AuthenTec Ships Record 10 Million Biometric Fingerprint Sensors; 5 Million Sensors Shipped in Past Year Alone; Industry Leaders Say Success Signals Emergence of Biometrics in Mainstream Markets.

MELBOURNE, Fla. -- AuthenTec, the world leader in fingerprint sensor security, innovation and sales, has now shipped an industry record 10 million fingerprint sensors to the PC, cell phone, access control and government markets. The milestone reflects a significant increase in the adoption of AuthenTec's sensors since the company was founded in 1998 - with the company having shipped 1 million sensors by 2003, 5 million sensors by 2005, and doubling that volume in just one year to reach the 10 million sensor mark in 2006.

The company's recent rapid growth was driven by the introduction of the world's smallest PC and cell phone fingerprint sensors, the increased adoption among mainstream PC manufacturers, and continued expansion in the Asian cell phone market.

AuthenTec's volumes represent almost two-thirds of all fingerprint sensors shipped since its inception. The company provides its unique Power of Touch to more than 150 different products worldwide, and are used by two thirds of the top PC manufacturers, more than 95 percent of biometric cell phones, and most of today's most popular access control devices. Companies using AuthenTec's sensors include HP, Lenovo, Fujitsu, Toshiba, Samsung, ASUS, LG, Fujitsu Siemens, NEC Packard Bell, NTT DoCoMo, and many others.

Industry experts said that AuthenTec's success reflects the emergence of fingerprint biometrics as a mainstream device, and signaled the opportunity for rapid growth in the near future.

"With today's announcement, AuthenTec has reaffirmed its market and technology leadership in the silicon fingerprint sensor market," said Sapna Capoor, Frost & Sullivan industry analyst. "AuthenTec continues to set itself apart with its advanced technology and ability to introduce new smaller, lower costs sensors with high quality and reliability."

"Fingerprint biometrics has emerged as an important feature in consumer electronics," said Gary Shapiro, president and CEO of the Consumer Electronics Association. "With the increased demand for security and convenience, we expect to see biometric sensors in a growing number of electronic devices used in homes and businesses."

"By reaching the 10 million mark, AuthenTec has clearly demonstrated that biometric based security is no longer the future, but the very real present and often most favored way of authentication," said Rob Enderle, principal analyst for the Enderle Group. "In a world demanding to be more secure, AuthenTec has stepped up and answered the call."

"We are excited to see the commercial biometric fingerprint market start to take off. With AuthenTec shipping its 10 millionth sensor, the market is clearly moving from the early adoption phase to mainstream adoption," said Joel Fishbein, financial analyst with Janney Montgomery Scott, LLC.

"AuthenTec's 10 million sensor announcement represents a significant milestone for the company and the biometrics industry overall. The company's rapid increase in shipments, especially recently, highlights the tremendous acceptance of biometrics around the globe," said Walter Hamilton, chairman of the International Biometrics Industry Association. "We expect biometric industry growth to continue with the increasing worldwide demand for security in consumer, commercial and government markets."

Founded with a small team and a single engineering prototype, AuthenTec today has about 100 team members and offers 14 different fingerprint sensors. Each sensor is based on AuthenTec's patented TruePrint(R) and TrueMatch(R) technologies, the only solution in production that reads below the surface of the skin to the live layer where the true fingerprint resides.

AuthenTec sensors are widely used in notebook and tablet PCs to provide advanced security and to replace the need for passwords -- allowing authorized users to easily and quickly access their files by simply touching or sliding their finger across the sensor surface. This restricts access to the computer and its files to only those enrolled, reducing the risk of theft or fraud. In cell phones, AuthenTec sensors combine security -- to protect phone files and mobile commerce transactions - with a broad range of features to that make gaming, web browsing and other functions easier to use - all at the simple touch or swipe of a finger.

"Our entire team is extremely proud of reaching the 10 million sensor milestone, but we are even more excited by the widespread adoption of our technology by so many of today's leading electronics manufacturers. Although we are pleased to be able to announce our 10 million shipment, the fact is that the market for our products approaches a billion units per year," said Scott Moody, Co-founder and CEO of AuthenTec. "Given the opportunity in front of us, we will continue to aggressively drive new, innovative solutions and are committed to providing even more advanced security and convenience in smaller, lower cost sensors. We know that this can help further drive the adoption of biometrics not only in existing markets, but in virtually any electronic device where security and convenience are important."

About AuthenTec

With more than 10 million sensors in use worldwide, AuthenTec is the world leader in fingerprint sensor security, innovation and sales to the PC, wireless, and access control markets. AuthenTec's award-winning FingerLoc(R) and EntrePad(R) sensors take full advantage of "The Power of Touch" by utilizing the company's patented TruePrint(R) technology to deliver the most convenient, reliable and cost-effective means available for enabling touch-powered features that extend beyond user authentication. The company's network of partners, solution providers and customers include: Analog Devices, APC, ASUSTek, Compal, Cherry, Fujitsu Computer, Computer Associates, HP, IBM, Lenovo, LG Electronics, Microsoft, Motion Computing, MPC Computers, NEC Packard Bell, Pantech, Quanta, Samsung, Tatung, Texas Instruments, Toshiba, and Wistron, among others. Visit www.authentec.com

Editors Note: Photographs of AuthenTec sensors and customer PC, cell phone and access control products are available upon request.