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Company BgenuineTec Inc. TIDM BGTI Headline ALLIANCE WITH NESTAGE Released    08:15 05-Jun-09 Number 4318T08



FOR IMMEDIATE RELEASE

05 June 2009

BgenuineTec Inc

(AIM: BGTI)

("BgenuineTec" or "the Company")

ALLIANCE WITH NESTAGE CO. LTD

25 MILLION YEN FUND RAISING 

BgenuineTec, the Japanese developer of biometrics fingerprint authentication technology, announces an alliance with NESTAGE CO LTD ("NESTAGE") to develop its secure client management system and fingerprint authentication for video gaming.

BgenuineTec has provided a 20 million yen (approximately £129,422.) loan to NESTAGE on 30 April 2009. The loan is repayable on 30 October 2009 and carries an annual interest rate of 3%. 

NESTAGE's main business includes distributing TV games, including wholesale sales of game-related products, direct retail and franchises. NESTAGE has 502 stores, consisting of 213 franchise and 264 semi-franchise shops and 25 stores under direct management. The BgenuineTec and NESTAGE alliance will develop a new network client management system with fingerprint authentication for the sales promotion of video game software in NESTAGE. 

Mr. Kashiwabara and Dr. Kunieda, Chairman and Chief Executive of BgenuineTec respectively, were appointed as non executive directors of NESTAGE on 30 May 2009. Under Rule 13 of the AIM Rules, the loan will be a related party transaction. The Directors of BgenuineTec, excluding Mr. Kashiwabara and Dr. Kunieda, consider, having consulted with its Nominated Adviser Charles Stanley Securities, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned. 

BgenuineTec also announces that it has raised 25 million yen (approximately £161,778) by way of the issue of 2,500,000 new ordinary shares (the "New Shares") at a price of 10 yen per share (approximately 6.5p per share) (the "Subscription"). 

The shares are expected to be admitted to trading on AIM on 11 June 2009.

Taketoshi Kashiwabara, the Chairman of BgenunieTec, is subscribing for 25,000,000 million new ordinary shares and as such is under Rule 13 of the AIM Rules a related party transaction. The Directors, with the exception of Mr Kashiwabara, consider, having consulted with its nominated adviser Charles Stanley Securities, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned. 

Following approval and admission Mr Kashiwabara will have a beneficial interest in 35,109,285  ordinary shares being 52.7 per cent of the total issued ordinary share capital of the Company.  

Upon admission the total number of ordinary shares in issue will be 66,683,821.

Exchange Rate Used 1GBP: 154.53 JPY

For further information, please contact:

BgenuineTec Inc

Taketoshi Kashiwabara                                Japan                      +81-3-5652 -0321

(Chairman) 

Toshiya Kurita                                            Japan                      +81-3-5652 -0321

(Chief Financial Controller)

Charles Stanley Securities                                                   +44 (0) 20 7149 6000

Nominated Adviser

Russell Cook / Freddy Crossley                      

Cubitt Consulting                                                                +44 (0) 20 7367 5100

Brian Coleman-Smith / James Verstringhe

Background Note on BgenuineTec Inc. (formerly Secure Design KK)

On 14 July 2006, BgenuineTec Inc.(AIM; BGTI) was the first Japanese company to be admitted to trading on AIM. It offers fingerprint authentication products to companies and individuals that wish to establish high levels of security using biometrics. Biometrics uses a physical attribute of the body, such as a fingerprint to identify and verify the individual with the aim of making individual authentication efficient and secure.

The Company offers a range of fingerprint authentication products and systems, from an integrated system to a mobile device. The Company designs and outsources the production of these products and can tailor them to individual client specific needs and applications.

Biometric applications provide convenient and reliable security which reduces the cost associated with the failure of conventional authentication methods. The principal factor which distinguishes biometrics from conventional password based authentication is the enhanced security level it provides while maintaining the privacy of individual users.

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