EANS-News: Identive Group Inc. / Identive Group Acquires idOnDemand

SaaS-based Identity Credentials Extend Secure ID Capabilities

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Mergers - Acquisitions - Takeovers

Subtitle: SaaS-based Identity Credentials Extend Secure ID
Capabilities

Santa Ana, Calif., Ismaning, Germany and Pleasanton, Calif., May 4,
2011 (euro adhoc) - Identive Group, Inc. (NASDAQ: INVE; Frankfurt:
INV), a provider of products, services and solutions for the
security, identification and RFID industries, today announced that it
has acquired substantially all of the shares of stock of idOnDemand,
Inc., a provider of service-based identity credential provisioning
and management. The transaction closed on May 2, 2011. Privately-held
idOnDemand is headquartered in Pleasanton, California and maintains
data centers in Santa Clara, California and Canberra, Australia.
Jason Hart, founder, chief executive officer and the majority
shareholder of idOnDemand, will continue to manage the company as a
business unit within Identive Group.

idOnDemand is a pioneer of the Software as a Service (SaaS) business
model, delivering a managed identity service that allows
organizations to use a single, globally-trusted credential for secure
access to buildings, computers, mobile devices and corporate
information stored in the cloud. Moreover, idOnDemand´s service-based
solutions provide identity management at a lower cost and with more
control than traditional in-house systems. Based on its own strong IP
portfolio and IP licensed from ActivIdentity, idOnDemand´s technology
supports a range of corporate standards, including the strict
security and authentication requirements of the U.S. government´s
FIPS 201 specifications.

Ayman S. Ashour, chairman and chief executive officer of Identive
Group, commented, "idOnDemand´s SaaS model enhances our ability to
provide electronic security credentials for employees, citizens and
consumers, with one of the most cost-effective and secure approaches
available. The company´s commitment to a standards-based approach and
its ability to customize solutions is very attractive, as this
significantly decreases the challenge and expense of converging
physical access systems with IT security. Additionally, this
transaction further strengthens Identive's position in the growing
near field communication (NFC) solutions market through idOnDemand´s
patent-pending One-Time Password (OTP) corporate mobile
authentication technology. Jason and his team bring deep expertise
and experience in the secure identity market and I am very pleased to
welcome the idOnDemand team to Identive."

Jason Hart commented, "Identive and idOnDemand share a common vision
of enabling trusted electronic interaction for consumers, employees
and citizens. The combination of the two organizations´ product lines
and services delivers superior solutions along the entire secure ID
value chain. idOnDemand will now be able to leverage the expertise
and resources of other Identive companies to further boost our growth
momentum and to expand our market extending partnerships and
geographic reach. I am very excited about the greater opportunities
with Identive that now lie ahead."

In return for 95.8% of the outstanding shares of idOnDemand, Identive
Group paid initial consideration of approximately $2.4 million cash
and 995,675 shares to a group of selling shareholders of idOnDemand.
Total consideration also includes an earn-out worth up to
approximately $21.0 million in shares of Identive common stock,
dependent on the achievement of specific EBITDA and sales performance
targets over the next three years and eight months. The shares issued
at closing are subject to a two-year lock-up from the closing date of
the acquisition, after which shares will be released from lock-up
monthly, in equal amounts over a 12-month period. In addition, up to
425,000 shares will be released from lock-up six months following the
closing date. Any shares issued in connection with the earn-out will
be subject to a 12-month lock-up from date of issuance. Total
Identive shares issued as consideration in the transaction are capped
at 19.9% of Identive´s common stock issued and outstanding as of
April 29, 2011.

About Identive Group Identive Group, Inc. (NASDAQ: INVE; Frankfurt:
INV) is an international technology company focused on building the
world´s signature group in secure identification-based technologies.
The businesses within Identive Group have deep industry expertise and
are well-known global brands in their individual markets, providing
leading-edge products and solutions in the areas of physical and
logical access control, identity management and RFID systems to
governments, commercial and industrial enterprises and consumers.
Identive´s growth model is based on a combination of strong
technology-driven organic growth from the businesses within the group
and disciplined acquisitive development. For additional info visit:
www.identive-group.com.

About idOnDemand idOnDemand delivers a standards based, single
trusted identity and smart card solution. Using the idOnDemand
managed service, organizations can quickly, easily and cost
effectively grant trusted access for employees, customers and
partners to information and assets such as IT systems, remote access,
data encryption, secure email, building access and mobile
authentication. Authorized users no longer need to carry multiple
tokens, ID cards, building access cards or remember multiple
passwords. idOnDemand has offices in the United States and Australia.
For more information, visit www.idondemand.com.

Note Regarding Forward Looking Information: This press release
contains forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements can be identified by words such as "anticipates,"
"believes," "plans," "will," "intends," "expects," and similar
references to the future. Examples of such statements include,
without limitation, statements we make regarding expected benefits
from the acquisition of idOnDemand and the expected expansion and
growth of idOnDemand´s business. The Company cautions that these
statements are qualified by important factors that could cause actual
results to differ materially from those reflected by such
forward-looking statements. Readers should not unduly rely on these
forward-looking statements as they are qualified by important factors
that could cause our actual business and operating results to differ
from those reflected by such forward-looking statements. These
factors include our ability to successfully integrate idOnDemand into
our operations and our ability to retain key personnel, and other
risks and uncertainties related to our business as detailed in our
Annual Report on Form 10-K for the year ended December 31, 2010 and
subsequent reports filed with the U.S. Securities and Exchange
Commission.

end of announcement euro adhoc
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ots Originaltext: Identive Group Inc.
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Frau Annika Oelsner
Tel.: +49 89 9595-5220
E-Mail: investorrelations@identive-group.com

Branche: Computing & Information Technology
ISIN: US45170X1063
WKN: A1C0ZG
Index: NASDAQ
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