A majority of U.S. consumers are willing to pay a premium to add fingerprint biometrics to their electronic devices - such as PCs and cell phones - to help make their life easier and more secure, according to a recent nationwide survey.

The scientific survey of more than 2,000 adults, sponsored by AuthenTec, shows that 63 percent of consumers would pay extra to add fingerprint biometrics to their PC and notebook computers, while 71 percent would pay more for this feature in their cellular phones. Most consumers said they would use the technology to replace their PC and Internet passwords, as well as to help transform their cell phones into their personal wallets to conduct m-commerce and wireless banking.

The survey shows that U.S. consumers are just as receptive to biometric technology as those in the more mature Asian market. Consumer electronics is already the fastest growing market for biometric fingerprint sensors worldwide. The fact that U.S. consumers are willing to pay more for devices embedded with the technology should help spur interest from electronics manufacturers throughout this competitive segment.

Consumer electronics already is the fastest growing market for fingerprint biometrics worldwide - primarily in Asia. It is estimated that more than 4 million biometric cell phones, PCs, laptops and peripherals already are in use. And, the adoption rate is increasing rapidly, with new devices being introduced monthly and service providers such as NTT DoCoMo and LG Telecom recently offering biometric phones to secure users' personal information, and enable m-commerce and wireless banking in Asia.

"Fingerprint biometrics are rapidly being adopted in Asia and other parts of the world as the most viable means of providing security and convenience for electronic devices," said Scott Moody, president and CEO of AuthenTec, which has shipped more than three million fingerprint sensors. "We commissioned the survey to determine the level of interest by U.S. consumers for many of the same functions and features that are already popular in these international markets."

The nationwide telephone survey was conducted with 2,049 respondents by independent research firm StrategyOne on behalf of AuthenTec during November. The survey has a margin of error of 2.2 percent. The survey results are available electronically by emailing jim.burke@authentec.com

Survey Findings:

In the PC and notebook computer segment, the survey shows that:

• Younger consumers (18-44) are the most interested and are willing to pay the highest price for a biometrically-enabled device.
• Parents also showed a higher interest than non parents in adding the feature to PCs than non-parents - at 75 percent versus 58 percent.
• 43 percent are most interested in using fingerprint sensors to replace their computer or internet passwords
• Navigating the cursor and automatically starting favorite programs were other key capabilities consumers were interested in using.
• Three in ten (29 percent) said they would be willing to pay more than $25 for the additional feature.

In the wireless segment, the survey shows that:

• 71 percent are interested in adding fingerprint sensors to protect their sensitive and personal information stored on their cellular phone.
• Overall, 32 percent would be willing to spend more than $25 to have the feature added to their cell phones, while nearly half (45 percent) of young adults (18-24) indicated they are willing to pay more than $25.
• 60 percent said they would like to use biometrically-enabled cellular phones as a replacement for their wallets - debit cards or credit cards -- to conduct purchases or online banking. Nearly half of those said they would be interested in using a biometric cell phone to purchase items from a store, while 30 percent for wireless banking, 27 percent to gain access to mass transit, and 25 percent for wireless shopping.
• Parents, younger adults, and men are the most interested in using the cell phones as a replacement for their wallets.

About AuthenTec, Inc.

With more than three million sensors deployed worldwide, AuthenTec is the recognized number one semiconductor provider of fingerprint sensors to the PC, wireless, PDA, access control and automotive markets. AuthenTec's FingerLoc® and EntréPad® product families utilize the company's patented TruePrint® technology, the first technology to make fingerprint biometrics viable for mass-market adoption. AuthenTec is an Inc. 500 Company, two-time AO100 Top Private Global Company, as well as a repeat winner of Frost & Sullivan's Market Leadership Award. The company's network of partners, solution providers and customers include; Analog Devices, APC, Bioscrypt, Computer Associates, Fellowes, IBM, LGE, Microsoft, Motion Computing, Precise Biometrics, Samsung, Saflink, SCM Microsystems, Targus and Texas Instruments. Privately funded, investors in AuthenTec include The Carlyle Group, Sierra Ventures, TI, Harris Corporation, the China Development Bank, and others.

For more information, visit http://www.authentec.com . All trademarks or registered trademarks are the property of the respective holders.

MELBOURNE, FL/NEW YORK, NY, December 8, 2004