Key Tronic and NRI launch line of affordable finger-image identification products; customers and distributors sign up for first shipments of Secure, Bell Labs technology coming.

SPOKANE, Wash.--(BUSINESS WIRE)--June 9, 1997--Key Tronic Corporation (NASDAQ:KTCC), a world leader in keyboard and input device technology, announced it has created the Secure line of finger-image scanning devices that can inexpensively transform any Windows-compatible PC into a "biometric" personal identification workstation.

Developed in cooperation with The National Registry Inc. (NRI), the scanners are integrated into a keyboard or offered as stand-alone units. Widespread adoption of this technology would eliminate the problems associated with password and personal identification number (PIN) methods that are used to authenticate users of networks and computer systems. Positive identification through finger-imaging could significantly reduce fraud and unauthorized access for an array of computer-based transactions.

Key Tronic and NRI are now shipping the first keyboards to the Mayo Clinic's Jacksonville, Fla., operations, the Sarasota Memorial Hospital, and Kaiser Permanente's Pasadena, Calif., operations for ongoing pilot programs for secure medical records. Barclays Bank Emerging Markets Unit, Northampton, U.K., also has received the keyboards and NRI software for evaluation. Key Tronic is also announcing that it has signed up Tech Data Corporation as its first distributor for the keyboards.

Key Tronic's hardware, combined with NRI's software, is priced below $500. The cost is less than half that of devices currently used in limited quantities by the federal government and military security operations.

"This lower cost expands the applications for fingerprint recognition and should enable corporations to enhance the security of every desktop PC connected to its network or corporate intranet," said Craig Gates, Key Tronic general manager of new business development. "For example, banks can install finger-image ID units at every customer service workstation and hospitals can secure every PC that can access patient health care records."

Jeff Marinangel, vice president of peripherals marketing at Tech Data, said the Secure line is a first for the distributor, which today offers 45,000 products to its base of 55,000 resellers and retail partners.

"Key Tronic is bringing a new level of cost-effective security to the fingertips of systems users," Marinangel said. "Our resellers are always looking for innovative ways to help their customers protect data and ensure the confidentiality of sensitive information. We are very pleased to be the first distributor for the Secure product line."

Both the keyboard and stand-alone finger-print recognition units are designed with state-of-the-art optics and high-speed electronics. Within seconds, a miniature high-resolution camera takes a live picture of the user's fingerprint. The video output is immediately converted into digital format and delivered to the PC's memory for processing by a "frame grabber." Thereafter, if the fingerprint and user name is recognized by the system's user profiles, the user is admitted. The system immediately certifies that the person logging on is not already registered under a different name.

Additionally, Key Tronic and NRI have also reached an agreement with Menlo Park, Calif.-based Veridicom Inc. to incorporate the latter's finger imaging technology into future software and hardware products. Veridicom is a recently organized independent business formed by Lucent Technologies and U.S. Venture Partners, to further develop and sell patented fingerprint authentication technology developed at Bell Laboratories. More information is available on the company's web site at www.veridicom.com .

The National Registry Inc. (NASDAQ:NRID), based in Tampa, Fla., provides cost-effective finger-imaging technology to verify individual identity to protect business and personal information; and to replace passwords and PINs to safeguard and simplify access to electronic systems and enable new on-line services for customers. NRI is a leading supplier of finger-imaging personal identification systems for government and commercial markets. More information is available at www.nrid.com .

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 recently introduced the first keyboards that incorporate Universal Serial Bus (USB) technology, as well as 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 fingerprint recognition and smart-card reader capability.

Key Tronic's customers include Hewlett-Packard Co., IBM Corp., Toshiba, and other leading international companies. The company had sales of $201 million for fiscal year 1996. Key Tronic has approximately 2,860 employees 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.key tronic.com . -0-

Note to Editors: Windows is a U.S. registered trademark of Microsoft Corp.

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

CONTACT: Key Tronic Corp.

Anja Krammer, 509/927-5299 (Media Relations)

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Copithorne & Bellows for Key Tronic Corp.

Jennifer Case, 415/975-2230 (Media Relations)

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Fi.comm for Key Tronic Corp.

Michael Newman, 206/467-6732 (Investor Relations)

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