OSLO, NORWAY - 25 February 2021 - Zwipe AS today publishes its annual report 2020.

Highlights for 2020 include:


Financials

·
Revenues increased to MNOK 1.8 (MNOK 1.5).

·
Operating expenditures were reduced to MNOK 63.7 (MNOK 96.8). In constant
currency, this represents a 38% reduction. The savings resulted from the
streamlining program as announced in November 2019.

·
EBITDA improved to MNOK -59.9 (MNOK -92.0), mainly due to the implementation of
the streamlining program.

·
Results before tax was MNOK - 61.9 (MNOK -94.9), and earnings per share improved
to NOK -1.89 (-5.98).

·
Cash flow from operations before financing improved to MNOK -62.1 (-85.0). The
cash flow in 2020 included co-investments with Idemia of MNOK 19.7, compared to
MNOK 9.3 in 2019. Adjusted for these elements, the operating cash flow was
improved by 39% compared to 2019.

·
The Board of Directors proposes that no dividend be paid for 2020.


Significant events 2020

·
Zwipe listed on Nasdaq First North Growth Market in Stockholm, Sweden.

·
Zwipe expanded its growing network of industry partnerships covering Europe,
Asia, the Middle East and Africa during 2020 including the 5 new customer
partnerships announced ; Masria Digital Payments, Watchdata Technologies, Toppan
Forms Card Technologies, Asia Credit Card and Publicenter.

·
Zwipe also partnered with Liveo Research, Smart Technology
Services, Wisecard and CardMatix, expanding our ecosystem to enable cost
-efficient mass-volume manufacturing of biometric payment cards based on Zwipe
Pay ONE.

·
Zwipe and Idex entered a collaboration framework for Zwipe Pay ONE. Idemia,
Zwipe and Idex achieved several key milestones towards the next generation
biometric card platform.

·
Zwipe and TietoEVRY joined forces with a landmark agreement to deliver biometric
payment solutions based on the Zwipe Pay ONE solution to banks in the Nordic and
Baltic regions. The agreement significantly increases our market reach
as TietoEVRY is the leading provider of payment cards to issuers in these
regions.

·
Zwipe secured a strong foothold in the Middle East through go-to-market
partnerships with three leading players in card
payments: areeba, Inkript and VeriTech.

·
Zwipe successfully completed a private placement, followed by a subsequent
repair offering, issuing 7,381,315 new shares and raising approximately NOK 111
million in gross proceeds in total.

·
Zwipe placed an order for 300,000 units of Idex's next generation fingerprint
sensors to support the rollout of Zwipe Pay ONE.

·
Zwipe conducted several cardholder insight studies including some with our
partners. Insights from the Nordics, UK and the United States show strong
consumer interest for safer and more secure payments.

·
In partnership with TietoEVRY, Zwipe secured the first pilot program with Zwipe
Pay ONE with OP Financial Group, the largest Financial Services Group in
Finland.

·
Zwipe's?next-generation chip for biometric payment cards,?in?which Zwipe has?co
-invested?with?Idemia,?obtained the ICCN security?certification?from EMVCo.


Significant Events after the period

·
Swedish fintech Vopy chose Zwipe's biometric payment platform, Zwipe Pay ONE,
for its biometric payment cards. Vopy's partner network consists of telecom
providers and financial institutions that reach millions of consumers.

·
Announced agreements with 4 new smart card manufacturers.


André Løvestam, CEO comments
"2020 was a landmark year for Zwipe. In 2020?we?positioned the company for
growth through significant?expansion?in our customer and
partnership engagements, advances in our technology leadership, and by
strengthening?our?organization. We have seen increased public awareness of the
importance of contactless payment and a sharp rise in demand for safe and secure
payment solutions. The Zwipe Pay ONE development project has now passed its most
critical milestones and the first pilots incorporating Zwipe Pay ONE have
already been announced. The next steps, in addition to full completion of our
internal development, are to prepare our smart card manufacturers and issuers
for pilots, certification and volume production, after which fully certified
biometric payment cards will be available from our customers to issuers for full
commercial launch," says André Løvestam, CEO of Zwipe.

He added, "While COVID-19 has created and continues to create challenges to
project execution, the elevated focus on safety following the pandemic has
dramatically increased the growth of contactless transactions and transaction
caps have been raised all over the world. Hygiene and safety are likely to
become accelerators and game-changers for biometric payments for years to come.
We experienced an unprecedented acceleration in our engagements with issuers and
card manufacturers?throughout?2020.?We are engaging with more than 250 banks and
over 40 of the world's top 50 smart card manufacturers and our pipeline in both
these segments has never been stronger.?We are confident that our strategic
partnerships,?global?technology excellence,?focused engagements with issuers, as
well as our end-to-end trusted advisor approach?and?unique one-stop-shop
offering,?are laying the foundation for?many?commercial wins?ahead".

"By bringing together leading suppliers of technology, payment cards,
personalization, fulfilment services, and processing services, as well as
issuers with a strong end-user focus, we?have created an end-to-end?ecosystem
to?deliver?Biometric Payment Cards in key markets. We?are well prepared
to?address a global market?with?strong long-term growth and?value
creation?potential," Løvestam concluded.