Identicator and Compaq Deliver Fingerprint Identification Technology
for The PC

     SAN BRUNO, Calif.--(BUSINESS WIRE)--July 20, 1998--

    Establishes Fingerprint Identification as Mainstream Technology
     For Consumer and Commercial Positive User Authentication

    Identicator, the leading designer and developer of biometric
identification systems, today announced it has signed a licensing
agreement with Compaq Computer Corporation (NASDAQ:CPQ) to offer
Fingerprint Identification Technology for positive user authentication
on Compaq's Desk Pro line of corporate computer systems.
    This agreement marks the first time a low cost biometrics
security solution for user authentication is being offered as a
peripheral device on desktop computers targeted to enterprise and
network customers around the world. Compaq has set a low price for the
hardware and corresponding software as part of a marketing strategy
intended to foster widespread, mainstream acceptance of Identicator's
network security authentication technology as the preferred solution
for user friendly, password replacement and positive user
authentication.
    "We currently have the largest installed customer base worldwide
of fingerprint biometrics, having provided our technology to more
vertical market customers such as the Department of Defense, FBI,
MasterCard, Unisys and the Department of Treasury," said Oscar Pieper,
president and CEO of Identicator. "Our goal now is to deliver
technology and solution applications which provide the optimum method
for personal identification, verification and personal protection. The
fact that the largest personal computer manufacturer in the world will
offer our technology to its customers illustrates clearly that demand
for our technology and its user friendly solution in the enterprise
computing market is increasing. We plan to meet the demand head-on."
    Under the licensing arrangement, Identicator will supply all
necessary hardware and software components for Compaq's Fingerprint
Identification Technology. These include Identicator's Direct
Fingerprint Reader(TM) DFR-200 finger scanner and software algorithms
needed to confirm the personal identification required for secure user
authentication. The software is currently available in five languages
to serve a variety of customers around the world. The small
fingerprint reader can be mounted on the side of a monitor or embedded
in a keyboard, freeing up valuable desktop space. Once accurately
verified, users have exclusive and secure access to their PCs and
databases.
    "Passwords complex enough to satisfy an IT manager's need for
security are too difficult to remember for users to find convenient,"
said Martin Reynolds, Vice President, Dataquest. "Now, though, a new
generation of low-cost readers, coupled with PCs capable of swiftly
processing fingerprint data, makes personal fingerprint-based security
a reality. Dataquest anticipates steady growth in this market and, as
prices decline, the deployment of fingerprint technology to a broad
market."
    Identicator is the first company to develop and market finger
minutiae technology for user authentication on PCs. Targeted as a
replacement for the traditional login password, the company's
fingerprint-based "password for life" serves as the most viable
solution for secure user authentication while at the same time making
it more user friendly. While passwords can be easily misplaced or
duplicated and must be changed frequently, the fingerprint is unique
to every individual.
    Points measured by the Identicator system are ridge endings and
bifurcation's on the fingertip. These points, or features, which are
utilized for positive identification, are called minutiae and are
represented by specific ridge characteristics. By placing a registered
fingerprint on the reader attached to the PC, a user can
instantaneously log on to the network.
    "Compaq continues to lead the industry in delivering useful
innovations that simplify our customer's computing environment.
Beginning in 1995 with our standards-based Intelligent Manageability
program, we have significantly improved the way Compaq Deskpros PCs
are managed in a distributed enterprise," said Michael Winkler, Senior
Vice President and Group General Manager, Personal Computer Products
Group, Compaq Computer Corporation. "Our partnership and joint
development work with Identicator Technology enables us to introduce
affordable fingerprint identification technology to our customers thus
enabling them to simultaneously increase their network security while
lowering the number of password-related calls to the help desk."