Exhibit 99.1

ActivIdentity Reports Fourth Quarter and

Fiscal 2007 Financial Results

Company delivers 12 percent annual revenue growth

FREMONT, Calif., December 5, 2007—

Revenue for the quarter ended September 30, 2007 was $13.8 million, compared to $17.9 million for the quarter ended September 30, 2006. Revenue for the year ended September 30, 2007 was $59.6 million, compared to $53.4 million for the prior year, representing year-over-year revenue growth of 12%.

Net loss for the quarter ended September 30, 2007 was $1.7 million, or $0.04 per basic and diluted share, compared to a net loss of $0.3 million, or $0.01 per basic and diluted share for the three months ended September 30, 2006. Net loss for the year ended September 30, 2007 was $9.3 million or $0.20 per basic and diluted share, compared to a net loss of $22.5 million or $0.50 per share for the prior year.

Fiscal Fourth Quarter and Fiscal Year Financial Highlights:

•                  Operating expenses during the quarter were $13.6M. For the year, operating expenses were down 5% compared to the prior year, on increased revenue.

•                  Gross profit in FY07 was $39.0 million compared to $33.6 million in FY06, representing a 16% increase year over year. Gross margins were 65% in the current year versus 63% in FY 06.

•                  Cash, cash equivalents, and short-term investments were $121.7 million at September 30, 2007.

•                  Net loss per share declined 60% from the prior year.

“We continue to work diligently to improve our top-line as we see the current demand environment for smart cards growing. During our fiscal year, we expanded our existing relationships with BT, Sun, HP and EDS which contributed to our revenue growth and to the expansion of our end customer base.  Importantly, we continue to see positive market trends and the uptake of our Smart Employee Identification solutions in Europe is growing,” said Thomas Jahn, ActivIdentity’s CEO.

Fiscal Year 2007 Business Highlights

•                  ActivIdentity strengthened its relationship with HP, an OEM partner in the United States, as the company’s Smart Employee ID offerings continue to be embedded into various applications in the enterprise.

•                  The company strengthened its pipeline with Sun Microsystems by providing CMS and Secure Login to the Sun Identity Management Suite.

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