BIO key International : Industrial Engineering and Manufacturing Firm Deploys BIO-key Fingerprint Biometric Authentication Solutions Following Password-Sharing Security Breach

Industrial Engineering and Manufacturing Firm Deploys BIO-key

Fingerprint

Biometric Authentication Solutions Following Password-Sharing Security Breach

"Organizations have been walking the password security tightrope for far too long."

Wall, NJ, January 25, 2018 -BIO-key International, Inc. (NASDAQ:BKYI), an innovative provider of biometric software and hardware systems and consumer products offering strong and convenient security and user access, today announced receiving a purchase order from a machine design, engineering and manufacturing firm. The organization has deployed BIO-key'sEcoID fingerprintscanners andID Director for Windows software to secure access to shared workstations used by their factory and office personnel.

After suffering an internal security breach caused by employees sharing passwords, the customer reviewed their authentication process and moved to integrate a layer of biometric multifactor authentication for identity and network access management in order to eliminate existing password vulnerabilities. BIO-key's fingerprint biometric solutions also provide faster and more user-friendly network access that eliminates delays and help desk support related to password management, updates and resets.

BIO-key's EcoID fingerprint readers and ID Director for Windows software platform are natively integrated with Microsoft Windows 7 and 10 operating systems. BIO-key's ID Director for Windows software integrates with an organization's Active Directory allowing the program administrator to associate a biometric with each user's sign-in credentials, reducing or eliminating the reliance on passwords for personnel company-wide.

BIO-key's Chief Operating Officer, Barbara Rivera commented, "Organizations have been walking the password security tightrope for far too long. This contract validates the use case for BIO-key solutions to eliminate internal password vulnerabilities and prevent future security breaches. Data breaches are often assumed to come from external threats, however, over the last few years employee negligence has become known as a frequent but easily preventable cause. Fortunately, as more organizations recognize this vulnerability and come to understand the security and efficiency of biometric solutions, we are seeing growing interest in our solutions across a range of sectors."

About BIO-key International, Inc.(www.bio-key.com)

BIO-key is revolutionizing authentication with biometric solutions that enable convenient and secure access to information and high-stakes transactions. We offer alternatives to passwords, PINs, tokens, and cards to make it easy for enterprises and consumers to secure their devices as well as information in the cloud. Our premium finger scanning devices, includingSideSwipe,SideTouch,EcoID andSidePass,offer market-leading quality and performance. BIO-key has also launched a line ofTouchLock biometric and Bluetooth enabled padlocks,including travel and bicycle locks, bringing the security and ease-of-use of biometric technology to a wide variety of applications - thereby providing even more ways to BIO-key your world!

BIO-key Safe Harbor Statement

All statements contained in this press release other than statements of historical facts are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 (the "Act"). The words "estimate," "project," "intends," "expects," "anticipates," "believes" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Act. These statements are not guarantees of future performance or events and are subject to risks and uncertainties that may cause actual results to differ materially from those included within or implied by such forward-looking statements. These risks and uncertainties include, without limitation, our ability to develop new products and evolve existing ones, customer and market acceptance of biometric solutions generally and our specific offerings, our ability to expand sales within existing customer relationships, and our ability to attract and retain key personnel. For a more complete description of these and other risk factors that may affect the future performance of BIO-key International, Inc., see "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 and its other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances after the date made.

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Investor & Media Contacts

William Jones, Tanya Kamatu

Catalyst IR 212-924-9800

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