BIO-key International, InterDigital Announce Research Collaboration Agreement

BIO-key International, Inc.

, a global leader in fingerprint biometric identification solutions and advanced mobile credentialing and identity verification technologies, today reported that InterDigital Communications, Inc., a subsidiary of InterDigital, Inc.

, a wireless research and development company, has entered into an R&D collaboration agreement with BIO-key.The R&D collaboration will target advanced Cloud security and identity and access management solutions for the mobile market. The collaboration will bring together BIO-key's innovative research and product development capabilities in fingerprint biometrics with InterDigital's research efforts in developing identity and access management solutions for the mobile market. The efforts include user friendly authentication, end point security, and various other advanced mobile security research areas. InterDigital will provide funding for these efforts.In addition, InterDigital will invest $900,000 in return for newly issued shares in BIO-key and a Senior Secured Note that will mature December 31, 2015.Concurrently, BIO-key has also raised an additional $500,000 in equity from a number of strategic private and institutional investors on similar terms as the InterDigital investment. The total combination of debt, equity and R&D funding of $1,425,000 at closing will be used to repay existing debt, fund growth initiatives and