AuthenTec (NASDAQ: AUTH), the world’s leading provider of fingerprint sensors and solutions, today updated revenue estimates for the third quarter and fiscal year 2008 and reported the loss of a 2009 design-in opportunity at a significant PC customer.

Based on order trends and discussions with customers, AuthenTec now expects third quarter 2008 revenue to range between $18.2 million and $18.5 million and fiscal year 2008 revenue to range between $69 million and $71 million. This represents an increase from the $15.1 million reported in the third quarter of 2007 and $52.3 million reported for fiscal year 2007. The Company attributes the reduction in estimated revenue to an overstocked inventory position at a new customer and the impact of lower than expected sales of higher-end notebooks, which are more likely to be equipped with a fingerprint sensor as a standard or optional feature.

Corresponding with the revised revenue estimate, the Company now expects third quarter 2008 non-GAAP earnings per share to range between $0.03 per diluted share to $0.04 per diluted share.

Additionally, AuthenTec has been notified by a significant PC customer that it does not presently plan to use AuthenTec’s fingerprint sensors in its next design cycle in late 2009. AuthenTec anticipates an impact to its sales will occur in the second half of 2009. The business of this customer represented approximately 40 percent of AuthenTec's revenue in the second quarter of 2008 and is expected to represent approximately 30 to 35 percent of the Company’s revenue in the third quarter of 2008. AuthenTec remains a supplier to this customer and will continue to aggressively compete for future opportunities.

Conference Call Information:

AuthenTec will host a conference call at 8:00 a.m. Eastern Time (ET), Monday, September 8, 2008. Investors and analysts may join the conference call by dialing 800.291.5365 and providing the participant pass code 22506970. International callers may join the teleconference by dialing 617.614.3922 and using the same pass code. A replay will be available beginning two hours after conclusion of the call and will be available until midnight ET on Wednesday, September 10, 2008. The replay number is 888.286.8010, with a confirmation code of 25958983. International callers interested in listening to the replay should dial 617-801-6888 and use the same pass code. A live web cast (voice only) of the conference call will be accessible from the Investor section of the Company's web site at investors.authentec.com.