Precise Biometrics — Capital/Financing Update 2012

Oct 9, 2012

PRECISE BIOMETRICS' RIGHTS ISSUE OVERSUBSCRIBED

Precise Biometrics AB has successfully completed a rights issue with preferential rights which has supplied the Company with approximately SEK 54.4 million prior to issue costs. The rights issue was subscribed to 139.6% and is carried out principally to enable further marketing, sales and development of Tactivo™, but also product development for other brands of smartphones and tablets. Furthermore the rights issue was carried out to ensure a more cost effective alternative to the credit facility that was taken in March 2012.

A total of 72,300,129 shares were subscribed to with the exercise of subscription rights, corresponding to 95.7% of the number of shares. In addition 33,221,514 shares were subscribed for without preferential rights, corresponding to 44.0% of the number of shares.

The rights issue is thereby fully subscribed and increases the number of shares by 75,578,048 to 264,523,168. The new issue of shares increases Precise Biometrics' share capital by SEK 30,231,219 to SEK 105,809,267.

"I am very satisfied with the support from our shareholders and their confidence in our future plans. The new issue share capital now allows us to intensify our efforts within the mobile sector and on our product family Tactivo™", comments Thomas Marschall President and CEO at Precise Biometrics.

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 October 9, 2012. 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 October 30, 2012.

Financial Advisor

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

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 Oct 9, 2012.

FOR FURTHER INFORMATION, PLEASE CONTACT

Thomas Marschall, President and 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 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, computers and networks. Precise Biometrics serves business and government organizations throughout the world and its technology is licensed to close to 160 million users.