ASSA ABLOY Acquires HID Corporation

Irvine, California (November 6, 2000) ASSA ABLOY AB, the world's leading manufacturer of locks, and HID Corporation, the world's leading provider of radio-frequency technology for security applications, reached an agreement that will result in the acquisition of HID, subject to regulatory approval. While the acquisition will not alter HID's mission or management, integration into ASSA ABLOY's US$2 billion global operation will result in a substantial benefit for the customers worldwide. ASSA ABLOY will benefit from the addition of HID's leading RFID technology to its advanced technology lock products, while HID will benefit from ASSA ABLOY's substantial capital resources and extensive global presence.

"Electronic identification has so far been a missing link in ASSA ABLOY's product portfolio of mechanical and electromechanical locks," explained Carl-Henric Svanberg, President and CEO of ASSA ABLOY. "HID's RFID technology leadership will help us fulfill our mission to develop the next generation of intelligent locks."

"The agreement is a genuine win-win for everyone involved, and HID is enthusiastic about the long-term prospects as part of ASSA ABLOY," said Donald Nelson, President of HID Corporation. "While our fundamental objectives and business commitments will remain unaffected, we are looking forward to developing the synergies the two companies share. The new arrangement strategically positions both of us to lead our industries for years to come."

HID was incorporated in 1991 as Hughes Identification Devices, a subsidiary of Hughes Aircraft Company. In October 1995, as part of a management buyout financed by Citicorp Venture Capital, HID became a subsidiary of Palomar Technological Companies. A year later, HID expanded its card access control market share by acquiring Sensor Engineering and its Wiegand technology. In the third quarter of 1999, the company expanded its operations and acquired its largest European distributor, ID Plus.

"HID's dedication to providing exceptional customer service and technical support has been a key factor in our success, and will not change," said Joe Grillo, HID's Chief Operating Officer. "Our customers will remain our top priority." Mr. Grillo will succeed Mr. Nelson and become CEO and President of HID when the acquisition approvals are complete.

Since its inception five years ago, HID has experienced significant growth and has expanded its infrastructure to include offices in the United Kingdom, France, the Netherlands, Hong Kong, Singapore, China and Mexico. HID's research facility is located in Colorado, its Wiegand manufacturing plant in Connecticut and world headquarters in Southern California's high technology center. Presently, HID has 350 employees between its ten locations.

According to independent analysts, HID holds more than a 40 percent market share in RFID access control technology globally.

About ASSA ABLOY AB

The Sweden-based ASSA ABLOY Group is the world's leading manufacturer and supplier of locks and associated products, dedicated to satisfying end-user needs for security, safety and convenience. Current sales for the Group are in excess of US$2 billion, representing sales from over 100 subsidiaries employing approximately 20,000 people in 30 countries. ASSA ABLOY product segments include mechanical locks, electronic locks, security doors, industrial locks (including automobile locks) and hotel locks.

The acquisition will be subject to approval from the Federal Trade Commission and other relevant antitrust authorities.