Agreement signed with SoftBank to market Secure Design’s Mobile Fingerprint Authentication Devices across Japan

Secure Design, the Japanese developer of biometrics fingerprint authentication technology, and SoftBank BB Corporation (“SoftBank”), the largest software distributor in Japan, have signed a marketing and distribution agreement for SoftBank to sell Secure Design’s ITube products, the USB mobile fingerprint authentication device with built-in flash memory. This agreement will enable Secure Design to sell its ITube range of products to general consumers throughout Japan opening a potentially large new sales channel for the Company.

The products will include latest version of Winny Lock, the file sharing detection software stored in the flash memory area of ITube. Once Winny Lock is connected it will verify that the person using the computer is authorised to do so. It will automatically detect and disable file sharing software such as Winny (also known as WinNY), the peer-to-peer file-sharing program. Winny Lock will also detect and disable other programs such as WinMX and Utatane and and warns if the Antinny worm is present on the computer.

The sales will start in the week beginning 4 December 2006 at computer retailers, electronics stores and major department stores throughout Japan.

Satoshi Takahashi, Chief Executive Officer of Secure Design, commented:

“The ability to carry data securely is increasingly important not only to businesses but to everyone who uses a computer. The ITube, which allows people to carry up to one gigabyte of data, is at the forefront of this technology providing a totally secure means of transporting large amounts of data that will be automatically encrypted prior to storage.

The ITube hand held device has been competitively priced and we are confident that it will become an essential tool for all computer users.

We are actively looking for partners throughout the world to market, what we believe, are leading edge products.”

For further information, please contact:

Secure Design KK
Satoshi Takahashi (Chief Executive Officer) Japan +81-3-3516-9303
Shinil Cho (Chief Information Officer) United Kingdom +44(0) 7738 842 662
Japan +81-3-3516-9303
United States +1-412-367-7063
Masahiro Nishikawa (Senior Manager of Business Planning) +81-3-3516-9303

Cubitt Consulting
Brian Coleman-Smith / Allison Reid / Leanne Denman +44(0) 20 7367 5100
Mobile +44(0) 7802 724 400

Background Notes on SoftBank (IT Logistic Business in SoftBank )

The IT product logistics business of SoftBank BB has existed for over two decades, succeeding to the first business of the parent company Softbank Corporation. SoftBank BB dealt with about 260 thousand IT products domestically, recoding revenue of JPY 270B as of 1 October 2006. SoftBank procures IT products from major Japanese manufactures and sells them through mass merchandising stores for general consumers and retailers for corporate customers. SoftBank BB has established itself as a major distributor in the domestic market of IT products. In particular, it is the largest software distributor in Japan.

About ITube

ITube is a USB fingerprint authentication device with flash memory. It is a true mobile device and can be used with virtually any PC whose operating system is Windows ME or later versions. As a countermeasure against sensitive data leaking, many companies prohibit their employees from using a USB flash memory sticks. ITube offers an ideal solution to control data transaction from corporate PC environment to a personal PC. Because data stored in ITube are automatically encrypted, no one can read it without user’s fingerprint authentication, providing another security feature. For more information, please visit www.sd-institute.com

About Winny Lock ver 1.1

In addition to the above feature of ITube, Winny Lock has the following functions:
・ Detects and disables file sharing software including Winny
・ Has a warning function against accidentally running a faked.exe content type program such as Antinny.
・ Link with McAfee Virus Scan

Background Note on Secure Design

On 14 July 2006, Secure Design was the first Japanese company to be admitted to trading on AIM. It offers fingerprint authentication products to companies and individuals that wish to establish high levels of security using biometrics. Biometrics uses a physical attribute of the body, such as a fingerprint to identify and verify the individual with the aim of making individual authentication efficient and secure.

The Company offers a range of fingerprint authentication products and systems, from an integrated system to a mobile device. The Company designs and outsources the production of these products and can tailor them to individual client specific needs and applications.

Biometric applications provide convenient and reliable security which reduces the cost associated with the failure of conventional authentication methods. The principal factor which distinguishes biometrics from conventional password based authentication is the enhanced security level it provides while maintaining the privacy of individual users.
The worldwide demand for biometrics is estimated to be increasing by approximately 30 per cent per year with the market estimated to grow to almost $6 billion by 2010 from $2 billion in 2006. Biometric applications and systems are already being used for security in personal, commercial, government and military organisations. Many governments, including the UK, have adopted or are currently reviewing the need for biometric applications in passport and national ID card systems. The Directors believe that as biometric applications in national identification become commonplace the commercial applications will proliferate. The commercial market for biometrics is expanding to financial, IT, telecommunication and medical segments.