IDENTIVE GROUP ANNOUNCES THIRD QUARTER 2012 RESULTS

SANTA ANA, Calif. and ISMANING, Germany, November 1, 2012 – Identive Group, Inc. (NASDAQ: INVE; Frankfurt: INV), a provider of products, services and solutions for the identification, security and RFID industries, today announced results for the fiscal third quarter (Q3), ended September 30, 2012.

“Our core business continued to be affected by global economic and budget uncertainties, particularly in Europe. While some sales of access systems for US Government customers slipped into October, new cyber security programs at federal agencies drove a strong increase in smart card reader sales and previously delayed transponder orders also began to recover towards the end of the quarter,” said Ayman S. Ashour, CEO and chairman of Identive. “Our continued focus on cost reduction drove a further 9% sequential decline in our base operating expenses and adjusted EBITDA also improved significantly, bringing us close to breakeven on relatively weak revenues. Our cash performance in Q3 was better than anticipated and in October we also secured additional non-dilutive debt financing, strengthening our ability to manage our growth needs.”

Q3 Results

As reported in accordance with U.S. generally accepted accounting principles (GAAP), Q3 2012 revenues were $22.9 million, down 4% from $23.9 million in Q2 2012 and down 14% from $26.8 million in Q3 2011. By segment, Identity Management Services and Solutions (Identity Management) revenues were $13.8 million and ID Products revenues were $9.1 million in Q3 2012.

GAAP gross profit margin was 42% in Q3 2012, compared with 40% in Q2 2012 and 44% in

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Q3 2011. Total research and development, sales and marketing, and general and administrative expenses (referred to in this release as base operating expenses) were $12.1 million in Q3 2012, down 9% from $13.3 million in Q2 2012 and down 17% from $14.5 million in Q3 2011 as a result of the restructuring plan we initiated in June of this year and from ongoing initiatives to improve the efficiency of our business.

On a GAAP basis, Identive recorded net loss of $(7.9) million, or $(0.13) per share in Q3 2012, compared with net loss of $(41.9) million, or $(0.70) per share in Q2 2012 and net loss of $(3.7) million, or $(0.06) per share in Q3 2011. Reflected in our results for Q3 2012 are non-cash impairment charges of $5.8 million, which accounted for $(0.10) of the $(0.13) GAAP net loss per share recorded in the quarter. In Q2 2012, non-cash impairment charges and other associated non-cash adjustments accounted for $(0.66) of the reported net loss.

As previously announced, during Q2 2012 a sharp decline in our market capitalization triggered a required impairment analysis of our goodwill, intangible and long-lived assets, and at the time of our second quarter earnings announcement we had concluded that some assets were impaired and recognized preliminary non-cash charges for this impairment in our Q2 2012 financial statements. During Q3 2012 we completed our impairment analysis and recorded further charges, as described above. These charges do not impact our day-to-day operations or liquidity and will not result in any future cash expenditures. They do, however, reduce the amount of non-cash amortization charges we must record each quarter, which has a beneficial effect on our future net earnings.

Non-GAAP gross profit margin was 46% in Q3 2012, compared with 45% in Q2 2012. We recorded non-GAAP net loss of $(1.6) million, or $(0.03) per share in Q3 2012, compared with a non-GAAP net loss of $(1.1) million, or $(0.02) per share in Q2 2012. Adjusted EBITDA was $(0.3) million in Q3 2012, compared with $(1.2) million in Q2 2012.

Non-GAAP gross profit margin, adjusted EBITDA and non-GAAP net loss and net loss per share all exclude various items that are detailed in the financial table and accompanying footnotes reconciling GAAP to non-GAAP results contained in this release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."

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Cash, cash equivalents and restricted cash were $8.3 million at September 30, 2012 and included $2.1 million of cash generated from operations in the quarter, compared with $6.3 million of cash, cash equivalents and restricted cash at June 30, 2012.

David Wear, CFO of Identive commented, “As we projected, we were able to continue to reduce our costs and manage our cash effectively during the quarter. Expense reductions to date have helped to lower our EBITDA breakeven point significantly to between $23 million and $24 million in revenue per quarter. Our ongoing focus on cost efficiency and continued improvement in our revenue outlook should allow us to take advantage of this lower breakeven point to deliver EBITDA positive results on a consistent basis.”

Ongoing investment in product development resulted in the announcement of several important new products in the quarter, including:

Identive gained visibility at the London Olympics this summer as more than 100,000 visitors used the Company’s payment and identity management products and solutions:

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or a removable NFC payment sticker that enables payment using a mobile phone.

In addition, Identive’s payment solution cashless payment system was selected for use at various music festivals in Europe and for the Rat Verlegh Stadium in Breda, The

Mr. Ashour concluded, “Looking forward, a higher than usual backlog of orders for access control systems and readers for US Government agencies and the commencement of both delayed and new NFC and other transponder projects are creating an improved sales outlook for Q4. Successful development efforts also continue to reinforce our early leadership position in emerging growth opportunities. We have now expanded our www.IdentiveNFC.com online NFC marketplace to sell to a wider and growing customer base. We also are encouraged by the strong reception we are receiving from beta trials for our NFC marketing platform and are preparing for the platform’s public launch in Q4. The progress we are making to position Identive as the signature company in Secure ID is further supported by the improvements we have made to our financial base.”

Based on its current expectations, for the fourth quarter of 2012, management expects revenues of $26.0 million to $28.0 million and non-GAAP, adjusted EBITDA of $1.5 million to $2.0 million.

Identive Group will host a conference call and webcast today at 10:00 AM Eastern Time, which can be accessed by dialing 888.771.4371 (toll free within the U.S.) or +1 847.585.4405 (for international callers) and using pass code 33654779. A webcast of the call that includes presentation slides can be accessed by visiting the investor relations section of the Company’s website at www.identive-group.com, and by clicking on “Presentations, Reports & Webcasts,” where it also will be archived for those unable to listen to the live webcast. An audio replay of the call also will be available for one week and can be accessed by dialing 888.843.7419 (toll free within the U.S.) or +1 630.652.3042 (for international callers) and using pass code.

Identive Group, Inc. (NASDAQ: INVE; Frankfurt: INV) is focused on building the world’s signature company in Secure ID. The company’s products, software, systems and services address the markets for identity management, physical and logical access control, cashless payment, NFC solutions and a host of RFID-enabled applications for customers in the government, enterprise, consumer, education and healthcare sectors. Identive’s mission is to build a lasting business of scale and technology based on a combination of strong technology-driven organic growth and disciplined acquisitive expansion. The company delivers up-to-date information on its activity as well as industry trends through its industry-leading social media initiatives and educational resource, AskIdentive.com. For additional information, please visit www.identive-group.com or follow on Twitter at @IdentiveGroup.

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Identive has provided in this release financial information that has not been prepared in accordance with GAAP, including non-GAAP gross profit margin, adjusted EBITDA and non-GAAP net loss and net loss per share. Identive uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating Identive’s ongoing operational performance. Identive believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. As noted, the non-GAAP financial results discussed above exclude various items which are detailed in the reconciliation table and accompanying footnotes contained within this release. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures as detailed in this release.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by words such as “anticipates,” “believes,” “plans,” “will,” “intends,” “expects,” and similar references to the future. Examples of such statements include, without limitation, statements we make regarding our expectations regarding continued demand for our products, solutions and services, our expectations regarding market acceptance of our NFC, cashless payment and cloud-based solutions, our ability to realize savings from our cost savings and restructuring plans, our ability to capitalize and improve upon our technology portfolio, our expectations regarding future results, including Q4 and full year 2012 results, and our expectations for future growth and profitability. Readers should not unduly rely on these forward-looking statements, which are not a guarantee of future performance and are subject to a number of risks and uncertainties, many of which are outside our control, which could cause our actual business and operating results to differ. Factors that could cause actual results to differ materially from those in the forward-looking statements include our ability to grow our company based on a strategy of providing products, components and services for the secure identification market; to successfully develop and commercialize new products and solutions that satisfy the evolving and increasingly complex requirements of customers; whether the markets in which we participate or target may grow, converge or standardize at anticipated rates or at all, including the markets that we are targeting; our ability to successfully integrate acquired businesses; our ability to successfully compete in the markets in which we participate or target; our ability to meet our sales forecasts; our ability to meet financial covenants of our loan agreement; our ability to meet growing demand for our products; and general global political and economic factors which are beyond our control but may unduly impact our markets and our business. For a discussion of further risks and uncertainties related to our business, please refer to our public company reports, including our Annual Report on Form 10-K for the year ended December 31, 2011 and subsequent reports filed with the U.S. Securities and Exchange Commission. All forward-looking statements are based on information available to us on the date hereof, and we assume no obligation to update such statements.

All trade names are trademarks or registered trademarks of their respective holders.

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Reconciliation of GAAP and Non-GAAP Financial Information (C)

(In thousands) (unaudited)

(C) Non-GAAP figures in the table above differ from GAAP results as they exclude some or all of the following: stock-based compensation expense, transition and integration costs, amortization and depreciation, impairment charges, acquisition costs, restructuring, and re-measurement of contingent consideration. Adjusted EBITDA additionally excludes provision/benefit for income taxes, net loss attributable to noncontrolling interest, net interest expense/income, net foreign currency losses/gains, and other net expense/income. Prior year comparisons have been updated to remove overhead allocations which are no longer relevant.

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Reconciliation of GAAP and Non-GAAP Financial Information

(In thousands) (unaudited)

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