Press Release

Survey Shows Strong Interest in SMS Privacy, Demand for Convenient Fingerprint Security in Cell Phones

-      Survey on cell phone text messaging/file sharing shows strong interest in fingerprint sensor-equipped cell phones for enhanced security, privacy 

-      80% want widespread availability of fingerprint-enabled phones in the U.S.

MELBOURNE, Fla., October 27, 2008 – According to a consumer survey conducted this month, a vast majority of cell phone users (89%) use the device for short message service (SMS) text messaging and transmitting photos and files, and nearly half (49%) send more than 5 text messages a day.  In spite of the privacy of these messages and files, only a small percentage (14%) use a password to protect the phone or its stored files and messages today.  However, more than two-thirds (71%) would choose to protect the privacy of these messages and files through use of an embedded fingerprint sensor on the phone to authenticate the user via the simple swipe of a finger. 

The independent survey of cell phone users (ages 18-25) was sponsored by fingerprint sensor supplier AuthenTec (NASDAQ: AUTH) and indicates that the vast majority (80%), and nearly half (45%) would be willing to pay $10 or more for a phone if it was equipped with fingerprint security.  Highlighting the desire and trust in fingerprint sensor security, more than two-thirds of respondents (69%) would feel more secure about conducting mobile financial transactions via their phone if it was equipped with a fingerprint sensor. 

“The survey reveals the high volume of text messaging and file transmissions by a new generation of cell phone users, and yet a lack of security to protect these private and personal files,” said AuthenTec Vice President of Wireless Products Art Stewart.  ”The vast majority of these cell phone users are eager to protect their privacy with a convenient solution such as a fingerprint sensor and an even greater percentage want to see wide availability of fingerprint-enabled phones in the U.S. by the end of 2009.  This underscores the opportunity for handset manufacturers and carriers that can offer phones with this convenient and inexpensive security solution to an eager U.S. market.”  

Only a small percentage of respondents (7%) were aware that millions of cell phones already feature a fingerprint sensor for added privacy and security, principally in Japan and Asia where the phone is used like a mobile wallet for quick and secure financial transactions.   AuthenTec has shipped greater than 9 million fingerprint sensors for use in these phones, which is more than any other fingerprint sensor supplier.

Concerns about personal privacy, increased computer and network security breaches and an alarming rise in identify theft have caused consumers and businesses to consider convenient and reliable fingerprint biometric security.  Passwords are difficult to deal with in a mobile device, are no longer adequate for security since they have become too complicated and too costly to reset.  Further fueling the growing use of AuthenTec fingerprint sensors are today’s smaller, more powerful and web connected mobile devices which can easily be lost or stolen.  

Beyond security benefits, AuthenTec’s sensors have evolved into a multi-function user touch control that offers easy device and file navigation and personalization features via the simple swipe of a finger.  AuthenTec sensors now offer touchpad-like navigation and the capability to associate a different function with each finger for speed dialing, password replacement and the quick launch of programs and applications that the user chooses. 

AuthenTec’s fingerprint sensors are based on the Company’s patented TruePrint® technology which reads below the surface of the skin to the live layer where the true fingerprint resides.  The sensors bring Power of Touch® features including security, convenience, personalization and navigation to over 40 million PCs  cell phones, access control products and other consumer products worldwide. 

About the Survey
The survey, conducted in October 2008 by independent online service Zoomerang, sampled U.S. women and men between the ages of 18-25.  AuthenTec sponsored the survey as part of its ongoing effort to track consumer, business and government market trends.  Complete survey results are available at the Company’s website, www.authentec.com.

About AuthenTec
With more than 40 million sensors sold worldwide, AuthenTec is the world leader in providing fingerprint authentication sensors and solutions to the high-volume PC, wireless device, and access control markets. AuthenTec's award-winning sensors take full advantage of The Power of Touch^â  by utilizing the company's patented TruePrint^â technology to deliver the most convenient, reliable and cost-effective means available for enabling touch-powered features that extend beyond user authentication.

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