Axalto and Bioscrypt Team Up to Deliver Smart Card-based Biometric Access from Door to Desktop™

Toronto, ON -- September 12, 2005

Axalto and Bioscrypt Team Up to Deliver Smart Card-based Biometric Access from Door to Desktop™
Solution Integrates Axalto’s Cyberflex Access Smart Cards with Bioscrypt’s VeriSoft Access Manager

Toronto, ON (September 12, 2005) – Bioscrypt Inc. (TSX: BYT), a leading provider of identity verification technology and Axalto, the world’s leading provider of microprocessor cards today announced their partnership to provide a smart card-based solution for physical and logical biometric access control. The new solution integrates Axalto’s Cyberflex Access smart cards with Bioscrypt’s VeriSoft Access Manager. Axalto and Bioscrypt will demonstrate the unified solution at Bioscrypt’s booth #557 this week at ASIS International, September 12-15, 2005 in Orlando, Florida.

“Axalto and Bioscrypt teamed up to combine the proven strong security of smart cards with the advanced authentication technology of fingerprint biometrics,” said Matthew Halbgewachs of Axalto’s Partners, Channels, and Alliances Program. “Our focus is the enterprise security sector for organizations that want a converged physical and IT Security system with a single credential.”

Once an identity is established, the necessary information, including a fingerprint biometric, is placed on a single contact or contactless Axalto smart card. The card is then used to verify a person's identity and privileges before granting the person both physical access (to a building or place) and logical access (to information or other online resources). This consolidated access solution decreases administration costs by reducing the number of separately administered authentication credentials and greatly reducing errors and resulting corrective actions.

“Convergence is becoming more in demand as enterprises seek easier and more cost-effective ways to manage physical and logical access control,” said Robert L. Williams, president and CEO, Bioscrypt. “Our VeriSoft Access Manager, coupled with Axalto’s leading security devices, acts as an engine for this convergence, positioning us to meet this demand and extend our position in the identity authentication market.”

About Axalto

Axalto (Euronext: NL0000400653 AXL) is the world's leading provider of microprocessor cards (Gartner 2005) — the key to digital networks — and a major supplier of point-of-sale terminals. Its 4500 employees come from 70 nationalities and serve customers in more than 100 countries, with worldwide sales reaching 3 billion smart cards to date. The company has 25 years' experience in smart card innovation and leads its industry in security technology and open systems.

Axalto continuously creates new generations of products for use in a variety of applications in the telecommunications, finance, retail, transport, entertainment, healthcare, personal identification, information technology and public sector markets. Microprocessor cards provide convenience, security and privacy to public and private services operators, their customers and end users. For more information, visit us at www.axalto.com .

About Bioscrypt Inc.

Bioscrypt Inc. is a leading provider of identity verification technology. The Company's solutions combine the convenience of touch with the high security of fingerprint-based biometrics for simple and secure access to facilities, equipment and information. Using the "bioscrypt on board™" brand, the Company offers packaged products, OEM components and software licensing to leading security solution manufacturers and integrators worldwide for physical, wireless and network security applications. Among the many leading edge companies and partners using Bioscrypt technology are the U.S. Army, NASA, American Express, the New York Police Department, Kronos, NATO, Continental Airlines, Intel, Atmel, HID Corporation, Honeywell and Northern Computers. Bioscrypt's patented technology is interoperable with leading fingerprint sensors and is both platform and operating system independent. Bioscrypt is traded on the Toronto Stock Exchange under the symbol BYT. For more information, visit the Bioscrypt Web site at www.bioscrypt.com .

Forward-looking (safe harbour) statement

Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement containing words such as "believes", "plans", "expects" or "intends" and other statements which are not historical facts contained in this release are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.

Bioscrypt Inc., Bioscrypt and V-Smart, are trademarks of Bioscrypt Inc. All other trademarks or registered trademarks referenced herein are properties of their respective owners.

For more information, contact:

Matthew Bogart
Bioscrypt Inc.
905-624-7717