Assume (I). Existence of a decomposition is part of the hypothesis. If are two decompositions, multiply on the left by and on the right by to obtain
The left side belongs to and the right side to , since they are subgroups. Their common value belongs to , so and . This proves uniqueness, hence (II).
Conversely, assume (II). Existence immediately gives . If , then
are two allowed factorizations, because the identity is in each subgroup. Uniqueness makes their first components equal, so . Thus and (I) follows.
Therefore (I) and (II) are equivalent. This is an exact factorization of a group. For finite groups it gives , but it does not by itself identify with a direct product of groups; multiplication between the two factors can be noncommutative.
The two diagonal generators are independent involutions, so
It is a Klein four-group. Write the swapping generator as . Then , so has order two. Moreover,
Thus normalizes . The set
is a group: its products reduce using
and inverses reduce in the same way. It contains both generating subgroups, so minimality gives ; conversely every displayed product is in , giving .
There are four diagonal matrices and four off-diagonal matrices , all distinct. Consequently
Also , since is not diagonal, and every element of has the form . This proves condition (I), hence the exact factorization of a group. Here is a normal subgroup and is a semidirect product. Its matrices are the two-dimensional signed permutation matrices, also realizing the dihedral group of the square.

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