Biometrics Leader AuthenTec Raises $15 Million; Global Equity Firm Carlyle Group Leads Series D Investment Funding

Melbourne, Florida – AuthenTec, Inc., the leading semiconductor provider of fingerprint sensors to the global market, has raised $15 million in a Series D investment round led by global private equity firm Carlyle Group. The latest funding, which brings the total investment AuthenTec has raised since its founding in 1998 to more than $63 million, adds to the company’s financial strength, provides additional strategic resources, and helps solidify its position in the worldwide biometrics market.

The Series D Round was led by Carlyle Venture Partners, the U.S. venture capital fund of The Carlyle Group, the world’s largest private equity firm, with $18.3 billion under management and offices throughout North America, Europe, and Asia, including Tokyo, Shanghai, Hong Kong, Singapore, Seoul and Bangalore. The latest funding round also included existing AuthenTec investors Sierra Ventures, Harris Corporation (NYSE: HRS), Texas Instruments (NYSE: TXN), Knickerbocker LLC, Advantage Capital and Stonehenge/Bank One (Florida CAPCO companies), Newlight Associates and Firsthand Technology. Robert Grady, managing director for the Carlyle Group, also has become a member of AuthenTec’s Board of Directors.

"As computing devices become more mobile and more functional, enhanced security solutions have become a key need for device makers, service providers and consumers around the world. Biometrics, particularly fingerprint identification, is becoming a dynamic growth market with exciting new, real-world applications emerging in areas like wireless phones and devices, computers, security access and automobiles," Grady said. "AuthenTec’s technology has allowed it to become the market leader in providing semiconductor solutions for biometric applications, and has put the company in position to pursue a range of attractive high- volume opportunities in these markets. We are excited to join the AuthenTec team to help the company grow even faster in the future."

"TI's investment in AuthenTec demonstrates our continued commitment to enabling carrier grade security, including securing the handset for trusted transactions as part of TI's total trusted terminal solution in response to carrier needs," said Paul Werp, Texas Instruments Worldwide Marketing Director, Cellular Systems. "It also demonstrates our confidence in AuthenTec's superior semiconductor fingerprint technology -- particularly in the wireless market."

Texas Instruments and AuthenTec have collaborated to integrate AuthenTec's sensor technology on TI's OMAP(tm) application processors for 2.5G and 3G mobile phones, wireless personal digital assistants (PDAs) and mobile Internet devices. This collaboration provides wireless device manufacturers with an easy way to reduce mobile device theft, eliminate passwords, deliver more secure e-commerce transactions and protect business and personal information.

Founded in 1998, AuthenTec has more than two million sensors deployed worldwide, and is the leading semiconductor provider of fingerprint sensors to the PC, wireless, PDA, access control and automotive markets. Used to replace PINs, passwords, physical access cards and keys, AuthenTec’s silicon-based sensors provide the most convenient and reliable fingerprint security solutions available today. The sensors utilize the company’s patented TruePrint™ technology, which allows fingerprints to be read below the surface of the skin to the live layer -- or true fingerprint. As such, TruePrint is not affected by common skin surface conditions including dry, worn, callused, dirty or oily skin that can affect the sensor's ability to acquire accurate fingerprint images for user authentication purposes. Uniquely, TruePrint is the only fingerprint sensor technology capable of acquiring anyone’s fingerprint under virtually any condition.

"We are extremely pleased by the Carlyle Group and other investors’ strong endorsement and their commitment to help AuthenTec as we enter another exciting phase in our history,” said Scott Moody, co-founder & CEO of AuthenTec. “We received very strong interest from the investment community in this latest round of funding, and believe the addition of a premier firm such as the Carlyle Group reaffirms the strength of our company and the strong opportunity in the biometrics market itself."

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