LCI Technology Group To Demonstrate New LCI-SMARTpen at Upside Events' Showcase.

Business Editors, High-Tech Writers

`S-HERTOGENBOSCH, Netherlands/RANCHO MIRAGE, Calif.

--(BUSINESS WIRE)--Jan. 26, 2000

Biometric signature authentication device offers enhanced

security encryption technology to secure

e-business transactions

LCI Technology Group N.V. (AEX:LCI), today demonstrated a new version of its award-winning LCI-SMARTpen(R) BiAS(TM) (Biometric Authentication System) at Upside Events' Showcase conference, January 25 - 27, 2000. The LCI-SMARTpen was selected from among hundreds of products, technologies, and services to be invited to this high-level conference. More than 700 executives, industry analysts, venture capitalists, investors, and media representatives are expected to attend.

&uot;As e-business continues its exponential growth, Internet security and privacy issues become more prevalent,&uot; said Gina Smith, Showcase executive producer, co-host of CNET News.com and syndicated columnist. &uot;We selected LCI as a Showcase demonstrator because with its SMARTpen, LCI has created a unique solution that could help to validate and secure online transactions.&uot;

&uot;The largest obstacle to the successful development of e-commerce is the lack of security of the medium itself,&uot; said Sam Asseer, chairman and CEO of LCI Technology Group. &uot;As more financial, medical, and other transactions are carried out over open electronic networks such as the Internet, one must be able to verify the identity of his or her business partners. The newest version of the LCI-SMARTpen, with enhanced encryption technology, provides a heightened level of security that provides trust and confidence in various online transactions.

The LCI-SMARTpen is a ballpen that uses sensors to provide authentication of people through the biometric characteristics of their signatures, as they write on regular paper. While writing, built-in sensors register the dynamics of the act of writing. These dynamics include the forces that are applied in 3D on paper, the speed of writing, and angles in various directions. This signing pattern is unique for each individual, and thus allows for the authentication of the user. The LCI-SMARTpen brings state-of-the-art technology to the process of authentication, fraud detection and prevention, security, and cryptography in e-business.

&uot;There is a tremendous need for authentication and validation solutions with the explosive growth of electronic commerce,&uot; said Joyce Putscher, director of Converging Markets and Technologies Group for Cahners In-Stat Group. &uot;The LCI-SMARTpen biometric solution will provide increased security, not only for existing e-business transactions, but also for future wireless e-commerce applications enabled by technologies such as Bluetooth.&uot;

In fact, according to a new study by management consulting firm, The Boston Consulting Group (BCG), business-to-business (B2B) purchasing in the United States alone will grow by 33 percent per year and will reach $2.8 trillion (US$) in transaction value by 2003.

High profile, recognized organizations such as KPMG TTP, Litton PRC, and CBQ, Inc. have recently entered into agreements with LCI Technology Group N.V. to implement the LCI-SMARTpen End-to-End (E2ETM) biometric security solution.

The new LCI-SMARTpen, version is scheduled for delivery in Q2 2000. For additional information or to obtain a demonstration of the new LCI-SMARTpen, please visit LCI Technology Group in Booth 602 during Showcase 2000.

About LCI Technology Group N.V.

Headquartered in `s-Hertogenbosch, Netherlands, LCI Technology Group N.V. is a holding of 37 companies, providing solutions and services through its subsidiaries employing 1000 people in more than 14 countries, in Europe and the USA. LCI offers their more than 1,000 multinational customers total solutions in the areas of E-commerce, Business System Applications, Multimedia and Video, Printer Connectivity, Security and Wireless Communications. LCI is listed on the Amsterdam AEX Stock Exchange. For more information, visit the Company's Web sites: http://www.lcigroup.com and http://www.smartpen.net.

About Upside Events

Upside Events is the conference development and production unit of Upside Media Inc., publishers of Upside Magazine. Upside Events produces leading technology conferences for industry executives, technology start-up companies, venture capitalists, media, and industry analysts. Based in San Francisco, Upside Events produces Showcase, Digital Living Room, Preview, Encore, LAUNCH!, and the Upside Southeast Technology Conference. For more information, visit www.upsideevents.com.