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ActivIdentity and Intercede Settle Patent Infringement Cases

ActivIdentity Corporation (NASDAQ: ACTI), a global leader in strong authentication and credential management, and Intercede Ltd., a leading developer and supplier of identity and credential management software, today announced that they have entered into a patent license agreement on mutually acceptable terms. This patent license agreement settles the patent infringement case brought by ActivIdentity before the U.S. District Court of Northern California, and a related case brought by Intercede in the United Kingdom High Court. Details of the license agreement are confidential.

Based on this agreement, all lawsuits over the "360 patents" (ActivIdentity U.S. patent 6,575,360 and ActivIdentity patent EP [UK] 0 981 803) will be promptly dismissed, bringing an end to all patent infringement litigation between the two companies. The settlement includes a patent license agreement on mutually acceptable terms.

"We are pleased that a settlement could be reached," said Richard Parris, chairman and chief executive officer at Intercede. "This settlement ensures that Intercede's worldwide partners and customers can continue to benefit from our leading MyID Identity and Credential Management System with confidence."

"Based upon the mutual agreement by both parties, we feel the settlement reached is in the best interest of the credential management market, our company, and its shareholders," stated Grant Evans, chairman and chief executive offer at ActivIdentity. "Our company has a long history of developing innovative credential management solutions and our broad patent portfolio reflects our leadership position in this industry."

About ActivIdentity

ActivIdentity Corporation (NASDAQ: ACTI) is a global leader in strong authentication and credential management, providing solutions to confidently establish a person's identity when interacting digitally. For more than two decades the company's experience has been leveraged by security-minded organizations in large scale deployments such as the U.S. Department of Defense, Nissan, and Saudi Aramco. The company's customers have issued more than 100 million credentials, securing the holder's digital identity. ActivIdentity is headquartered in Silicon Valley, California. For more information, visit www.actividentity.com.

About Intercede

Intercede is the producer of the MyID® Identity and Credential Management System (IDCMS). Intercede's MyID is the only IDCMS software product that enables organizations to easily and securely manage the identities of people and their associated identity credentials within a single, integrated, workflow driven platform. This includes enabling and managing: secure registration, biometric capture, application vetting and approval through to smart card personalization, issuance and management.

Intercede's MyID is being used around the world by large corporations, governments and banks to manage millions of identities for employees, citizens and customers. Notable deployments in the US include 10 Federal Agencies, a program with Lockheed Martin and two major US financial institutions. In Europe and the Middle East, Intercede's MyID is being deployed in support of government identity, health and corporate employee ID security projects. For more information visit http://www.intercede.com

ActivIdentity is a registered trademark in the United States and / or other countries. MyID is a registered trademark of Intercede Ltd. All other trademarks are the property of their respective owners in the United States and / or other countries.

Safe Harbor Statement

The statements in this press release that are not historical facts are forward-looking statements that involve risks and uncertainties. These risks and uncertainties include risks relating to our history of losses and need for revenue growth and cost containment, the integration of acquired business and technologies, the variability of our quarterly results, and other risks identified under the caption "Risk Factors" in our most recent Annual Report on Form 10-K, and in subsequent Quarterly Reports on Form 10-Q, which are filed with the United States Securities and Exchange Commission (SEC). There can be no assurance that we will achieve targeted levels of revenues for fiscal 2009 or that our strategic initiatives will result in the anticipated benefits. Copies of our SEC filings, which have more information about these and other risks, are available from the Company and on the SEC website at www.sec.gov. Actual results, events and performance may differ materially from our forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company disclaims any intention to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.