Bioscrypt Introduces Biometric Reader to Address the Evolving Needs of the U.S. Federal Market

Bioscrypt Inc. (TSX: BYT), a leading provider of enterprise access control technology, today announced the release of the PIV-Station, a biometric reader designed to meet the current and future needs of the U.S. federal government market.

Bioscrypt's PIV-Station helps U.S. federal organizations meet the Personal Identity Verification (PIV) requirements mandated by the Homeland Security Presidential Directive 12 (HSPD-12), by bringing Bioscrypt's long-standing expertise in the biometric access control market to the FIPS 201 program. Federal Information Processing Standard 201 requires all government agencies and contractors to authenticate civil servants and employees using stronger authentication methods, including fingerprint biometrics, for physical and logical access control. In order to meet the FIPS 201 standard, Bioscrypt ported its FIPS 201-approved Minutiae Interoperability Exchange (MINEX) algorithm to a high performance digital signal processor (DSP) from Texas Instruments which is embedded in the new reader. The inclusion of the DSP also allows the PIV-Station to be extremely flexible and extensible to accommodate current and future technical specifications for the evolving Federal programs.

The PIV-Station increases security at federal buildings by adding a biometric layer of authentication - a unique identification factor that cannot be lost, copied or stolen. Nearly 3 million federal employees, 6 million state employees and 500,000 contractors will be enrolled in the program, making it one of the largest biometric projects to date, according to IMS research.

The PIV-Station has received General Service Administration (GSA) approval as a FIPS 201-compliant Card Holder Unique Identifier (CHUID) Reader (Contact) and CHUID Reader (Contactless) - making it the first fixed Physical Access Control reader to be certified in both categories. The reader also incorporates Bioscrypt's GSA-approved ANSI/INCITS 378 fingerprint template and is currently undergoing testing by GSA in the biometric reader category.

The PIV-Station also includes a GSA-approved single fingerprint capture device. FIPS 201-certified fingerprint sensor manufacturers had to undergo an extensive FBI fingerprint image quality evaluation to achieve certification. "UPEK is pleased Bioscrypt has chosen to integrate the TouchChip TCS1 fingerprint sensor, the first and only silicon fingerprint sensor approved by the FBI and GSA for FIPS 201," said Mike Chaudoin, Director of Standards and Security at UPEK. "The Bioscrypt PIV-Station, which leverages the advantages of UPEK's small, low cost and power efficient fingerprint sensing technology, is well positioned to provide strong user authentication for FIPS 201 customers."

For approval as a CHUID Reader (Contactless), Bioscrypt also incorporated a FIPS 201-compliant contactless interface technology from the leader in digital security, Gemalto. "Bioscrypt is the established leader in access control solutions that incorporate biometrics and we are privileged to have our Prox-C2 and Smart Connector readers as the Contact and Contactless interface technology of choice for their PIV-Station," said Alain Sigaud, Vice President of readers and tokens activity for Gemalto. "This collaboration follows on the earlier integration of the Bioscrypt VeriSoft application with Gemalto's SafesITe FIPS-compliant PIV middleware for logical access control. This new achievement gives significant value to our FIPS 201-compliant card which can be used as the credential for physical and logical access control."

In order to enable organizations dealing with legacy infrastructure to maximize their investments, the PIV-Station is capable of supporting card-read protocols, such as DESFire and Mifare.

"With the launch of the PIV-Station we are further demonstrating our commitment to providing support to the U.S. Government in its endeavors to strengthen security within the country," said Bioscrypt's President and CEO, Robert M. Douglas. "Bioscrypt has developed solutions that allow organizations to unify identities across physical and logical systems. This is precisely the end goal of FIPS 201, providing further evidence that our vision is taking hold."

Bioscrypt is the world and Americas leader in the biometric physical access control readers market and has 22 percent share of the Americas market, according to IMS Research.

About Bioscrypt Inc.

Bioscrypt is an enterprise access control solution provider, enabling the unification of physical and logical access with its Door to Desktop(R) products. Bioscrypt's hardware and software solutions deliver strong authentication processes to facilities, equipment, IT networks and computer applications and allow organizations to administer unified identities across the enterprise.

Building on its proven expertise in biometric technology and its unique multi-factor authentication platform, Bioscrypt integrates all major secure authentication standards, transforming how organizations are bridging the gap between physical and logical access to create secure working environments. More information is available at http://www.bioscrypt.com.

About Gemalto

Gemalto (Euronext NL 0000400653 GTO) is a leader in digital security with pro forma 2006 annual revenues of (euro) 1.7 billion, operations in about 100 countries and over 10,000 employees including 1,500 R&D engineers.

In a world where the digital revolution is increasingly transforming our lives, Gemalto's solutions are designed to make personal digital interactions more convenient, secure and enjoyable.

Gemalto provides end-to-end digital security solutions, from the development of software applications through design and production of secure personal devices such as smart cards, SIMs, e-passports, and tokens to the management of deployment services for its customers.

More than a billion people worldwide use the company's products and services for telecommunications, financial services, e-government, identity management, multimedia content, digital rights management, IT security, mass transit and many other applications.

As the use of Gemalto's software and secure devices increases with the number of people interacting in the digital and wireless world, the company is poised to thrive over the coming years.

Gemalto was formed in June 2006 by the combination of Axalto and Gemplus.

For more information please visit http://www.gemalto.com.

About UPEK

UPEK, Inc., a global leader in biometric fingerprint security solutions, offers integrated end-to-end solutions including comprehensive design and integration services to the world's leading consumer and industrial products companies. UPEK solutions enable the strongest fingerprint authentication security available, packaged for high user convenience and rapid integration into existing products and network architectures. The company has been pioneering biometric fingerprint technology since 1996 and shipping product in volume since 1999. UPEK is headquartered in Emeryville, California, with offices in Prague, Singapore, Taipei and Tokyo. For more information, please visit http://www.upek.com.

UPEK and the UPEK logo are registered trademarks of UPEK, Inc. in the United States and other countries.

Forward-looking (safe harbour) statement

Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement containing words such as "believes", "plans", "expects" or "intends" and other statements which are not historical facts contained in this release are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.

Bioscrypt and Door to Desktop(R) are registered trademarks and Veri-Series and VeriSoft are trademarks of Bioscrypt Inc. All other product and company names mentioned are the property of their respective owners and are mentioned for identification purposes only.