Key Tronic Unveils First Keyboard With Integrated Smart Card Reader and Fingerprint Identification.

LAS VEGAS--(BUSINESS WIRE)--Nov. 16, 1998--

Considered the Ultimate in Authentication Products for Network Access

and Transaction-based Computing

Key Tronic Corporation (Nasdaq:KTCC) today demonstrated the company's leading technology in secure authentication products for computer and Internet transactions: the Secure(tm) Scanner keyboard with Smart Card reader.

This product provides the ultimate in authentication of users through fingerprint recognition. Now, someone using a smart card for transactions or distribution of the information stored on the smart card, can verify that they are the owner of the card through fingerprint recognition. The master fingerprint file can be stored on the smart card, making any transaction with that particular smart card to require fingerprint authentication before completing the transaction.

Both features can work independently of each other as well for network access control and smart card transactions.

The Secure Scanner keyboard with Smart Card reader has applications for banking, Internet transactions, medical environments, high level corporate security environments and more.

"This is a big step forward in our efforts to strengthen Key Tronic's leadership in the market for user authentication and Internet transactions," said Jeff Gibson, director of new technology. "With the rise in popularity of smart card technology and fingerprint recognition as an authentication tool, this product could become a common fixture in homes and offices throughout the world," he continued.

The keyboard features the Key Tronic Secure Scanner on the left. This optical scanner is the DFR200 scanner from Identicator(tm), Inc., a Key Tronic biometric partner. Key Tronic will bundle Identicator's BioLogon(tm), Software with this product. BioLogon is a customized logon system that provides security for user authentication and network access -- with this product for distribution into the enterprise market, primarily targeting system integrators and VAR customers.

On the right side, the keyboard features a slide-type smart card reader that has a card acceptance capacity of 10,000 cycles minimum. It supports many industry standard specifications including AFNOR 27816-2, ISO7816-1/-2/ and -3, Protocols T=0 and T=1. It also supports the following applications: EMV, French Health, French Credit Card, etc.

The Key Tronic Secure Scanner Keyboard with Smart Card Reader will be demonstrated at the Key Tronic Comdex booth: No. L-272 in the south hall of the Las Vegas Convention Center.

About Key Tronic

Key Tronic Corporation is the world's largest independent producer of keyboards and has long been a leading innovator with state-of-the-art computer input devices. The company manufactured the first keyboards that incorporate Universal Serial Bus (USB) technology, and is well known for its Lifetime keyboards that offer the latest trackball, touchpad and infrared wireless technology with a guarantee for life. Key Tronic is also developing next-generation keyboards with finger print identification and smart-card reader capability. Key Tronic's customers include Hewlett-Packard, IBM, Gateway, Toshiba, Nortel and other leading international companies. The company had sales of $170 million for fiscal year 1998. Key Tronic employs approximately 2,400 people and operates facilities in Spokane, Mexico and Ireland.

Information about Key Tronic and its products can be found on the World Wide Web at http://www.keytronic.com.

Certain statements contained herein are forward-looking, and are subject to risks and uncertainties that could affect Key Tronic's actual future results and could cause results to differ materially from those contemplated by Key Tronic's forward-looking statements.