bio-key international inc. otcqb: bkyi technology leader in fingerprint biometric id solutions...

BIO-key International Inc. OTCQB: BKYI Technology Leader in Fingerprint Biometric ID Solutions Investor Introduction Jay Meier, VP Corporate Development June 1, 2015

Safe Harbor Language: Certain statements contained in this presentation are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 (the Act). The words estimate, project, intends, expects, anticipates, 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 Act. These statements are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of these statements. These risks and uncertainties include, without limitation, our history of losses and limited revenue, our ability to develop new products and evolve existing ones, wider market acceptance of biometric technologies, our ability to raise additional financing, and our ability to attract and retain key personnel. For a more complete description of these and other risk factors that may affect the future performance of BIO-key International, Inc., see Risk Factors in the Companys Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this presentation. BIO-key undertakes no obligation to update nor to disclose any revision to these forward-looking statements whether to reflect events or circumstances after the date hereof or otherwise.

Technology leader in finger-based biometric identification solutions Core Technology VST TM Algorithm- Reading/Matching Fingerprint Data WEB-key Cloud- Transport Fingerprint Data Customers FBI, LexisNexis, Cleveland Clinic Partners IBM, Oracle, CA, Allscripts, Epic Strong I.P. Portfolio 10 Patents and Several Pending

Market Need For Biometrics 4 76% of all data breaches were enabled by weak credentialing and user authentication (Verizon Report (2/2015) Electronic healthcare records fetch up to $60-$70 in the black market compared to $.50 - $1.00 for a Social Security number. (Rick Kam cofounder of ID Experts) Cyber attack affected personal records of 80 Million Anthem Blue CrossCyber attack affected personal records of 80 Million Anthem Blue Cross customerscustomers Major telecom company conducts 1.2 B customer authentications per month and 370,000 employees from multiple devices Numerous access points to sensitive data require secure user authentication solutions.

Goodes new report, entitled Mobile Biometric Security Market Forecast Report 2013 2018 posits that along with Touch ID, the creation of a strong supporting ecosystem for biometrics on consumer mobile devices will see an estimated 3.4 billion users leveraging mobile biometrics by 2018. To accompany this increased adoption, mobile implementations are expected to generate nearly $8.3 billion worth of revenue for the biometrics industry. Goodes report predicts that fingerprint sensors will become a standard feature in most high-end smart phones and tablets by 2015, with the technology expected to be commonplace in all mobile devices by 2018. Large and Growing Market Opportunity

Commercial Biometrics Is Gaining Traction Apple Is Considering Storing Your Fingerprints In iCloud Business Insider-Jan 15, 2015 Simply put, this means Apple is considering using its cloud hosting service iCloud... Touch ID is the name of Apple's biometric verification tool. The fingerprint sensor on Samsung's new Galaxy S6 is just as good... Business Insider-Apr 2, 2015 Until now, the iPhone had a key hardware advantage over other smartphones: Its fingerprint sensor called TouchID was better and more... NEC combines biometrics with the Internet of Things Planet Biometrics-April 8, 2015 Our exhibit at Hannover Messe demonstrates the power of NEC's biometrics technologies combined with cloud- based services that can be... Windows 10 puts biometric security front and center InfoWorld-Mar 25, 2015 Windows 10 will provide a leap in biometric capabilities for the PC, built... Windows Hello will require specialized hardware, so you'll need new... Ping Identity Scoops $35M To Authenticate Everywhere Forbes-Sep 18, 2014 Okta, OneLogin, JumpCloud and Ping Identity all play in the general space of identity as applied to the cloudy world. And they really are... 6

BIO-key offers Device and Cloud Fingerprint Authentication Solutions On Device: 1-to-1 Matching capability Accurate, rapid identification Low cost, user-friendly In the Cloud: 1-to-Many Matching capability Solution integration for a seamless user experience Speed: Faster and more convenient than passwords 7 7

Two Functions that enable Fingerprint Authentication on device and/or The Cloud 8 8

Vector Segment Technology TM 9 VST Algorithm enables accurate extraction and comparison of fingerprint data VST Powers BIO-keys full suite of products Key Features: - 1-to-1 and 1-to-Many Matching - Against 1.3B fingerprints accurately and quickly - Interoperable with all major fingerprint readers, servers and operating systems - Highly accurate & scalable fingerprint-based biometric platform. (N.I.S.T Tested- National Institute of Standards & Technology)

BIO-key Sensor Agnostic Interoperability BIO-key is a software company Biometric fingerprint hardware readers are a commodity BIO-key is unique in that we are hardware agnostic and can analyze any fingerprint hardware readers image including: 10

Independent Performance Validation NIST's mission is to promote U.S. innovation and industrial competitiveness by advancing measurement science, standards, and technology in ways that enhance economic security and improve our quality of life. www.nist.gov Table 1: TAR at FAR of 0.0001 NameIDDHS2DOSPOE BIO-key2C0.99090.99780.9990 Sagem1C 0.99080.99690.9988 L11Y 0.99070.99940.9996 Sagem1H 0.99050.99740.9989 ID SolutionsQ 0.98740.99600.9975 Neuro1T 0.98440.99510.9980 Thales1I 0.97820.99200.9962 BioLink1E 0.97480.97310.9880 Table 9: Equal Error Rates NameIDDHS2DOSPOE BIO-key2C0.00470.00120.0005 L11Y 0.00510.0004 Sagem1C 0.00580.00170.0009 Sagem1H 0.00620.00130.0008 BioLink1E 0.00720.01130.0043 ID SolutionsQ 0.00800.00230.0013 Thales1I 0.00870.00360.0019 Neuro1T 0.00890.00230.0014 NIST PFT High Rank Results

WEB-key-Cloud Authentication: 12 Key Features: -Securely transports authentication data from device to cloud and back -Strong Encryption: Triple encryption for security -Intuitive graphical interface Quick enrollment & authentication -Multiple operating systems supported -Core patents to protect WEB-key. *Apple has applied for the same patent.

BIO-keys Opportunity BIO-key owns the patents associated with using biometric authentication in the cloud BIO-key patents cover the transfer of biometric data from a device to a network or internet ecosystem Fingerprint template taken on phone BIO-key Patent Coverage Illustration: Hypothetical Banking or Payments App Encrypted fingerprint sent into the cloud User authentication Patent: 8,055,027 Generation of Direction Information in Context of Image Processing Patent: 7,117,356 Systems and Methods for Secure Biometric Authentication Patent: 8,214,652 Biometric Identification Network Security BIO-key Patents: Encrypted fingerprint matched against secure database in the cloud Binary notification sent 13

BIO-key Patents Patent 7,117,356: Systems/Methods for Secure Biometric Authentication Patent 7,502,938: Trusted Biometric Device Patent 7,415,605: Biometric Identification Network Security Patent 7,454,624: Match Template Protection Biometric Security Patent 6,895,104: Image Identification System Patent 7,155,040: Generation of Quality Field Info in Image Processing Patent 7,359,553: Image Identification System Patent 7,539,331: Image Identification System Patent 8,055,027: Generation of Direction Information in Context of Image Processing Patent 8,214,652: Biometric Identification Network Security Additional patents pending and in process 14

Broad Suite of Products Vector Segment Technology SDK (VST) Biometric development kit that provides developers the ability to take advantage of a highly accurate, device interoperable algorithm. Available as a low level SDK for incorporation into any application architecture to increase security while not sacrificing convenience. Runs on Windows, Linux or Solaris systems. WEB-key Biometric security platform for managing fingerprint authentication across unprotected networks including the Internet. Extends all features and functionalities of the VST algorithm to customers looking to add an enhanced level of security to their thin client and client/service applications. Currently supported by both Windows, iOS, Droid and Linux operating systems. Biometric Service Provider Support for the BioAPI (a standards-based worldwide solution) for a compliant interface to applications using biometrics for verification and identification. Enhances the traditional use of the BioAPI by adding support for CE devices, supporting identification calls and also providing a single user interface for multiple fingerprint readers. ID Director Integration with CAs SiteMinder, IBMs ISAM for Web, Oracles Access Manager, and other solutions, utilizing the power and security of WEB-key. Provides a simple, custom authentication scheme for companies looking to enhance authentication. 15

Integrated Hardware Solutions DASHSideSwipe EcoID To expand reach, BIO-key licensed disruptively low cost fingerprint readers The readers are Plug & Play with WEB-key client embedded

Target Markets

Go to Market Channels: BIO-key and IDEX partnered to co- develop processors and fingerprint devices as an OEM that utilize BIO-keys algorithms and WEB-key Channels 18 Direct Software OEMS Hardware OEMS Verticals BIO-key biometric technology is integrated with or embedded in several third party Identity Access & Management (IAM) platforms BIO-keys biometric software is marketed directly along side application specific partners

Major Clients: Utilize BIO-key VST algorithm to accurately match fingerprints against 200M records. Enrolled and de-duped over 100M SIM card registrants, to deter mobile phone fraud. ID verification and fraud prevention for all MCAT, CPA, FINRA and CAT examinees at 2000 Prometric testing centers. FBI 1-to-Many Matching

Major Healthcare Partners: Partner: Integrated BIO-keys biometrics for users to manage access to sensitive Electronic Health Records (E.H.R) Partner: Use BIO-keys advanced biometrics to authenticate clinicians, enter orders, prescribe medication and approve clinical notes. Top Healthcare Electronic Medical Record Platform Vendors

Marquee Healthcare Customers

Real World Performance Results #4 Ranked Hospital 251,447authentications with a 99.34% first attempt success rate The average password or token entry takes 6-10 seconds BIO-key takes a second or less. Month Average ID ScoreSuccessesFailuresSuccess Rate % November89.56251,447166199.34% Staff ID#FunctionQuantity Average ID ScoreLow ScoreHigh ScoreFailuresSuccess Rate % xxxxxxxxxID Submit5,9999252990100%

14 Identity Access Management Partners: CA Technologies BIO-keys fingerprint authentication is pre- integrated with CA Technologies CA SiteMinder enabling secure user access from any location. Avnet Global Licensing Agreement BIO-key and Avnet entered into an Application Specific Licensing agreement to integrate IBM middleware into BKYI software. IBM BIO-keys biometric software provides secure access to IBMs Security Access Manager (ISAM) for Web. Oracle BIO-key enhances Oracle Access Manager security with Biometrics software.

24 Key Strategic Partnership with the largest credit reporting vendor to provide Identity Proofing for user enrollment in Device to Cloud Identity Management System

BIO-keys Opportunity BIO-key owns the patents associated with using biometric authentication in the cloud BIO-key patents cover the transfer of biometric data from a device to a network or internet ecosystem Fingerprint template taken on phone BIO-key Patent Coverage Illustration: Hypothetical Banking or Payments App Encrypted fingerprint sent into the cloud User authentication Patent: 8,055,027 Generation of Direction Information in Context of Image Processing Patent: 7,117,356 Systems and Methods for Secure Biometric Authentication Patent: 8,214,652 Biometric Identification Network Security BIO-key Patents: Encrypted fingerprint matched against secure database in the cloud Binary notification sent 25

26 Key Strategic Partnership with InterDigital BIO-key partnered with InterDigital to co-develop/market a mobile authentication platform based on BIO-key patents UE

Mobile Ecosystem. Sensor Mfgs. Hardware Device Mfgs. Top performing algorithm Fully interoperable

Management: Michael W. DePasquale CEO 25+ years experience in executive management, sales and marketing. Previously CEO of Prism eSolutions, Inc. Cecilia Welch CFO 20+ years of operational and financial management experience in tech companies. Former controller at Savaje Technologies, Crystal Systems and ATN Microwave. Jim Skidmore SVP Global Sales 20+ years sales experience in Identity and access management channels. IT awards from IBM, Oracle/BEA, Microsoft. Mira K. LaCous CTO 30+ years solution development, project/product management and company leadership experience. Jay Meier VP Corp. Development Former founder of Sage Capital Advisors, consultants in Security, Credentialing & Identity Management. Previously sell- side research analyst on security technology. 28

Summary Income Statement: 29 Q1 15Q1 142014 A2013 A Services Revenue $0.2M$0.3M$1.5M$1.0M License Revenue $0.4M$1.1M$2.5M$1.0M TOTAL REVENUE $0.6M$1.4M$4.0M$2.0M Gross Profit $0.5M$1.2M$3.3M$1.6M Net Loss ($0.9M)($0.3M)($1.9M)($2.6M) Per Share ($0.01)($0.00)($0.03)($0.06) Shares Out* 66.0M57.9M59.0M45.9M * Reflects 1 for 2 reverse split February 2015

Summary Balance Sheet: 30 Q1 152014 Current Assets $1.2M$1.8M Current Liabilities $1.5M$1.3M Net Working Capital ($0.3M)$0.5M Stockholders Equity ($0.02M)$0.8M

BIO-key Growth Outlook: 12 month Pipeline of Sales Opportunities: $30M Up from $12.7M a/o December 2013 2015 Revenue Guidance: $5M - $7M vs. $4M in 2014 Q2 Revenue Guidance: $1.5M - $3M 2015 Gross Margin Guidance: 75% - 80% Breakeven Revenue Range: $6.5M - $7.0M Strategic focus on large enterprise opportunities that range in size ($0.1M $3.2M). 31

Jay M. Meier Vice President of Corporate Development BIO-Key International, Inc. [email protected] 651-789-6116 (o) 612-978-3687 (c) Thank you!!!!

bio-key international inc. otcqb: bkyi technology leader in fingerprint biometric id solutions...

Documents

forwardlooking statements

certain statements

mobile biometrics

biokey international

key personnel

pending slide

sensitive data

data breaches