INTRODUCTION

• STUDY GOALS AND OBJECTIVES

• SCOPE AND FORMAT

• METHODOLOGY AND INFORMATION SOURCES

• ANALYST CREDENTIALS

• RELATED BCC REPORTS

• MONTHLY NEWSLETTER

• BCC ONLINE SERVICES

• DISCLAIMER

SUMMARY

OVERVIEW

• WHAT ARE BIOMETRICS?

• OPERATION STAGES IN A BIOMETRIC SYSTEM

• CAPTURE

• FEATURE EXTRACTION

• ASSOCIATION AND COMPARISON

• MATCH/NON-MATCH DECISION

• PRODUCT TYPES

• FINGERPRINT RECOGNITION

• • Fingerprint Characteristics

• • Other Features Essential to Finger-scan Authentication

• • Fingerprinting and Finger Scanning

• • Biometric Technology Procedure as Exemplified by Fingerprinting

• • Screening

• • Capture

• • Feature Extraction

• • Association and Comparison

• • Match/Nonmatch Decision

• • Finger-scanning Reliability

• • Image Capture Using Optical, Silicon and Ultrasound

• • Optical Technology

• • Silicon Technology

• • Ultrasound Technology

• FACE RECOGNITION

• • Face Recognition (Continued)

• HAND GEOMETRY

• VOICE VERIFICATION

• IRIS RECOGNITION

• • Capture and Identification

• SIGNATURE VERIFICATION

• • Electronic Signature

• • Advantages of Signature Verification as a Biometric Feature

• • Legal Aspects

• • Verification Processes

• • Static Verification

• • Cleaning of Static Signatures

• • Pseudodynamic Verification

• • Dynamic Verification

• • Static and Dynamic Combo Verification

• • Future Prospects for Signature Verification

• RETINA RECOGNITION

• • Accuracy, Performance and Procedure

• COMPARISON OF BIOMETRIC TECHNOLOGIES

• FINGER SCAN STRENGTHS AND WEAKNESSES

• FACE RECOGNITION STRENGTHS AND WEAKNESSES

• HAND RECOGNITION STRENGTHS AND WEAKNESSES

• VOICE-SCAN STRENGTHS AND WEAKNESSES

• IRIS RECOGNITION

• • Strengths

• • Weaknesses

• SIGNATURE-IDENTIFICATION STRENGTHS AND WEAKNESSES

• RETINA SCAN

• • Strengths

• • Weaknesses

• KEYSTROKE DYNAMICS STRENGTHS AND WEAKNESSES

• IMPORTANCE OF THE BIOMETRIC INDUSTRY, WHERE IT FITS INTO THE ECONOMY, AND WHY

• IMPORTANCE OF FINGERPRINT RECOGNITION SYSTEMS

• IMPORTANCE OF FACE RECOGNITION SYSTEMS

• IMPORTANCE OF VOICE RECOGNITION SYSTEMS

• IMPORTANCE OF SIGNATURE VERIFICATION

• HYBRID TECHNOLOGY USES

• BIOMETRIC PRODUCT LIFE CYCLE

• HISTORY

• HISTORY OF FINGERPRINTING

• • History Of Fingerprinting (Continued)

• HISTORY OF FACE RECOGNITION

• HISTORY OF VOICE RECOGNITION

• FUTURE DEVELOPMENT

• STANDARDIZATION

• • Standardization (Continued)

GLOBAL BIOMETRIC MARKET BY TECHNOLOGIES

• MARKET CHARACTERISTICS

• STATE OF THE MARKET

• • Price

• • Inconvenient Size

• • Slow Speed

• • Esoteric and Unfamiliar

• GROWTH DRIVERS

• • Price Reduction

• • Smaller and Faster Devices

• • Industry Consolidation

• • Standards Introduction

• • Favorable Decision-making Criteria

• MARKET SIZE BY TECHNOLOGY

• EFFECT OF TELECOMMUNICATIONS

• EFFECT OF SEPTEMBER 11, 2001

• FINGER SCAN

• • Revenues

• • Major Players and Other Vendors

• • Market Growth Drivers

• • Advances in Finger-scan Technology

• • Price Reduction

• • Current Increased Desire for Enhanced Security

• • Biometric of Choice

• • Sales and Marketing

• • Proprietary Technologies

• • Strategic Relationships

• • External Factors Affecting Sales

• • Reduction in Information Technology (IT) Spending

• • Worldwide Recognition of the Need for Improved Security

• FACIAL SCAN

• • Revenues

• • Segment Characteristics

• • Market Growth Inhibitors

• • Major Players and Others

• • Sales and Marketing

• HAND SCAN

• • Revenues

• • Market Drivers, Inhibitors, Players, Sales and Marketing

• • Market Drivers, Inhibitors, Players?.(Continued)

• VOICE SCAN

• • Revenue

• • Main Players

• IRIS SCAN

• • Revenues

• • Major Players, Sales and Marketing

• • Market Growth Drivers

• SIGNATURE SCAN

• • Revenue

• • Major Players, Marketing and Sales

• RETINA SCAN

• • Major Player

• • Market Growth Drivers and Inhibitors

• KEYSTROKE SCAN

• • Revenues

• • Major Players and Growth Drivers

• • Major Players and Growth Drivers (Continued)

GLOBAL MARKET FOR BIOMETRIC APPLICATIONS

• UNIQUE FEATURES OF BIOMETRIC APPLICATIONS

• BIOMETRIC APPLICATIONS MARKET BY TECHNOLOGY

• FINGER SCAN

• • Blurring the Divide between AFIS and Non-AFIS Applications

• • Law and Order

• • Legal Services

• • • Complete Identification

• • • Complete Dispatch

• • • Complete Records

• • • Complete Corrections

• • Sagem Systems

• • • Sagem AFIS Police

• • Police Services

• • Prison Services

• • Physical Access Control

• • Physical and PC Access Using Sony Puppy Authentication Token

• • Advantages of the Puppy

• • Problems with the Puppy

• • Time and Attendance Control

• • Government Applications

• • Identification Systems (IDS)

• • • Biometric Fingerprint Identification

• • Social Services and Other Government Applications

• • Banking and Financial

• • Fingerscan Products

• • Point-of-sale Payments

• • Health Care Delivery (Continued)

• FACIAL SCAN

• • Law and Order

• • Law and Order (Continued)

• • Government

• • Access Management

• • Banking and Financial Services

• • Travel and Immigration

• HAND SCAN

• • Access Management

• • Access to Banks and Restricted Areas

• • Time and Attendance

• • Travel and Immigration

• • Law and Order

• VOICE SCAN

• • Network Access and e-Commerce Operations

• • How VoiceShield Operates

• • Banking and Financial Services

• • VoiceShield Voice Authentication for Online Transactions

• IRIS SCAN

• • Physical Access Management

• • Travel and Immigration

• • Law and Order

• • Network Access, Banking and Financial Services

• • Health Care Delivery

• SIGNATURE SCAN

• • Electronic Point-of-Sale Payments

• • Security and Cost Reduction in Banking, Insurance and Financial Services

• • Online Transactions

• • Paperless Communications for Information Security

• • Paperless Communications Provide More Personal Safety

• • Signature Authentication and Document Integrity Using eSign by Valyd and ePad by Interlink Electronics

• • Document Security and Operations Efficiency Using Valyd's eSign

• • Benefits:

• • • Internal and External Security

• • • Cost reduction in Document Processing

• RETINA SCAN

• • Travel and Immigration

• • Physical Access Management

• KEYSTROKE SCAN

• • Computer and Network Access

• • Banking and Financial Services

• • Internal Security

• TECHNOLOGIES BY APPLICATION CATEGORY

• TECHNOLOGIES BY APPLICATION?.(CONTINUED)

• BIOMETRICS PROVIDE OPTIMAL SOLUTIONS TO SOME OUTSTANDING INDUSTRIAL PROBLEMS

• • Network Security

• • Credit Card and Banking Fraud

• • Physical Access Fraud

• • Identity Theft

• • Law and Order

• • Fraud in Social Services and Welfare

• THE UNIQUE SELLING FEATURE OF BIOMETRIC SOLUTIONS

• APPLICATION MARKET BY TECHNOLOGY TYPE

• • Law and Order

• • Physical Access Management

• • Use of Biometric Time and Attendance Systems in Operations Management

• • Biometrics for Workforce Management

• • Government

• • Government (Continued)

• • Travel and Immigration

• • Travel and Immigration (Continued)

• • Computer and Network Access Control Systems

• • Computer and Network Access?.(Continued)

• • Banking and Financial Services

• • Banking and Financial Services (Continued)

• • Banking and Financial Services (Continued)

• • Banking and Financial Services (Continued)

• • Health Care

• • Health Care (Continued)

• • Health Care Continued)

• • Health Care (Continued)

MARKET SHARE AND COMPANY PROFILES

• FINGER SCAN

• BIOSCRYPT

• IDENTIX, INC.

• • Identix, Inc. (Continued)

• • Identix, Inc. (Continued)

• INFINEON TECHNOLOGIES

• PRECISE BIOMETRICS

• • Precise Biometrics (Continued)

• PRIMION TECHNOLOGY AG

• DIGITALPERSONA

• • Digitalpersona (Continued)

• • Digitalpersona (Continued)

• BIO-key INTERNATIONAL, INC.

• PRINTRAK INTERNATIONAL, INC.

• • Printrak International, Inc. (Continued)

• SAGEM Morpho

• VISIONICS (see Identix)

• FACIAL SCAN

• IMAGIS TECHNOLOGIES

• • Imagis Technologies (Continued)

• VIISAGE TECHNOLOGY

• • Viisage Technology (Continued)

• SYMTRON TECHNOLOGY

• SAFLINK CORP.

• • Saflink Corp. (Continued)

• HAND SCAN

• RECOGNITION SYSTEMS

• ADVANCED BIOMETRICS, INC.

• • Advanced Biometrics, Inc. (Continued)

• BIOMET PARTNERS, INC

• VOICE SCAN

• NUANCE

• • Nuance (Continued)

• VOICEVAULT

• SENTRYCOM

• T-NETIX

• IRIS SCAN

• IRIDIAN TECHNOLOGIES

• SIGNATURE SCAN

• COMMUNICATION INTELLIGENCE CORPORATION (CIC)

• INTERLINK ELECTRONICS

• • Interlink Electronics (Continued)

• • Interlink Electronics (Continued)

• VALYD (FORMERLY ADEPTEK)

• • Valyd (Formerly Adeptek) (Continued)

• RETINA SCAN

• EYEDENTIFY

• RETINAL TECHNOLOGIES

• KEYSTROKE SCAN

• NET NANNY SOFTWARE INTERNATIONAL

• TOUCHCREDIT FINANCIAL SERVICES, INC.

• • Touchcredit Financial Services, Inc. (Continued)

RISK MANAGEMENT

• RELIANCE ON GOVERNMENT AGENCIES AND ATTENDANT UNPREDICTABLE ORDERS

• CONTINUALLY AND RAPIDLY CHANGING TECHNOLOGIES

• NECESSITY FOR CONTINUAL INVESTMENTS IN RESEARCH AND DEVELOPMENT

• COMPULSORY CONTINUAL INVESTMENTS IN RESEARCH AND DEVELOPMENT TO COMPLY WITH REGULATORY STANDARDS

• DEPENDENCE ON CERTAIN KEY EMPLOYEES

• DEPENDENCE ON SINGLE SUPPLIERS

• OPERATIONS AND PRODUCT DEVELOPMENT MAY DEPEND ON THIRD PARTIES

• ADVERSE EFFECTS OF PRIVACY RIGHTS PROTESTERS

• FOREIGN CURRENCY EXCHANGE RISK

• LITTLE OR NO REVENUE AND PROFITABILITY FOR MANY START-UP BIOMETRICS VENDORS

• BIOMETRICS HAVE YET TO GAIN FULL ACCEPTANCE

• DEPENDENCE ON INDEPENDENT DISTRIBUTORS AND RESELLERS

• CHANGE OR BECOME IRRELEVANT

• A HIGHLY COMPETITIVE INDUSTRY

• LIMITED PROTECTION OF INTELLECTUAL PROPERTY

• A FEW CUSTOMERS ACCOUNT FOR A HIGH PERCENTAGE OF REVENUE

• DELAYS IN PUBLIC SECTOR CONTRACTS

• PROBABILITY OF INCREASED COMPETITION

• SOME PRODUCTS ARE NEW AND MAY NOT BE ACCEPTED BY END USERS

• PURCHASE OF BIOMETRIC PRODUCTS MAY REQUIRE A SIGNIFICANT EXPENDITURE

• PRODUCTS CANNOT BE PERFECT NOR COMPLETELY ACCURATE ALL THE TIME

• VENDORS FACE RISKS IN THEIR GLOBAL OPERATIONS

INTERNATIONAL ASPECTS

• EXTERNAL FACTORS THAT AFFECT INTERNATIONAL OPERATIONS

• • Slowdown in IT Spending

• • Worldwide Investment in Improved Security

LIST OF TABLES

Summary Table:
GLOBAL BIOMETRICS MARKET, THROUGH 2007 ($ MILLIONS)

Table 1 SALES AND FORECASTS OF THE GLOBAL BIOMETRIC TECHNOLOGY MARKET BY TYPE, THROUGH 2007 ($ MILLIONS)

Table 2 GLOBAL SALES AND FORECASTS FOR THE FINGER-SCAN TECHNOLOGY MARKET, THROUGH 2007 ($ MILLIONS)

Table 3 GLOBAL SALES AND FORECASTS FOR THE FACIAL-SCAN TECHNOLOGY MARKET, THROUGH 2007 ($ MILLIONS)

Table 4 GLOBAL SALES AND FORECASTS FOR THE HAND-SCAN TECHNOLOGY MARKET, THROUGH 2007 ($ MILLIONS)

Table 5 GLOBAL SALES AND FORECASTS FOR THE VOICE-SCAN TECHNOLOGY MARKET, THROUGH 2007 ($ MILLIONS)

Table 6 GLOBAL SALES AND FORECASTS FOR THE IRIS SCAN TECHNOLOGY MARKET, THROUGH 2007 ($ MILLIONS)

Table 7 GLOBAL SALES AND FORECASTS FOR THE SIGNATURE-SCAN TECHNOLOGY MARKET, THROUGH 2007 ($ MILLIONS)

Table 8 GLOBAL SALES AND FORECASTS FOR THE RETINA-SCAN TECHNOLOGY MARKET, THROUGH 2007 ($ MILLIONS)

Table 9 GLOBAL SALES AND FORECASTS FOR THE KEYSTROKE-SCAN TECHNOLOGY MARKET, THROUGH 2007 ($ MILLIONS)

Table 10 FINGER-SCAN VENDORS AND TECHNOLOGY APPLICATIONS

Table 11 SALES AND FORECASTS FOR FINGER SCAN BY APPLICATIONS IN THE GLOBAL MARKET, THROUGH 2007 ($ MILLIONS)

Table 12 COMPARISON OF CIVIL AND POLICE AFIS REQUIREMENTS

Table 13 FACIAL-SCAN VENDORS AND THEIR TECHNOLOGY

Table 14 SALES AND FORECASTS FOR FACIAL-SCAN APPLICATIONS IN THE GLOBAL MARKET, THROUGH 2007 ($ MILLIONS)

Table 15 HAND-SCAN VENDORS AND APPLICATIONS

Table 16 GLOBAL SALES AND FORECASTS FOR HAND-SCAN APPLICATIONS, THROUGH 2007 ($ MILLIONS)

Table 17 VOICE-SCAN VENDORS AND APPLICATIONS

Table 18 SALES AND FORECASTS FOR VOICE-SCAN APPLICATIONS IN THE GLOBAL MARKET, THROUGH 2007 ($ MILLIONS)

Table 19 IRIS-SCAN VENDORS AND APPLICATIONS

Table 20 SALES AND FORECASTS FOR IRIS-SCAN APPLICATIONS IN THE GLOBAL MARKET, THROUGH 2007 ($ MILLIONS)

Table 21 SIGNATURE-SCAN VENDORS AND APPLICATIONS

Table 22 SALES AND FORECASTS FOR SIGNATURE-SCAN APPLICATIONS IN THE GLOBAL MARKET, THROUGH 2007 ($ MILLIONS)

Table 23 VENDORS AND APPLICATIONS

Table 24 SALES AND FORECASTS FOR RETINA-SCAN APPLICATIONS IN THE GLOBAL MARKET, THROUGH 2007 ($ MILLIONS)

Table 25 VENDORS AND APPLICATIONS

Table 26 SALES AND FORECASTS FOR KEYSTROKE-SCAN BY APPLICATIONS IN THE GLOBAL MARKET, THROUGH 2007 ($ MILLIONS)

Table 27 GLOBAL MARKET FOR BIOMETRIC APPLICATIONS BY TYPE, THROUGH 2007 ($ MILLIONS)

Table 28 APPLICATION CATEGORIES

Table 29 GLOBAL BIOMETRICS MARKET FOR LAW AND ORDER BY TECHNOLOGY TYPE, THROUGH 2007

Table 30 GLOBAL BIOMETRICS MARKET FOR PHYSICAL ACCESS MANAGEMENT BY TECHNOLOGY TYPE, THROUGH 2007 ($ MILLIONS)

Table 31 TIME AND ATTENDANCE MONITORING APPLICATIONS

Table 32 GLOBAL BIOMETRICS MARKET FOR GOVERNMENT SERVICES BY TECHNOLOGY TYPE, THROUGH 2007 ($ MILLIONS)

Table 33 GLOBAL BIOMETRICS MARKET FOR TRAVEL AND IMMIGRATION BY TECHNOLOGY TYPE, THROUGH 2007 ($ MILLIONS)

Table 34 GLOBAL BIOMETRICS MARKET FOR COMPUTER AND NETWORK ACCESS CONTROL SYSTEMS BY TECHNOLOGY TYPE, THROUGH 2007 ($ MILLIONS)

Table 35 GLOBAL BIOMETRICS MARKET FOR BANKING AND FINANCIAL SERVICES BY TECHNOLOGY TYPE, THROUGH 2007 ($ MILLIONS)

Table 36 GLOBAL BIOMETRICS MARKET FOR HEALTH CARE BY TECHNOLOGY TYPE, THROUGH 2007 ($ MILLIONS)

Table 37 FINGER-SCAN VENDORS AND MARKET SHARE, 2001 AND 2002 ($ MILLIONS)

Table 38 FACIAL-SCAN VENDORS AND MARKET SHARE, 2001 AND 2002 ($ MILLIONS)

Table 39 HAND SCAN VENDORS AND MARKET SHARE, 2001 AND 2002 ($ MILLIONS)

Table 40 VOICE-SCAN VENDORS AND MARKET SHARE, 2001-2002 ($ MILLIONS)

Table 41 IRIS-SCAN VENDORS AND MARKET SHARE, 2001 AND 2002 (%)

Table 42 SIGNATURE-SCAN VENDORS AND MARKET SHARE, 2001 AND 002 ($ MILLIONS)

Table 43 RETINA-SCAN VENDOR SALES AND MARKET SHARE, 2001 AND 2002 ($ MILLIONS)

Table 44 KEYSTROKE-SCAN VENDOR SALES AND MARKET SHARE, 2001 AND 2002 ($ MILLIONS)

Table 45 REGIONAL SALES OF BIOMETRIC SYSTEMS, THROUGH 2007 ($ MILLIONS)

LIST OF FIGURES

Summary Figure:
GLOBAL BIOMETRICS MARKET, 1997-2007 ($ MILLIONS)

Figure 1 SALES AND FORECASTS FOR FINGER SCAN BY APPLICATIONS IN THE GLOBAL MARKET, 1997-2007 ($ MILLIONS)

Figure 2 SALES AND FORECASTS FOR FACIAL-SCAN APPLICATIONS IN THE GLOBAL MARKET, 1997-2007 ($ MILLIONS)

Figure 3 GLOBAL SALES AND FORECASTS FOR HAND-SCAN APPLICATIONS, 1997-2007 ($ MILLIONS)

Figure 4 SALES AND FORECASTS FOR VOICE-SCAN APPLICATIONS IN THE GLOBAL MARKET, 1997-2007 ($ MILLIONS)

Figure 5 SALES AND FORECASTS FOR IRIS-SCAN APPLICATIONS IN THE GLOBAL MARKET, 1997-2007 ($ MILLIONS)

Figure 6 SALES AND FORECASTS FOR SIGNATURE-SCAN APPLICATIONS IN THE GLOBAL MARKET, 1997-2007 ($ MILLIONS)

Figure 7 SALES AND FORECASTS FOR RETINA-SCAN APPLICATIONS IN THE GLOBAL MARKET, 1997-2007 ($ MILLIONS)

Figure 8 SALES AND FORECASTS FOR KEYSTROKE-SCAN BY APPLICATIONS IN THE GLOBAL MARKET, 1997-2007 ($ MILLIONS)

Figure 9 GLOBAL BIOMETRICS MARKET FOR LAW AND ORDER BY TECHNOLOGY TYPE, 1997-2007

Figure 10 GLOBAL BIOMETRICS MARKET FOR PHYSICAL ACCESS MANAGEMENT BY TECHNOLOGY TYPE, 1997-2007 ($ MILLIONS)

Figure 11 GLOBAL BIOMETRICS MARKET FOR GOVERNMENT SERVICES BY TECHNOLOGY TYPE, THROUGH 2007 ($ MILLIONS)

Figure 12 GLOBAL BIOMETRICS MARKET FOR TRAVEL AND IMMIGRATION BY TECHNOLOGY TYPE, 1997-2007 ($ MILLIONS)

Figure 13 GLOBAL BIOMETRICS MARKET FOR COMPUTER AND NETWORK ACCESS CONTROL SYSTEMS BY TECHNOLOGY TYPE, 1997-2007 ($ MILLIONS)

Figure 14 GLOBAL BIOMETRICS MARKET FOR BANKING AND FINANCIAL SERVICES BY TECHNOLOGY TYPE, 1997-2007 ($ MILLIONS)

Figure 15 GLOBAL BIOMETRICS MARKET FOR HEALTH CARE BY TECHNOLOGY TYPE, 1997-2007 ($ MILLIONS)

Figure 16 FINGER-SCAN VENDORS AND MARKET SHARE, 2002 (%)

Figure 17 FACIAL-SCAN VENDORS AND MARKET SHARE, 2002 (%)

Figure 18 HAND SCAN VENDORS AND MARKET SHARE, 2002 (%)

Figure 19 VOICE-SCAN VENDORS AND MARKET SHARE, 2002 (%)

Figure 20 IRIS-SCAN VENDORS AND MARKET SHARE, 2002 (%)

Figure 21 SIGNATURE-SCAN VENDORS AND MARKET SHARE, 2002 (%)