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Precise Biometrics Annual Report 2012

Feb 5, 2013

3189_10-k_2013-02-05_86f6b4eb-8782-48f7-8b2b-f29aa60abcdb.pdf

Annual Report

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POSITIVE DEVELOPMENT FOR TACTIVO™ AND IMPORTANT ORDER FROM THE FINANCE SECTOR

PRECISE BIOMETRICS AB (PUBL), CORPORATE IDENTITY NO. 556545-6596 YEAR END REPORT FOR THE PERIOD JANUARY – DECEMBER 2012

  • The group's net sales for the year was SEK 28.3 million (21.6) and for the fourth quarter SEK 8.4 million (4.8).
  • The groups income for the year was SEK –47.0 million (-33.2) and for the fourth quarter SEK -13.0 million (-9.2).
  • Earnings per share for the year amounted to SEK -0.23 (-0.20) and for the fourth quarter SEK -0.05 (-0.05).
  • Available cash at the end of the year amounted to SEK 37.6 million (28.9).

IMPORTANT EVENTS DURING THE YEAR

  • Precise Biometrics product for mobile security for smart phones and tablets, Tactivo™, was certified by Apple. Tactivo for iPhone and iPad launched globally.
  • Precise Biometrics has announced several Tactivo related partnerships during the year (HID Global, Good Technology, Intercede and Sogeti). Precise Biometrics can with each partner deliver secure mobile authentication to government and businesses worldwide.
  • The company received its first Tactivo-order from one of the world's largest automobile manufacturers. Orders were also received from two leading mobile software providers; Thursby Software Systems and an additional recognized partner.
  • The company announced partnership with the Inpeco Group, developer of solutions that trace key healthcare processes. Inpeco Group has chosen Precise Match-on-Card™ technology to trace patient ID and blood testing transmissions, eliminating human 'error' in the process.
  • Precise Biometrics' rights issue, with preferential rights, was oversubscribed.

IMPORTANT EVENTS AFTER THE END OF THE YEAR

  • Precise Biometrics has been chosen by a market-leading global provider of financial information services. The US-based customer has chosen Precise Biometrics as its new provider of fingerprint algorithms. The customer intends to improve the performance of existing and forthcoming fingerprint enabled devices by using Precise Biometrics' technology.
  • Tactivo is selected by OpenPeak to add security enhancements to mobile apps with its Sector™ app wrapping technology.
  • The credit facility that was obtained in spring 2012 was re-paid in January 2013. Within the framework of the credit facility agreement, and through the end of May 2013, the company can obtain order financing.

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 [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 is a market-leading provider of 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.

The technology adds value to ID, enterprise and bank cards as well as access to mobile solutions (smart phones and tablets), computers and networks.

Precise Biometrics serves business and government organizations throughout the world and its technology is licensed to close to 160 million users.

For more information, please visit www.precisebiometrics.com and www.idApps.com.

POSITIVE DEVELOPMENT FOR TACTIVO™ AND IMPORTANT ORDER FROM THE FINANCE SECTOR

INTERVIEW WITH THOMAS MARSCHALL, CEO AND PRESIDENT, PRECISE BIOMETRICS

How would you summarize 2012?

The year was most notable for Precise Biometrics' launch of the product series Tactivo™, which is the world's first mobile shell with embedded fingerprint and smart card reader. The version for iPhone was certified by Apple and launched in the summer, and the version for iPad followed on in the fall.

Tactivo enables a significant enhancement of mobile security and has attracted great interest in the market from both

customers and partners. Sales of Tactivo have not reached up to our expectations in 2012, partly due to lead times in getting solutions ready for the market. We are however expecting sales to increase quarter by quarter this year..

The new issue of shares in the fall 2012 has meant that we can continue to vigorously run the launch of Tactivo and further develop commercial security solutions for the mobile market based on our proven technology. We continue to monitor and explore additional funding possibilities.

Why is the mobile market so attractive for Precise Biometrics?

The market for higher mobile security and additional application specific settings continues to grow as more and more employees are using their own equipment at work – the trend that's called "bring your own device" or BYOD. The volumes for mobile solutions are soon expected to be greater than for computers. Starting in 2013 we are now seeing the increased use of fingerprint technology in both companies and organizations when their employees use mobile units to access sensitive information.

What has happened on the mobile market during the year?

We have received orders from companies and government agencies in the international market. Several civil and military agencies in the US have also started pilot projects based on Tactivo, which provides a strong base for potential new larger orders to come.

We have also initiated cooperation with different partners, who now offer solutions and specific apps based on Tactivo. The most recent agreement has been signed with the mobile technology company OpenPeak, which will be integrating Tactivo in their new security solutions. This enables a completely new type of multi factor authentication and new security functions, while guaranteeing authorized users' simple access.

Apple's acquisition of the sensor manufacturer AuthenTec during the year confirms the increasing interest in fingerprint technology in the market. We focus on the government agency and corporate markets, where we have the advantage of being the first to introduce a professional product and where we together with our partners already can supply qualified solutions for specific requirements.

In which way is the order from the finance sector important?

The order comes from a market-leading global supplier of financial information services, who wish to remain anonymous. Based in the US, this customer has chosen Precise Biometrics as its new supplier of fingerprint algorithms after a thorough review of the market.

The markets for financial services have some of the most stringent requirements in terms of usability and security and we are therefore extremely proud and satisfied with their approval of our solution for embedded systems where our algorithms are integrated in other hardware. It opens a new interesting possibility of Precise becoming the leading market supplier of algorithms to manufacturers of sensors and smart devices, which means additional significant potential for our technology over and above the technology for Tactivo.

The agreement will result in recurrent license earnings and it will already have an effect on Precise Biometrics' financial results in the first quarter of 2013.

What is happening in the business area IAM?

In parallel with our strong focus on the mobile market we continue to work with the ID card market segment. During the year the majority of our sales have been related to our solutions to the largest budget gym chain in Scandinavia and a government agency customer in the Middle East.

During the fourth quarter we initiated cooperation with the Inpeco Group with a view to introducing Precise Match-on-Card™ technology in the company's system for handling blood samples. This is a new application for Precise Biometrics' technology and is yet another indication of the higher level of maturity in the market for biometric security solutions.

What is the outlook for 2013?

I can confirm that Precise Biometrics now has a very exciting commercial product program that addresses a large and well-defined market. During 2012 we built up an interesting pipeline of customers and partners and anticipate that we in 2013 will begin to harvest the fruits of our efforts in the mobile market.

We will continue to follow the expansion of iPhone and iPad and our target is to present new versions of Tactivo™ about four to six months after every new release from Apple. In addition we will be releasing new versions of Tactivo for other operating systems, including Android, launch additional apps and new products that support other biometrics. This will further strengthening our commercial customer solutions within the attractive mobile market..

This means that sales of Tactivo are expected to continue to increase quarter by quarter and result in a significantly better turnover in 2013. In addition to this there is the new expanding market for our algorithms and the ID card segment in the business area IAM. At the same time we are holding on to our ambitions in our previously presented Plan 2015.

SALES AND RESULT

The financial year 2012

Sales for the interim period amounted to SEK 28.3 million (21.6). The gross margin amounted to 56 % (56%).

Operating expenses for the interim period amounted to SEK 58.7 million (45.5). The increase of operating expenses is explained by investments in the organization combined with investments related to the launch of Tactivo™. The group's net loss for the interim period amounted to SEK - 47.0 million (-33.2).

Losses per share (average number of shares) for the interim period amounted to SEK –0.23 (- 0.20).

Fourth Quarter October to December 2012

Sales for the fourth quarter were SEK 8.4 million (4.8). The gross margin amounted to 50% (67%). The decrease in margin compared to corresponding period previous year is due to a higher proportion of hardware sales.

Operating costs (for definition see Key Figures) were SEK 15.8 million (12.5).The Group's net loss for the fourth quarter amounted to SEK –13.0 million (-9.2).

Losses per share (average number of shares) for the fourth quarter amounted to SEK –0.05 (- 0.05).

FINANCING AND LIQUIDITY

As of December 31, 2012 equity amounted to SEK 48.2 million (47.0) and equity/share to SEK 0.25 (0.25).

Cash flow from current operations amounted to SEK –48.9 million (-36.0). Available cash as of December 31 2012 amounted to SEK 37.6 million (28.9). The company has in total utilized SEK 20.0 million of the credit facility of 30.0 million that was obtained during the first quarter. The facility was re-paid in January 2013. Within the framework of the credit facility agreement, and through the end of May 2013, the company can obtain order financing.

MARKET AND SALES – SUMMARIZING 2012

Precise Biometrics has during 2012 made significant investments according to plan in the business area Mobile. The year has in large been focused on the launch, marketing and sales of the company's product for mobile security for smartphones and tablets, Tactivo™.

In the summer of 2012 Tactivo was certified by Apple in its Made For iPhone (MFi) Program. Following the certification several pilot projects have been launched, particularly in the majority of federal civil and military agencies in the U.S.

In Q3 the company secured its first Tactivo order. The order was placed by a world leading European-based car manufacturer.

In Q4 the company's partner Thursby Software Systems and an additional recognized partner together placed orders exceeding one thousand units. Tactivo enhances the software applications provided by these partners, enabling increased mobile security by adding authentication using smart cards, fingerprint biometrics, or both.

During Q4 the company announced Tactivo-related partnerships, among others, with the following partners:

  • HID Global, a worldwide leader in secure identity solution. Through the partnership of Precise Biometrics and HID Global, Common Access Card and Personal Identity Verification Cards can now deliver encrypted access to sensitive data through iOS devices.
  • The company´s partner Intercede has developed the new MyID CardChecker™, compatible with Tactivo. With the app and the data encoded in the device, organizations can check and authenticate a smart card from the smartphone or tablet without the need of an internet connection.
  • Sogeti, technology consultancy and leading provider of mobile solutions with main business in the health care market. Precise Biometrics' technology can be used for ID, enterprise and bank cards, as well as access to mobile solutions, computers and networks.
  • Good Technology. Good Technology has launched its Good Vault™ app, which can be used with Tactivo. Good Vault extends strong two-factor authentication and Secure/Multipurpose Internet Mail Extensions (S/MIME) e-mail signing and encryption to Good for Enterprises™ to enhance data protection.
  • OpenPeak. After the end of the fiscal year, the company announced that its partner OpenPeak has now integrated Tactivo to enhance a secure, trusted workspace with unprecedented, multi-factor authentication and security features. The OpenPeak solution includes per-app VPNs and three-factor authentication, including PIN, smart card, and biometric technologies.

During the year Precise Biometrics also announced a partnership with the Inpeco Group, a leading developer of solutions that trace key healthcare processes. Inpeco will use Precise Match-on-Card™ to trace patient ID and blood testing transmissions, eliminating human 'error' in the process. The Match-on-Card function would allow the patient ID to be verified at the point when the sample is taken.

After the end of the year the company was chosen by a market-leading global provider of financial information services. The US-based customer has chosen Precise Biometrics as their new fingerprint algorithm vendor following a thorough test of the market. Precise Biometrics' solution for embedded systems, which includes the top ranked algorithms in NIST/Minex tests, was the main reason for the selection. The customer is aiming to increase the performance of existing and forthcoming fingerprint enabled devices by using Precise Biometrics' technology. Their key objective is a smooth and secure user experience.

With the sales of Tactivo starting to materialize based on the ongoing customer projects and partnerships within Precise Biometrics' business unit Mobile, the majority of the sales for 2012 came from the IAM business unit. Sales in the IAM business unit have consisted of a mix of hardware, fingerprint readers, and licenses. Sales have primarily consisted of sales of fingerprint readers, to customers in the Middle East. License sales have mainly consisted of continued followup order for Scandinavia's largest budget gym chain and the continued roll-out of cards in ongoing national ID card projects.

Tactivo has been launched, several partnerships signed and the first orders have been delivered. The company continues to follow its long term plan. Included in the plan is the expectation of sales to increase quarter by quarter in 2013, new partnerships to be signed and applications to be released. The majority of the sales are expected to come from Tactivo.

PARENT COMPANY

Parent company sales for the year amounted to SEK 24.5 million (15.5). Operating loss before tax for the interim period amounted to SEK –49.7 million (-35.6).

Available cash at the end of the year amounted to SEK 35.2 million (21.7). The parent company has in total utilized SEK 20.0 million of the credit facility that was obtained during the first quarter. The facility was re-paid in January 2013. Within the framework of the credit facility agreement, and through the end of May 2013, the company can obtain order financing.

ORGANIZATION AND EMPLOYEES

The subsidiary Precise Biometrics Solutions AB in Karlstad, Sweden has merged into the parent company Precise Biometrics AB. Consequently Precise Biometrics AB has its head office in Lund, Sweden and an office in Karlstad, Sweden. The organization also consists of the subsidiary Precise Biometrics Inc. in Washington DC, USA.

As of December 31, 2012 the group had 37 (35) employees, 30 in Sweden and 7 in the US. Of these employees, 25 (24) were men and 12 (11) were women.

INVESTMENTS IN TANGIBLE FIXED ASSETS

During the interim period the group has invested SEK 1.2 million (0.8) in tangible fixed assets.

During the third quarter the group has invested SEK 0.8 million (0.7) in tangible fixed assets.

CAPITALIZATION AND DEPRECIATION OF DEVELOPMENT WORK

Development work costs of SEK 8.0 million (7.9) were capitalized during the interim period with main impact from new investments within the mobile segment.

Depreciation of capitalized costs for development work amounted to SEK 1.7 million (1.7) during the interim period.

PATENTS

At the end of the year 2012 the patents portfolio includes 62 registered and 16 pending applications for patents in 18 different product families.

NOMINATION COMMITTEE

Following a decision at the Annual General Meeting on April 24, 2012 a Nomination Committee shall be organized. The Nomination Committee shall consist of one representative from each of the three major shareholders per August 31, 2012 as well as the Chairman of the Board.

Accordingly the Nomination Committee consists of Annika Andersson (Swedbank Robur fonder), Uno Johnsson (HJ Byggkonsulter AB) and Torgils Bonde Knutsson (Gimmersta AB).

These represent the largest shareholders in the Company as of August 31, 2012, that have accepted participation in the Nomination Committee. The Chairman of the Board, Lisa Thorsted, is also represented in the Nomination Committee, and is the convener.

RISK FACTORS

Precise Biometrics is exposed to both commercial and financial risks, which to a large extent lie outside the reach and influence of the company. There is no guarantee that the current capital will be sufficient until the Company achieves a positive cash flow. Neither is there any guarantee that new capital can be acquired if the need should arise, or that such capital can be acquired on preferential terms. For a full account of identified risks, please refer to the Annual Report for 2011, which was submitted April 2, 2012. No further essential risks or uncertainties have arisen after the submission of the Annual Report.

FUTURE REPORT DATES

Interim report Q1 April 23, 2013
Interim report Q2 July 18, 2013
Interim report Q3 October 23, 2013
Year-end report February 7, 2014

ANNUAL GENERAL MEETING

The annual general meeting for Precise Biometrics AB (publ) will be held on Tuesday, April 23 2013 at 4 p.m. at Precise Biometrics headquarters in Lund, Scheelevägen 30.

The annual report for 2012 will be published by the latest two weeks before the annual general meeting.

ACCOUNTING PRINCIPLES

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

New IFRS, additions to IAS and IFRIC interpretations taking effect January 1, 2012, did not have a material effect on the financial statements.

For information on the applied accounting principles please refer to the Annual Report for 2011.

Lund, February 4, 2013

The board of directors

Lisa Thorsted, chairman

Erwin F Leichtle Lena Widin Klasén Eva Maria Matell Torbjörn Clementz

Thomas Marschall, President and CEO, Precise Biometrics AB (publ).

Precise Biometrics AB (publ) may be required to disclose the information provided herein pursuant to the Securities Markets Act. The information was submitted for publication at 08.00 on February 5, 2013.

Income statement, Group

(Figures in thousands SEK) Q4 Q4 Full year Full year
2012 2011 2012 2011
Net sales 8 395 4 813 28 281 21 615
Cost of goods sold -4 180 -1 577 -12 495 -9 548
Gross profit/loss 4 215 3 236 15 786 12 067
Selling expenses1) -7 217 -5 986 -25 812 -18 543
Administrative expenses1) -3 316 -3 038 -13 909 -11 489
R&D costs -5 277 -3 395 -18 239 -15 157
Other operating income and changes in value -37 -98 -729 -290
-15 847 -12 517 -58 689 -45 479
Operating result -11 632 -9 281 -42 903 -33 412
Financial costs -1 322 80 -4 049 208
Result after financial items -12 954 -9 201 -46 952 -33 204
Tax - -12 - -12
Result for the period -12 954 -9 213 -46 952 -33 216
Result attributable to:
Owners of the parent -12 954 -9 213 -46 952 -33 216
Result per share (before dilution), SEK -0,05 -0,05 -0,23 -0,20
Result per share (after dilution), SEK -0,05 -0,05 -0,23 -0,20

1) Include the effect of the liquidation of the subsidiary Loqware amounting SEK +1,754 thousand in 2011.

Groups report concerning comprehensive income

(Figures in thousands SEK) Q4 Q4 Full year Full year
2012 2011 2012 2011
Profit/loss for the period -12 954 -9 213 -46 952 -33 216
Comprehensive income:
Change in accumulated exchange rate differences -20 42 143 -55
Comprehensive income for the period, net of tax -20 42 143 -55
Total comprehensive income for the period -12 974 -9 171 -46 809 -33 271
Attributable to:
Owners of the parent -12 974 -9 171 -46 809 -33 271
Total comprehensive income for the period -12 974 -9 171 -46 809 -33 271
Balance Sheet, Group
(Figures in thousands SEK) 12/31/2012 12/31/2011
Assets
Intangible fixed assets 18 358 12 778
Tangible fixed assets 1 829 1 070
Inventories 10 985 9 673
Accounts receivable - trade1) 10 803 6 352
Other current receivables 6 092 5 603
Cash and bank balances
Total assets
37 584
85 651
28 930
64 406
Equity and liabilities
Equity 48 195 46 988
Current liabilities 37 456 17 418
Total equity and liabilities 85 651 64 406
Pledged assets 24 000 26 400

Contingent liabilities

1) Include a receivable concering contract manufacturer totalling SEK 1.7 million (3.6) for 2012

Cash Flow Statement, Group

(Figures in thousands SEK) Q4 Q4 Full year Full year
2012 2011 2012 2011
Cash flow from operating activities
before changes in working capital -22 504 -8 601 -44 620 -31 851
Cash flow from changes in working capital 4 939 2 625 -4 252 -4 099
Cash flow from operating activities -17 565 -5 976 -48 872 -35 950
Cash flow from investing activities -4 907 -2 513 -9 143 -8 679
Cash flow from financing activities 56 669 - 66 669 49 015
Cash flow for the period 34 197 -8 489 8 654 4 386
Liquid funds at the beginning of the period 3 387 37 420 28 930 24 544
Liquid funds at the end of the period 37 584 28 930 37 584 28 930

Key Figures, Group

12/31/2012 12/31/2011
Working capital (thousands SEK) 28 008 33 140
Liquid ratio 145% 235%
Equity/assets ratio 56% 73%
Return on average equity neg neg
Capital employed (thousands SEK) 68 195 48 399
Return on capital employed neg neg
Profit/loss per share (SEK) -0,23 -0,20
EBITDA (thousands SEK) -40 100 -31 213
Equity per share (SEK) 0,18 0,25
Number of shares 264 523 168 188 945 120
Number of employees at the end of the period 37 35
Average number of employees during the period 37 34

Page 12 of 18 Lund February 5, 2013

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

due to calculation of potential shares would result in an improvement in loss per share which is not permitted according to IAS 33

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

Operating costs (as described in Sales and result): Operating costs excluding costs for products sold, participations in associated companies and goodwill write-down, but including depreciation and write-downs and after capitalization of costs for development work

Changes in equity, Group

(Figures in thousands SEK)

Capital
stock
Other paid in
capital
Reserves Balanced profit/
year's profit
Total
equity
Opening balance as at January 1, 2012
Comprehensive income
75 578 564 635 584 -593 809 46 988
Comprehensive income for the period - - - -46 952 -46 952
Other comprehensive income
Exchangerate differences
- - 143 - 143
Total comprehensive income 0 0 143 0 143
Total comprehensive income 0 0 143 -46 952 -46 809
Transactions with the shareholders
New share issue1) 30 231 17 785 - - 48 016
Total transactions with the shareholders 30 231 17 785 0 0 48 016
Closing balance as at December 31, 2012 105 809 582 420 727 -640 761 48 195

1) Issue costs concerning new share issue totalling 75,578,048 new shares at a rate of SEK 0.72 with deductions for issue costs SEK 6,400 thousand.

Turnover and profitability by segments Q4 20121)

(Figures in thousands SEK) IAM MOBILE TOTAL SEGMENTS
2012 2011 2012 2011 2012 2011
Net sales 5 810 4 812 2 585 - 8 395 4 812
Expenses2) -11 337 -7 921 -9 999 -7 002 -21 336 -14 923
Result3) -5 527 -3 109 -7 414 -7 002 -12 941 -10 111

Turnover and profitability by segments full year 20121)

(Figures in thousands SEK) IAM MOBILE TOTAL SEGMENTS
2012 2011 2012 2011 2012 2011
Net sales 25 549 21 614 2 732 - 28 281 21 614
Expenses2) -38 427 -34 528 -37 266 -25 950 -75 693 -60 478
Result3) -12 878 -12 914 -34 534 -25 950 -47 412 -38 864

1) From January 2012 Access Solutions is included in IAM. The 2011 figures are restated accordingly.

2) The above expenses in the segments include Cost of goods sold as well as direct and share of indirect operation expenses. 3) Group Result (see Income statement) also includes capitalization and depreciation of development work and other operating income and changes

in value. This amount totals for Q4 SEK 1,313 thousand (832) and for the full year SEK 4,513 thousand (5,452).

Income statement, Parent company

(Figures in thousands SEK) Full year Full year
2012 2011
Net sales 24 512 15 507
Cost of goods sold -23 421 -19 846
Gross profit/loss 1 091 -4 339
Selling expenses -12 628 -12 274
Administrative expenses -13 908 -11 223
R&D costs -18 239 -8 692
Other operating income and changes in value -2 432 290
-47 207 -31 899
Operating result -46 116 -36 238
Financial costs1) -3 630 683
Result after financial items -49 746 -35 555
Tax - -
Result for the period -49 746 -35 555

Interim Report

Balance Sheet, Parent company

(Figures in thousands SEK) 12/31/2012 12/31/2011
Assets
Intangible fixed assets 18 358 12 692
Tangible fixed assets 1 829 943
Participations in group companies 1 058 1 058
Inventories 9 810 9 673
Accounts receivable - trade1) 5 954 4 736
Other current receivables 38 715 38 474
Cash and bank balances 35 197 21 662
Total assets 110 921 89 238
Equity and liabilities
Equity 75 511 77 117
Other provisions 117 76
Current liabilities 35 293 12 045
Total equity and liabilities 110 921 89 238
Pledged assets 24 000 24 000
Contingent liabilities NONE 2 000

1) Include a receivable concering contract manufacturer totalling SEK 1.7 million (3.6) for 2012.

TELEPHONE CONFERENCE

On the occasion of today's Interim 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)8 519 990 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 afterwards there will be an opportunity to ask questions in Swedish.

Participating on behalf of Precise Biometrics

  • Thomas Marschall, President and CEO
  • Patrik Norberg, CFO

A recording from the conference will be available for three days after the telephone meeting. To listen to the conference afterwards dial +46 (0)8 505 564 73. When asked to state a reference number please dial 345931 and finish with (#).

Please visit www.precisebiometrics.com/financial-reports 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]

Precise Biometrics is a market-leading provider of solutions for fingerprint recognition to prove people's identities. With topof-the-line expertise in fingerprint verification, Precise Biometrics offers fast, accurate and secure authentication of a person.

The technology adds value to ID, enterprise and bank cards as well as access to mobile solutions, computers and networks.

Precise Biometrics serves business and government organizations throughout the world and its technology is licensed to close to 160 million users.

Page 18 of 18 Lund February 5, 2013

For more information, please visit www.precisebiometrics.com.