Contents

1. Contents • Market trends : 2004, the year of biometrics • Atmel’s target markets • Product roadmap and details • Packaging • Biometric solution • How to engage a customer – what to ask • Competitive landscape • Recent successes

2. 2004 : The Real Start of Biometrics • Fingerprint sensors appear in: • Cell phone • PDAs, Notebooks, Tablet PCs, Dongles • Gvt systems (border checks) • ~1 Million units • fewer serious players • High-volume applications in • telco market • IT industry: notebooks, Tablet PCs, PDAs • Gvt projects • x Million units • Consolidation of market players • System-oriented markets • Physical Access is main market segment • No high-vol appl. • Lots of suppliers Market Volume Players 2002 2003 2004

3. FingerChip Strategic Markets • Focus on high-volume markets: • CELL PHONES • COMPUTING, especially PDAs, TABLETPCs, and NOTEBOOKS • SMARTPHONES • Other segments will be monitored and addressedupon opportunities : automotive, physical access, ID, gaming and consumer, POS

4. FingerChip Sensors - Roadmap New sensor Specs optimized for Telco requirements AT77C104B 2 SPIs; navigation & click features; telco markets TELCO AT77C103 USB Interface: computing markets needs COMPUTING AT77C101B Parallel Interface Others:Readers, etc… AT77C102B Parallel Interface, lower voltage 2002 2003 2004 2005

5. Product Details – AT77C101B Specs: • Parallel output, 500 dpi resolution • 3V to 5.5V operating voltage • Very low power consumption: • 6mA in image acquisition only • 10µA in sleep mode • Naturally protected against ESD: > 16 kV Air Discharge • Operating temperature range: -40°C to +85°C • Resistant to abrasion: >1 Million finger sweeps Eval kit: FCSWEEP03 (LBO) or BIOKI01 Availability: immediate (in mass production)

6. Product Details – AT77C102B Specs: • Similar to AT77C101B, with new CMOS technology from CSO • 2,3V to 3,3V operating voltage • Functionally identical to AT77C101B Eval kit: Adapted BIOKI01 (Part number to be communicated later) Availability: mid 2004

7. Product Details – AT77C103A Specs: • Targets Computing applications (Notebooks, Tablet PCs) • Full speed USB 2.0 output, 500dpi resolution • 5V operating voltage • Suspend/Normal Modes supported • USB Driver supported for Windows 98/Me/2000 • Naturally protected against ESD: > 16 kV Air Discharge • Operating temperature range: 0°C to +70°C, larger range possible if customer request (to be further investigated) • Resistant to abrasion: >1 Million finger sweeps Eval kit: FCSWEEP06 for lend Availability: mid 2004, earlier if significant customer need. Samples available.

8. Product Details – AT77C104B Specs: • Targets cell phone, smartphone and PDA applications • Dual SPI output, 500dpi resolution • Menu navigation and click feature, hardware-based • 2,3V to 3,6V operating voltage • Operating temperature range: -20°C to +70°C, -40°C to +85°C possible upon customer request • Very low power consumption: Only 6mA in image acquisition, 1,7mA for navigation, 10µA in sleep mode • Naturally protected against ESD: > 16 kV Air Discharge Availability: Q2 2004, immediate for eval kit. Samples available

9. FingerChip Modules - Roadmap • ATMEL is introducing in 2004 a new biometrics sub-system based on its field-proven FingerChipTM sensor. • Objective: provide customers with a complete biometrics sub-system that is : • Flexible to meet the demanding needs of many different applications • Easy to integrate • Able to perform unattended user enrolment and authentication when programmed. • Applications: • Physical Access Control, Point of Sales, Gaming, Vending, machines, Smart Home, Time & Attendance, Locks and safes, …

10. AT77SM0101BCB02V Module Components: • Award-winning ATMEL AT91RM9200 ARM9-based micro-controller • 32 Mbits (4MB) ATMEL Flash Memory • 128Mbits (16MB) SDRAM Features: • Power supply: 3.3V +/- 10%, 500mA through main board • Real Time Clock Software: • Linux operating system, kernel v 2.4.19 • FingerChip sensor driver to acquire fingerprint • Bio-engine pre-loaded

11. AT77SM0101BCB02V Module • High flexibility on • Processing with ARM9 capability and Linux kernel • Memory • Available interfaces: Ethernet, USB, RS232, RS485, MMC/SD Card, Compact Flash available through support board. • Evaluation Kit • AT77SM0101BCB02VEK with SDK • Availability: immediate • Reference: • AT77SM0101BCB02BS in Europe • AT77SM0101BCB02SU in Asia • TBD in North America

12. Packaging Wide choice of sensor packaging available: • -CB01: Chip on Board (COB) with zebra connection • -CB02: COB with flex connector • -CB03: COB with board to board connector

13. New Packagings • -CB06: Molded package with flex cable • -CB07: Molded package with zebra connection • -CB08: Small COB with zebra connection • -CB09: Small COB with flex connector

14. Packaging – A step ahead! *** Colors available on CB01, CB02, CB03, CB08, CB09 *** These colors are just for proof-of-concept. Other colors can be made available.

15. Packaging Rules • Understand Customer need and constraints first ! • Do not oversell packaging specs ! • Sell existing packaging first: customers are happy to see lots of possibilities but most often choose between CB01, CB02 and CB08

16. Packaging availability

17. A Biometric solution S/W • Current business model: • Atmel sells the FingerChip only (and processing facility for SM01), • recommends packaging solutions • gives and supports drivers & image reconstruction, • and qualifies and proposes partners who are not exclusive • Future business model: • Atmel will provide a biometric solution including bio-engine, and will get closer to the application level • Partners become exclusive on specific market segments or applications Software application Bio-engine driver Image reconstruction FingerChip Platform packaging and ergonomics (constraints) Platform archi : Proc, OS, interface... (constraints) other constraints(power consumption…) H/W

18. How to engage a customer? Identify the need • In terms of application: • What is the product (cell phone, PDA, what kind)? • What is the usage (logon, data encryption, etc…)? • What is the expected performance? • How many users? Authentication or Identification? • In terms of architecture: • What is the processor? Operating System? • How much memory is available? • What interface is required? • What are the system resources (bus speed, power supply, …)

19. How to engage a customer? Identify the need • In terms of packaging: • Max size in length, width, thickness • Flat packaging required or finger guide allowed? • Colors or not? • Get back to Grenoble with these data • We will provide technical support, quotation, advice on best software/packaging for the application

20. Competition Overview • More complete analysis available on Intranet • AuthenTec: • Most serious competitor, leading vendor on the market • Active capacitive technology • Vertical approach with software included • ST Microelectronics: • Also claiming to target telco and IT markets. • Active in gvt projects, pushing hard on IT (notebooks) • Passive capacitive technology

21. Competition Overview • Fujitsu • Catching up on swipe sensor • Apparently not so good quality • Infineon: • Stopped sensor production • Fingerprint Cards • New patent • Small company, difficulties to do business

22. FingerChip Successes • HP iPAQ 5450/5550 • Sharp Tablet PC • USB readers

23. FingerChip Successes • Safes • USB dongles • Inclusion in Intel Product Evaluation List for notebooks biometric solutions (only two swipe sensors)