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COMPANY PRESENTATION

Ralph W. Bernstein (CEO) 19 May 2011

IDEX has delivered!

Outlook as presented on the AGM 2010:Q1 2010:– SmartFinger Film demonstrated at Cartes Asia March

2010Q2 2010: – Demo kits ready– First samples shipped to customers

Q3 2010: – SmartFinger Film designed into VALIDcardTM

Q4 2010:– First card presented at “Cartes” in Paris Dec 2010

Q1 2011: – Order from Validus received Jan 2011

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Our mission

IDEX shall ensuresafe, secure and simple

use of personal ID

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IDEX delivers world-leading fingerprint biometrics technology and products

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Our business

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IDEX; THE ID OF YOU

• IDEX brings fingerprint ID to the mass market

• The SmartFinger technology addssecurity and safeguards your privacy

• With the swipe of a finger, the card is linked uniquely to the owner

• That is: Safe, secure and simple use of personal ID in everyday life

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IMPORTANT MILESTONES AND NEW AGREEMENTS

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Important milestones reached in Q1 2011

• January: Successful testing of SmartFinger® Film; Ramp-up of to production initiated

• January: Validus Technologies ordered first batch of SmartFinger® Film sensors for their VALIDcard

• March: Agreement with Pierson Capital Technology • March: Agreement with Identita Inc.• April: Agreement with Shen Zhen Huajing Technology

• Successful private placement raised NOK 32.6 million in new equity

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Validus order• First order for SmartFinger® Film• Batch of 1,000 sensors and

software• For use with VALIDcardTM,

a new biometric card• Will be used for customer

demonstrations and pilots• Delivery scheduled

in Q2 2011

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New Cooperation Agreements

• Committed implementation plans• Specific milestones for entering into

commercial agreements• Customer product qualification planned to

the second half of 2011

• SmartFinger Film sensors are currently designed into customers biometric cards and devices

• Customers’ targeted application markets represent substantial volumes

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Key Customer Status – Pierson Capital

• Pierson Capital Technology offers the MIIKOO device and service -a fraud protection system for financial transactions

• IDEX fingerprint sensor is currently being designed into the MIIKOO in order to enable a highly secure access for sensitive applications

• The system will provide biometric end-user authentication that interfaces to existing financial transaction services.

• Qualification is planned to be completed in the second half of 2011

• Applications: – e‐banking– e‐commerce– mobile payments– one-time password

02/25/2011

IDEX CONFIDENTIAL

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02/25/2011

IDEX CONFIDENTIAL

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• Shenzhen Huajing Technology Co. Ltd is a recognized company in Shenzhen focusing on a variety of technology areas

• Shen Zhen Huajing Technology appointed to develop a biometric enabled transactional security devices utilizing IDEX ASA SmartFinger® Film fingerprint sensors and accompanying biometric software algorithms

• Huajing focusing on providing personal identity authentication solutions as part of China’s ongoing program within “Internet of things”

• Identita delivers identity management solutions involving hardware tokens and client server application software

• Identita has in-house card manufacturing and currently manufactures an acoustic one-time password (OTP) smart card, an OTP display card

• Integration work with IDEX sensor has started

02/25/2011

IDEX CONFIDENTIAL

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Customer “design-in” process

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1 • Evaluation of sensor

2 • Software porting and development

3 • Implementation based on development boards

4 • Circuit board protoype

5 • Product prototype

6 • Qualification

7 • Launch product

THE CHALLENGE

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Security concerns increasing• Unisys Security Index

indicates the highest level of concern since survey started

• Bankcard fraud the greatest single area of concern

• Identity theft the second greatest area of concern

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Unisys Security Index, March 2011, covers 12 countries. Source: http://www.unisyssecurityindex.com/ The Guardian, 4 May 2011.

On the political agenda

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• NorSIS - the Norwegian Centre for Information Security - suggests study on fingerprint sensors for national ID documents

• Letter to Department of Justice

• Media picked up the issue

Dagbladet, 26 February 2011.

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THE SOLUTION

Fingerprint biometrics:the obvious solutionMultifactor authentication

– Something you have– Something you know– Something you are

Fingerprint biometrics– Everyone has a unique

fingerprint– Reliable and secure recognition– Compact and low cost readers– Suitable for mass market

applications

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BIOMETRIC TEMPLATE-ON-CARD

1. Fingerprint images or templates stored on card2. Fingerprint transferred from card to reader3. Extraction and match on reader

Conventional biometric cards

Requires infrastructure of readers for enrollment and verification

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1. Fingerprint template stored on card2. Enrollment, extraction and match takes place on card

The IDEX solutionBIOMETRIC SYSTEM-ON-CARD

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BIOMETRIC SYSTEM-ON-CARD

1. Fingerprint template stored on card2. Enrollment, extraction and match takes place on card

Fingerprint information never leaves the cardDoes not require infrastructure for enrollment and verification

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The IDEX solution

Biometric system-on-card

• All-in-one: Fingerprint reader incorporated in the card

• On-card enrollment and verification

• Fingerprint information stored on card and never leaves card

• Suitable for mass market applications

Safe, secure and simple use of personal ID in everyday life

Display (visual OTP)

Fingerprint reader(No biometric data is transmitted to or from the card)

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One-time-password (OTP) cards recently deployed by major players

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Biometric cards; The road to mass marked adoption

• Added card security is highly focused in the financial sector

• Large scale ongoing national ID card projects based on biometrics world wide

• Card based biometrics is increasingly adopted in transportation, corporate access and health care

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Our solution offers

Added security and convenience- No PIN codes and passwords to remember

Safeguarding privacy- Safe management of personal information- Fingerprint never deposed on external readers- Fingerprint never leaves card- No centralized of fingerprints databases

Utilizes existing infrastructure- ATMs and terminals- Internet- Enterprise systems- Access gates

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OUR AWARD-WINNING TECHNOLOGY

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The SmartFinger sensor• Covered by IDEX patents• Thinnest and most flexible: 0.05 mm• Unsurpassed image quality and

biometric performance • A variety of customizable

geometries available

• Designed for card integration• Complies with ISO Card form factor • Smallest software footprint for

on-card authentication

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Sensing area; 0,05 mm thick

Electronics; 0,35 mm thick

Connector

Ramp-up to volume production

• Key manufacturingand assembly processes established

• Global supply-chainin place

• Successful testing completed• Ongoing ramp-up to volume production

– Transfer to high volume manufacturing and testing

– Product qualification program– Cost reduction of core components

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Ionics EMS• IDEX’ sensor manufacturing partner• 7 manufacturing sites in Philippines• 55,000 square meters of production area• 60 Surface Mount Technology (SMT) lines• 1600 employees• ISO9001-2000, ISO14000 TL9000,

TS16949 certified• Recipient of HSBC’s “Asia’s 100 Best

Companies” award

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MARKET UPDATE

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IDEX’ application area road map

Current: Display cards – First shipments of sensors for biometric

OTP cards and tokens

Next: Biometric Smart Cards– Transportation– Corporate– Financial– Government

Future: Biometric mobile solutions

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One-time-password (OTP) devices Shipment forecast

• Finance• Healthcare• Enterprise• Government• Manufacturing• Telecom

Source:Frost & Sullivan

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0

20

40

60

80

100

120

140

160

2011 2012 2013

Dev

ice

ship

men

ts (m

illio

ns)

USB tokens

OTP tokens

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• Transportation– Transportation cards

• Corporate– Physical access– Logical access

• Financial– Credit and debit cards– Contactless payment

• Government– National ID– Driving License– Travel documents– Government ID

Source:Frost & Sullivan EUROSMART

0

500

1000

1500

2000

2500

2011 2012 2013

Smar

tcar

dsh

ipm

ents

(mill

. uni

ts)

Transport

Corporate

Financial

Governement

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Smart cards – shipment forecast

Main actors in the SmartCard market

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Mobile handset shipment forecast

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Source: iSuppli, USA

Bill

ion

units

SUMMARY

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Summary• ID theft and fraud are immense challenges in the society• Additional security factors required in financial, governmental,

transportation and corporate markets• Fingerprint verification is the obvious solution• The IDEX biometric solution for system-on-card enables secure,

safe and simple ID verification for the mass market

• IDEX has made substantial progress on product development and has started ramp-up to volume production

• The first order for SmartFinger Film sensors received• New, important Cooperation Agreements entered into• Customers’ targeted market applications represent substantial

volumes

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