Smart Identity Float

SMARTiD, the software development company specialising in single sign-on and identity management solutions, is pleased to announce its entire issued Ordinary Share capital has today been admitted to trading on PLUS.   This follows the Company completing a fully subscribed fund raising for GBP750,000 despite current market conditions.

Admission Price: GBP 0.3 Ordinary Shares in Issue: 12,500,000 Market Capitalisation on Admission: GBP 3,750,000 Sector Classification: Software & Computer Services Principal Activities: Provision of single sign-on and identity management software solutions  

Company Background:
SMARTiD is an innovative software developer of identity management solutions. The Company was incorporated on 5 January 2006 as a subsidiary of PLUS-quoted ANS Group plc ("ANS Group"). ANS Group chose to establish SMARTiD as an entity in its own right in order to separate its reseller business from its software development business. Following the Placing and Admission, ANS Group will have a stake of 31.2%.

SMARTiD's product portfolio has been created around a philosophy of seeking to keep the cost of the product affordable for companies whilst not adding significant additional IT management overheads to the network. SMARTiD is targeting companies with up to 2,000 people on the network.

As of 12 June 2007, the Company had built up a customer base of 29 clients and has a confirmed pipeline of business going forward. As a result of ANS Group's established NHS customer list, SMARTiD's sales have been focused on the healthcare sector. In the first year of trading, invoices raised exceeded GBP250,000. Invoices raised in the first quarter alone, in the current year, reached GBP190,899.

Products and Services:
SMARTiD's current portfolio includes four main products. To date, these products have been installed in 20 NHS Trusts and a further 4 government bodies.

• SMARTiD Single Sign On - a product initially targeted at network administrators managing anywhere between 250 - 2,000 users. The product is designed to appeal to computer users with too many passwords. The software pricing compares favourably with what the Company considers to be its main competition.
• SMARTiD Networks - targeted at organisations which already use smart cards or similar devices, such as the NHS. This product operates using a method (patent in application stages) which uses a smartcard for logon without writing anything to the card.
• SMARTiD RAS - designed to allow remote users to log into networks using a smart card.
• SMARTiD DIS - a 'Departmental Integration Server' which provides a certificated, reliable and secure way to access the Government Gateway and the GC Register service of Government Connect. This gives the public sector a secure, scalable solution.

The Company also provides installation and ad hoc development services to its customers.

Business Model:
The Company's strategy is to sell primarily through value added resellers and it has worked and continues to work closely with ANS Group in this regard. Since commencement of trading to 30 June 2007, sales via the ANS Group group of companies represented approximately 54% of the Company's total turnover. However the Company has recently started to engage formally with other reseller partners and plans to recruit a sales director to manage this process. The Directors believe that the establishment of SMARTiD as a separately quoted business, a further step removed from ANS Group, will encourage other resellers to engage in business with SMARTiD.

The Board is focused on driving strong recurring revenues, with contracted recurring revenues forecast to be significant proportion of turnover by 2010.

Trading update:
Following the audited accounts as at 31 March 2007, the following significant trading updates have been issued via the ANS Group newswire with regards to SMARTiD:

Smart Identity has been approved as a partner of EDT - EDT is the Cabinet Office's E-Delivery Team and the accreditation is for SMARTiD's Departmental Integration Server ("DIS") solution.

Significant order for SMARTiD software - ANS Group acting as a reseller for SMARTiD received an order for GBP210,000 for software and services, this resulted in an order being placed on SMARTiD for GBP150,000 in the 3 months following the last audited accounts.