BIO-key(R) International, Inc. & InterDigital(R) Announce Research Collaboration

Wed Feb 27, 2013 3:00am EST

* Reuters is not responsible for the content in this press release.

  WALL, NJ, Feb 27 (Marketwire) -- 
BIO-key International, Inc. (OTCBB: BKYI), a global leader in fingerprint
biometric identification solutions and advanced mobile credentialing and
identity verification technologies, today reported that InterDigital
Communications, Inc., a subsidiary of InterDigital, Inc. (NASDAQ: IDCC),
a wireless research and development company, has entered into an R&D
collaboration agreement with BIO-key. 

    The R&D collaboration will target advanced Cloud security and identity
and access management solutions for the mobile market. The collaboration
will bring together BIO-key's innovative research and product development
capabilities in fingerprint biometrics with InterDigital's research
efforts in developing identity and access management solutions for the
mobile market. The efforts include user friendly authentication, end
point security, and various other advanced mobile security research
areas. InterDigital will provide funding for these efforts.

    In addition, InterDigital will invest $900,000 in return for newly issued
shares in BIO-key and a Senior Secured Note that will mature December 31,
2015. 

    Concurrently, BIO-key has also raised an additional $500,000 in equity
from a number of strategic private and institutional investors on similar
terms as the InterDigital investment. The total combination of debt,
equity and R&D funding of $1,425,000 at closing will be used to repay
existing debt, fund growth initiatives and provide general working
capital for the business. The Hickory Group, LLC is acting as BIO-key's
financial adviser on the InterDigital investment.

    "InterDigital, a pioneer and global leader in the mobile and wireless
industry, will integrate its security technology with BIO-key's
state-of-the-art fingerprint biometric authentication solutions to create
product offerings for the world's mobile market. Rapidly growing
requirements for secure access to data and services on mobile platforms
is driving the demand for strong authentication and improved device and
Cloud security. BIO-key's biometric and transaction security systems
significantly reduce risks associated with secure access to corporate
data and services as well as potentially high value transactions in the
Cloud. The collaborative development efforts, along with InterDigital's
position will create market opportunities for BIO-key in the mobile
field," stated Mike DePasquale, BIO-key CEO. "The world is rapidly moving
towards full and complete access to the Cloud using Smartphones, tablets
and other devices. BIO-key's unique device-agnostic technologies make us
the ideal partner to develop a universal and global mobile authentication
solution."

    "InterDigital is committed to driving disruptive innovation across the
mobile ecosystem through in-house development, partnerships,
collaborations and acquisitions. Our collaboration with BIO-key is
consistent with InterDigital's newly formed Innovation Partners group,
which is focused on expanding InterDigital's reach within the mobile
ecosystem," stated Scott McQuilkin, Senior Executive Vice President,
Innovation.

    About BIO-key
 BIO-key International, Inc., headquartered in Wall, New
Jersey, develops and delivers advanced identification solutions to
commercial and government enterprises, integrators, and custom
application developers. BIO-key's award winning, high performance,
scalable, cost-effective and easy-to-deploy biometric finger
identification technology accurately identifies and authenticates users
of wireless and enterprise applications. Our solutions are used in local
embedded OEM products as well as some of the world's largest
identification deployments to improve security, guarantee identity, and
help reduce identity theft. BIO-key's technology is offered directly or
by market leading partners around the world. (http://www.bio-key.com)

    BIO-key Safe Harbor Statement
 Certain statements contained in this press
release may be construed as "forward-looking statements" as defined in
the Private Securities Litigation Reform Act of 1995 (the "Act"). The
words "estimate," "project," "intends," "expects," "anticipates,"
"believes" and similar expressions are intended to identify
forward-looking statements. Such forward-looking statements are made
based on management's beliefs, as well as assumptions made by, and
information currently available to, management pursuant to the
"safe-harbor" provisions of the Act. These statements are subject to
certain risks and uncertainties that may cause actual results to differ
materially from those projected on the basis of these statements. These
risks and uncertainties include, without limitation, our history of
losses and limited revenue, our ability to develop new products and
evolve existing ones, the impact on our business of the recent financial
crisis in the global capital markets and negative global economic trends,
our ability to attract and retain key personnel. For a more complete
description of these and other risk factors that may affect the future
performance of BIO-key International, Inc., see "Risk Factors" in the
Company's Annual Report on Form 10-K for the year ended December 31, 2011
and its other filings with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date made. The
Company also undertakes no obligation to disclose any revision to these
forward-looking statements to reflect events or circumstances after the
date made or to reflect the occurrence of unanticipated events. 

    

Contacts: 
BIO-key International, Inc.
Scott Mahnken
732-359-1113 

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