Secure Design KK

Secure Design KK

Secure Design KK
22 August 2007

For Immediate release                                           Secure Design KK
22 August 2007

                                Secure Design KK

   Secure Design KK launches a new semiconductor fingerprint image sensor in
     collaboration with Oriental System Technology and Sanyo Semiconductor

Secure Design KK ('SDKK'), a fingerprint authentication company based in
Tokyo, Japan, has started the design of a new fingerprint image sensor and its
authentication engine with Oriental System Technology Incorporation ('OST')
based in Hsinchu, Taiwan. In addition, Sanyo Semiconductor Co., Ltd. ('SANYO')
based in Gunma, Japan has agreed to manufacture the sensor. The sensor is small,
thin and particularly suitable for smart card and mobile devices such as cell
phones and pocket-PCs.

With this technology and business alliance, SDKK is also establishing a sales
channel for the new miniature fingerprint image sensor and biometrics smart card
in collaboration with their existing sales networks. The biometrics smart card,
which has an embedded fingerprint reader and matching capability, is called
Authentication On Card ('AOC card'). This type of self-contained smart card is
ideal for multi-applications because the AOC card brings the most secure
solution to prevent ID fraud, in contrast to the vulnerability of conventional

There has been a general trend towards increased security worldwide in recent
years with public and private organizations upgrading their security systems.
With the cost of smart cards lowered, the move to multi-application smart ID
will be effective and cost-effective. In light of this, the Directors believe
that more organizations are investigating how smart cards and biometrics can be
used to improve security while providing greater levels of convenience.

AOC (Authentication on Card) has been addressing the gap in the market for the
need to overcome the vulnerability of credit/bank and ID cards which use
Personal Identification Numbers (PINs) for verification. However, many vendors
worldwide have been trying to implement AOC but failed to pass the required
specifications, which are:

1. All Identity Cards must be mounted within an 8 mm thickness, complying with
ISO/IEC 7816;

2. Must have the required mechanical strength against distortion, abrasion and
scratch resistance, complying with ISO/IEC7816;

3. A guaranteed 3 year lifetime with a user frequency of 10 times/day; and

4. The price should be competitive with conventional smart cards.

SDKK has developed a fingerprint matching engine based on the minutiae method,
which is the world standard, and a fingerprint verification scheme where a
fingerprint image will be captured with the embedded fingerprint image sensor,
and a fresh template will be compared with a pre-registered reference template.

AOC is believed to be more secure than MOC (Match on card) because no data
leaves/enters the card. SDKK has cleared the basic hardware requirements and the
three companies have mutually agreed to design, develop, and manufacture an
ultra thin fingerprint image sensor (thickness 0.1 mm and size 8 mm x 8 mm;
price: $2/unit). SDKK provides the know-how for the fingerprint verification and
authentication algorithm, with OST designing the sensor and SANYO producing it
from prototype to final product.

The Chairman of SDKK, Taketoshi Kashiwabara, comments:

'This project will be important in the development of the biometrics smart card
with higher security and more user convenience. With AOC, the owner verification
of smart card will be more secure. Many organizations will choose to upgrade
their security systems and with the cost of smart cards coming down, the move to
multi-application smart ID will develop rapidly.'


Secure Design KK

Masahiro Nishikawa                              Japan             +81-3-3516-9360

(Executive Vice President, Business Planning )

Shinil Cho (Chief Information Officer)  United Kingdom        +44(0) 7738 842 662

                                                 Japan            +81-3-3516-9303

                                         United States            +1-412-367-7063

Charles Stanley Securities                                     +44 (0)207149 6000

Russell Cook

Freddy Crossley

Cubitt Consulting

Brian Coleman-Smith / James Verstringhe/ Leanne Denman         +44(0) 207367 5100

Company profile

SDKK (CEO: Shoichi Kiyomoto) participated in the fingerprint authentication
accuracy assessment for interoperability (FpVTE2003) and interoperable format
tests(MINEX04), held by the US National Institute of Standards and Technology (
'NIST'). SDKK has also provided an official member to the ISO Biometrics
Standardization Committee. This member will play a leading role in new global
fingerprint authentication projects such as the biometrics based passport system
(e-Passport) and Personal Identity Verification (PIV), which require high
performance and accuracy. The Company also has expertise in the design and
production of fingerprint authentication modules. In particular, SDKK has
incorporated fingerprint authentication on a smart card ('Match On Card')
which has already been delivered to Dai Nippon Printing Co. Ltd. The Company is
now aiming at a new generation technology called Authentication on Card (AOC).

OST (President: Dr. Jin Shown Shie) is a Taiwanese company that is partially
supported by Taiwan fs government to design, manufacture and sell various
semiconductor sensors used in digital cameras and other electronic devices. The
president of OST, Dr. Jin Shown Shie, is Emeritus Professor of National Chiao
Tung University where he educates engineers who are leading the semiconductor
industry in Taiwan. He also has a significant role in developing major
semiconductor companies like Taiwan Semiconductor Manufacturing (TSMC) Limited
and United Microelectronics Corporation (UMC).

After leaving University, Dr. Shie established a semiconductor design factory
called Integrated Crystal Technology, Inc. The Taiwanese government asked him to
become the President of OST.

Sanyo Semiconductor Co. Ltd. (President: Teruo Tabata) became an independent
company from Sanyo Electric Co. Ltd. SANYO has a full design and manufacturing
capability for semiconductor chips and has its own sales network worldwide.
SANYO also has core technologies such as ultra high density modeling, an
advanced packaging technology, and the silicon through-hole electrode to achieve
three-dimensional mounting technology. SANYO is a leader in the Identity Card
manufacturing industry.

                      This information is provided by RNS
            The company news service from the London Stock Exchange