Datakey, Inc. Announces Agreement with HID to Provide Integrated Physical and Logical Access Solution

Minneapolis, MN May 11, 2004 – Datakey Inc., (DKEY.OB; www.datakey.com), a leading developer of information security software products that simplify and secure authentication to corporate information systems, and HID Corporation, the premier manufacturer of contactless access control cards and readers for the security industry, have signed a bilateral reseller agreement. The companies will resell an integrated physical and logical Smart ID Badge that combines Datakey s smart chip and software for logical security applications and HID proximity technology for physical security applications.

According to the agreement, Datakey and HID have established a limited inventory quantity of integrated Smart ID Badges ready for delivery to customers for securing access to buildings, enterprise networks and applications. Designed to support pilot programs in large corporations or to provide a cost effective smart ID solution for small enterprises, this program accommodates extremely fast turnaround for customers ordering up to 1000 smart ID s. This customer-focused program allows businesses to quickly realize the convenience, cost savings and security benefits that a single card platform can provide.

Datakey s goal is to simplify security for customers by delivering strong user identification in an easy-to-deploy solution, said Chris Schwartzbauer, vice president of sales and business development for Datakey. When our customers deploy Datakey Axis software on their networks for strong authentication and single sign-on, we can now rapidly deliver the latest in proximity security on the same smart card.

Datakey Axis is a strong authentication and single sign-on solution that locks each user s digital credentials onto a smart card or USB token. Easy-to-install and maintain, Datakey Axis fortifies security with two-factor authentication and automated enforcement of strong password policies.

Our partners and customers are looking for additional ways to leverage their investment in secure ID technology. Solutions like Datakey s Axis provide our partners and customers with a simple way to enhance overall security by adding user friendly and secure computer access to their existing physical access ID cards, said Mark Scaparro, executive vice president of sales for HID Corporation. With integrated proximity and smart card products available for immediate delivery, our customers can receive this combined security solution today.

About Datakey Axis

Datakey Axis helps organizations regain control of authentication, delivering a powerful single sign-on solution (SSO) that bolsters security. Common authentication methods such as passwords or digital certificates are hard to remember, difficult to use, costly to administer, and vulnerable to security threats. Datakey Axis consolidates all credentials (passwords, certificates, shared secrets, biometric templates) onto one smart card or token and automates user access to corporate applications through a single sign-on. For the administrator, Datakey Axis provides an innovative new tool: Rapid Deploy Technology . This intuitive drag and drop method enables rapid configuration of single sign-on coverage for all applications. Organizations can quickly and easily implement Datakey Axis security without undertaking a major infrastructure change or requiring end user training.

Customers, including the US Department of State, Rabobank and Wells Fargo, rely on Datakey technology to fortify security. Datakey Axis offers a full range of capabilities, including password management, host authentication, Windows log-on, VPN access, web authorization, desktop security, corporate badge and building access, biometric integration, public key encryption, digital certificates and digital signatures.

About Datakey, Inc.
Datakey Inc. delivers intelligent solutions that strengthen security and simplify user identification. Datakey Axis is a strong authentication and single sign-on solution that locks each user s digital credentials onto a smart card or USB token. Easy-to-install and maintain, Datakey Axis fortifies security with two-factor authentication and automated enforcement of strong password policies.

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