Board of Directors in Precise Biometrics sets terms for the share issue

- Those who are shareholders in Precise Biometrics have preferential right to subscribe to one (1) new share on the record day August 27, 2009 for every three (3) existing shares. - The subscription price has been set to SEK 1.60 per share, which corresponds to a total issue amount of SEK 54.0 million, provided that the share issue is fully subscribed. - The subscription period runs from August 31 - September 14, 2009. The board of directors in Precise Biometrics has set the terms and conditions for the new issue of shares with preferential rights, which was decided upon on July 30, 2009 by the Board of Directors. The new issue of shares is conditional on a decision at an extraordinary general meeting on August 21, 2009. Each existing share in Precise Biometrics carries an entitlement to one (1) subscription right. Three (3) subscription rights entitle subscription to one (1) new share. The subscription price has been set to SEK 1.60 per share, which means that the new issue of shares will supply Precise Biometrics with a total of SEK 54.0 million, prior to deductions for issue costs, through the issue of a total of 33 740 200 new shares. If the offer is fully subscribed the total number of shares in Precise Biometrics will be 134 960 800 after the share issue. The new issue of shares will increase the share capital by a total of SEK 13 496 080 to a maximum amount of SEK 53 984 320 after the issue. In light of the fact that Precise Biometrics in July 2009 announced the largest order in the company's history, the company needs to strengthen its working capital to secure continued growth. Furthermore, the company intends to increase its market cultivation within prioritized market segments and geographical markets by increased sales and marketing resources. A strong financial position is also expected to increase the potential of receiving additional orders in similar size of the one received from US government agencies in July 2009. The record day at Euroclear to obtain subscription rights is August 27, 2009. The subscription period will run from August 31 - September 14, 2009, or a date to be decided by the board of directors. Timetable for the new issue of shares Extraordinary general meeting August 21, 2009 Prospectus published around August 24, 2009 Last day of trading in the share with right to participate in the new issue August 24, 2009 First day of trading without right to participate in the new issue August 25, 2009 Record day for participation in the new issue of shares August 27, 2009 Trading in subscription rights on NASDAQ OMX Aug 31 - Sept 9, 2009 Trading in paid subscribed shares on NASDAQ OMX August 31, 2009 until the new issues of shares is registered at the Swedish Companies Registration Office Subscription period for the new issue Aug 31 - Sept 14, 2009 Publication of the results of the new issue September 18, 2009 Subscription undertakings The Company's largest shareholder, Storebrand fonder, supports the share issue and have committed to subscribe for their pro rata shares corresponding to their current holding of 5.0 per cent. All members of the board of directors and the corporate management have committed to respectively subscribe for their pro rata shares in the share issue. In total the commitments correspond to 6.4 per cent of the shares in the issue. Financial advisor Remium AB is acting as financial advisor to Precise Biometrics in conjunction with the new issue of shares. For more information: Thomas Marschall, CEO, Precise Biometrics AB Tel: +46 46 31 11 10 or +46 734 35 11 10 E-mail thomas.marschall@precisebiometrics.com Patrik Norberg, CFO, Precise Biometrics AB Tel. +46 (0)46 31 11 47 or +46 (0) 734 35 11 47 E-mail patrik.norberg@precisebiometrics.com Precise Biometrics is a market-leading provider of products and solutions for fingerprint recognition. The technology proves people's identities in a fast and secure way, while it reduces costs related to password management, identity theft and fraud. Precise Biometrics serves business and government organizations throughout the world and its technology is licensed to close to 100 million users. Precise Biometrics is listed on NASDAQ OMX Stockholm small cap list (PREC). For more information, please visit www.precisebiometrics.com or view an information video at www.precisebiometrics.com/share-issue-video Precise Biometrics is required to make this information public as per the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication on 20 August 2009 at 08.00 AM. Important information The publication or distribution of this press release may in certain jurisdictions be subject to restriction by law, and persons in the jurisdictions where this press release has been published or distributed should inform themselves of and follow such legal restrictions. This press release may not be made public, published or distributed, either directly or indirectly in the United States, Canada, Japan, New Zealand, South Africa, Australia or any other country where such procedures are subject in full or in part to legal restrictions. Nor may the information in this press release may not be communicated, reproduced or presented in any way that is in conflict with such restrictions. Failure to follow this instruction may involve a breach of the United States Securities Act from 1933 ("Securities Act") or applicable laws in other jurisdictions. This press release does not contain or constitute an invitation or offer to acquire, subscribe to or otherwise trade with shares, subscription rights or other securities in Precise Biometrics. The invitation to the persons concerned to subscribe to shares in Precise Biometrics will only take place through the Prospectus that Precise Biometrics intends to publish around August 24, 2009, and this Prospectus will contain financial statements and other information on Precise Biometrics' board of directors and auditors. Neither the subscription rights, paid subscribed shares or the new shares will be registered in accordance with the Securities Act or any other act in Canada, and may not be transferred or offered for sale in the United States or Canada, or to persons domiciled there, or on behalf of such persons, other than in such exceptional cases where registering in accordance with the Securities Act or other act in Canada is not required.