Precise Biometrics — Capital/Financing Update 2011

May 26, 2011

Precise Biometrics' rights issue oversubscribed

Precise Biometrics AB has successfully completed a rights issue with preferential rights which has supplied the Company with SEK 54.0 million prior to issue costs. The rights issue was subscribed to 118.9% and is carried out as a part of the Company's business plan – Plan 2015 ‐ which mainly includes further investments in sales, marketing and product development targeted towards biometric solutions for the SmartPhone and Tablet PC markets.

A total of 51,039,553 shares were subscribed to with the exercise of subscription rights, corresponding to 94.6% of the number of shares. In addition 13,132,983 shares were subscribed for without preferential rights, corresponding to 24.3% of the number of shares.

The rights issue is thereby fully subscribed and increases the number of shares by 53,984,320 to 188,945 120. The new issue of shares increases Precise Biometrics' share capital by SEK 21,593,728 to SEK 75,578,048.

Precise Biometrics' CEO Thomas Marschall comments:

"I am very pleased with the outcome of the share issue and that our plans for the future hold such great support among our share holders. This enables us to go ahead with our business investments within our prioritized market segments ‐ a prerequisite for us to achieve the objectives we have set out in Plan 2015."

Those persons who have subscribed to shares without preferential rights will be allocated shares in accordance with the principles indicated in the prospectus. Contract notes to the persons who have subscribed to shares without preferential rights are expected to be issued around May 27, 2011. Only those persons who receive an allocation will be informed.

As soon as the increase in share capital has been registered by the Swedish Companies Registration Office the paid subscribed shares in the rights issue will be converted to new shares. Trading in the new shares is estimated to start on NASDAQ OMX around June 20, 2011.

Financial Advisor

Remium AB has acted as financial advisor to Precise Biometrics in conjunction with the rights issue.

Point of contact: Thomas Marschall, CEO and President, Precise Biometrics AB Tel: +46 46 31 11 10 or +46 734 35 11 10 E-mail thomas.marschall@precisebiometrics.com

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

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.

Its core product, Precise Match-on-Card™, adds value to ID, SIM, enterprise and bank cards as well as systems for access control to buildings, computers and networks. Precise Biometrics serves business and government organizations throughout the world and its technology is licensed to close to 100 million users. For more information, please visit www.precisebiometrics.com