Precise Biometrics acquires Fyrplus Teknik and enhances its position within multibiometrics and smart ID cards

Precise Biometrics AB (publ), a market-leader in the development and marketing of user-friendly fingerprint-based biometric security solutions, has acquired 100% of shares in the Swedish IT consultancy Fyrplus Teknik AB. Through the acquisition, Precise Biometrics strengthens its operations for biometric security solutions in a time leading up to wide-ranging implementation of national ID cards and smart travel documentation planned in several countries. Precise Biometrics will gain access to sales revenues of about SEK 20 million (on an annual basis) and will, after the acquisition, be nearly twice as large as a group, with 60 employees.

"Through the acquisition, Precise Biometrics supplements its core operations within fingerprint technology and smart cards (Precise Match-on-Card(TM)) with additional skills and knowledge within multi-biometrics and the implementation of biometric solutions," says Christer Bergman, President & CEO of Precise Biometrics AB. Fyrplus Teknik has extensive experience in multi-biometric projects (i.e. a combination of fingerprint, iris and facial recognition) from areas such as the travel industry, the pharmaceuticals industry and the healthcare sector, predominantly in Scandinavia. "We have long worked in partnership with Precise Biometrics in various projects, including SAS [Scandinavian Airline Services]. There is a great deal of synergy between the companies which will now add value to the group, for example in the development of biometric solutions and customer relations," says Lennart Olsson, President of Fyrplus Teknik AB. The market for biometric solutions is developing rapidly and increasing numbers of projects call for multi-biometric solutions. There are several national projects on the table now, which involve a combination of multiple biometric technologies. These include, for example, the new EU passport and the national ID card in Finland. "Through the acquisition of Fyrplus Teknik, we gain access to important strategic competence within biometrics and further knowledge about the end-users' demands on our technology. Together we will be able to offer a complete range of multi-biometric system solutions on the Scandinavian market and can take on a larger role in customer projects," says Christer Bergman, President & CEO of Precise Biometrics AB. The acquisition was completed on January 17, 2005 and is being financed with cash. The purchase price totals SEK 5-7 million, partly conditional on future profits. This entails a p/e index of 4.4-6.2 (based on profit after financial net). Fyrplus Teknik had sales of SEK 26.8 million for 2003/2004 (16 months) and showed profits of SEK 1.5 million after financial items. Equity as of 2005-01-17 amounted to SEK 0.6 million. Precise Biometrics' sales for the first nine months of 2004 were SEK 22.6 million. Fyrplus Teknik will be a wholly-owned subsidiary to Precise Biometrics. Lennart Olsson will remain president of Fyrplus Teknik AB. IN CONSEQUENCE OF THE ACQUISITION ANNOUNCED TODAY INVESTORS AND JOURNALISTS ARE INVITED TO PARTICIPATE IN THE FOLLOWING INFORMATION SESSIONS Telephone conference in Swedish *The conference commences at 11:00 am *To participate, call +46 8 672 81 50 *Enter password: Precise Biometrics An operator will record your name and provide access to the conference. He or she will also give you information about how to pose questions. Telephone conference in English *The conference commences at 12:00 noon *To participate, call +46 8 672 81 51 *Enter password: Precise Biometrics An operator will record your name and provide access to the conference. He or she will also give you information about how to pose questions. Company representatives participating *Lennart Olsson, President, Fyrplus Teknik AB *Christer Bergman, President & CEO, Precise Biometrics AB *Niklas Andersson, CFO, Precise Biometrics AB *Ann-Sofi Höijenstam, Corporate Communications Manager, Precise Biometrics AB For more information, please visit www.precisebiometrics.com The website has the following information *Power Point Presentation *Facts sheet *Press images For further information, please contact Christer Bergman, President & CEO, Precise Biometrics AB Telephone: +46 730 35 67 26 E-mail: christer.bergman@precisebiometrics.com Lennart Olsson, President, Fyrplus Teknik AB Telephone: +46 730 39 10 04 E-mail: lennart.olsson@fyrplus.se 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 proprietary Precise Match-on-Card(TM) technology, the company is a market leader within smart ID cards. Through its subsidiary Fyrplus Teknik, Precise Biometrics can deliver complete biometrics solutions on the Scandinavian market based, for example, on fingerprint, iris and facial recognition. The product line includes systems for access control to buildings, computers and networks and for integration into ID cards and passports. The group headquarters are in Lund, Sweden. It also has offices in Stockholm and a U.S. subsidiary in Washington, DC. The subsidiary Fyrplus Teknik is based in Karlstad and has regional offices in Linköping. Precise Biometrics is listed on the O-list of the Stockholm Stock Exchange (symbol: PREC A). For more information, please visit http://www.precisebiometrics.com/