KUDELSKI GROUP SIGNS PATENT LICENSE AGREEMENT

Cheseaux, Switzerland, and Kriens / Lucerne, Switzerland, April 28, 2016 - The Kudelski Group (SIX: KUD.S), a global leader in digital security and convergent media solutions and fine Swiss Metals AG (fSM), an emerging small business based in Kriens, Lucerne, Switzerland focused on a highly specialized embedded gold ingot card manufacturing product line, today announced that fSM has entered into a multi-year, worldwide, patent license agreement covering Kudelski's Smart Card Manufacturing Portfolio. In addition fSM agreed to acquire a number of patents from Kudelski related to Card Manufacturing of embedded gold ingot cards including patents in Australia, United Kingdom, China and Japan.

"The Kudelski Group is focused on developing and licensing technology and intellectual property in multiple markets including Video and Smart Card Manufacturing and we are pleased to license our Smart Card Manufacturing patent portfolio to fSM," said Joe Chernesky, Senior Vice President of Intellectual Property and Innovation at the Kudelski Group. "Additionally through the strategic divestiture of a number of key patents in Card Manufacturing to fSM we have provided this emerging small business with a significant competitive advantage in the market."

"fSM intends to be a leader in the manufacturing of the embedded gold ingot card for use as loyalty cards and credit cards for bank clients and our agreement with Kudelski including the acquisition of these fundamental patents will be a key differentiator for us going forward," said Walter Lohri, CEO of fSM.

Other details regarding this agreement remain confidential.

With 4,500 patents and patent applications and over 60 years of experience in pioneering innovative technologies, the Kudelski Group offers a comprehensive intellectual property licensing program that provides its customers and partners with access to many fundamental technologies, enabling them to build compelling devices, applications and services that work seamlessly together.