Precise Biometrics Shows Record Sales & Improved Margins

• The group’s net revenue for the financial year amounted to SEK 68.7 million (45.9) and for the fourth quarter to SEK 32.1 million (11.5).

• Net result for the financial year amounted to SEK -21.8 million (-54.2) and for the fourth quarter SEK 2.8 million (-35.8).

• Results per share for the financial year amounted to SEK -0.19 (-0.54) and for the fourth quarter SEK 0.02 (-0.35).

• Liquid assets at the end of the financial year amounted to SEK 40.9 million (11.3). Cash flow for the fourth quarter was to SEK -18.4 million. Adjusted for full repayment of the obtained credit facility and payments of costs related to the share issue, cash flow for the fourth quarter is SEK -1.4 million.

Important events during the year

• Precise Biometrics was awarded an order worth approximately USD 6.0 million from the US government within the Cyber Security framework. Final delivery of the order will be during the first quarter 2010.

• Precise Biometrics joined a partnership with the Nigerian company Interswitch aimed at developing bank application for the African market. A first project, worth 200 000 Euros in license sales, has already been initiated and invoiced.

• Precise Biometrics received a follow-up order of hardware and software at a value of SEK 2.1 million from an existing government customer in the Middle East

• Together with Gemalto, the world largest smart card provider, Precise Biometrics introduced Gemalto .NET Bio, a computer logon solution for Windows.

• Precise Biometrics AB completed a rights issue with preferential rights, which supplied the Company with SEK 50.6 million before issue costs. The rights issue was subscribed to 178% and is implemented to finance further expansion and increase market penetration in prioritized segments.

• The wholly owned subsidiary Precise Biometrics Solutions AB was restructured due to unfulfilled expectation in the Aviation sector. As an effect Precise Biometrics AB has, during the third quarter, written down the goodwill value of SEK 5.0 million in the subsidiary.