Leading Access Control Manufacturer Begins Production of Combination SmartCards Including 128KB.NET Chip for Network Access and Contactless Proximity Technology for Building Access

San Jose, CA, December 5, 2005–Indala Corporation, an industry leading manufacturer of secure, contactless cards, tags, readers, and core electronics modules for physical and logical access control announced that beginning last week, the Company began production of 22,000 Multi-Technology SmartCards for Microsoft Corporation. This was the second of four phases designed to replace older 32KB-chip cards used by all Microsoft employees and contractors. The previous smartcards had also been produced by Indala.

According to Candy Stark, security program manager Microsoft Corporation, “Microsoft employees around the world use smart cards manufactured by Indala to gain access to our network, digitally sign e-mail, and gain access to corporate buildings. The new cards hold a greater amount of memory than the previous cards, and give us the flexibility to support applications such as cashless vending and cafeteria payments.”

Marc Freundlich, Indala president, added, “Security and privacy continue to be our top objectives at Indala; and the implementation of these types of multi-factor, highly secure, and easy-to-use credentials is a clear example of how Indala can help protect the organization and the individual from the high costs associated with corporate identity theft.”

About INDALA

Indala Corporation is a leading security technology company that develops and distributes 125 kHz proximity; 13.56 MHz contactless and contact smart cards; and associated readers for physical and network access-control applications. Indala manufactures the highest quality RFID product lines including FlexPass(R) Series; CX Series CASI(R)-compatible cards; FlexSmart™ Series IX INTRO, MX MIFARE®, DX DESFire™, and LEGIC(R) high frequency products. Indala is renowned for delivering highly secure customized card access solutions for government and commercial applications around the world. Founded in 1985, Indala’s installed customer base exceeds 100 million cards and two million readers. Indala was acquired by ASSA ABLOY in November of 2001. The Company’s headquarters is located in San Jose, California. For more information, call 408-361-4700 or visit the Indala website at http://www.indala.com.