Biokey International Inc (BKYI)

[SeanBoy]

This is the Worldwide Touch Technology (Holdings) Limited (WWTT), side of the story

Bio-Key International, Inc. (‘‘Bio-Key’’)

It is the intention of the Company to enter into a memorandum of understanding (the ‘‘Bio-Key MOU’’) with Bio-Key, a U.S. public company listed on the NASDAQ, in the next one to two weeks until the term of the Bio-Key MOU are being finalized.

None of the Investors has any relationship with Bio-Key. It is intended that the Group will, on top of its current holding of 1,066,500 shares of Bio-Key, further invest up to approximately US$15 million (equivalent to approximately HK$117,000,000) in
Bio-Key (the ‘‘Bio-Key Investment’’) three months after completion of the Share Subscription in view of the relatively low market prices of Bio-Key in the recent three months and the timing required for the Company to obtain the relevant board
approval, and the exact investment amount will depend on the then market conditions, the share price and the result of the negotiation between the Company and Bio-Key. The Company believes such strategic investment into Bio-Key will allow the Company to actively participate in the business operations of Bio-Key, a
company which develops and delivers advanced biometric finger identification solutions to commercial and government enterprises, system integrators and custom application developers, and further enhance its technology knowhow and capability in the biometric security arena.

Other than the proposed investments in the Biometric Payment Business and the Bio-Key Investment, in respect of the remaining 5.1% of the net proceeds for the purpose of strengthening and expanding the existing business of the Group, the Company considers that there will be sufficient funding resources in modifying and improving the FingerQ hardware and software to tailor the specifications as requested by the services providers which have entered into non-disclosure agreements with the Company. The Company will then play an active role in
approaching such services providers for enhancing the FingerQ technology