INVESTOR UPDATE

14 May 2020

Disclaimer

This presentation includes forward-looking information and statements that are subject to risks and uncertainties that could cause actual results

to differ. Such forward-looking information and statements are based on current expectations, estimates and projections about global economic

conditions, the economic conditions of the regions and industries that are major markets for IDEX Biometrics ASA (IDEX) and its subsidiaries.

These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes",

"estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among

others, economic and market conditions in the geographic areas and industries that are or will be major markets for the IDEX businesses,

market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates

and such other factors as may be discussed from time to time. Although IDEX believes that its expectations and the information in this

presentation were based upon reasonable assumptions at the time when they were made, it can give no assurance that those expectations will

be achieved or that the actual results will be as set out in this presentation. IDEX Biometrics ASA nor any other company within the IDEX Group

is making any representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the information in the

presentation, and neither IDEX Biometrics ASA, any other company within the IDEX Group nor any of their directors, officers or employees will

have any liability to you or any other persons resulting from your use of the information in this presentation. IDEX Biometrics ASA undertakes no

obligation to publicly update or revise any forward-looking information or statements in this presentation.

IDEX at a Glance

• The only biometric solution optimized for biometric payment cards, a $2 billion + market opportunity by 2024

• Total system solution including a low-cost sensor, biometric matching software and energy harvesting with > 200 patents granted or pending

• Certified by China UnionPay and a major US payment network

• EMVCoTM security certified

• Fabless manufacturing model with target operating margins above 30%

• ~110 staff with deep semiconductor and biometric expertise located in key geographies

• Listed on Oslo Stock Exchange (OSE:IDEX.OL) and the U.S. OTCQB (IDXAF)

IDEX provides fingerprint authentication

technologies for contactless biometric smartcard

applications

COVID-19 is accelerating a contactless society

Recent Highlights• IDEX became the only fingerprint company to achieve certification for its system solution with China UnionPay and

a second global payment network. These networks between them represent 70% of the global branded payment

cards

• IDEX launched TrustedBio™ - a new family of dual-interface products and solutions designed to dramatically

reduce biometric smartcard cost while improving performance, security, and manufacturability

• IDEX selected by Idemia, a leading global Tier 1 smartcard manufacturer to supply its TrustedBio™ sensor for use

in the card manufacturers next generation high volume biometric payment card platform

• IDEX has received its first production orders for fingerprint biometric sensors and software with shipments expecte

d to begin to increase in the second quarter of 2020

• Signed license agreements for its remote enrollment technology with leading smartcard manufacturers, IDEMIA,

and Chutian Dragon

• On 11 May 2020, the company completed a $10.3 million private placement of shares with existing and new

shareholders to fund expected growth

PAYMENT CARD MARKET

Payment Cards - a Very Large and Growing Market

5 40

150

350

500

50

200

400

600

2020 2021 2022 2023 2024

Sources: 1. Nilson Report, 2. Chart data from Goode Intelligence and IDEX estimates

22 billion payment cards in circulation and growing to over 29 billion by 20231

~5 billion new smartcards issued annually• Payment cards projected to

continue strong growth

• Contactless growing even faster

driven by:

‒ Covid-19

‒ Ease of use

‒ Fast authentication speeds

• Biometrics add security and

convenience

‒ Infrastructure already in place

‒ Removes contactless limits

Projected number of biometric payment card shipments

1 billion plus

Mass Adoption of Biometric Payment Cards Expected to Begin in 2021

ECOSYSTEM FORMATION

2018-19

Industrialisation of

manufacturing

Multi-vendor interoperability

Defining business models

First dual interface certifications

First commercial card launch

EMBRYONIC

2015-17

Tech development

Testing

Market acceptance

pilots

MASS ADOPTION

2021+

• Certifications

• Issuer pilots and

launches

• Yield improvements

and cost efficiencies

• Volume shipments

Biometric Payment Card Value ChainIDEX has formed partnerships with leaders in the ecosystem*

Card networks

Card issuersCard

manufacturers

Biometric Payment Card Certification Third-party certification provides a high barrier to entry

Biometric Performance• New & Specific to biometric cards

• Typically involves 3rd party validation

Card Physical Aspect • Flexion, Torsion, ISO compliance

• EMV + scheme complementary tests

• Chemical tests

• Typically involves 3rd party validation

Security certification• Resistance to logical attacks

• Code review

• Programming process review

• Typically involves 3rd party validation

PRODUCTS AND TECHNOLOGY

IDEX’s Optimized Sensor Technology: Decouples Die Size From

Sensing AreaThe only biometric solution optimized for biometric payment cards

• Decoupled approach enables smaller ASIC die size; smaller die size = lower cost

• IDEX’s design offers a fundamental cost and performance advantage

SENSING AREA~90mm2

ASIC AREA

~13mm2

ASIC AREA~70mm2

IDEX Off-chip Sensor Competitor Silicon Sensor

SENSING AREA~64mm2

Large Sensing

Area

Small ASIC

Large ASIC

Limited

Sensing Area

IDEX TrustedBioTM

Complete biometric solution including low cost sensor, matching algorithm and energy

harvesting

Low-cost Secure ElementStandard EMV Chip

IDEX TrustedBioTM SensorOff-chip Sensor

IDEX ASICBiometric System-on-Chip

includes discrete componentsthat were on the in-lay

(MCU and power management)

Passive In-LayNo additional discrete components

IDEX Off-chip Sensor & Biometric-SOC Technology enable reductions in biometric smartcard cost and manufacturing complexity

ASIC

OTHER LARGE AND GROWING

MARKETS

250

300

530

730

Other Large and Growing Markets for Biometric SmartcardsLeverages IDEX’s investment in payment card technology

Source: ABI Research Smart Card Technologies

Govt & healthcare

Access

Transport

Retail & other

Expected # of smartcards shipped in 2023 by market (millions)

• Information security

• Access

• Financial inclusion

• Secure identification

• Voting

• Public transport systems

• Increased mobility

• Loyalty cards

• Internet of Things (IoT)

FINANCIAL INFORMATION

Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

Payroll R&D and Other

P&L Profile: Strong Operating Leverage

Cash OpEx1 – U.S. (M)

• March 31, 2020 cash of $7 million and raised $10.3

million on May 11, 2020

• Fabless model provides for stable and predictable

operating expenses

• Operating Expenses at lowest level since 2017. Q1

2020 operating Expenses expected to be below Q4.

• Expense reduction actions taken in Q4; targeted

decrease of OPEX by ~30% and 50% improvement

in break-even unit levels

$6.4$6.7

$6.3 $6.4

1Cash Operating Expenses exclude stock compensation and development inventory and intangibles reserve related to a discontinued product

$7.0

Greater than 50% gross margins and stable OPEX profile

$5.4

Summary

Summary

• IDEX re-started the company in 2017 with complete focus on developing technology for biometric payment cards

• IDEX now has the only technical solution optimized for biometric payment cards

• IDEX addresses a huge and growing market:~22 bn cards in circulation; ~5 bn new cards / year

• IDEX has addressed the two main obstacles to market activation:

• Certification by the major global payment networks

• Biometric card pricing of $5 per card in volume

Thank You