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IDEXASAinterimreportforthefirsthalfof2016

Highlights

• RevenueamountingtoNOK17.7millionfromsensordeliveriesinthefirsthalfof2016,NOK14.1millioninthesecondquarter

Thismarksthedefinitivecommencementofthecommercialstageofthecompanywithgrowingproductshipments• LGStylus2PluslaunchedwithIDEXCardinalQtouchsensor

Firstmarketdeploymentwithtier-onemobileOEMvalidatesIDEX’sworld-classsensortechnologyprovidingimportantreferencefornewcustomers

• SecuredadditionalCardinalsensordesignwinfortier-onemobilecustomer• SeveraldesignwinsformajorAsiancustomer

StrongmomentumofcustomerwinsandfurthercommercialvalidationofIDEX’sprice/performancevalueproposition• CardinalproductfamilyexpandedbyintroductionofCardinalNlow-costsilicontouchsensor

Ultra-small,low-profilefingerprintsensorthatcanbemountedonthefront,sideorbackofthedevice�• Introducedlower-costproductiondesignforin-glasstouchsensorwithtier-onepartner

Superiorindustrialdesignanddurabilitywithoutcompromisingimagequality�• Deliveredcommercial-gradesamplesofindustry’sfirstflexibletouchsensorforISO-compliantcardformfactors,

jointlywithamajorcardsystemsintegratorSupportsstrategicpartnershipandtrialswithaglobalpaymentscompany��

• Executionofchangetodirectsalesmodelthroughrecruitingofseveralsalesstaffmembers,includingYangChiahYee,

SVPWorldWidesales

• Eaglefamilyofoff-chiptouchsensorscertifiedbytheFastIDentityOnline(FIDO)AllianceExtensivetestingensurescomplianceandinteroperabilitytoaccelerateadoption

Outlookandkeyupcomingmilestones

• ContinuedvolumeshipmentsofCardinalandEagletouchsensorsfromexistingcustomersandprograms

• Additionaldesignwinsexpectedincomingquarters

• Increasecustomerengagementonglasssensoroverthenextquartersandpreparingsupplychainforcustomisation��

• Launchofnewpolymersensorproducts

• ConsumertrialsandpilotprogramofISOcardsensorduringthesecondhalfof2016,followedbypotentialinitialvolumeshipments

towardstheendof2016

• ExpandingsystemintegratorecosystemandprogramopportunitiesforIDEXcardsensorssolutions�

• EngageinselectedopportunitieswithintheInternetofThings,leveragingexistingEagleproducts

• Furtherexpandingdirectsalescapabilitiestoenhancecustomerengagementandincreasesensordistribution�

LG Stylus 2 Plus launched with IDEX

CardinalQtouchsensorDuringthefirsthalfof2016,IDEXmadeacommercialbreakthroughbysecuringa production-volume order for finger-print sensors to the LG Stylus 2 Plusmobiletelephone. The phone was launched in Junefeaturing IDEX's touch fingerprint sen-sorCardinalQ. IDEXisproudtohaveourfingerprintsensor featured in a global LG smart-phone. IDEX isoneofa fewfingerprintsensor vendors supplying sensors totier-one mobile handsets. This is asignificant validation of the IDEX valueproposition.Secured additional Cardinal sensor

design win for tier-one mobile custo-

mer

Following on the inclusion in the LGStylus 2 Plus, IDEX announced in Julythat a tier-one smartphone customer

had selected IDEX's Cardinal touchfingerprintsensorforintegrationintoamobilehandset. Thisdesignwinisanothercommer-cialvalidationoftheprice/performancevalue proposition of IDEX's fingerprintsensorproductsandtechnology.Secured severaldesignwins formajor

Asiancustomer

A major Asian smartphone customerselected IDEX’s Cardinal touch finger-print sensor for mobile handset inte-gration.Thecustomerwillbelaunchingmultiple programmes with fingerprintsensors, and IDEX sensors have beenqualifiedforseveralofthese. IDEXexpectsthefirstmobilesmart-phone launch with our sensor for thismajor Asian customer in the fourthquarterofthisyear.ExpandedCardinalproductfamily

Building on the successful market

acceptanceandshipmentofCardinalQ,IDEX has launched the Cardinal Nsensor.Thissensorisdesignedforuseinultra-small, low-profile fingerprintsensing applications. With the touchsensor’s extremely thin, rectangularform factor, Cardinal N enables inte-grationonthesideoftoday'sultra-slimsmartphones as well as front or backmounting. Cardinal N has been qualified forvolume production and is currentlybeingevaluatedbyselectmobileOEMs.The Cardinal N sensor and other IDEXsensors were demonstrated at theMobile World Congress on 29 Junethrough1JulyinShanghai,China.Introducedimprovedlow-costproduc-

tiondesignforin-glasstouchsensor

IDEXcontinues toworkwitha tier-onepartner company to commercialiseIDEX’s in-glass fingerprint sensor. Dur-ing the first half of 2016 a new, lower

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production cost design has been de-veloped. The optimised design usesIDEX’s off-chip technology to achievethe best balance of image quality,aesthetics and robustness in a glassimplementation.Commercial-gradesamplesofaflexible

touchsensorforISO-compliantcards

IDEXhassuccessfullydevelopedaflexi-ble polymer touch sensor with imagequality and performance specificallydesigned for smart and ID card appli-cations. Thisworld-firsttouchsensorforISOID-1 form factor cards is sampled toIDEX'songoingstrategicpartnershipwithaleadingglobalpaymentscompany. IDEX’s unique, flexible, low-costpolymer touch sensor is ideal for cardapplications given its ability to beintegrated into a thin and flexible ISOID-1formfactor,whileatthesametimeusing a secure low-resource algorithmto achieve high-quality image sensingandbiometricperformance.

Strengthened organisation with signi-

ficantindustrytalent

Experienced industry talent has beenrecruited toexpand IDEX’s global salesand support team. IDEX is shifting toadirect sales approach in the mobilemarket.ThisincreasesIDEX’scontrolofthe sensor sales and distributionprocess and is expanding customerengagementsandopportunities. YangChiahYeehasbeenappointedto theroleofSeniorVicePresident forWorldwidesales.MrYeehasextensiveexecutive sales experience in thesemiconductorindustry,includingeightyears at Atmel,most recently as VP ofWorldwide sales, and more than twodecadesdrivingsalesatsemiconductorcompaniestodeliverprofitablegrowth. Stan Swearingen has joined IDEX’sStrategy Advisory Board. Mr. Swear-ingen’s previous experience includesroles as SVP & CTO at semiconductorcompaniesAtmelandSynaptics.Hehas

more than 30 years of experience insemiconductors, solutions for smart-phones and biometrics. At Synaptics,Swearingenwasinstrumentalinformu-latingthebiometricfingerprintstrategy,includingtheacquisitionofValidity. TheStrategyAdvisoryCounciladvis-es IDEX on market, technology andstrategic trends in the rapidly devel-oping mass market for fingerprintsensors.FIDO Certification of Eagle Touch

FingerprintSensorsIDEX‘s Eagle family of off-chip touchfingerprintsensorswascertifiedinJuneby the Fast IDentity Online (FIDO)Alliance. The formal FIDO certification ofIDEX's sensor follows extensive testingto ensure compliance and inter-operabilityamongvariousproductsandservices that comply to FIDO specifi-cations. ThecertificationoftheEaglesensorfamily underlines the company’s conti-nued commitment and contribution totheFIDOAlliance.Outlook

IDEX'sstrategyistodriveadoptionofitssensor technology across three massmarkets:mobile devices, ID and smartcards,andtheInternetofThings. IDEX is the only fingerprint sensormanufacturerinthemarketwiththeIP,knowhowandproductportfoliotoofferboth conventional silicon sensors (theCardinal product family) and next-generation polymer off-chip sensors(the Eagle product family) to leadingOEMs. TheCardinalsensorhasasmallformfactor and provides highly competitiveprice and performance characteristics.ThesensorhasbeenlaunchedintheLGStylo2Plusandhasbeendesignedintoseveral customer programs. The Eaglesensor has a unique cost andperformancepositionformedium-sizedsensors.Thesensorhasbeenshippedin

volume for integration into IoTproducts. IDEX continues to developnew products demonstrated by thelaunchinApriloftheCardinalNsensortargetingmobileOEMs. IDEX expects these breakthroughsto generate more design wins andproductionordersinthesecondhalfof2016. CustomerevaluationsofIDEX’suniqueglass sensor solutionwill take place inthe second half of 2016. Industriali-sationofthecommercialsupplychainisin progresswith aim to enable volumeshipmentsbytheendof2016. IDEX’s strategic partnership with amajor global payments company isprogressing well, and IDEX is currentlyexpanding its production capability tosatisfy the anticipated demand. IDEXbelieves that its world-first polymertouch sensor for ISO-compliant cardswillgiveitaleadingpositionforfinger-print sensors in the cardmarket. Cardproducttrialsareexpectedtotakeplaceshortly, and the company expects toprogresstoconsumerpilotprogrammesduringthesecondhalfof2016.Thiswillpotentially lead to initial volumeshipmentslatein2016orearly2017. Over the past year, adoption offingerprint sensors in mobile deviceshas become increasingly widespread,andgrowthisexpectedtoaccelerateasthe use of biometrics proliferates.Securepaymentservicesareamongtheleading drivers behind the need forsecureandconvenientauthenticationinthedigitalworld. IDEXhasdevelopedagrowingport-folio of high-performance and cost-effective products. The company hasleading-edge IP, a deeply knowledge-able organisation with an expandeddirect sales team, tier-one industrypartners,anda solid financialposition.Withtheseassets,thecompanyexpectsto capture a significant share of theexpanding, multi-billion dollar marketopportunityforfingerprintsensors.

Fornebu,10August2016

TheboardofdirectorsofIDEXASA

Afinancialnarrativeandinterimfinancialstatementswithnotesareenclosed.

Investorandpresscontacts:

HemantMardia,CEO,+447788922171,hm(at)idex.noHenrikKnudtzon,CFO,+4793022827,hk(at)idex.no

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Consolidatedinterimfinancialstatementsasat30June2016(Unaudited)

Profitandlossstatements

IDEXearnedNOK17.7million revenue

fromsensordeliveriesinthefirsthalfof

2016 (Q2: NOK 14.1 million), up from

NOK0.1millioninthefirsthalfof2015.

This significant amount of revenue

marksthedefinitivecommencementof

the commercial stageof the company.

ThegrossmarginwasNOK3.0millionor

17 per cent in the first half. The gross

margins on the early-stage shipment

volumes are not representative for

futuremassvolumemargins.

Thetotaloperatingexpensesinthefirst

halfoftheyearamountedtoNOK98.1

million(Q2:NOK44.7million),upfrom

NOK 95.2 million in the first half of

2015.ThedepreciationoftheUSdollar

by 5 per cent in the first half has

reduced the costs when measured in

NOK.While researchanddevelopment

andotheroperatingexpensesincreased

compared to the sameperiod in2015,

payroll expenses were lower, due to

variation in the cost of share-based

remuneration. The underlying salary

cost increased because of increased

numberofemployees. IDEX is ramping

upitsoperationalcapacityacrossallkey

functions including product develop-

ment, supply chain, operations and

sales, in preparation for mass volume

deliveries.

The total payroll expenses were NOK

39.6 million in the first half (Q2: NOK

17.1 million), down from NOK 43.1

millioninthefirsthalfof2015(Q22015:

NOK17.7million).Theunderlyingsalary

costincreasedfromNOK29.5millionin

thefirsthalfof2015toNOK38.9million

in the first half of 2016 because of

increased number of employees. The

neteffectofshare-basedremuneration,

whichoftenvarysubstantiallybetween

quarters,wasNOK13.3millionlowerin

the firsthalfof2016 than in the same

period of 2015. The notional cost of

incentive subscription rights, including

accruedemployer’stax,varieswiththe

shareprice.Therewasanetreversalof

costinthefirsthalfof2016.Thecostor

reversaldoesnothaveanycasheffect.

R&D expenses amounted to NOK 46.3

million in the first half, compared to

NOK41.8millioninthefirsthalfof2015

(2H2015:NOK60.8million).Thesecond

quarter of 2016 was however lower

than the preceding quarter and also

lowerthanthegoingratein2015.R&D

expensesvaryaccordingtotheamount

of services and materials purchased

externally.

Otheroperatingexpenses,mainlysales

and marketing and general admin,

amounted to NOK 12.2 million in the

firsthalfof2016(Q2:NOK6.7million),

upfromNOK10.3millioninthefirsthalf

of 2015 (Q2 2015: NOK 4.9 million).

Most of the increase was related to

salesandmarketingactivities.

The total staff of employees and on-

going individual contractors was 74 at

30 June 2016, up from 66 one year

earlier and 70 at the end of the first

quarter2016. IDEXhad61employeesat

30June2016,and10technical/scientific

individualcontractorsworkingfull time

orregularlyaspartofthedevelopment

team.Threesalesrepresentativeswork

oncontract.

DepreciationamountedtoNOK3.9mil-

lion in the first half (Q2: NOK 1.8

million),comparedtoNOK3.3millionin

thefirsthalfof2015(Q22015:NOK1.6

million).InthefirsthalfNOK0.8million

wasinvestedinscientificequipmentand

engineering tools, compared toNOK1.6

millioninthefirsthalfof2015.

EBITinthefirsthalfamountedtoaloss

of NOK 99.0 million (Q2: NOK 44.1

millionloss),comparedtoalossofNOK

98.4millioninthefirsthalfof2015(Q2

2015: NOK 49.6 million loss). The in-

crease inoperatingexpenseshasbeen

offset by the gross margin on ship-

ments.

Financialitemsamountedtoanetcostof

NOK 41 thousand in the first half (Q2:

net cost NOK 0.6 million). In the first

halfof2015, financial itemsamounted

to a net loss of NOK 0.6 million (Q2

2015:netgainNOK0.2million).Interest

incomeissmallduetothelowinterest

level.Thevariationbetweenperiods is

mainly caused by re-/devaluations of

the US dollar driving gain/loss on

receivables and debt denominated in

USdollars.

Because IDEX’s wholly-owned subsidi-

aries in the USA and UKmake profits,

there was a tax charge in an amount

ofNOK0.4millioninthefirsthalf.The

netresultfortheIDEXgroupinthefirst

half of 2016 was a loss amounting to

NOK99.5million. Inthecorresponding

periodof2015, thenet lossamounted

toNOK99.3million.

Profit or loss per basicweighted aver-

age number of shares amounted to a

loss of NOK 0.19 in the first half,

comparedtoNOK0.23pershareinthe

firsthalfof2015.

Balancesheets

IDEX has a very strong balance sheet

afterraisingnetNOK1,029.8millionin

2014-15,mainly in private placements

ofshares.At30June2016,IDEXhelda

cash balance amounting to NOK 623.4

million,andthegrouphadnofinancial

debt.

The main assets held on the balance

sheetaretheintangibleassetsacquired

in 2013-14, inventory and receivables,

andcashinbank.Cashisthedominant

item, representing 89 per cent of the

totalassets.

The acquired intangible assets and

intellectual property rights have been

capitalisedinaccordancewithIFRS,and

includedgoodwillinanamountofNOK

8.3millionanddepreciatingassetsinan

originalacquisitionamountofNOK43.6

million. The assets depreciate over

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economiclifefortherespectiveassets.

The major items depreciate over 17.3

yearsor9.5yearsfromacquisition.

IDEX’s ownpatents andother intellec-

tual property rights are generally not

heldinthebalancesheetbecausethey

do not satisfy the criteria for capitali-

sation. Development costs have in the

pastlargelybeenexpensedforthesame

reason.Nodevelopmenthasbeencapi-

talisedinthefirsthalfof2016.Inthefirst

half of 2015, IDEX capitalised own

development expenses related to the

Cardinal sensor product, in an amount

ofNOK0.5million.

Fixed assets amounted to NOK 5.6

millionat30June2016,downfromNOK

6.6millionattheendof2015.Thefixed

assets are scientific equipment and

engineering tools, leasehold upgrades,

office equipment and furniture with

usefullivesof3-5years.

At the end of the first half, inventory

amounted to NOK 7.1million, up from

NOK2.3millionat thebeginningof the

year. IDEXwillnecessarilyneedtobuild

upits inventorywhenshipmentvolume

increases.

CustomerreceivablesamountedtoNOK

11.7millionon30 June2016, up from

NOK3.6million at the endof the first

quarterandNOK0.3millionattheend

of2015.IDEXwillnecessarilyaccumulate

customer receivables when shipment

volumeincreases.

Thelevelsof inventoryandreceivables

are not indicative of IDEX’s long-term

performance on these parameters at

volumeshipmentstage.

On 30 June 2016, the total assets

amounted to NOK 702.0 million, of

whichNOK623.4millionwascash.The

total assets amounted to NOK 828.3

million at the beginning of 2016. The

cash position is further commented

uponinthenextsection.

Themajor liabilitiesarevariousopera-

tional payables to suppliers and em-

ployees, and amounted to NOK 35.7

million at 30 June 2016, down from

NOK 42.9 million at the end of the

precedingquarterandNOK69.1million

at31December2015.Thereductionis

mainly due to liabilities having been

paid. There are usually variations be-

tween quarters due to fluctuating

payables to suppliers and accrued

liabilities.

Equityamounted toNOK656.5million

at30June2016,downfromNOK698.7

million on 31 March 2016 and NOK

749.7millionatthebeginningof2016.

Thereductionwasmainlycausedbythe

netlossinthequarter.

IDEXdoesnothave financialdebt.The

company has adequate equity and

liquiditytooperateasgoingconcernfor

significantly longer than 12 months

fromthedateofthisreport.

Cashflow,cashposition

Theoperationalcashoutflowinthefirst

halfof2016wasNOK141.6million(Q2:

NOK 59.6million). Themain operating

cash item was the operating loss

amounting to NOK 99.0 million in the

period,partlyoffsetby theequitypart

of the share-based compensation and

depreciation. Working capital was

negativebyNOK51.2millioninthefirst

half mainly because of increased

customer receivables and payment of

liabilitiessinceyearend2015.Thereare

usually variations between quarters,

mainly due to fluctuating payables to

suppliersandaccruedliabilities.

NOK 0.8 million was invested in

scientific equipment and engineering

toolsinthefirsthalf,downfromaverage

NOK1.6million in the firsthalfof2015.

Investments vary according to project

requirements for new equipment and

tooling.IDEXhasnotcapitalisedanyofits

own development expenses in the first

halfof2016.Inthefirsthalfof2015IDEX

capitalisedNOK0.5millionowndevelop-

mentexpenses.

In the first half, employees who

exercised incentive subscription rights

injectednewequityamountingtoNOK

1.1 million net of expenses. In 2015,

new equity amounting to NOK 724.4

millionnetafterexpenseswasraisedby

aprivateplacementofshares,payables

settled in shares, two exercises of

warrantsandtworoundsofexercisesof

incentivesubscriptionrights.

At 30 June 2016 the cash position

amounted to NOK 623.4million, com-

paredtoNOK682.7millionat31March

2016 and NOK 763.7 million at the

beginning of the year. Net of re-

ceivables less payables and accruals

amounted toNOK 8.9million payable,

leavingabalancesheetsolvencyofNOK

614.5 million compared to NOK 701.7

million at the beginning of 2016. IDEX

doesnothavefinancialdebt.

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IDEXASA

Condensedconsolidatedinterimfinancialstatementswithnotes

30June2016(Unaudited)

Thenotesareanintegralpartofthiscondensedinterimfinancialreport.

Interimconsolidatedstatementsofcomprehensiveincome

1April-30June

1April-30June

1January-30June

1January-30June

1January-31December

AmountsinNOK1,000 2016 2015 2016 2015 2015OperatingincomeSalesandservicesincome 14110 33 17672 83 349Otheroperatingrevenue Totalrevenue 14110 33 17672 83 349

Costofgoodssold 11732 32 14655 63 137Grossmargin 2378 1 3017 20 212

OperatingexpensesPayrollexpenses 17128 17737 39558 43082 98226Researchanddevelopmentexpenses 20865 25361 46319 41799 102567Otheroperatingexpenses 6689 4903 12235 10275 18972Totaloperatingexpenses 44682 48001 98112 95156 219765

Profit(loss)beforeinterest,tax,depreciationandamortization(EBITDA) (42304) (48000) (95095) (95136) (219553)Depreciation 1810 1621 3929 3296 6834Profitbeforeinterestandtax(EBIT) (44115) (49621) (99025) (98432) (226388)

FinancialincomeandexpensesInterestincome 229 987 487 1643 2810Otherfinancialincome 381 63 812 1242 3312Interestexpenses (1) (1) (1)Otherfinancialexpenses (1182) (806) (1339) (3462) (8023)Netfinancialitems (572) 244 (41) (578) (1902)

Netresultbeforetax (44687) (49377) (99066) (99010) (228290)Incometaxexpense(credit) 193 155 391 303 541Netprofit(loss)fortheperiod (44880) (49532) (99457) (99313) (228831)Profit(loss)pershare-basicanddiluted NOK(0.09) NOK(0.11) NOK(0.19) NOK(0.23) NOK(0.50)

Netprofit(loss)fortheperiod (44880) (49532) (99457) (99313) (228831)Othercomprehensiveincome 839 (422) (167) 29 (1006)Totalcomprehensiveincomefortheperiod,netoftax (44041) (49954) (99624) (99284) (229837)

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Thenotesareanintegralpartofthiscondensedinterimfinancialreport.

Interimconsolidatedbalancesheets 30June 30June 31December

AmountsinNOK1,000 2016 2015 2015

ASSETSLong-termassetsGoodwill 8260 8260 8260

Otherintangibleassets 36747 41103 39172

Fixedassets 5627 6349 6576

Long-termreceivables 1170 1143 1155

Totallong-termassets 51804 56855 55163

CurrentassetsInventoryandreceivablesInventory 7136 7944 2281

Customerreceivables 11688 33 254

Otherreceivables 3956 3967 4319

Prepaidexpenses 4010 2890 2531

Totalinventoryandreceivables 26790 14834 9385

CashandbankdepositsCashandbankdeposits 623394 431115 763716

Totalcashandbankdeposits 623394 431115 763716

Totalcurrentassets 650184 445949 773101

TOTALASSETS 701988 502804 828264

EQUITYANDLIABILITIESEquityPaid-in-capitalSharecapital 79812 70391 79651

Sharepremium 1171570 738436 1170454

Otherpaid-incapital 49761 39604 44566

Totalpaid-in-capital 1301143 848431 1294671Otherequity (644610) (414434) (544987)

Totalequity 656533 433997 749684

LiabilitiesLong-termliabilitiesOtherlong-termliabilities 9746 11503 9445

Totallong-termliabilities 9746 11503 9445Short-termliabilitiesAccountspayable 10666 29361 17755

Publicdutiespayable 1692 1858 4012

Accruedpayableincometax 859 1005 1019

Notionalemployer'staxonshareincentives 8549 8569 13900

Othershort-termliabilities 13943 16511 32449

Totalshorttermliabilities 35709 57304 69135

Totalliabilities 45455 68807 78580

TOTALEQUITYANDLIABILITIES 701988 502804 828264

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Thenotesareanintegralpartofthiscondensedinterimfinancialreport.

Interimconsolidatedcashflowstatements

1April-30June

1April-30June

1January-30June

1January-30June

1January-31December

AmountsinNOK1,000 2016 2015 2016 2015 2015CashFlowsfromoperatingactivitiesProfit(loss)beforeinterestandtaxes (44115) (49621) (99025) (98432) (226388)Share-basedremuneration(equitypart) 2550 3267 5195 6797 11779Depreciation 1810 1621 3929 3296 6834Netfinancialgain(cost) (801) (528) (1) (4712)Changeinworkingcapitalandotheritems (19025) 17354 (51175) 7405 25124Netcashflowfromoperationalactivities (59581) (27379) (141604) (80935) (187363)

CashflowsfrominvestingactivitiesPurchasesofassets (648) (920) (785) (1602) (2624)Capitaliseddevelopmentcosts (509) (509) (813)Changeinlong-termreceivables 1 (12)Interestincome 229 987 487 1643 2810Netcashprovidedbyinvestingactivities (419) (442) (297) (468) (639)

CashflowsfromfinancingactivitiesShareissuesnetofexpenses 152 277817 1277 283112 724391Paid-in,notregisteredsharecapital 21 21 Changeinlong-termpayable 503 97 301 1424 (634)Netcashprovidedbyfinancingactivities 655 277935 1578 284557 723757

Netchangeincashandcashequivalents (59344) 250114 (140322) 203154 535755Openingcashbalance 682738 181001 763716 227961 227961Closingcashbalance 623394 431115 623394 431115 763716

Interimconsolidatedstatementsofchangesinequity Share Share

Otherpaid-in

Retainedearnings

(uncovered TotalAmountsinNOK1,000 capital premium capital loss) equityBalance1January2016 79651 1170454 44566 (544987) 749684 Shareissues 161 1117 1278 Share-basedcompensation 5195 5195 Totalcomprehensiveincomefortheperiod (99624) (99624) Balance30June2016 79812 1171571 49761 (644611) 656533

Balance1January2015 61948 463766 32787 (315150) 243351 Shareissues 8442 274670 283112 Paid-in,notregisteredsharecapital 21 21 Share-basedcompensation 6797 6797 Totalcomprehensiveincomefortheperiod (99284) (99284) Balance30June2015 70390 738436 39605 (414434) 433997

Balance1January2015 61948 463766 32787 (315150) 243351 Shareissues 17703 706688 724391 Share-basedcompensation 11779 11779 Totalcomprehensiveincomefortheperiod (229837) (229837) Balance31December2015 79651 1170454 44566 (544987) 749684

Page6of9

Notestothecondensedconsolidatedinterimfinancialstatements

30June2016(Unaudited)

1IDEXASAandtheIDEXgroup

IDEXASAisapubliclimitedliabilitycompany

incorporatedanddomiciled inNorway.The

addressoftheregisteredoffice,whichisalso

the head office, is Martin Linges vei 25 at

NO-1364 Fornebu,Norway. IDEXASAshar-

es have been listed at Oslo Børs since

12 March 2010. The objective of the com

panyasstatedinthearticlesofassociationis

todelivercomputer-basedidentificationsys-

temsandotherrelatedactivities.

IDEXASAholdsasubsidiarygroupintheUSA,

established in 2013. The companyprovides

development services as well as sales and

marketingassistancetoIDEXASA.IDEXASA

alsohasasubsidiaryintheUK,establishedin

2014, and a subsidiary in the People’s

Republic of China, established in 2015. The

subsidiaries provide various services to

IDEXASA.

2Basisofpreparation,accountingpolicies,resolution.Risks

This condensed consolidated interim fi-

nancial report for the firsthalfof2016has

been prepared in accordance with IAS 34

Interim financial reporting. The interim

financial report should be read in con-

junction with the annual financial state-

mentsfor2015.TheIFRSaccountingpolicies

applied in this report are consistent with

those applied and described in the annual

financialstatementsfor2015.

Itisthedutyoftheboardofdirectorstoduly

present the principal risks of IDEX and its

business.IDEXdoesnothaveanysignificant

assets or liabilities with financial risk. IDEX

does not hold financial instruments or

noteworthyfinancialassetsorliabilities,and

haslimitedfinancialrisksrelatedtocurrency

andinterestrates.

The company’s major long-term risk is its

business risk, meaning its ability to earn

revenue. This risk is difficult to assess, be-

causeuntilthesecondquarterof2016,IDEX

has earned only insignificant revenue from

itstechnology.Thecompany’sabilitytoearn

revenue depends on firstly, its ability to

developandmarketsuccessfulcomponents

which its partners will embed in their

products and systems, and secondly, the

company’s ability to legally protect its

intellectual property rights, and finally, to

maintainacompetitiveadvantage.

IDEX considers that its fingerprint sensor

technology has one of the best biometric

performances,andthatthefingerprintsen-

sorproductrangeoffersuniqueproperties.

The going concern assumption has been

appliedwhenpreparingthisinterimfinancial

report. IDEXdoesnotyetearna significant

amountofrecurringrevenue.Thecompany

does not have financial debt, and IDEX has

adequateliquidityandequityundercurrent

planning assumptions for a period signifi-

cantlylongerthan12monthsfromthedate

ofthisreport.

This interim financial report has not been

subjecttoaudit.Thereportwasapprovedby

theboardofdirectorson10August2016.

3Long-termassets

Presentasjonsformat

AmountsinNOK1,000 GoodwillOther

intangibleassetsTangible

fixedassetsLong-termreceivables

Totallong-termassets

Balance1January2016 8260 39172 6576 1155 55163Additions 769 16 785Disposalsatcost Depreciationandimpairmentlosses (2425) (1504) (3929)Effectsofchangesinforeigncurrency (214) (1) (215)Balance30June2016 8260 36747 5627 1170 51804

Balance1January2015 8260 42805 5588 1143 57796Additions 509 1602 2111Disposalsatcost Depreciationandimpairmentlosses (2211) (1085) (3296)Effectsofchangesinforeigncurrency 244 244Balance30June2015 8260 41103 6349 1143 56855

Balance1January2015 8260 42805 5588 1143 57796Additions 813 2625 12 3450Disposalsatcost Depreciationandimpairmentlosses (4446) (2388) (6834)Effectsofchangesinforeigncurrency 753 753Balance31December2015 8260 39172 6576 1155 55163

Page7of9

Under IFRS goodwill is not amortised but

impairment tested at each year end.

Acquired patents and other capitalised

intangible assets depreciate over the eco-

nomiclife.

IDEX’s own patents and other intellectual

propertyrightscreatedbyIDEXarenotheld

in the balance sheet because they do not

satisfy the criteria for capitalisation. Devel-

opmentcostsmaybeexpensedforthesame

reason.

2015:

IDEX capitalised in 2015 NOK 0.8 million

developmentexpensesrelatedtotheCardi-

nalsensorproduct.

4Shares,warrantsandsubscriptionrights

IDEX has granted incentive subscription

rights (SRs) to employees and individual

contractors. Unless specifically resolved

otherwise,25percentofeachgrantofsub–

scriptionrightsvest12monthsfollowingthe

date of the grant, and expire on the fifth

anniversary following the general meeting

thatresolvedtheprogramme.Unvestedsub-

scription rights terminate on the holder’s

lastdayofemployment.Vestedsubscription

rightsmaybeexercisedupto90daysafter

the holder’s last day of employment. The

weighted average exercise price of out-

standingincentiveSRson30June2016was

NOK4.08pershare.

5Payrollexpenses

The fair value at grant date of subscription

rights granted to employees are expensed

overthevestingperiodofeachtranche.The

fairvalueofthesubscriptionrightsisdeter-

minedusingaBlack&Scholesoptionpricing

model.

Employer’s social security tax related to

share-based remuneration is calculated on

thebalancesheetdatebasedontheearned

intrinsicvalueofthesubscriptionrights,and

the adjustment to the accrued amount is

chargedorcreditedtocost.

Whensubscription rightsareexercised, the

accruedpayrolltaxisreversedandtheactual

payrolltaxisexpensed.

NumberoffinancialinstrumentsIncentive

subscription Warrants SharesBalance1January2016 22220000 0 5310094161January-30June:Grantedincentivesubscriptionrights 24750001January-30June:Exercisedincentivesubscriptionrights (937500) 9375001January-30Juneh:Expiredandforfeitedincentivesubscriptionrights (275000)25May2016:Issueofboardremunerationshares 133339Balance30June2015 23482500 0 532080255

Balance1January2015 26460362 30000000 4134888621January-30June:Grantedincentivesubscriptionrights 15550001January-30June:Exercisedincentivesubscriptionrights (3282862) 32828621January-30June:Expiredandforfeitedincentivesubscriptionrights (162500)29April2015:Privateplacementofshares,issueofwarrants 26250000 5250000013May2015:Issueofboardremunerationshares 137692Balance30June2015 24570000 56250000 469409416

Balance1January2015 26460362 30000000 4134888621January-31December:Grantedincentivesubscriptionrights 22850001January-31December:Exercisedincentivesubscriptionrights (5482862) 54828621January-31December:Expiredandforfeitedincentivesubscriptionrights (1042500)29April2015:Privateplacementofshares,issueofwarrants 26250000 5250000013May2015:Issueofboardremunerationshares 1376922July2015:Privateplacementofshares 315000016November2015:Exerciseofwarrants (30000000) 300000004December2015:Exerciseofwarrants (26250000) 26250000Balance31December2015 22220000 0 531009416

Presentationformat NBformulasupdate NBformulasupdateNBformulasupdateNBformulasupdate1April-30June

1April-30June

1January-30June

1January-30June

1January-31December

AmountsinNOK1,000 2016 2015 2016 2015 2015Salary,payrolltax,benefits,otherexpenses 16224 14166 38875 29502 73007Capitalisedcostofdevelopmentwork (388) (388) (547)Payrolltaxonexercisedsubscriptionrights 121 71 877 1453 3618Share-basedremun.,notionalsalaryexpense 2512 2959 5157 6176 10479Share-basedremun.,accrual(rev.)ofemplr.'stax (1729) 930 (5351) 6339 11669Payrollexpenses 17128 17737 39558 43082 98226

Page8of9

6Incometaxexpense

TheincometaxexpenserelatestoestimatedincometaxonprofitinIDEXAmericaandIDEXUK.

7Profit(loss)pershare

1January–

30June2016

1January–

30june2015

1January–

31December2015

Profit(loss)attributabletotheshareholders(NOK1000) (99457) (99313) (228831)

Weightedaveragebasicnumberofshares 531568235 433504518 459123063

Weightedaveragedilutednumberofshares 542934213 444219802 471523685

Profit(loss)pershare,basicanddiluted NOK(0.19) NOK(0.23) NOK(0.50)

Whentheperiodresultisaloss,thelossper

dilutednumberof shares isnot reducedby

the higher diluted number of shares but

equalstheresultperbasicnumberofshares.

The diluted number of shares has been

calculated by the treasury stockmethod. If

the exercise price of subscription rights or

warrantsexceedstheaveragesharepricein

the period, the subscription rights or war-

rantsarenotcountedasbeingdilutive.

8Contingentassetsandliabilities

IDEXdoesnothaveanycontingentassetsorcontingentliabilities.IDEXhasnotissuedanyguarantees.

9Relatedpartytransactions

On 26 February 2016, the board granted

incentive subscription rights (SRs) to the

following managers who are primary

insiders: Henrik Knudtzon, CFO, 375,000

SRs; Hemant Mardia, CEO, 1,000,000 SRs;

PreetiMardia,SVPOperations,250,000SRs;

Art Stewart, SVP Product Management,

200,000 SRs, Anthony Sweeney, SVP Engi-

neering,150,000SRs.Thegrantsweremade

underthe2015incentivesubscriptionrights

plan. The exercise price of the SRs is NOK

8.10pershare.

Following the annual general meeting of

IDEXon11May2016,boardmemberscould

elect to receive part or full board remune-

ration inshares,payingasubscriptionprice

of NOK 0.15 per share. Board member

Deborah Davis acquired 48,487 shares,

board member Hanne Høvding acquired

48,487 shares, and boardmember Andrew

JamesMacleodacquired36,365shares.

In the first half of 2016 IDEX has recorded

NOK1,498thousandforservicesprovidedby

IDEX’s legal counsel, law firm Ræder, in

whichchairmanMortenOpstadisapartner.

Mr. Opstad’s work beyond board duty has

beeninvoicedbyRæder.

BoardmemberLarryCiacciaservesonIDEX’s

Strategy Advisory Council (SAC). The SAC

servicefeeisUSD15thousandperyear.Mr.

Ciaccia also provides consulting services

beyondboarddutytoIDEXforafixedfeeof

USD50thousandperyear.

Effective 1 February 2016, board member

AndyMacLeod provides consulting services

beyondboarddutytoIDEXforafixedfeeof

GBP60 thousandper year.On26 February

2016 he was granted 500,000 incentive

subscription rights (SRs) in his capacity as

serviceprovider.Thegrantwasmadeunder

the2015 incentive subscription rightsplan.

TheexercisepriceoftheSRsisNOK8.10per

share.

Robert N. Keith assists IDEX in strategic

analysis and in dealing with larger, inter-

national, prospective partners. Mr. Keith’s

fee for his services amounts to NOK 2.0

millionperyear.

10Eventsoccurringafterthebalancesheetdate

On10August2016theboardresolvedtogrant

3,380,000incentivesubscriptionrights(SRs)to

employees and contractors of the company.

The grant was made under the 2016

incentivesubscriptionrightsplan.Theexercise

priceoftheSRsisNOK7.79pershare.Onthe

samedate,theboardresolvedtoissue200,000

shares at an average price of NOK 1.15 per

share to an employee who had exercised

subscription rights which were granted in

2013.

Between 30 June 2016 and the resolution of

these condensed consolidated interim finan-

cial statements, there have not been any

eventsthathavehadanynoticeableimpacton

IDEX’s result in the first half of 2016 or the

valueofthecompany’sassetsandliabilitiesat

30June2016.

Page9of9

Responsibilitystatement

Interimreportforthefirsthalf2016(Unaudited)

We confirm, to the best of our knowledge, that the condensed consolidated financial statements with notes for the period

1January-30June2016hasbeenpreparedinaccordancewithIAS34-InterimFinancialReportingandgivesatrueandfairview

ofIDEX’sassets,liabilities,financialpositionandprofitorlossasawhole.Majorrelatedpartiestransactionshavebeendisclosed

innote9.

Wealsoconfirm,tothebestofourknowledge,thattheinterimreportissuedinconcertwiththesecondensedfinancialstatements

includesafairreviewofimportanteventsthathaveoccurredduringthefirstsixmonthsofthefinancialyearandtheirimpacton

thecondensedconsolidatedfinancialstatements,andadescriptionoftheprincipalrisksanduncertaintiesfortheremainingsix

monthsofthefinancialyear.

Fornebu,10August2016

TheboardofdirectorsofIDEXASA

MortenOpstad,Chairman

HanneHøvding,BoardMember

LawrenceJohnCiaccia,BoardMember

AndrewJamesMacleod,BoardMember

DeborahLeeDavis,BoardMember

HemantMardia,CEO