The past twelve months have been the most exciting time in the history of our company as we are making great progress in our Biometrics and Public Safety businesses. To hear more about our recent successes please join our Q4 and full FY 2007 earnings call scheduled for 9 am (EDT) Tuesday, March 18.  Click here to register for this event.

 

Our Public Safety Division continues to offer the most advanced network and platform agnostic mobile data solutions for the Law Enforcement Community. We are now expanding into other markets such as education, where information access is critical for school resource officers.  Our handheld offering "PocketCop" is getting global acclaim. We recently launched a national campaign along with Research in Motion (RIMM) and Sprint/Nextel to expand handheld mobile data access for police departments and federal agencies with our PocketCop application running on the popular Blackberry smart phone over the Sprint/Nextel network.  Over 1,000 Law Enforcement agencies rely on our mobile data solutions every day to protect the public and insure the utmost in officer safety.

 

More and more commercial and government customers are joining the BIO-key community and are taking advantage of our advanced finger matching solutions.  We have proven through third party validation (NIST) as well as number of large scale civil ID deployments that BIO-key has the most scalable, interoperable offerings in the industry. 

 

A recent Frost & Sullivan report published in July 2007 states "With almost every major PC manufacturer integrating silicon chip fingerprint sensors in their products, the market appears set to thrive." This analysis goes on to state "This exceptional growth in the fingerprint sensor market is primarily due to the growing popularity of biometric-enabled laptops and PC peripherals. Also, increasing security concerns drive manufacturers from vertical markets toward a relatively safe and convenient security solution such as fingerprint sensors. The growing popularity of fingerprint-enabled laptops and cell phones will also likely fuel adoption of sensors in door access, automobiles, and ATMs."
 

Personal information data breaches are reported almost daily. According to the Privacy Rights Clearinghouse, in the US alone, from 2/15/05 through 12/9/07 there have been more than 1,500 reported incidents of "Data Breaches" affecting more than 216,686,700 records containing personal information. Additionally, the proliferation of the latest generation of mobile devices is adding a new level of security risks and challenges.

 

These issues will only be solved with very specific authentication technologies that are tied to our physical characteristics. Biometrics will play an important part in our lives going forward.  BIO-key has exceeded 1,000 installations in schools throughout the nation; generated over 100 million ISO finger templates globally (more than any other vendor in the industry); and is a key component of the most significant biometric programs in the world in Bangladesh, where we have exceeded 20 million enrollments and 8 million 'duplicate voter checks', with an estimated 100MM+ checks to be performed by the end of this year!! 

On the commercial front, Radiant Systems, one of the largest providers of retail point of sale solutions includes BIO-key matching capability for employee log on. Allscripts a leading provider of patient records management solutions offers BIO-key finger authentication as an option within their Touchworks solution offerings. Additionally the Indiana Blood Bank recently signed on with BIO-key to offer donor authentication using our advanced biometric identification technologies.

 

We look forward to a great 2008 and expect to see rapid and significant expansion of our business in the coming months.

 

 

Best Regards,

 Mike DePasquale