AuthenTec and I/O Software Announce Joint Marketing Alliance; AuthenTec and I/O Software Foresee Growing Consumer Interest for Biometrics.

Business/Technology Editors

MELBOURNE, Fla.--(BUSINESS WIRE)--Oct. 31, 2000

In an effort to satisfy rising consumer and business demand for information security products, AuthenTec, Inc., provider of the FingerLoc and EntrePad fingerprint sensors, has signed a technology remarketing agreement with I/O Software, Inc., a leading-edge application software developer. Under the terms of the agreement, I/O and AuthenTec will strengthen their previous alliance by marketing each other's products and services to ensure fast and accurate integration of fingerprint authentication solutions in the PC marketplace.

This agreement follows Microsoft's licensing agreement with I/O Software to include the company's Biometric Application Program Interface (BAPI) and SecureSuite(TM) core technology in future versions of the Windows operating system. The I/O Software-Microsoft licensing agreement sets the stage for significant growth in the field of biometrics as well as for semiconductor companies such as AuthenTec, whose products will continue to be compatible with future versions of Windows.

"I/O Software is excited about our relationship with AuthenTec which brings new biometric authentication solutions to personal computing," said William Saito, president and CEO at I/O Software. "Fingerprint authentication promises a convenient and secure alternative to passwords, providing PC users with higher levels of both security and ease of use. Based on customer input, AuthenTec's fingerprint sensors are in demand due to their superior ability to acquire anyone's fingerprint. We are strongly committed to working with AuthenTec to make complete biometric solutions available for the new way of computing."

"We've been working closely with I/O Software to deliver the advantages of convenient biometrics to everyday life," said Scott Moody, president and CEO at AuthenTec, Inc. "The latest solutions are both affordable and easy to implement, working to the benefit of PC users. We expect that PC-based fingerprint authentication sensors will encounter widespread use within the next few years and are pleased to be allied with I/O Software to bring convenient security to the mainstream."

I/O Software's SecureSuite is a suite of information security applications that provides enhanced security and convenience for computers and the information stored on them by requiring the user's identity to be verified with a fingerprint before allowing access to networks, applications, and other areas of the PC. AuthenTec's FingerLoc(TM) and EntrePad(TM) fingerprint authentication sensors incorporate patented TruePrint(TM) technology to read below the surface layer of the skin to the live layer where the true fingerprint resides. Surface conditions, such as dry, worn, callused, oily or dirty skin, do not affect the ability to acquire accurate fingerprint images. The pairing of SecureSuite and AuthenTec's sensors affords PC users the most convenient and secure authentication options at the touch of a finger.

About I/O Software

I/O Software Inc. of Riverside, CA is a leading developer of highly versatile information security software for user authentication, encryption, and Internet/e-commerce using PKI and digital certificates. These applications support a wide range of authentication devices, which include biometrics (i.e., fingerprint, iris, retinal, voice, and facial recognition), smart cards and tokens. Named as one of the "Top 100 Emerging Companies to Watch in 2000" by ComputerWorld, I/O Software provides biometrics/infosec-related consulting and engineering services to its Fortune 500 clients. Information on I/O Software's products is available at www.iosoftware.com or by calling [phone].

About AuthenTec

AuthenTec, Inc. is a fabless semiconductor company providing advanced silicon solutions to the biometric and security markets with applications in personal computers, wireless communications, access control and personal electronic devices. AuthenTec's product families include FingerLoc(TM) for PC peripherals and security applications such as access control or time/attendance and EntrePad(TM), a convenient and secure way to access personal electronic devices, personal digital assistants (PDAs) and portable PCs. All of AuthenTec's products are based on the company's patented TruePrint(TM) technology. Uniquely, TruePrint reads below the surface layer of the skin to the live layer where the true fingerprint resides. It is the first fingerprint identification technology that is capable of being used by everyone under virtually any condition. AuthenTec's products provide a natural and convenient way for people to enjoy secure e-commerce and Web access; for businesses to manage networks and control access; and for individuals to secure access to their personal data, homes, and even automobiles.

For more information, visit http://www.authentec.com.

EntrePad, AES4000, TruePrint and FingerLoc are trademarks of AuthenTec, Inc. All other trademarks or registered trademarks referenced herein are the properties of their respective owners.