INSIDE Secure and Presto Engineering to sign a partnership agreement to outsource INSIDE Secure?s semiconductor operations and supply chain activities to specialist provider, Presto Engineering

San Jose, USA -- Aix-en-Provence, France, Apr. 15, 2015 – 

INSIDE Secure (Euronext Paris: INSD), a leader in embedded security solutions for mobile and connected devices, and Presto Engineering, a leader in semiconductors industrialization and production services, today announced their intention to enter into a partnership agreement whereby INSIDE Secure would transfer its French-based semiconductor operations activities and its worldwide supply-chain management to Presto Engineering, which specializes in delivering such services.

Once the transaction is completed, Presto Engineering will provide semiconductor engineering and supply-chain management services to INSIDE Secure through an exclusive multi-year service agreement.

This transfer and services agreement positions the hardware offering of INSIDE Secure in line with the group?s strategy to focus on chip architecture, design and certification as well as marketing and sales. It marks another step in the transformation of the group?s model towards leadership in embedded security, with more focus on high value added customized security, combining a unique product mix of intellectual property components, software and hardware.

For Presto Engineering, this agreement marks an opportunity to reinforce its position and scale in the semiconductor value chain also serving high-end security specialists, while continuing to demonstrate its commitment to be a leading provider of comprehensive semiconductor test & turn-key solutions and the world leader in advanced RF & Analog testing technologies, engineering, and back-end infrastructure. Presto Engineering has already performed such inorganic growth in the past including with the acquisition of some of the NXP Semiconductors and Cypress Semiconductors operations activities.

The transaction will primarily benefit the Secure Transactions division of INSIDE Secure, through lower on-going cost of sale related expenses as from the closing date, which is expected in early Q3 2015. Following a non cash one-off charge, it is also expected to be accretive to INSIDE Secure?s gross margin and adjusted operating profit.

The execution of the agreement is intended to take place upon completion of an "information and consultation" process with INSIDE Secure?s works councils in France and is subject to customary signing and closing conditions.

Pierre Garnier, Chief Operating Officer of INSIDE Secure, stated: "We are very pleased with this agreement with Presto Engineering, a trusted partner for fabless semiconductor companies adding value with their expertise and focus. It further transforms INSIDE Secure?s business model towards high value-added embedded security products and solutions, while maintaining the highest level of quality of service to its hardware chip customers through this tailor-made outsourcing agreement. This is an ideal model to achieve cost effective operational excellence in alignment with INSIDE Secure?s strategy to better focus on providing embedded security with a unique offering of semiconductor hardware solutions, software, and intellectual property components that cover the full array of mobile and connected device security requirements for innovative applications and services ".

Michel Villemain, Chief Executive Officer of Presto Engineering, declared: "This agreement perfectly matches our strategy. We are pleased to have INSIDE Secure as a new partner and to provide them with our comprehensive semiconductor product engineering solutions and supply chain services. This partnership is giving us the opportunity to strengthen our expertise with highly skilled resources and to address new markets such as Secure IoT."

About Presto Engineering

Presto Engineering Presto Engineering provides comprehensive semiconductor product engineering and production solutions to IDM, fabless and electronics companies, contributing to improving ramp time, margins and quality of new products.

Presto Engineering is a recognized expert in the development of test solutions for component characterization and production. This expertise, combined with state-of-the-art ESD, reliability and failure analysis capabilities, produces a competitive advantage for our customers in optimizing endproduct performance and accelerating time to market. We offer turn-key solutions from customer tapeout to delivery of finished goods to end-customers, including assembly, test, qualification, industrialization, and production sustaining activities. Presto Engineering is headquartered in San Jose, California, and has operations in France and Israel. For more information, please visit www.prestoeng. com

About INSIDE Secure

Mobility, cloud computing, and increasing connections between systems, information and people are radically changing the way we live and work. The electronic connections we rely on have become critical, which means that securing these connections has become more challenging. Simple add-on security measures are no longer enough. Security measures must be built into every device, connection, and information flow from the start. They must be well integrated. And they must be convenient-not burdensome to deploy or use.

With decades of security innovation and expertise, INSIDE has become the leader in complete solutions for embedded security applications. Our hardware, firmware, middleware, software, and intellectual property work together, enabling customers to secure everything from mobile devices and transactions to payment, access, content protection and the Internet of Things. Our security expertise and innovation provide 360-degree coverage of customers security challenges, enabling us to bring the right level of security to the right challenge and add value to customers solutions.

INSIDE mobile security solutions help customers meet the challenges of mobile markets, such as providing secure Bring Your Own Device (BYOD) strategies and securing transactions across converging computing and cloud environments. INSIDE secure transaction solutions also protect payments, access, identity and assets. With INSIDE security systems on silicon, customers can embed the optimum level of security needed to deliver trusted products.

INSIDE Secure is a member of major industry standards organizations and global payment and mobility organizations. It has won numerous awards and recognition for innovation from around the world. INSIDE is publicly listed on the NYSE Euronext Paris with headquarters in Meyreuil, France and locations in 11 countries.

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