SOURCE: Precise Biometrics AB

November 13, 2006 10:56 ET

Extraordinary general meeting of Precise Biometrics AB approves of new share issue with preferential rights for shareholders of approximately SEK 85 million

LUND, SWEDEN -- (MARKET WIRE) -- November 13, 2006 --

At Precise Biometrics' extraordinary general meeting, which was held today on November 13, the Board's decision to carry out a new share issue of approximately SEK 85 million with preferential rights for the shareholders was decided to approve of. The purpose of the issue is to create prerequisites for the company to focus on activities generating profitability and brings the company to positive results.

The preferential rights issue entails an increase of the share capital by a maximum of SEK 9,722,060 through the issue of not more than 24,305,150 new shares. The conditions are in summary as follows:

* Three (3) existing shares will entitle to subscription for one (1) new share

* The subscription price is SEK 3.50.

* The new issue is fully ensured through declarations of intent and underwriting guarantees received [1]

* The record day for participation in the new share issue is 16 November 2006

* The subscription period will run from November 20 to December 4 2006, or such date which the Board decides

A time schedule for the new share issue has been established as follows:

November 14, 2006                   First day of trade with
                                    the share excluding right
                                    to participate in the new
                                    share issue

November 15, 2006                   Publication of prospectus

November 16, 2006                   Record day at VPC AB for
                                    participation in the new
                                    share issue, i.e.
                                    shareholders registered
                                    in the share register of
                                    Precise Biometrics as of
                                    this day will be entitled
                                    to subscription rights
                                    for participation in the
                                    new share issue

November 20 - November 29, 2006     Trade with subscription

November 20 - December 4, 2006      Term of subscription

Financial and legal advisors

Danske Markets is the financial advisor of Precise Biometrics AB in connection with new issue of shares with preferential rights for the shareholders.

[1] A guarantee consortium has issued underwriting guarantees. The guarantors have undertaken to subscribe for the part of the share issue which will not be subscribed for by the shareholders of Precise Biometrics AB, or by anyone else without preferential rights, up to the amount of 78.5 MSEK. The guarantors are comprised of Christer Fåhraeus, Danske Bank A/S, Mats Nilsson, Rune F Löderup through company, Martin Gren through company, Provobis Holding AB, DNB Nor Absolute Return Investment AB, Lage Jonason AB, Rikard Akhtarzand, Hallington Ltd, Mangold FK AB, Mårten Öbrink, Krishan Investment AB, Christian Paulsson. The share issue is hereby fully ensured.

For further information, please contact
Thomas Marschall, President & CEO, Precise Biometrics AB.
Telephone +46 46 31 11 10, or +46 730 35 67 10

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™ 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

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