HID/Ademco Licensing Agreement

Irvine, CA (July 30, 1999) - HID Corporation announced a license agreement with the Ademco Group, the prominent NY-based security products manufacturer. Under the terms of the agreement, Ademco will incorporate HID's radio frequency identification technology (RFID) into its access control and other security-related products. The Ademco products will be compatible with HID proximity cards and readers currently in use throughout the world.

"This agreement builds on the long term and very successful relationship HID has enjoyed with Ademco and Northern Computers," said Joe Grillo, Vice President of HID's Access Control unit. "It also supports our strategy to establish the HID brand of proximity technology as the recognized worldwide standard in the security industry."

Ademco officials foresee significant benefits for their customers. "Proximity is increasingly the card access technology of choice," said Tam Hulusi, Vice President, Marketing and General Manager of Ademco's Access Control unit. "HID's technology has a proven track record and is the most popular proximity technology brand among dealers and end-users."

Ademco will make the products available through their worldwide distribution channels, including Northern Computers and ADI. They expect to release the first of the new products to market during the first quarter of 2000. Additional details of the agreement were not disclosed.

The Ademco Group is the world's largest and most experienced manufacturer of electronic security products. Recognized industry-wide as the leader of technological innovation, the Ademco Group dedicates more than $20 million annually to research and development, operating research and development facilities throughout the world. Headquartered in Syosset, New York, the Ademco Group is a division of Pittway Corporation, a New York Stock Exchange listed company (PRY, PRY-A), with annual sales exceeding $1.5 billion.

For more information on Ademco, contact Tam Hulusi, Vice President, Marketing and General Manager of Ademco's Access Control unit, 165 Eileen Way, Syosset, New York 11791, (800) 645-7568. Web site: .