STRONG CASH FLOW AND POSITIVE MARKET TRENDS FOR 2009

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

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™.
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.

Thomas Marschall, President & CEO, Precise Biometrics AB. Telephone +46 46 31 11 10, or +46 734 35 11 10 E-mail H For further information, please contact [email protected]

Patrik Norberg, CFO, Precise Biometrics AB Telephone +46 46 31 11 47, or +46 734 35 11 47 E-mail [email protected]

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™ 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 Hhttp://www.precisebiometrics.com/H

Interview with Thomas Marschall, CEO and President, Precise Biometrics

What are your comments on the past year?

"2008 has been a very interesting year! The most important thing is that we are following the plan we made at the end of 2006. We have increased our sales by about 85 per cent and our gross margin has also significantly improved, which means that 2008 was one of the best years in the history of the company."

"Contributory factors are increased license sales and in general a greater focus on projects with profitability, which meant that we also reached break‐even in the third quarter for the first time.

The strong third quarter also contributed to a positive cash flow in the last quarter of the year. Several orders with values of around a couple of million SEK accounted for this improved result. We will be continuing to take orders of this magnitude, which means that there will be a big impact on profits when we also receive some of the big orders we are expecting."

In which direction is the market moving?

"The world's leading manufacturers of smart cards have on several occasions during the year pointed to Match‐on‐Card as a key component of the future of the industry. In the ID card segment the expectation is that in 2020 there will be 4 billion digital IDs, which will be primarily based on smart card technology. This is a segment where Match‐on‐Card is already well established, and this creates confidence that a market for Match‐on‐Card will develop further also in the smart card segments for banks, mobile telephony and health care."

And the aviation industry?

"Several major airlines have visited Sweden as our guests to see how SAS is working with biometrics for passenger check‐in . We are expecting orders from the aviation industry in 2009, which can lead to a snowball effect in the aviation industry. The reason that I am so positive is that, apart from the advantages of enhanced security and quicker passenger flows, our Precise BioFlight™ solution also show that there are large cost‐saving to be made by the airlines. The use of biometrics leads to the issuance of fewer boarding cards, quicker check‐ins, and reduced staffing requirements."

What about China?

"In spite of a lot of hard work throughout 2008 Smart Unicorn Solutions has failed to realize our expectations for 2008. This in combination with a generally negative economic development in China due to the current global financial crisis, has led us to write down the value of our engagement in Smart Unicorn Solutions in China in the fourth quarter. We still see opportunities and have expectations that our relations in China can generate business for us."

How many national ID card projects are you expecting in 2009?

"We are participating in several national ID card procurements, of which several have followed on from 2008. The advantage of these types of projects is that they are not particularly sensitive to downturns. On the other hand, decision‐making processes are long, and political changes can complicate projects because decisions are made at governmental level. We are expecting several new projects during the year. It is important to point out, however, that the number of projects is secondary to the main issue, namely project volume."

What about needs for future capital?

"We currently do not see a requirement for further capital injection. Because of the strong sales in 2008 and a positive foreign exchange effect, we achieved a positive cash flow in the last quarter of the year. We also signed a credit agreement in the fourth quarter that we will be able to utilize if necessary. This credit still remains intact, which combined with a currently high activity level makes us confident about our cash situation.

Has the financial crisis affected transactions?

"For us, the financial crisis means that both customers and suppliers are tightening up on liquidity issues. Cash flow requirements in relation to deliveries have increased, which means that there is a review and tightening up of the terms of payment at all levels. This means that we are also setting new, tougher terms of payment for our customers."

What are the strengths of Precise Biometrics just now?

"So far, Precise Biometrics has been awarded all the tenders specifying Match‐on‐Card for national ID cards since 2005 throughout the world. When demand gets underway and widens to new segments, we are the strongest player on the market with proven technology and first‐ rate references. During the year, we have built up a new strong team which consists of an excellent combination of new staff and people who have been in the company for several years. Their knowledge, experience and commitment are decisive for the outcome of the coming years. Our liquidity is also better than it has been for a long time."

Will you make a profit in 2009?

"The implementation of the strategy established towards the end of 2006 is right on track both results and time wise. Nevertheless there is some uncertainty as to how long it will take before decisive orders are made. Because of the prevailing uncertainty on the market I will not be able to give an answer until later on in the year. This is also due to the fact that several projects will not be resolved until the second half of the year. I do believe, however, that a break‐even result is possible in 2009, notwithstanding the downturn."

Sales and result

The financial year 2008

Sales during the financial year amounted to SEK 45.9 million compared to SEK 24.8 million previous year. The gross margin was 49% (36).

The group's net loss for the financial year amounted to SEK ‐54.2 million (‐35.3). The net result is impacted by SEK ‐29.7 million due to a write down of the value of our 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). Operating costs for the financial year, excluding cost of goods sold and results from participations in associated companies, amounted to SEK ‐46.4 million (‐44.2), including depreciation and write‐downs of SEK 2.8 million (5.1) and capitalization of costs for development work of SEK 1.6 million (0.6).

Earnings per share (average number of shares) for the period amounted to SEK ‐0.54 (‐0.35).

Fourth quarter October ‐ December 2008

Sales for the fourth quarter amounted to SEK 11.5 million compared to SEK 8.1 in the corresponding period previous year. The gross margin amounted to 51% (33).

The group's net losses for the fourth quarter amounted to SEK ‐35.8 million (‐9.8). The net result is impacted by SEK ‐29.7 million due to a write‐down of the value in our engagement in the joint venture Smart Unicorn Solutions in the fourth quarter. Adjusted for the write‐down the net result is SEK ‐6.1 million (‐9.8) for the fourth quarter. Operating expenses excluding cost of goods sold and results from participations in associated companies, amounted to SEK ‐12.3 million (‐11.9), including depreciation and write‐downs of SEK 0.7 million (1.8) and capitalization development costs of SEK 0.2 million (0.2).

Result per share (average number of shares) for the fourth quarter amounted to SEK ‐0.35 (‐0.10).

Financing and liquidity

As of December 31, 2008 equity amounted to SEK 16.0 million (71.2) and equity/share to SEK 0.16 (0.70).

The cash flow from current operations during the year amounted to SEK ‐19.8 million (‐36.6). Liquid assets at the end of the financial year amounted to SEK 11.3 million (32.5). Cash flow from current operations for the fourth quarter amounted to SEK 4.0 million.

Precise Biometrics has during the quarter obtained a credit facility of SEK 15 million, which can be utilized when needed. At the end of the year the facility has not been utilized.

Geographic markets – Events during the fourth quarter

During the quarter Precise Biometrics was awarded a tender for Match‐on‐Card for yet another country, the fifth country to choose Precise Match‐on‐Card™. Precise Biometrics' leading position has been confirmed now that the Company has been awarded all national ID card tenders that specified Match‐on‐Card since procurement of the national ID card in Thailand in 2005.

Cartes, the world's largest smart card event, is held every year in Paris in November. Precise Biometrics participated as a member of the trade organization Silicon Trust in a showcase in the chip manufacturer Infineon's exhibition area. By exhibiting and speaking, Precise Biometrics reinforced its position in the

smart card segment, both among existing and potential partners, and with end customers in the government sector and banks.

Frost and Sullivan nominated Precise Biometrics in October as a key player in the biometric industry for the "2008 Global Frost & Sullivan Award for Emerging Company of the Year". The motivation for the nomination was that the Company by due to its product offering, exellent partnership and high level of service has established Match‐on‐Card as an important technology in the biometrics market.

During the quarter, the most important orders have come from Europe, one of which was Swisscom's order for additional biometric keyboards and Precise BioMatch™ software to continue its roll‐out of the solution for the company's employees. In all regions the quarter has mainly been characterized by follow‐up orders from existing partners.

Geographical markets – Most important events during the year

Precise Biometrics won the second prize in SIMagine, a global competition in the search for new applications for SIM cards on phones incorporating NFC technology (Near Field Communication). As an increasing number of functions are embedded on SIM cards there are greater demands for security, where the combination of fingerprint recognition and the SIM card enables secure transactions such as payments and various forms of identification via mobile phones.

Precise Biometrics has been asked to participate in the TURBINE project (TrUsted Revocable Biometric IdeNtitiEs) financed by the EU. Precise Biometrics' contribution will be financed with approx. SEK 6.0 million during a three‐year period.

Europe

Europe has accounted for the largest sales figures during the year. This is explained by the roll‐out of the ID card in Portugal, which generates sales in relation to licenses, support and hardware, and by a large number of smaller orders through different partners.

Swisscom is one of the largest end‐customers, which for the last few years has continuously expanded its use of fingerprint technology and biometric keyboards.

North America

North America has accounted for a large part of sales this year due to large orders for software and services from the existing customer US Department of State, and both licenses and hardware for NYPD (New York Police Department) the largest police authority in the US.

Orders to customers such as NASA, TWIC (Transport Workers Identification Credential), FAA (Federal Aviation Authority) and FRAC (First Responders Authentication Credential) have also contributed to sales figures in this region during the year.

Middle East & Africa

In Middle East & Africa, efforts to position Precise Match‐on‐Card™ in current and potential procurements for ID card projects have been in focus, since the region is very active in this area.

Follow‐up orders for a current government employee ID card project have dominated sales in this region.

Asia

Sales have been at a low level in Asia during the year, but nevertheless there has been a lot of activity. Our presence on the market via our office in Hong Kong has meant that during the year we have above all focused on building up networks and partnerships in a few selected countries. The demand for Match‐on‐Card has also significantly increased during the year, both from the private and public sectors, which points to extensive potential growth.

The most important activities in the region have involved cooperation and agreements with manufacturers of fingerprint readers, where the Precise BioMatch™ Embedded technology is integrated in third‐party readers, cooperation with OKI, and with systems integrators for the Thai ID card and the expansion of its range of applications.

Latin America

Precise Biometrics' marketing in this region is mainly conducted through its partners. With the help of smart card companies and systems integrators with a local presence, Precise Biometrics can monitor market trends and support the activities of its partners in current and potential projects in the region. The focus in this region is on major ID card projects for both individual countries and companies.

Parent company

Parent company sales for the financial year amounted to SEK 30.8 million (12.4). Operating loss before tax for the financial year amounted to SEK ‐54.6 million (‐32.7). The loss 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 ‐24.9 million (‐32.7).

Parent company sales for the fourth quarter amounted to SEK 8.0 million (4.7). Operating loss before tax for the fourth quarter amounted to SEK ‐31.1 million (‐7.9).

At the end of the financial year there were 28 persons employed in the parent company.

Liquid assets at the end of the fourth quarter amounted to SEK 9.3 million (27.8). The parent company had no debts to credit institutions at the end of the fourth quarter. Investments in tangible fixed assets amounted to SEK 0.2 million (0.1).

During the financial year development costs of SEK 1.6 million (0.6) were capitalized, SEK 0.2 million (0.2) during the fourth quarter.

Organization and employees

The parent company of Precise Biometrics has its headquarters in Lund, Sweden. The organization also consists of Precise Biometrics Inc. in Washington DC, USA, Precise Biometrics Solutions AB with an office in Karlstad, and Precise Biometrics Asia Ltd. with its headquarters in Hong Kong, including the dormant companies Precise Biometrics UK Ltd., Precise Biometrics Services AB and Loqware Sweden AB (in the process of liquidation).

As of December 31, 2008 the group had 44 (38) employees, 41 in Sweden, 1 in the US, and 2 in Hong Kong. Of these employees, 34 (28) were men and 10 (10) were women.

Investments in tangible fixed assets

During the financial year the group has invested SEK 0.2 million (0.1) in tangible fixed assets.

In the fourth quarter the group invested SEK 0.0 million (0.1) in tangible fixed assets.

Capitalization and depreciation of development work

Costs for development work of SEK 1.6 million (0.6) were capitalized during the financial year. Depreciation and write‐downs of capitalized costs for development work amounted in the financial year to SEK 2.2 million (2.7), of which write‐downs accounted for SEK 0.1 million (1.1).

During the fourth quarter development costs of SEK 0.2 million (0.2) were capitalized. Depreciation and write‐downs of capitalized costs for development work amounted in the quarter to SEK 0.6 million (1.4), of which write‐downs accounted for SEK 0.0 million (1.1).

Patents

The group's long‐term patent strategy focuses on establishing strong protection round the Precise Match‐on‐Card™ technology. The patents portfolio has been successively expanded since 2001 and at the end of the financial year included 74 registered and 34 applications for patents in 22 different product families. Precise Biometrics has 13 different patent families for the Match‐on‐Card technology alone.

The share

The Company's shares have been listed on the O‐list of the Stockholm Stock Exchange since October 3, 2000, which after October 2, 2006 was replaced by the Nordic Stock Exchange where the Company is now listed on the Small Cap list.

The total number of registered shares at the end of the fourth quarter was 101,220,600. During the financial year the average turnover per day was SEK 286 thousand and the share price ranged from SEK 1.69 to 0.55. During the fourth quarter the average turnover per day was SEK 155 thousand and the share price has ranged from SEK 0.98 to 0.55.

The main shareholders as of December 31, 2008

Name	Percentage of capital stock No. of shares
Storebrand fonder	5.2%	5,252,666
Smart Unicorn Group Ltd	3.9%	3,988,117
Banco fonder	3.3%	3,344,199
Swedbank Robur fonder	3,1%	3,145,000
Source: SIS Ägarservice

Nomination committee

Following a decision at the Annual General Meeting on April 22, 2008 a Nomination Committee shall be organized. The Nomination Committee shall as a minimum consist of one representative from each of the three major shareholders per August 31, 2008 as well as the Chairman of the Board.

Accordingly the Nomination Committee consists of Öyvind Fjell (Storebrand fonder), Dave Q. Wu (Smart Unicorn Group) and Kerstin Stenberg (Swedbank Robur fonder). These represent the three largest shareholders in the Company as of August 31, 2008. The Chairman of the Board Lisa Thorsted is also represented in the Nomination Committee, and is the convener.

Risk factors

Technological development

The market on which the Company operates is subject to rapid change. New technology and new players are constantly emerging. The Company's technology must therefore to a large extent be accepted by the leading players on the market, both by suppliers and customers. The market must be mature enough to understand and accept the new technology supplied by the Company. This can mean that major investments in marketing and sales may be required to achieve the expected sales volumes.

Employees

There are a number of key persons in the Company who are important for operations, and who possess unique competence. If one or more of these key persons should leave the Company it could, in the short term, have a negative impact on operations. There is also the risk that the recruitment of new employees for these positions can take time and result is additional costs for the Company.

Partners

Today the Company cooperates with several different partners. They include systems integrators, smart card manufacturers, chip manufacturers and suppliers of applications. The Company relies on this cooperation in order to be able to offer end‐users complete security solutions. There is a risk that one or more of these partners could end their cooperation or fail to achieve the expected results, which would result in a loss of expected future earnings.

Patents and industrial and intellectual property rights

It is important for the Company to protect its technology through patents or other industrial and intellectual property rights, and thereby retain its technological lead and create the opportunity for license earnings in the future. The company therefore pursues an active patent strategy, which involves applying for patents for strategically important inventions in the countries where this is considered to be appropriate.

Competitors

The company operates on the biometrics market where competition is intense. The competing companies can have substantially larger financial and industrial resources at their disposal than the Company, and it cannot be excluded that competition from this type of player can lead to diminished market shares and/or a reduction in profitability for Precise Biometrics.

Forecasting reliability

The Company operates on a market that is in an early stage of growth and is characterized by long sales promotion periods, which leads to a certain degree of inaccurate forecasts. Earlier or later submissions of orders can have a significant effect on annual sales and earnings.

Cash flow

The Company endeavors to minimize the time capital is tied up, for example in stocks and accounts receivable. To reduce the risks of tied‐up capital the Company works actively to improve the internal

process for forecasting and production planning. The Company also endeavors to ensure that the long ID card projects are not an excessive burden in terms of the cash flow.

During the current global financial crisis focus has been on liquidity and current payment conditions. Due to this Precise Biometrics has sharpened payment conditions for customers.

For a full account of identified risks, please refer to the Annual Report for 2007.

Future report dates

Interim report Q1	April 22, 2009
Interim report Q2	July 21, 2009
Interim report Q3	October 22, 2009
Year‐end report	February 5, 2010

Accounting principles

This year‐end report has been prepared in accordance with IAS 34, Interim reporting and the Swedish Company Accounts Act.

The accounting principles remain unchanged in comparison with the previous year. For information on the applied accounting policies, please refer to the Annual Report for 2007.

The Board of Directors proposes that there will be no dividends paid out

Lund, February 4, 2009

The Board of Directors

Lisa Thorsted, Chairman

Marc Chatell Jan T Jörgensen Lena Widin Klasén Eva Maria Matell

Thomas Marschall, President and CEO

General Annual Meeting

The annual general meeting for Precise Biometrics AB (publ) will be held on Tuesday April 22, 2009 at 16.00 at the Scandic Hotel Star, Glimmervägen 5 (Gastelyckans industrial estate) in Lund.

Annual Report

The Annual Report will be available in an electronic format in the beginning of April on www.precisebiometrics.com.

Information on when the annual report is published can be asked for from Precise Biometrics via telephone +46 46 31 11 00, fax +46 46 31 11 01 or email [email protected]. No printed version will be distributed but it will be possible to print the report from the website.

Review report

We have conducted a general review of the year‐end report for Precise Biometrics AB (publ) for the period January 1, 2008 to December 31, 2008. It is the responsibility of the Board and the President to prepare and present this year‐end report in accordance with the Annual Accounts Act and IAS 34. Our responsibility is to express an opinion on this year‐end report based on our general review.

We have conducted our general review in accordance with the Swedish Standard for general reviews SÖG 2410 General review of financial interim information conducted by the company's auditors. A general review consists of making enquiries, in the first instance to persons who are responsible for financial issues and accounting issues, to conduct an analytic review and to take other general review measures. A general review has a different focus and is of a significantly smaller scope in comparison with the focus and scope of an audit in accordance with the Standards on Auditing in Sweden (RS) and otherwise generally accepted auditing standards. The review measures taken during a general review do not allow us to acquire a sufficient degree of certainty so as to be aware of all the important circumstances we would have identified if an audit was conducted. The opinion we have expressed on the basis of a general review therefore does not have the degree of certainty that an opinion based on an audit has.

On the basis of our general review we have not found any circumstances that have given us reason to believe that the interim report has not in all essential respects been prepared in accordance with the Annual Accounting Act and IAS 34.

Lund, February 4, 2009

Öhrlings PricewaterhouseCoopers AB

Eva Carlsvi Ola Bjärehäll Authorized public accountant Authorized public accountant Auditor in charge

Income statement, Group

			Full	Full
(Figures in thousands SEK)	Q4	Q4	year	year
	2008	2007	2008	2007

Net sales	11,495	8,111	45,868	24,815
Cost of goods sold	-5,605	-5,432	-23,324	-15,928

Gross profit/loss	5,890	2,679	22,544	8,887
Selling expenses	-9,226	-4,910	-26,416	-21,357
Administrative expenses	-2,862	-2,648	-11,096	-9,608
R&D costs	-4,669	-3,080	-14,444	-13,762
Other operating income and changes in value	4,460	-1,300	5,598	542
Result from participations in associated companies	-29,261	-953	-30,738	-1,448
	-41,558	-12,891	-77,096	-45,633
Operating profit/loss	-35,668	-10,212	-54,552	-36,746
Financial costs	-129	392	403	1,457
Profit/loss after financial items	-35,797	-9,820	-54,149	-35,289
Tax	-31	-	-31	-
Profit/loss for the period	-35,828	-9,820	-54,180	-35,289
Results per share, SEK	-0.35	-0.10	-0.54	-0.35

Balance Sheet, Group

(Figures in thousands SEK)	12/31/2008	12/31/2007

Assets
Intangible fixed assets	9,683	10,316
Tangible fixed assets	1,303	1,602
Participations in associated companies	-	22,396
Receivables from associated companies	-	6,630
Inventories	2,618	1,865
Accounts receivable - trade	6,859	8,391
Other current receivables	2,206	2,434
Cash and bank balances	11,343	32,516
Total assets	34,012	86,150

Equity and liabilities
Equity	16,004	71,201
Current liabilities	18,008	14,949
Total equity and liabilities	34,012	86,150
Pledged assets	12,400	4,115
Contingent liabilities	-	-

Cash Flow Statement, Group

			Full	Full
(Figures in thousands SEK)	Q4	Q4	year	year
	2008	2007	2008	2007
Cash flow from operating activities
before changes in working capital	-9,882	-7,532	-24,778	-29,224
Cash flow from changes in working capital	13,942	2,711	4,945	-7,389
Cash flow from operating activities	4,060	-4,821	-19,833	-36,613
Cash flow from investing activities	-233	-2	-1,794	-7,255
Cash flow from financing activities	0	0	454	82
Cash flow for the period	3,827	-4,823	-21,173	-43,786
Liquid funds at the beginning of the period	7,516	37,339	32,516	76,302
Liquid funds at the end of the period	11,343	32,516	11,343	32,516

Key Figures, Group

	12/31/2008	12/31/2007

Working capital (thousands SEK)	5,018	30,257
Liquid ratio	113%	290%
Equity/assets ratio	47%	83%
Return on average equity	neg	neg
Capital employed (thousands SEK)	16,004	71,201
Return on capital employed	neg	neg
Profit/loss per share (SEK)	-0.54	-0.35
EBITDA (thousands SEK)	-51,794	-31,679
Equity per share (SEK)	0.16	0.70
Number of shares	101,220,600	101,220,600
Number of employees at the end of the year	44	38
Average number of employees during the year	41	45

Definitions - Key Figures

Working capital: Current assets less current liabilities

Liquid ratio: Current assets less inventories divided by current liabilities Equity/assets ratio: Equity as of the balance sheet date divided by total assets as of the balance sheet date

Return on equity: Profit/loss for the period divided by average equity Capital employed: Balance sheet total minus non-interest-bearing liabilities and provisions

Return on capital employed: Profit/loss after financial items plus financial expenses divided by the average capital employed

Profit/loss per share: Profit/loss after tax divided by the average number of shares. The options are not included in the calculation since the subscription price is higher than the market rate at th 31st of Dec. 2008

EBITDA: Profit/loss before net financial items, depreciations, write-downs and tax Equity per share: Equity at the end of the period divided by the number of shares at the end of the period

Quarterly earnings ratios are not disclosed

Changes in Equity, Group

(Figures in thousands SEK)

	Full year	Full year
	2008	2007
Initial Equity	71,201	95,016
New share issue	-	10,496
Options1)	454	306
Translation difference	-1,471	672
Profit/loss for the period	-54,180	-35,289
Equity at the end of the period	16,004	71,201

1) 2008: Relates to 2 300 000 subscription options to Management at a rate of SEK 0.19 and 210 000 subscription options to employees at a rate of SEK 0.08. 2007: Relates to 2 355 000 subscription options to employees at a rate of SEK 0.13.

Page 14 of 18 Lund, February 5, 2009

Turnover and profitability by Regions Q4 2008

					Middle East
(Figures in thousands SEK)	North America			Europe	& Africa		Asia
	2008	2007	2008	2007	2008	2007	2008	2007
Net sales	843	2,005	7,032	5,954	585	235	-	-83
Expenses1)	-2,346	-2,422	-6,370	-5,368	-951	-491	-802	-989
Operating profit/loss	-1,503	-417	662	586	-366	-256	-802	-1,072

		Latin America		Other
	2008	2007	2008	2007
Net sales	-	-	3,035	-
Expenses1)	13	-	-209	-444
Operating profit/loss	13	-	2,826	-444

Turnover and profitability by Regions Full year 2008

(Figures in thousands SEK)	North America			Europe	Middle East & Africa		Asia
	2008	2007	2008	2007	2008	2007	2008	2007
Net sales	11,113	4,952	23,956	17,216	7,228	2,047	536	499
Expenses1)	-6,713	-6,853	-19,835	-17,513	-7,675	-2,686	-3,142	-3,135
Operating profit/loss	4,400	-1,901	4,121	-297	-447	-639	-2,606	-2,636

		Latin America		Other
	2008	2007	2008	2007
Net sales	-	102	3,035	-
Expenses1)	-13	-157	-259	-400
Operating profit/loss	-13	-55	2,776	-400

1) The above expenses in Regions include Cost of goods sold as well as operation expenses for each region.

Income statement, Parent company

(Figures in thousands SEK)	Full year	Full year
	2008	2007

Net sales	30,849	12,425
Cost of goods sold	-14,681	-7,788
Gross profit/loss	16,168	4,637
Selling expenses	-24,010	-15,993
Administrative expenses	-11,747	-7,993
R&D costs	-16,872	-13,762
Other operating income and changes in value	10,726	-1,513
Result from participations in associated companies	-29,662	-
	-71,565	-39,261
Operating profit/loss
	-55,397	-34,624
Financial costs
	762	1,910
Profit/loss after financial items
	-54,635	-32,714
Tax
Profit/loss for the period	-	-
	-54,635	-32,714

Balance Sheet, Parent company

(Figures in thousands SEK)	12/31/2008	12/31/2007

Assets
Intangible fixed assets	4,751	5,385
Tangible fixed assets	824	1,048
Participations in group companies	6,540	6,540
Participations in associated companies	0	21,320
Receivables from associated companies	0	6,630
Inventories	2,618	1,788
Accounts receivable - trade	4,196	4,471
Other current receivables	41,866	47,072
Cash and bank balances	9,329	27,813
Total assets	70,124	122,067
Equity and liabilities
Equity	57,728	112,364
Other provisions	594	240
Current liabilities	11,802	9,463
Total equity and liabilities	70,124	122,067
Pledged assets	10,000	1,715
Contingent liabilities	2,000	2,000

f 18

Lund, February 5, 2009

On the occasion of today's year-end report we have the pleasure to invite investors and journalists to the following informative meeting during the day

The conference starts at 11:00 (CET)
To participate, please call + 46 (0)8 506 269 30

An operator will note your name and connect you to the conference. She/he will also provide you with information about what to do if you have any questions. The presentation will be held in English but questions in Swedish are allowed.

Participating on behalf of Precise Biometrics

Thomas Marschall, President and CEO
Patrik Norberg, CFO

A recording of the information provided will be available for following three days after the conference. To listen to the conference, dial +46 (0)8 506 269 49 and when you are asked to state a reference PIN please dial 227253 and finish with (#).

Please visit www.precisebiometrics.com/presentations.aspx where a presentation can be downloaded.

For further information

Thomas Marschall, President and CEO, Precise Biometrics Tel. +46 46 31 11 10 or +46 734 35 11 10 E-mail [email protected]

Patrik Norberg, CFO, Precise Biometrics AB Tel. +46 46 31 11 47 or +46 734 35 11 47 E-mail [email protected]

Precise Biometrics AB (headquarters) Box 798 SE-220 07 Lund Tel. +46 46 31 11 00 Fax: +46 46 31 11 01 E-mail: [email protected]