced plans to further expand its presence throughout the region to meet the growing demand for biometrics there.

In addition to its company operations, AuthenTec is continuing to expand its worldwide network of dealers, representatives and supplier partners who provide marketing and technical support for the company's growing base of customers.

"AuthenTec is experiencing tremendous growth worldwide, and is responding rapidly to meet the needs of our ever expanding base of customers," said Scott Moody, president and CEO of AuthenTec. "Adding these new technical and marketing resources demonstrates our continued strong commitment to remain the leader in this dynamic industry, allows us to better meet the growing demand, and provides strong regional support to enable customers to bring their biometrically enabled products to market even faster."

About AuthenTec

With more than four million sensors deployed worldwide, AuthenTec is the recognized number one semiconductor provider of fingerprint sensors to the PC, wireless, and access control markets. AuthenTec's FingerLoc(R) and EntrePad(R) product families utilize the company's patented TruePrint(R) technology, the first technology to make fingerprint biometrics viable for mass-market adoption. AuthenTec is an Inc. 500 Company, a two-time AO100 Top Private Global Company, as well as a repeat winner of Frost & Sullivan's Market Leadership Award. The company's network of partners, solution providers and customers include; Analog Devices, APC, Bioscrypt, Compal, Computer Associates, Fujitsu Computer, IBM, KYE, LGE, Microsoft, Motion Computing, Precise Biometrics, Samsung, Saflink, SCM Microsystems, Targus, Tatung and Texas Instruments. Privately funded, investors in AuthenTec include The Carlyle Group, Sierra Ventures, TI, Harris Corporation, the China Development Bank, and others. For more information, visit www.authentec.com. All trademarks or registered trademarks are the property of the respective holders.