EANS-News: Identive Group Inc. / Identive Group Acquires idOnDemand

--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

Subtitle: SaaS-based Identity Credentials Extend Secure ID Capabilities

Santa Ana, Calif., Ismaning, Germany and Pleasanton, Calif., May 4, 2011 (euro
adhoc) - Identive Group, Inc. (NASDAQ: INVE; Frankfurt: INV), a provider of
products, services and solutions for the security, identification and RFID
industries, today announced that it has acquired substantially all of the shares
of stock of idOnDemand, Inc., a provider of service-based identity credential
provisioning and management. The transaction closed on May 2, 2011.
Privately-held idOnDemand is headquartered in Pleasanton, California and
maintains data centers in Santa Clara, California and Canberra, Australia. Jason
Hart, founder, chief executive officer and the majority shareholder of
idOnDemand, will continue to manage the company as a business unit within
Identive Group.

idOnDemand is a pioneer of the Software as a Service (SaaS) business model,
delivering a managed identity service that allows organizations to use a single,
globally-trusted credential for secure access to buildings, computers, mobile
devices and corporate information stored in the cloud. Moreover, idOnDemand´s
service-based solutions provide identity management at a lower cost and with
more control than traditional in-house systems. Based on its own strong IP
portfolio and IP licensed from ActivIdentity, idOnDemand´s technology supports a
range of corporate standards, including the strict security and authentication
requirements of the U.S. government´s FIPS 201 specifications.

Ayman S. Ashour, chairman and chief executive officer of Identive Group,
commented, "idOnDemand´s SaaS model enhances our ability to provide electronic
security credentials for employees, citizens and consumers, with one of the most
cost-effective and secure approaches available. The company´s commitment to a
standards-based approach and its ability to customize solutions is very
attractive, as this significantly decreases the challenge and expense of
converging physical access systems with IT security. Additionally, this
transaction further strengthens Identive's position in the growing near field
communication (NFC) solutions market through idOnDemand´s patent-pending
One-Time Password (OTP) corporate mobile authentication technology. Jason and
his team bring deep expertise and experience in the secure identity market and I
am very pleased to welcome the idOnDemand team to Identive."

Jason Hart commented, "Identive and idOnDemand share a common vision of enabling
trusted electronic interaction for consumers, employees and citizens. The
combination of the two organizations´ product lines and services delivers
superior solutions along the entire secure ID value chain. idOnDemand will now
be able to leverage the expertise and resources of other Identive companies to
further boost our growth momentum and to expand our market extending
partnerships and geographic reach. I am very excited about the greater
opportunities with Identive that now lie ahead."

In return for 95.8% of the outstanding shares of idOnDemand, Identive Group paid
initial consideration of approximately $2.4 million cash and 995,675 shares to a
group of selling shareholders of idOnDemand. Total consideration also includes
an earn-out worth up to approximately $21.0 million in shares of Identive common
stock, dependent on the achievement of specific EBITDA and sales performance
targets over the next three years and eight months. The shares issued at closing
are subject to a two-year lock-up from the closing date of the acquisition,
after which shares will be released from lock-up monthly, in equal amounts over
a 12-month period. In addition, up to 425,000 shares will be released from
lock-up six months following the closing date. Any shares issued in connection
with the earn-out will be subject to a 12-month lock-up from date of issuance.
Total Identive shares issued as consideration in the transaction are capped at
19.9% of Identive´s common stock issued and outstanding as of April 29, 2011.

About Identive Group
Identive Group, Inc. (NASDAQ: INVE; Frankfurt: INV) is an international
technology company focused on building the world´s signature group in secure
identification-based technologies. The businesses within Identive Group have
deep industry expertise and are well-known global brands in their individual
markets, providing leading-edge products and solutions in the areas of physical
and logical access control, identity management and RFID systems to governments,
commercial and industrial enterprises and consumers. Identive´s growth model is
based on a combination of strong technology-driven organic growth from the
businesses within the group and disciplined acquisitive development. For
additional info visit: www.identive-group.com.

About idOnDemand
idOnDemand delivers a standards based, single trusted identity and smart card
solution. Using the idOnDemand managed service, organizations can quickly,
easily and cost effectively grant trusted access for employees, customers and
partners to information and assets such as IT systems, remote access, data
encryption, secure email, building access and mobile authentication. Authorized
users no longer need to carry multiple tokens, ID cards, building access cards
or remember multiple passwords. idOnDemand has offices in the United States and
Australia. For more information, visit www.idondemand.com.

Note Regarding Forward Looking Information:
This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking statements can be
identified by words such as "anticipates," "believes," "plans," "will,"
"intends," "expects," and similar references to the future. Examples of such
statements include, without limitation, statements we make regarding expected
benefits from the acquisition of idOnDemand and the expected expansion and
growth of idOnDemand´s business. The Company cautions that these statements are
qualified by important factors that could cause actual results to differ
materially from those reflected by such forward-looking statements. Readers
should not unduly rely on these forward-looking statements as they are qualified
by important factors that could cause our actual business and operating results
to differ from those reflected by such forward-looking statements. These factors
include our ability to successfully integrate idOnDemand into our operations and
our ability to retain key personnel, and other risks and uncertainties related
to our business as detailed in our Annual Report on Form 10-K for the year ended
December 31, 2010 and subsequent reports filed with the U.S. Securities and
Exchange Commission.

Further inquiry note:
Frau Annika Oelsner
Tel.: +49 89 9595-5220
E-Mail: [email protected]
end of announcement euro adhoc
--------------------------------------------------------------------------------

company:     Identive Group Inc.
             Carnegie Ave., Bldg. B  1900 
             US-CA 92705  Santa Ana
phone:       +1 949 553 4280
FAX:         +49 89 9595-5555
mail:        [email protected] 
WWW:         http://www.identive-group.com
sector:      Computing & Information Technology
ISIN:        US45170X1063
indexes:     NASDAQ

stockmarkets: free trade/entry standard: Frankfurt, Nasdaq: New York, free trade:
Berlin, Hamburg, Stuttgart, Düsseldorf, München
language: English

OTS-ORIGINALTEXT PRESSEAUSSENDUNG UNTER AUSSCHLIESSLICHER INHALTLICHER VERANTWORTUNG DES AUSSENDERS - WWW.OTS.AT | CNE

print