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BIO-key Completes Acquisition of Aether Mobile Government
Division
Company Also Raises $10 Million in Convertible Debentures
MINNEAPOLIS, Oct. 1 /PRNewswire-FirstCall/ -- BIO-key International, Inc.
(OTC:BKYI) (BULLETIN BOARD: BKYI) , a leader in finger-based biometric
identification and wireless public safety solutions, today announced the
closing of the purchase of Aether's Mobile Government Division (NASDAQ:AETH).
As previously announced the purchase price was $10 million in cash and subject
to certain post closing adjustments.
The Company also announced that it completed a $10 million private placement of
convertible debentures and warrants with institutional and accredited
investors. The conversion price of the bonds is $1.35. Investors received
warrants to purchase up to approximately 3 million shares of common stock at
$1.55 per share.
The funds will be used to help finance the transaction and provide for working
capital to implement the Company's business plan of providing highly accurate,
fast and scalable one-to-many fingerprint biometric identification solutions
and mobile wireless systems that enable security officials access to law
enforcement databases to validate identities and obtain suspect information.
Mike DePasquale, BIO-key CEO, said, "With the addition of the AMG companies
including Cerulean and Sunpro, BIO-key has become the largest provider of
mobile, wireless information and identity management solutions in the public
safety market. Combined with BIO-key's biometric and wireless technologies, we
are positioned as the leading force in an emerging largely untapped market that
we value at more than $5 billion. With a large 2500 customer base and a network
of strategic partners, we will have the market presence and reach to accelerate
biometric deployments and expand the market for providing secure wireless
information to the estimated 5 million first responders across nearly 50,000
agencies engaged in homeland security."
Tom Colatosti, BIO-key Chairman, added, "We are also delighted that our
investors have embraced and endorsed our vision and demonstrated their belief
in our ability to successfully execute and achieve our business potential by
assuming a conversion rate that is a significant more than 35% premium to the
market price of our stock."
About BIO-key
BIO-key develops and delivers advanced identification solutions and information
services to law enforcement departments, public safety agencies, governments
and private sector customers. BIO-key's mobile wireless technology provides
first responders with critical, reliable real time data and images from local,
state and national databases. BIO-key's high performance, scalable, cost
effective and easy to deploy biometric finger identification technology
accurately identifies and authenticates users of wireless and enterprise data
to improve security, convenience and privacy as well as reducing identity
theft.
About Aether Systems
Aether Systems owns and manages a portfolio of residential mortgage-backed
securities and other short-term government agency investments. Our principal
business objective is to generate net income from the spread between the
interest income on these securities and the costs of borrowing to finance their
acquisition.
BIO-key Safe Harbor Statement
This news release contains forward-looking statements that are subject to
certain risks and uncertainties that may cause actual results to differ
materially from those projected on the basis of these statements. The words
"estimate," "project," "intends," "expects," "believes" and similar expressions
are intended to identify forward-looking statements. Such forward-looking
statements are made based on management's beliefs, as well as assumptions made
by, and information currently available to, management pursuant to the
"safe-harbor" provisions of the Private Securities Litigation Reform Act of
1995. For a more complete description of these and other risk factors that may
affect the future performance of BIO-key International, see "Risk Factors" in
the Company's Annual Report on Form 10-KSB and its other filings with the
Securities and Exchange Commission. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
made. The Company also undertakes no obligation to disclose any revision to
these forward-looking statements to reflect events or circumstances after the
date made or to reflect the occurrence of unanticipated events.
For more information contact:
Albert Maruggi
612-325-8126
DATASOURCE: BIO-key International, Inc.
CONTACT: Albert Maruggi for BIO-key International, Inc.,
+1-612-325-8126,
Web site: http://www.bio-key.com/