Precise Biometrics Shows Strong Cash Flow for 2008

Precise Biometrics AB (publ), Corporate Identity No. 556545-6596
Year-end report for the period January - December 2008


STRONG CASH FLOW AND POSITIVE MARKET TRENDS FOR 2009

*          The group's net revenue for the financial year amounted to
  SEK 45.9 million (24.8) and for the fourth quarter to SEK 11.5
  million (8.1).

*          Losses for the financial year amounted to SEK -54.2
  million (-35.3) and for the fourth quarter SEK -35.8 million
  (-9.8). The net result is impacted by SEK -29.7 million due to a
  write-down of the value of the engagement in the joint venture
  Smart Unicorn Solutions in the fourth quarter. Adjusted for the
  write-down the net result is SEK -24.5 million (-35.3) and for the
  fourth quarter SEK -6.1 million (-9.8).

*          Losses per share for the financial year amounted to SEK
  -0.54 (-0.35) and for the fourth quarter SEK -0.35 (-0.10).

*          Liquid assets at the end of the financial year amounted to
  SEK 11.3 million (32.5). Cash flow for the fourth quarter amounted
  to SEK 3.8 million.

*          Precise Biometrics delivers Match-on-Card to yet another
  national ID card program and receives an order for the first phase.
  The customer is a non-European country and the total value of the
  order has the potential to reach SEK 24 million during a four year
  period, according to the planned roll-out plan.

*          Precise Biometrics received a follow-up order from
  Swisscom at a value of SEK 2.4 million during the fourth quarter.
  The order is delivered before the end of 2008. The order is a
  follow-up order and comprises keyboards with fingerprint sensors
  and licenses for Precise BioMatch(TM).

*          Precise Biometrics is internationally recognized as a key
  player within the biometric industry when awarded "Global Frost &
  Sullivan award for Emerging Company of the year" due to the unique
  verification method, Precise Match-on-Card. The award is based on
  an analysis of the fingerprint recognition market.

*          Precise Biometrics has decided to write down the value of
  the engagement in the Chinese joint venture, Smart Unicorn
  Solutions which did not reach the expectations. Precise Biometrics
  will during 2009 continue to find opportunities that will generate
  business in China.

For further information, please contact
Thomas Marschall, President & CEO, Precise Biometrics AB.
Telephone +46 46 31 11 10, or +46 734 35 11 10
E-mail thomas.marschall@precisebiometrics.com

Patrik Norberg, CFO, Precise Biometrics AB
Telephone +46 46 31 11 47, or +46 734 35 11 47
E-mail patrik.norberg@precisebiometrics.com

Precise Biometrics AB is an innovative company offering solutions for
fingerprint recognition to prove people's identities. With
top-of-the-line expertise in fingerprint verification, Precise
Biometrics offers fast, accurate and secure authentication of a
person. Our core product Precise BioMatch(TM) integrates into ID and
bank card programs and secure chips, as well as systems for access
control to buildings, computers and networks. We act on a global
market and our technology is licensed to more than 80 million users
all over the world. The Precise Biometrics group has subsidiaries in
Sweden (with group headquarters in Lund), Great Britain, Hong Kong
and USA, and a joint venture agreement in China. 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/