TagMaster acquires the LPR/ANPR (License Plate Recognition) business from Image Sensing Systems

Press release

Sweden, Stockholm July 10, 2015

TagMaster, the leading manufacturer of advanced RFID products for vehicle
identification within Traffic Solutions and Rail Solutions, today announces that
the company acquires the LPR unit (CitySync Ltd) from Image Sensing Systems for
a purchase price of approximately 34 MSEK.

CitySync Ltd is a leading company in LPR technology and they have been in the
business since 1997. The company turnover is around 40 MSEK and it has around 30
employees, of whom half is working with product development, and the company is
located north of London. The products are sold primarily in England, The Middle
East, Western Europe and in the USA. CitySync are known for having one of the
market’s best (fastest and most accurate) algorithms for reading of number
plates and their products are used within traffic, toll roads, parking and for
security solutions.

TagMaster has already communicated its intention to, as part of its strategy,
increase the product offering through selective acquisitions in adjacent
technology areas like sensors, detectors and camera technology (LPR/ANPR) to be
able to offer the type of information required to build what today is called
smart cities.

”We are now taking our first step to realize the acquisition part of our
strategy with an ambition to increase our turnover and our profit in a faster
pace. We are looking forward to be able to offer our customers broader solutions
through integration of our different technologies (RFID and ALPR) to make a more
attractive offering. TagMaster and CitySync are very complimentary and they
share the common basic values required to build a solid growth within Traffic
Solutions. We expect synergies among others in sales where our combined sales
force will be able to get better market coverage with a bigger portfolio of
products and which will also in the future offer more solutions. We are pleased
to be able to create the future innovations within Traffic Solutions together
with our new colleagues at City Sync” says Jonas Svensson, TagMaster’s CEO.

The City Sync business is transferred by July 10 and it is expected to
contribute with around one half yearly turnover (which means around 20 MSEK) to
the total turnover of TagMaster 2015 while some structural changes may influence
the total result negatively.

For further information contact:

Jonas Svensson, CEO, +46 8-6321950, jonas.svensson@tagmaster.com

About TagMaster

TagMaster is an application driven technology company that designs and markets
advanced radio frequency identification (RFID) products and systems for
demanding environments. Business areas include Traffic Solutions and Rail
Solutions providing innovative application in order to increase efficiency,
security, convenience and to decrease environmental impact. TagMaster has
dedicated agencies in the US and in China and exports mainly to Europe, Middle
East, Asia and North America via a global network of partners, systems
integrators and distributors. TagMaster was founded in 1994 and has its
headquarters in Stockholm. TagMaster is a public company and its shares are
traded on First North stock exchange in Stockholm, Sweden.For more information
about TagMaster, please visit www.tagmaster.com