Capital Market Day 28 November 2006 HID and Fargo: Building Future Value Joe Grillo, EVP Global Tech

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Capital Market Day 28 November 2006HID and
Fargo Building Future Value Joe Grillo, EVP
Global Technologies Division
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• Clear market leader in cards and readers for
  electronic access control (EAC).
• The most highly recognized brand in the
  electronic security industry worldwide.
• With the formation of HID Global in January 2006,
  previous acquisitions Synercard, Indala, Buga,
  and Interlock were integrated into the HID
  business, further enhancing the brand.

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Brand Strategy
TODAY
COMPANY
PRODUCT BRANDS
2005
Invest in Building Company Brands Focus On
Product Brand Values for Channels
2006
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Channels Deliver Value To Customers
TODAY
Consultants OEMs Distributors Dealers Integrator
s Global Installers Development
Partners Solutions Providers
COST . CONVENIENCE . SECURITY
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HID Financial Profile
2001 2005 Organic Growth CAGR 13
ASSA ABLOY Acquires HID
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2007 Initiatives Focus on Innovation
Internal Resource Investments
External Marketing Programs
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iCLASS Innovations

• HID high frequency (13.56 MHz) RFID card and
  reader platform for HID access control products
  and third party application developers (HID
  Connect partners)
• Fastest growing sector of the business
• Investments continue with new desktop reader,
  Mifare product line, multi technology reader,
  long range reader, and FIPS 201 complaint reader.

FlexSmart And Multi Tech Reader
logiCLASS
FIPS 201 Reader
Long Range Reader
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EdgeReader

• Provides electronic access control at the edge
  of standard IT networks
• Integrated HID card reader and VertX access
  controller
• Power Over Ethernet provides power for EdgeReader
  and other locking devices
• HI-O enabled option demonstrated with Cisco at
  ASIS 2006

Ethernet
Server
AUX
Contact
EdgeReader
REX
Strike
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AXIO eCylinder

• HID RFID reader integrated into a locking
  cylinder
• Electronic access control reader available with
  key or card for US and international markets.
• Reads industry standard access control technology
  cards
• Off line access control for disconnected doors

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HID Connect Program

• Technologies
• HID Prox
• Indala Prox
• HID iCLASS
• Mifare

• Products
• OEM Reader Modules
• Developer Kits

• Solutions
• Time and attendance
• Cashless vending
• Parking control
• Biometrics
• Mobile verification
• Photo ID Printing

• Companies
• Over 70 active development partners worldwide
• Co-marketing

• People
• Dedicated sales and support staff
• Annual HID iNNOVATIONS Conference

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Fargo Secure Card Issuance

• Integration running well
• Now part of HID Global
• Market leader in plastic card printers
• Highly respected brand
• Reputation for innovation
• Completes HIDs future distributed card issuance
  strategy
• Short term sales synergies with HID

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Fargo Financial Profile
US Million
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Fargo Card Issuance Market Opportunities
Government
Education
Financial
Corporate
Transit

• US Gov PIV
• National ID
• Licensing
• Corrections

• Debit
• Credit
• ATM
• Loyalty

• Employee ID
• Access
• IT Log on
• Time Att

• Student ID
• Library
• Debit
• Services

• Passes
• Loyalty
• Retail
• Access

Cards
Readers
Printers
Software
Programmers
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Strong Corporate Fit
FUTURE

• Both organizations expanding their Services Model
• Focus on Personalization, recurring revenue

Strategy
Culture

• Integrity and Passion are drivers for both
  organizations

Footprint

• Fargo can leverage HID worldwide footprint

• Employees highly valued in both companies
• High retention a shared focus

People
Product

• Products are Interdependent

• HID brings international and access control
  channel leverage

Channel
Customer

• Some end-users are common customers

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The EAC Industry Landscape is Changing
FUTURE
TODAY
FUTURE
Applications Architectures Influencers Channels

• Electronic Access Control
• Single Application
• Proprietary Systems
• Entrenched Suppliers
• Established Channels
• Specialized Products
• Mature Technology
• Regional Influences

• New Landscape
• Multiple Applications
• Open Architectures
• Adjacent Market Suppliers
• New Channels
• Solutions Driven
• Emerging Technologies
• Global Market

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New Industry Model for Secure Credentials

• Identity Database

• Public Key Infrastructure (PKI)

Registration Issuance

• Identity
  Management
  
  

• Credential Production

Logical Physical Access Management
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Fargo Completes a Unique Strategy
FUTURE
Future HID Distributed Card Printing and
Programming Profile
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Putting It All Together
Personalization
Transactions
External
Centralized
Software
Service Bureau
Fabrication
Distributed
PHYSICAL ACCESS CONTROL
TIME ATTENDANCE
FINANCIAL SERVICES
MASS TRANSIT
HEALTH CARE
ltltltETCgtgtgt
LOGICAL ACCESS
Desktop
Internal
Hardware
Credentialing
Secure Materials
PRODUCTION
ISSUANCE
USE
HID Readers Connect Partners
HID Programmers Fargo Card Printers
HID and ITG Technology Cards