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Accretive Accretion adds Comprehensive Multi-factor Affidavit Platform, Deep IAM Expertise

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WALL, N.J., June 10, 2020 (GLOBE NEWSWIRE) — BIO-key International, Inc. (Nasdaq: BKYI), an avant-garde provider of biometric software and accouterments solutions for action authentication, appear today that it has entered into a absolute acceding to buy privately-held PistolStar, an accustomed provider of all-embracing on-premise and Identity-as-a-Service (IDaaS) character and admission administering (IAM) solutions, for $2.5 actor in cash. PistolStar’s awful commutual aggregation and articles will become allotment of BIO-key’s alignment and offerings.

The accretion will be anon accretive to both acquirement and operating assets and is accountable to accepted closing conditions. The transaction is accepted to abutting by the end of Q2 2020. BIO-key will armamentarium the acquirement with a aggregate of banknote on hand, an escrowed deposit, abbreviate appellation financing, and a 12-month promissory note. PistolStar’s architect will abide in a consulting role to abetment BIO-key afterwards the acquisition. PistolStar’s 2019 revenues were $1.65 actor and net accumulation excluding above-mentioned buyer advantage of $455K (unaudited).

PistolStar’s flagship artefact is PortalGuard®, a awful admired action multi-factor affidavit (MFA) and distinct sign-on (SSO) belvedere deployed and acclimated by millions of users at hundreds of barter about the world. PortalGuard delivers a adjustable but accordant billow or workstation logon MFA acquaintance for cohesively accepting an enterprise’s users and billow applications. PortalGuard supports about every billow affidavit alliance standard, all above directories, and a advanced array of authenticators, including BIO-key’s world-class passwordless biometric capabilities.

PistolStar is commutual to BIO-key in three cardinal advance areas. First, it will acquiesce BIO-key to capitalize on a growing appeal for biometrics as an MFA factor, by accouterment “super-MFA” IDaaS, hybrid, or on-prem solutions that action BIO-key-based advantages and options artlessly not begin in aggressive MFA offerings, while accepting enterprises to advantage absolute investments in factors their users already have.

Second, abacus PistolStar’s accomplished aggregation and outstanding artefact band decidedly expands BIO-key’s bazaar adeptness and acquirement potential, accumulation an already accurate apartment of IAM and IDaaS solutions with BIO-key’s above biometric user acquaintance and amount proposition. Going forward, PortalGuard barter can alpha with the authenticators their users already have, again accession their MFA beam by strategically abacus BIO-key’s able server-based biometrics to accommodate users with a persistent, carriageable absolute authenticator that doesn’t await on a badge or phone, and can’t be aggregate or lost. The aggregate of PortalGuard and BIO-key solutions will accomplish BIO-key the alone biometric IDaaS provider owning its absolute biometric IP stack, which is important back committing to a cardinal technology like biometrics.

In accession to BIO-key’s server biometric platform, PortalGuard supports all above affidavit factors begin in the enterprise, including Windows Hello, FIDO/WebAuthn accouterments keys such as YubiKey and Feitan, RSA SecurID adamantine and bendable tokens, Google and Microsoft Authenticator apps, printed bar codes, and claiming questions. PortalGuard additionally supports arch alliance and SSO standards including, SAML, OAuth v2.0/OpenIDConnect, Shibboleth, CAS v3.0, RADIUS, and desktop Kerberos, authoritative it accordant with best SaaS and web-based applications such as Zoom, Microsoft Office 365, Workday, AWS, GSuite, Atlassian, SAP, DocuSign, as able-bodied as accepted IAM frameworks such as Okta, ForgeRock, Ping, IBM ISAM, and CA/Symantec SiteMinder. PortalGuard integrates with Microsoft Active Directory (on-prem or Azure AD), OpenLDAP, IBM System I, Lotus Domino or custom SQL directories.

Third, the PortalGuard chump abject includes over 200 institutions and enterprises, with a able attendance in college education, and has little overlap with BIO-key’s absolute chump base, thereby creating cogent cross-selling potential. The accumulated organizations will annual from alliance of sales, administering and accounts functions, while accepting PistolStar’s development aggregation to abide to innovate their artefact line. BIO-key additionally expects to accomplish bigger gross margins by eliminating licensing payments on PistolStar technology currently included in BIO-key’s ID Director for Windows solution.

BIO-key’s CEO Michael DePasquale, commented, “PistolStar’s PortalGuard, and the accomplished aggregation abaft it, are the absolute accompaniment to BIO-key’s industry-leading apartment of biometric aegis and affidavit solutions. Cyber-attacks are growing threats to all-around enterprises and baby businesses alike, and implementing MFA is aerial on best IAM roadmaps. Still, ample functionality gaps abide in acceptable MFA solutions, including how to handle ambulant and work-from-anywhere users, how to anticipate crooked annual delegation, and arresting the amount of assorted authenticators per user to anticipate absent badge downtime. Buzz authenticators alone accredit the phone, not the user, and abounding workplaces prohibit phones for assurance or aegis reasons. The time for secure, privacy-by-design server-based biometric affidavit is now. PortalGuard and BIO-key will acquiesce enterprises to advantage whatever bequest authenticators they have, and again drag their capabilities application biometrics area it makes sense. The accretion will be anon accretive to both acquirement and operating income, in accession to acceptable our apartment of solutions to accommodate an IDaaS and decidedly accretion our all-around sales potential, while abbreviation time to value.”

About PistolStar/PortalGuard ( )PistolStar Inc. is a avant-garde in affidavit solutions and technology back 1999. Its PortalGuard band-aid helps organizations of any admeasurement bigger defended admission to advice and applications by optimizing the affidavit processes while simplifying the login process. PortalGuard’s simplified distinct sign‐on and self‐service countersign administering addition account (and user satisfaction) while abbreviating IT Help Desk abutment calls and accompanying business abrasion and expense.

About BIO-key International, Inc. ( )BIO-key is revolutionizing affidavit with biometric solutions that accredit acceptable and defended admission to devices, information, applications and high-value transactions. BIO-key’s software and accouterments feel scanning solutions action secure, convenient and alluringly priced alternatives to passwords, PINs, tokens and aegis cards, enabling enterprises and consumers to defended their networks and accessories as able-bodied as their advice in the cloud.

BIO-key Safe Harbor StatementAll statements independent in this columnist absolution added than statements of absolute facts are “forward-looking statements” as authentic in the Private Securities Litigation Reform Act of 1995 (the “Act”). The words “estimate,” “project,” “intends,” “expects,” “anticipates,” “believes” and agnate expressions are advised to analyze advanced statements. Such advanced statements are fabricated based on management’s beliefs, as able-bodied as assumptions fabricated by, and advice currently accessible to, administering pursuant to the “safe-harbor” accoutrement of the Act. These statements are not guarantees of approaching achievement or contest and are accountable to risks and uncertainties that may account absolute after-effects to alter materially from those included aural or adumbrated by such advanced statements. These risks and uncertainties include, after limitation, our history of losses and bound revenue; our adeptness to accession added capital; our adeptness to assure our bookish property; changes in business conditions; changes in our sales action and artefact development plans; changes in the marketplace; connected casework of our controlling administering team; aegis breaches; antagonism in the biometric technology industry; bazaar accepting of biometric articles about and our articles beneath development; our adeptness to assassinate and bear on affairs in Africa; our adeptness to aggrandize into Asia, Africa and added adopted markets; the continuance and severity of the accepted coronavirus COVID-19 communicable and its aftereffect on our business operations, sales cycles, personnel, and the geographic markets in which we operate; delays in the development of articles and statements of acceptance basal any of the above as able-bodied as added factors set alternating beneath the explanation see “Risk Factors” in our Annual Report on Form 10-K for the year concluded December 31, 2019 and added filings with the Securities and Exchange Commission. Readers are cautioned not to abode disproportionate assurance on these advanced statements, which allege alone as of the date made. Except as appropriate by law, the Aggregation undertakes no obligation to acknowledge any afterlight to these advanced statements whether as a aftereffect of new information, approaching events, or otherwise. Additionally, there may be added factors of which the Aggregation is not currently acquainted that may affect affairs discussed in advanced statements and may additionally account absolute after-effects to alter materially from those discussed. In particular, the after-effects of the coronavirus beginning to bread-and-butter altitude and the industry in accepted and the banking position and operating after-effects of our aggregation in accurate accept been material, are alteration rapidly, and cannot be predicted.

Engage with BIO-key Facebook – Corporate: BIO-key International Twitter – Corporate: @BIOkeyIntl Twitter – Investors: @BIO_keyIR StockTwits – Investors: @BIO_keyIR

Investor & Media Contacts William Jones, David CollinsCatalyst IR212-924-9800 [email protected]

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