AuthenTec Ships 3 Millionth Fingerprint Sensor; Rapid Growth Extends Record as Largest Supplier for Global Commercial and Government Biometric Markets

MELBOURNE, Fla.--(BUSINESS WIRE)--Aug. 17, 2004--AuthenTec, Inc., already the recognized number one semiconductor provider of fingerprint sensors to the global market, has shipped its three millionth biometric sensor - a record in the industry. The company reached the milestone through continued rapid growth, shipping more than one million of its patented TruePrint(TM) technology based sensors in the past five months alone.

"We are certainly encouraged by our strong momentum and the increased pace in which customers around the world continue to integrate our sensors into a wide range of commercial and government applications, including the cellular, personal computer, physical access control and automotive markets," said Scott Moody, president and CEO of AuthenTec. "Our unique TruePrint technology and focus on providing the highest quality products to volume markets differentiates AuthenTec from others, and has extended our position as the number one provider in the industry."

“Our unique TruePrint technology and focus on providing the highest quality products to volume markets differentiates AuthenTec from others, and has extended our position as the number one provider in the industry.”

AuthenTec's volume of shipments and rate of growth have increased significantly since the company was founded in 1998. The shipments and growth rate show;

-- 1 millionth sensor shipped July 2003; after 4.5 years in operation

-- 2 millionth sensor shipped March 2004; eight months later

-- 3 millionth sensor shipped August 2004; five months later

"AuthenTec's rapid growth is a significant milestone not only for the company, but the entire biometrics industry," said Prianka Chopra, program manager for biometrics, smart cards and security for industry consulting firm Frost & Sullivan. "The company has proven that biometrics has broad appeal and applications well beyond traditional low volume, niche applications. We expect the biometrics market to continue to grow significantly, and AuthenTec to continue to lead the silicon fingerprint industry, based on its track record."

The three millionth sensor was shipped for use in Motion Computing's award-winning M1400 Tablet PC, which integrates AuthenTec's technology to provide convenient security and password management.

"Motion's M1400 Tablet PC is one of the first tablet PCs on the market with a biometric security feature," said Debbie Crosek, Motion Computing director of product marketing. "AuthenTec's sensor gives Motion a competitive edge with the M1400, as customers in industries including healthcare, field sales and service, and government need a reliable and secure way to log onto or protect documents on their tablets."

Used to replace PINs, passwords, physical access cards and keys, AuthenTec's sensors provide the most convenient and reliable fingerprint security solutions available today. The company's TruePrint technology allows fingerprints to be read below the surface of the skin to the live layer -- or true fingerprint. Unlike competing sensor technology, TruePrint is not affected by common skin surface conditions including dry, worn, calloused, dirty or oily skin that can affect other sensors' ability to acquire accurate fingerprint images for user authentication purposes. That makes TruePrint the only fingerprint sensor technology capable of acquiring everyone's fingerprint under virtually any condition.

About AuthenTec, Inc.

With three million sensors deployed worldwide, AuthenTec is the recognized number one semiconductor provider of fingerprint sensors to the PC, wireless, PDA, access control and automotive markets. AuthenTec's FingerLoc(TM) and EntrePad(TM) product families utilize the company's patented TruePrint(TM) technology, the first technology to make fingerprint biometrics viable for mass-market adoption. AuthenTec is an AO100 Top Private Global Company, as well as a two-time winner of Frost & Sullivan's Market Leadership Award. The company's network of partners, solution providers and customers include. Analog Devices (NYSE: ADI), APC (NASDAQ: APCC), Bioscrypt, Computer Associates (NYSE: CA), Delphi, Fellowes, IBM (NYSE: IBM), LGE, Microsoft (NASDAQ: MSFT), Motion Computing, Precise Biometrics (PNK: PRECCA.ST), Samsung (PNK: SSNGY.PK), Saflink (NASDAQ: SFLK), SCM Microsystems (NASDAQ: SCMM), Targus and Texas Instruments. Privately funded, investors in AuthenTec include The Carlyle Group, Sierra Ventures, TI (NASDAQ: TXN), Harris Corporation (NYSE: HRS), the China Development Bank, and others. For more information, visit www.authentec.com. All trademarks or registered trademarks are the property of the respective holders.