Invitation to extraordinary general meeting in Precise Biometrics AB

The Board of Directors of Precise Biometrics AB (publ) has decided, subject to approval from an extraordinary general meeting on Monday 13 November 2006, to carry out a new share issue of approx. SEK 85 million with preferential rights for the shareholders. The purpose of the issue is to create prerequisites for the company to focus on activities generating profitability and bringing the company to positive results.

The shareholders in Precise Biometrics AB (publ) are hereby invited to attend the Extraordinary General Meeting ("EGM") to be held at 3 p.m. on Monday 13 November 2006, at the company's premises at Scheelevägen 30, Lund, Sweden. A. NOTICE OF ATTENDANCE Shareholders who wish to attend the EGM must: (i) be recorded in the printout of the share register maintained by the Swedish Securities Register Centre ("VPC"), made as of Tuesday 7 November 2006, at the latest, and (ii) notify the company of their intention to attend the EGM at the address: Precise Biometrics AB (publ), Box 798, SE-220 07 LUND, Sweden, by telephone +46 46 31 11 47, by telefax +46 46 31 11 01 or by e-mail: investor@precisebiometrics.com by 4 p.m. Tuesday 7 November 2006, at the latest. When giving notice of attendance, the shareholder shall state name, personal identity number (corporate registration number), address and telephone number. Proxy and representative of a legal entity shall submit papers of authorization prior to the EGM. In order to be able to vote at the EGM, shareholders with nominee-registered shares through the trust department of a bank or a private broker must have the shares temporarily owner-registered with VPC. Such registration must be made on Tuesday 7 November 2006, at the latest. Consequently, the shareholders must notify their nominee in due time before said date. B. AGENDA Proposal for Agenda Opening of the Meeting. Election of Chairman of the Meeting. Preparation and approval of the voting list. Approval of the agenda. Election of one or two person(s) to approve the minutes. Determination whether the Meeting has been duly convened. Approval of the resolution by the Board to issue new shares with preferential rights for the shareholders. Closing of the Meeting. Submitted proposals regarding matters on the agenda Approval of the resolution by the Board to issue new shares with preferential rights for the shareholders (item 7) The Board proposes that the Meeting approves of the resolution of the Board of 18 October 2006 to increase the company's share capital by a maximum of SEK 9,722,060 by issue of a maximum of 24,305,150 new shares at a subscription price of SEK 3.50. The shareholders will have preferen-tial rights to subscribe for the shares, whereby three (3) existing shares will entitle to subscription for one (1) new share. In the event that not all shares are subscribed for on basis of subscription rights, the Board shall decide that allocation of the shares shall be made within the scope of the maximum amount of the share issue, at which the Board shall allocate the shares primarily to those who have subscribed for shares on basis of subscription rights, pro rata in relation to their subscription and secondarily to those who have declared their interest to subscribe for shares without subscription rights, pro rata in relation to their declared interest. Record day at VPC for determination of shareholders entitled to participate in the preferen-tial rights issue shall be 16 November 2006. Subscription for the new shares shall be made during the subscription period as from 20 November up to and including 4 December 2006, or such later date as decided by the Board. Subscription on basis of subscription rights shall be made by simultaneous cash payment. Subscription without subscription rights shall be made on a separate subscription list and be paid in cash within three (3) banking days from when the Board's resolution on allocation has been sent to the subscriber, or such later date as decided by the Board. The preferential right of any shareholder to participate in the issue of new shares, which does not correspond to a whole new share, shall be sold by agency of the Company. The new shares will entitle to dividend on the first record day for dividend that takes place after the issue of new shares has been registered by the Swedish Companies Registration Office (Sw: "Bolagsverket"). C. AVAILABLE DOCUMENTS The Board's complete proposals pursuant to item 7 on the agenda and the documents according to chapter 13, § 6 of the Swedish Companies Act (Sw: "Aktiebolagslagen") will be held available to the shareholders at the company and on its website www.precisebiometrics.com as from 30 October 2006. Copies of the documents will be also sent to the shareholders who so request and state their address, and will be available at the EGM. Lund in October 2006 The Board of Directors PRECISE BIOMETRICS AB (publ) For further information, please contact Lars Grönberg, Chairman of the Board, Precise Biometrics AB Phone +46 707 27 54 55 E-mail lars.gronberg@precisebiometrics.com Niklas Andersson, CFO, Precise Biometrics AB Phone +46 46 31 11 02 or +46 730 35 67 02 E-mail niklas.andersson@precisebiometrics.com Ann-Sofi Höijenstam, Corporate Communications Manager, Precise Biometrics AB Phone +46 46 31 11 47 or +46 734 35 11 47 E-mail annsofi.hoijenstam@precisebiometrics.com Precise Biometrics AB (publ.) is an innovative security company that supplies world-leading systems for fingerprint and smart card-based authentication. The company's solutions replace keys, PIN codes and passwords and enhance the integrity of ID cards and passports. With its Precise Match-on-Card(TM) technology, the company is a market leader within smart ID cards. The product line includes systems for access control to buildings, computers and networks and for integration into ID cards and passports. The Precise Biometrics group has subsidiaries in Sweden, Great Britain, USA and a joint venture agreement in China. The group headquarters are in Lund, Sweden. Precise Biometrics is listed on the small cap list at the Nordic Exchange in Sweden (symbol: PREC). For more information, please visit http://www.precisebiometrics.com/