Breakthrough Biometrics Licensing Agreement For Mytec Technologies Inc.

Business Editors

TORONTO--(BUSINESS WIRE)--Sept. 18, 2000

Mytec Technologies Inc.(TSE:MYT.) of Toronto today announced it has entered into its first international biometrics licensing agreement.

The agreement with Loqware Technologies AB of Gothenburg, Sweden "is a breakthrough for Mytec that further validates our biometric technology and our corporate strategy of partnering with leading companies to achieve a recurring revenue stream," said Mytec President and CEO, Pierre Donaldson. "This agreement gives us the potential for long-term royalty payments on future product sales as Loqware executes what we believe is an exciting plan to bundle our family of Bioscrypt products and sell them internationally."

In commenting on the agreement, Loqware's Vice Chairman, Lars Grundin said, "Our company, which is an emerging player in the global data security industry, took a long hard look at competitive biometric technologies available today and concluded that Mytec's Bioscrypt products were superior. We expect the addition of Bioscrypt to our bundled product will greatly enhance our data security products."

Loqware will integrate Bioscrypt into their suite of products to be announced at the Comdex show in Las Vegas in November.

While neither company would comment on the terms or expected monetary value of the agreement, Mr. Grundin and Mr. Donaldson both agreed the potential for growth is strong.

"It's premature to quantify the value of this agreement," said Mr. Grundin, "but it's clear that the world is becoming more aware of the need for biometric technology. By positioning Loqware with valued-added Mytec Bioscrypt products, we are ready to serve the surging demand for high-level security in the market. The demand for protection of classified information stored on computers is already big and will certainly grow rapidly in the near future.

"This is a big deal for Mytec because it validates our business model of generating a combination of development fees, technology transfer fees and ongoing royalty fees from licensing our technology. Our goal is to make this the first of many top-notch partnerships," said Mr. Donaldson.

About Loqware

Loqware Technology AB, based in Gothenburg, Sweden, specializes in developing, manufacturing and marketing hardware based products for user identification, user authentication; and protection of data. Loqware's technology works independently of computer platforms or operating systems and its software and hardware for data security are considered the safest known today. Fingloq and Cardloq, Loqware's first two add-on products consist of an user identification unit, a key and lock unit, a CD-, DVD- or CD-R unit and a hard disc. The data on the storage media are impossible to access without presenting the right identification. Loqware has just finished a successful second round private placement. The Chairman of the Board is Mr. Ivan Ofverholm, President of Eurospace and a former CEO of Saab Ericsson Space. Other board members are Mr. Svante Carlsson, Professor in Computer Science and Carl-Goran Myrin, former CEO of Siemens Sweden. Mr. Myrin is a board member of Siemens AB and Siemens-Elema AB. About

Mytec

Mytec Technologies Inc. specializes in the development and licensing of biometric technologies - software and standalone hardware - to Original Equipment Manufacturers and other customers requiring state-of-the-art network and physical access security. Providing unparalleled authentication that goes well beyond traditional identity methods such as passwords or entry cards, Mytec's technologies - embodied in the Bioscrypt family of branded products - have the potential to enable secure wireless e-commerce. Mytec's patented Biometric Encryption process links a 128-bit digital key with a biometric image to create a secure package of information known as a Bioscrypt. Using the Bioscrypt, information can only be unlocked using a fingerprint. The Company's biometric encryption technology applies to all biometric images, including fingers, iris, face and voice.

Mytec Technologies Inc., the Mytec logo, Bioscrypt and Touchstone are trademarks or registered trademarks of Mytec Technologies Inc. Forward-looking statements in this news release are made pursuant to the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties.