Identive Reiterates Commitment to Stockholders

Identive Group, Inc. provided details on a series of recently-disclosed cost reduction measures to bolster the company’s cash position and support its long-term growth strategy. These measures are expected to result in savings of $4 million to $5 million in the remainder of 2012, and include an 11% reduction in the company’s global workforce, acceleration of the elimination of duplicate expenses at newly acquired companies, reductions in other general and administrative expenses, the consolidation of facilities, as well as temporary reductions of nearly $0.5 million in executive and management salaries and Board fees. The company expects to incur charges of $0.7 million to $0.9 million in 2012 in connection with the cost reduction program.

“We believe our cost reduction program will enable us to preserve cash and reset our ongoing expense run rate to a more sustainable level,” stated Ayman S. Ashour, chairman and CEO of Identive. “This will not impact our ongoing investments in new NFC and cloud-based identity solutions or our ability to address opportunities in these emerging, potential hyper-growth markets.”

“Fully implementing these cost reductions will take some time; however we expect to finish our current quarter with adequate cash resources and without the need to utilize our existing debt facility,” added David Wear, Identive’s executive vice president finance. “We are working diligently to remove any concerns over our liquidity and to reinforce the strength of our financial base.”

“Particularly in light of the recent pressure on our stock price, we believe that Identive’s shares are significantly undervalued,” Ashour added. “We have confidence in our long-term strategy to grow revenues and profits by investing in emerging opportunities within the secure identification market and in our ability to demonstrate performance improvements as these markets begin to ramp. Our commitment to the company and to supporting long-term shareholder value is reflected in the recent voluntary salary reductions of our executive team and others within the company and by the significant number of shares purchased by insiders in recent weeks.”