Precise Biometrics — Interim / Quarterly Report 2015

Feb 16, 2016

LUND, FEBRUARY 16th, 2016

Strong growth and positive EBITDA for the full year 2015

YEAR-END REPORT 2015 - PRECISE BIOMETRICS AB (PUBL), CORPORATE IDENTITY NO. 556545-6596

FOURTH QUARTER 2015

• Consolidated net sales increased to SEK 23.4 (9.9) million.
• Operating profit increased to SEK 4.4 (-9.7) million.
• EBITDA increased to SEK 6.7 (-6.3) million.
• Profit after tax increased to SEK 4.3 (-9.6) million.
• Earnings per share for the period increased to SEK 0.01 (-0.03).

FULL YEAR 2015

• Consolidated net sales increased to SEK 56.3 (31.4) million.
• Operating profit improved to SEK -9.4 (-44.5) million.
• EBITDA improved to SEK 0.5 (-31.7) million.
• Loss after tax improved to SEK -9.4 (-44.0) million.
• Earnings per share improved to SEK -0.03 (-0.13).
• Cash and cash equivalents were SEK 52.3 (59.7) million at the end of the year.
• The business areas Desktop & Physical Access Solutions is integrated into Mobile Smart Card Solutions from the start of 2016.

SIGNIFICANT EVENTS IN THE FOURTH QUARTER

• Precise BioMatch Mobile was integrated into over 20 smartphones.
• Licensing agreements were signed with five sensor manufacturers; Cypress, Oxi Technology, Focaltech, Gingytech and J-Metrics.
• Follow-on order for Tactivo from the Defense Logistics Agency (DLA), an agency of the U.S. Department of Defense.

SIGNIFICANT EVENTS FOR THE FULL YEAR

• Precise BioMatch Mobile was integrated into over 55 smartphones from more than 25 manufacturers.
• Licensing agreements were signed with eight sensor manufacturers; Silead, JP Sensor, Elan, Cypress, Oxi Technology, Focaltech, Gingytech and J-Metrics.
• Several follow-on orders for Tactivo from the Defense Logistics Agency.
• Tactivo order from the US Navy for secure mobile access to e-mail and browsing capabilities on iOS devices.
• Tactivo order from Imperial College Healthcare NHS Trust and Oxleas NHS Trust in the UK for secure mobile access to healthcare systems.
• Precise Biometrics was awarded the 2015 Frost & Sullivan Award for Global Customer Value Leadership in fingerprint recognition for mobile devices.

CONFERENCE CALL

On the occasion of today's year-end report, we are pleased to invite investors and journalists to a conference call today at 10.00. To participate, dial +46 (0)8 566 426 91. More information can be found at the last page of the report.

CEO´s comments

I´m very pleased and proud to announce that the positive sales trends within Fingerprint Technology and Mobile Smart Card Solutions are continuing and have led to Precise Biometrics showing an operating profit at EBITDA level for the full year for the first time in the company's history. Net sales in the fourth quarter totaled SEK 23.4 million, representing an increase of 138 per cent compared with the same quarter 2014. Operating costs are well-controlled and rose marginally during the quarter. The quarter's EBITDA increased to SEK 6.7 million, and the period's net profit improved to SEK 4.3 million. Developments in 2015 showed very strong sequential growth in sales and profit. It is extremely gratifying to see that all efforts made during the past two years have now borne fruit.

The market for fingerprint technology in mobile devices is continuing to grow rapidly. The fourth quarter saw the launch of a further 20 smartphones with Precise BioMatch Mobile. Precise BioMatch Mobile has been integrated into a total of more than 55 smartphones from over 25 manufacturers, including smartphones from brands such as Google, Huawei, HTC, Lenovo, Sony and Xiaomi. Fingerprint readers is now standard for nearly all manufacturers' premium models, and is also increasing rapidly for phones in the medium and low-price segments. One third of all smartphones sold in 2015 contained fingerprint technology. In tandem with the volume growth in the market, interest is also increasing among new players to take a market share. We concluded licensing agreements during the quarter with five additional sensor manufacturers – Cypress, Oxi Technology, Focaltech, Gingytech and J-Metrics. We now have a agreements with a total of ten sensor manufacturers, which further reinforces our position as the market-leading supplier of fingerprint software, and thereby provides good prerequisites for continued growth and a large market share.

The interest for fingerprint technology within other product areas than smartphones is growing rapidly. Hundreds of millions of people use fingerprint technology every day in their smartphones for greater convenience and security. The technology is accepted and will soon be found more or less in every person's hand, which will also lower the threshold for integration in other types of products. As sensors become smaller and therefore cheaper, while new sensor technologies gain a foothold in the market, prerequisites for growth will be created within new product areas such as smart cards, wearables, locks, vehicles and products within the concept known as Internet of Things. Our fingerprint software is already integrated into several products in the market, such as national ID cards, locks, electronic wallets and PC accessories. In addition, we are involved in several interesting projects that we believe could provide support to our growth during the coming years.

Positive developments within the Mobile Smart Card Solutions business area are continuing. We received orders during the quarter from units of the US Department of Defense and from the healthcare sector in the United Kingdom and Sweden. Growth is driven by higher demands for secure mobility solutions and improved access to mobile applications with support for smart cards. In the United States, major orders were received from the Defense Logistics Agency (DLA) and the US Navy. We anticipate continued orders from the US Department of Defense as a result of their efforts to roll out mobile solutions for secure access to email and the Internet.

The healthcare markets in Sweden and the United Kingdom have developed well with both increased sales and a rising number of pilot projects for secure mobility with Tactivo. In order to meet demand, we have worked intensively with our partners to package attractive solutions with Tactivo that enable convenient and secure mobility with smart cards. Feedback has been very positive from both healthcare staff and managers, which leads us to believe that sales will continue to increase in both the United Kingdom and Sweden.

Outlook

The company is stronger than ever, and is well-positioned for continued profitable growth. We have established Precise Biometrics as the leading supplier of fingerprint software for the mobile device market. The volume within the market and the number of utilization areas for fingerprint technology is

increasing rapidly. Our objective is to increase sales and market share within the segment of fingerprint technology for mobile devices, and to establish a leading position within new product areas that require a small sensor. We shall ensure that our software gives the best user experience of products with small fingerprint sensors for platforms with limited processing power and memory space, irrespective of the sensor technology, operating system or platform. We will create prerequisites for achieving our objectives by strengthening our collaboration with existing customers and initiating new agreements with additional sensor manufacturers.

We also see good growth potential within the Mobile Smart Card Solutions business area. Interest is rising within existing markets for Tactivo, and the possibility exists to develop new markets, primarily within the public sector, where a smart card is often required for secure mobile log-in to information.

Håkan Persson, CEO

MARKET AND SALES

The company has three business areas: Fingerprint Technology, Mobile Smart Card Solutions and Desktop & Physical Access Solutions.

Fingerprint Technology

The business area features products based on Precise Biometrics' patented core technology, algorithms for fingerprint biometrics. Its product portfolio consists of three products:

• Precise BioMatch™ Mobile, software which is developed and optimized for integration of fingerprint biometrics in smartphones and tablets.
• Precise BioMatch™ Embedded, software for integration of fingerprint recognition directly in the fingerprint sensor.
• Precise Match-on-Card™, software for integration of fingerprint biometrics in cards, such as bank and ID cards.

Sales for this business area came in at SEK 18.8 (3.7) million for fourth quarter. Royalty revenues from Fingerprint Cards and Silead continued to grow in the last quarter of the year. Moreover, Synaptics sensors were delivered during the quarter, which will provide royalty revenues in the first quarter 2016. Collaboration agreements with JP Sensor and Cypress are developing well and are expected to generate royalty revenues as of the first half-year 2016. We have commenced the integration of our software with sensors from Oxi Technology, Focaltech, Gingytech and J-Metrics, and anticipate royalty revenues from these partners during the second half-year 2016. The national ID card project in Portugal continues to generate royalty revenue.

The Company is now supplier to ten sensor manufacturers. In order to ensure a continued large market share and growth in a situation with greater competition among sensor manufacturers, the Company is actively working to obtain new partners that are believed to have interesting market potential. The Company is currently holding discussions with sensor manufacturers that offer different types of technologies, and that in addition to cost-effective fingerprint recognition can also offer different types of functionality, for example, the measuring of pulse and blood pressure or greater security through so-called "liveness detection".

The Company is constantly developing its fingerprint software so as to meet the market's demand for rapid and secure verification of a person's identity. Our software provides the best user experience of products with small fingerprint sensors in platforms with limited processing power and memory space, irrespective of the sensor technology, operating system or platform.

Mobile Smart Card Solutions

The business area features the company's Tactivo products, a product portfolio of smart card and fingerprint readers for smartphones and tablets. Tactivo enables convenient and secure mobile login to systems and applications in organizations that use smart cards as a security solution.

Sales for this business area totaled SEK 3.7 (2.0) million in fourth quarter. The revenues mainly stem from orders from the U.S. Department of Defense and the British healthcare sector. Sales to the US government agency market grew prominently during the year, and represent the largest market segment for Tactivo. The Company won several orders from the DLA and the US Navy. The Company maintain a close dialog with customers to ensure optimal delivery readiness regarding volume and type of product in relation to their roll-out plans.

The Company delivered Tactivo during the year to two of the most innovative and leading foundations within the British healthcare market – Imperial College Healthcare NHS Trust and Oxleas NHS Trust. The solutions with Tactivo have been extremely well received by both managers and staff. The projects have led to enquiries from several other healthcare foundations regarding mobile solutions with Tactivo. Moreover, the NHS aims to digitalize healthcare administration so as to be entirely

paper-free by 2020, which will create good prerequisites for mobility projects and increased sales of Tactivo. The Company anticipate continued growth within the British healthcare market.

The interest for mobile solutions within Swedish healthcare is considerable. Several projects were realized in 2015 within the Swedish healthcare market with the objective of modernizing IT systems and increasing the degree of mobility. Several systems within primary elderly care are now available and are starting to be rolled out by partners, which the Company anticipate will lead to a gradual rise in sales of Tactivo in Sweden during 2016.

Desktop & Physical Access Solutions

The business area features the company's fingerprint readers for desktop workplaces and physical access to premises. This includes products such as combined fingerprint and smart card readers for secure login to systems, networks and physical access control.

Sales for this business area reached SEK 1.0 (4.2) million in fourth quarter. The revenues came from sales to clients using the Precise Biometrics 200MC fingerprint reader for secure login. There is no new product development within the business area, which is in line with the Company´s previously announced strategy to focus on the business areas Fingerprint Technology and Mobile Smart Card Solutions. Existing products will be sold as long as there is a demand. The remaining business was transferred to the business area Mobile Smart Card Solutions per January 1st, 2016.

SALES AND EARNINGS

FOURTH QUARTER 2015

Net sales for Q4 increased to SEK 23.4 (9.9) million. The majority of Q4 sales came from the Fingerprint Technology business area, which accounted for SEK 18.8 (3.7) million. The increase in sales was mainly generated through the agreement with Fingerprint Cards. Revenue from the Mobile Smart Card Solutions business area increased to SEK 3.7 (2.0) million. In the Desktop & Physical Access Solutions business area, revenue fell to SEK 1.0 (4.2) million. The changed sales mix is a result of the Company's strategy and direction initiated in August 2014.

The gross margin was 90% (39%) due to a larger share of software sales in Fingerprint Technology in comparison to the previous year, putting the operating profit at SEK 21.1 (3.9) million.

Total operating expenses for Q4 amounted to SEK 16.7 (13.5) million. The increase in operating expenses is mainly due to a negative foreign exchange effect. The operating profit improved to SEK 4.4 (-9.7) million. EBITDA improved to SEK 6.7 (-6.3) million.

Net financial items in the interim period totaled SEK -0.1 (0.0) million, mainly comprising foreign exchange effects.

Earnings per share (average number of shares) for Q4 amounted to SEK 0.01 (-0.03).

The groups cash flow from operations improved to SEK 7.0 (-8.8) million.

FULL YEAR 2015

Net sales in 2015 increased to SEK 56.3 (31.4) million. The largest share of sales came from the Fingerprint Technology business area SEK 42.6 (8.3) million. Revenues primarily consisted of deliveries of the Company's fingerprint technology and license sales. Sales in the Mobile Smart Card Solutions business area (Tactivo) increased during the year to SEK 10.1 (5.1) million. Sales in the Desktop & Physical Access Solutions business area fell to SEK 3.6 (18.0) million, which reflects the Company's strategy to change its sales mix.

The gross margin was 85% (55%), propelling the operating profit to SEK 47.9 (17.2) million. The increase is related to an increased share of software sales.

Operating expenses for the year decreased to SEK 57.3 (61.7) million. The decrease is a result of the increased focus on Fingerprint Technology and Mobile Smart Card Solution business areas. The operating loss improved to SEK -9.4 (-44.5) million as a result of increased revenues and lower expense level. EBITDA increased to SEK 0.5 (-31.7) million.

Net financial items for the full year were SEK -0.1 (0.5) million.

Earnings per share (average number of shares) for the full year amounted to SEK -0.03 (-0.13).

The groups cash flow from operations improved to SEK -7.4 (-41.5) million.

INVESTMENTS IN PROPERTY, PLANT & EQUIPMENT

In Q4, the group invested SEK 0.1 (0.0) million in property, plant & equipment. Amortization of property, plant & equipment in Q4 was SEK 0.3 (0.3) million.

The amount the group invested in property, plant & equipment over the full year was SEK 0.6 (1.2) million. Amortization of property, plant & equipment over the full year was SEK 1.2 (1.0) million.

CAPITALIZATION AND AMORTIZATION OF RESEARCH AND DEVELOPMENT

Research and development costs were capitalized in the amount of SEK 1.7 (1.5) million in Q4. Amortization of capitalized research and development costs amounted to SEK 2.0 (2.1) million in Q4.

Research and development costs during 2015 were capitalized in the amount of SEK 2.4 (6.6) million. Amortization of capitalized research and development costs totaled SEK 8.6 (8.5) million in 2015.

FINANCING AND CASH FLOW

On December 31, 2015, equity totaled SEK 83.0 (92.0) million, with equity per share at SEK 0.24 (0.27).

Cash and cash equivalents amounted to SEK 52.3 (59.7) million at the end of the year.

PARENT COMPANY

Parent company sales for the full year came in at SEK 49.7 (26.4) million. The loss before tax for the period amounted to SEK -43.9 (-36.8) million.

Cash and cash equivalents at the end of the quarter totaled SEK 46.9 (57.0) million.

In July, the Swedish Companies Registration Office approved a decrease in share capital pursuant to a resolution at the annual general meeting. A write-off of receivables on the subsidiary Precise Biometrics Inc. was conducted during Q3 totaling SEK 35.9 million.

ORGANIZATION AND STAFF

The organization consists of Precise Biometrics AB, with its head office in Lund and an office in Karlstad, Sweden, and Precise Biometrics Inc. with offices in Reston, Virginia, USA. Sales consultants are hired in the U.S., Taiwan, China and South Korea to secure a local presence on key markets.

As of December 31, 2015, the Group had 35 staff members, consultants included. The number of employees were 22 (22) of which 22 (21) were based in Sweden and 0 (1) in the U.S.

UPCOMING REPORTING DATES

Q2 2016 Interim Report August 16, 2016 Q3 2016 Interim Report November 15, 2016 Q4 2016 Year-end Report February 14, 2017

Q1 2016 Interim Report May 17, 2016 (Change of previously announced date)

ANNUAL GENERAL MEETING

Annual General Meeting for Precise Biometrics AB (publ) will be held at Mobilvägen 10, on May 17, 2016, at 4:00 PM CEST. The 2015 Annual Report will be published three weeks prior to the Annual General Meeting.

RISK FACTORS

Precise Biometrics is exposed to business risks and financial risks outside of the reach and control of the Company. There is no guarantee that new capital can be raised if the need should arise, or that such capital can be raised on favorable terms. For a full report on the risks identified, please see the Annual Report for 2014 submitted on March 23, 2015. No new significant risks or uncertainties have arisen since the annual report was submitted.

ACCOUNTING POLICIES

The consolidated financial statements in this year-end report have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU. The parent company financial statements have been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities. This year-end report has been prepared in compliance with IAS 34 Interim Reporting. The recognition and measurement policies as well as the bases of estimates and judgements applied in the Annual Report for 2014 have been used in this year-end report as well. No new or revised IFRS standards that came into force in 2015 have had any material impact on the group. For information on applied accounting principles, please read the Annual Report 2014.

The 2015 year-end report has not been reviewed by the Company´s accountants.

Lund February 16, 2016

Board

Torgny Hellström, Board Chairman

Torbjörn Clementz Eva Maria Matell Anders Harrysson Matts Lilja Mats Lindoff

Year -end report

President & CEO

Håkan Persson

The information in this report is of such a nature that Precise Biometrics AB (publ) has an obligation to publish it under the Securities Market Act. The information was submitted for publication on February 16, 2016, at 8:00 AM CET.

Consolidated income statement

(Amounts in SEK thousand)	Q4	Q4	Full year	Full year
	2015	2014	2015	2014
Net sales	23 454	9 852	56 337	31 387
Cost of goods sold	-2 336	-5 981	-8 415	-14 208
Gross profit	21 118	3 871	47 922	17 179
Selling expenses	-4 096	-4 154	-12 685	-19 907
Administrative expenses	-3 424	-2 385	-13 587	-14 343
R&D expenses	-7 971	-7 780	-31 275	-28 984
Other revenues/costs	-1 241	789	219	1 508
	-16 734	-13 530	-57 330	-61 726
Operating profit/loss	4 384	-9 659	-9 408	-44 547
Financial income/cost	-72	41	-62	502
Profit/loss before tax	4 313	-9 618	-9 469	-44 045
Tax	-	-	-	-
Profit/loss for the period	4 313	-9 618	-9 469	-44 045
Profit/loss for the period attributable to:
Parent company shareholders	4 313	-9 618	-9 469	-44 045
Basic earnings per share, SEK	0.01	-0.03	-0.03	-0.13
Diluted earnings per share, SEK	0.01	-0.03	-0.03	-0.13

Consolidated statement of profit or loss and other comprehensive income

(Amounts in SEK thousand)	Q4	Q4	Full year	Full year
	2015	2014	2015	2014
Profit /loss for the period	4 313	-9 618	-9 469	-44 045
Other comprehensive income:
Items that may be reclassified to profit or loss
Changes in accumulated translation difference	1 229	852	545	1 220
	1 229	852	545	1 220
Other comprehensive income for the period net of tax	1 229	852	545	1 220
Total comprehensive income for the period	5 542	-8 766	-8 924	-42 825
Attributable to:
Parent company shareholders	5 542	-8 766	-8 924	-42 825
Total comprehensive income for the period	5 542	-8 766	-8 924	-42 825

Consolidated balance sheet

(Amounts in SEK thousand )	2015-12-31	2014-12-31
Assets
Intangible assets	11 152	17 360
Property, plant & equipment	2 132	2 784
Total tangible and intangible assets	13 284	20 144
Inventories	8 503	11 860
Trade receivables	8 831	6 759
Other current receivables	15 975	7 778
Cash and bank balances	52 356	59 659
Total current assets	85 665	86 056
Total assets	98 949	106 200
Equity and liabilities
Equity	83 059	91 983
Total equity	83 059	91 983
Current liabilities	15 890	14 217
Total current liabilities	15 890	14 217
Total equity and liabilities	98 949	106 200
Pledged assets	None	None
Contingent liabilities	None	None

Consolidated cash flow statement

(Amounts in SEK thousand)	Q4	Q4	Full year	Full year
	2015	2014	2015	2014
Net cash provided by/used in operation activities
before changes in working capital	7 734	-5 653	395	-30 664
Cash flow from changes in working capital	1 080	-1 650	-4 853	-3 264
Net cash provided by/used in operating activities	8 814	-7 303	-4 458	-33 928
Net cash provided by/used in investing activities	-1 805	-1 506	-3 005	-7 871
Net cash provided by/used in financial activities	-	-	-	261
Net cash flow for the period	7 009	-8 809	-7 463	-41 538
Cash and cash equivalents at start of period	45 187	68 468	59 659	101 197
Exchange differences from liquid assets	160	0	160	0
Cash and cash equivalents at end of period	52 356	59 659	52 356	59 659

Consolidated financial ratios	Q4	Q4	Full year	Full year
	2015	2014	2015	2014
Working capital (SEK thousand)	69 775	71 839	69 775	71 839
Quick ratio	486%	522%	486%	522%
Equity-asset ratio	84%	87%	84%	87%
Return on equity	4%	neg	neg	neg
Capital employed (SEK thousand)	83 059	91 983	83 059	91 983
Earnings per share before tax (SEK)	0.01	-0.03	-0.03	-0.13
EBITDA (SEK thousand)	6 667	-6 302	457	-31 772
Equity per share (SEK)	0.24	0.27	0.24	0.27
Number of shares	345 306 094	345 306 094	345 306 094	345 306 094
Number of employees at end of period	22	22	22	22
Average number of employees during the period	22	27	22	27

Definitions of financial ratios

Working capital: Current assets minus current liabilities

Quick ratio: Current assets less inventories divided by current liabilities

Equity-asset ratio: Equity on the balance sheet date divided by total assets on the balance sheet date

Return on equity: Profit/loss after tax as a percentage of average equity

Capital employment: Total assets less non-interest bearing liabilities and provisions

Earnings per share: Profit/loss after tax divided by average number shares. Current warrant programs are not included, given that potential ordinary shares would result in a lower loss per share upon calculation, which is not allowed under IAS 33*

EBITDA: Earnings before interest (financial items), taxes, depreciation and amortization (including impairment losses)

Equity per share: Equity on the balance sheet date divided by the number of shares on the balance sheet date

Quarterly profitability measures are not presented

Operating costs (as presented in sales and earnings): Operating costs excluding costs of goods sold, including provisions and depreciation, after capitalization costs for research and development.

Consolidated statement of changes in equity – in summary

(Amounts in SEK thousand)

	2015	2014
	Full year	Full year
Equity at start of period	91 983	134 547
Comprehensive income for the period	-9 469	-44 045
Exchange rate differences	545	1 220
Warrant programs	-	261
Equity at the end of period	83 059	91 983

Business area reporting

(Amounts in SEK thousand)

Net sales per business area	2015	2014	2015	2014
	Q4	Q4	Full year	Full year
Mobile Smart Card Solutions	3 715	1 966	10 141	5 147
Fingerprint Technology	18 768	3 724	42 559	8 289
Desktop & Physical Access Solutions	971	4 162	3 637	17 951
Group	23 454	9 852	56 337	31 387
Cost per business area 1)	2015	2014	2015	2014
	Q4	Q4	Full year	Full year
Mobile Smart Card Solutions	-1 522	-9 415	-16 645	-38 959
Fingerprint Technology	-210	-4 646	-21 775	-17 728
Desktop & Physical Access Solutions	-604	-4 225	-5 183	-14 371
Undistributed 2)	-16 734	-1 225	-22 143	-4 876
Group	-19 070	-19 511	-65 746	-75 934
Operating profit/loss per business area	2015	2014	2015	2014
	Q4	Q4	Full year	Full year
Mobile Smart Card Solutions	2 193	-7 449	-6 504	-33 812
Fingerprint Technology	18 558	-922	20 784	-9 439
Desktop & Physical Access Solutions	367	-63	-1 546	3 580
Undistributed 2)	-16 734	-1 225	-22 143	-4 876
Group	4 384	-9 659	-9 408	-44 547

1) Cost for the business areas include costs of goods sold as well as direct and the share of indirect costs.

2) Undistributed consists of capitalization of research and development costs, depreciation of property, plant & equipment, amortization of intangible assets, and other revenue and fair value changes.

Parent company income statement

(Amounts in SEK thousand)	Full year	Full year
	2015	2014
Net sales	49 755	26 394
Cost of goods sold	-5 500	-13 933
Gross profit/loss	44 256	12 461
Selling expenses	-11 082	-15 373
Administrative expenses	-13 586	-14 342
R&D expenses	-31 275	-28 984
Other revenues/costs	3 140	8 291
	-52 804	-50 408
Operating profit/loss	-8 548	-37 947
Financial income/costs 1)	-35 341	1 122
Profit/loss before tax	-43 889	-36 825
Tax	-	-
Profit/loss for the period	-43 889	-36 825

1) Group receivables were written off by SEK 35.9 (0.0) million in 2015.

Parent company balance sheet

(Amounts in SEK thousand)	2015-12-31	2014-12-31
Assets
Intangible assets	11 152	17 360
Property, plant & equipment	2 132	2 784
Financial assets 1)	10 135	1 058
Total tangible and intangible asssets	23 419	21 202
Inventories	5 746	7 437
Trade receivables	4 848	4 435
Other current receivables 2)	15 790	47 179
Cash and bank balances	46 860	56 979
Total current assets	73 244	116 030
Total assets	96 663	137 232
Equity and liabilities
Equity	81 285	125 175
Total equity	81 285	125 175
Provisions	78	212
Total provisions	78	212
Current liabilities	15 300	11 845
Total liabilities	15 300	11 845
Total equity and liabilities	96 663	137 232
Pledged assets	None	None
Contingent liabilities	None	None

1) This item includes an intra-group receivable in the amount of SEK 9.1 (0.0) million after a write off by SEK 35.9 (0.0) million.

2) This item includes an intra-group receivable in the amount of SEK 0.0 (40) million

CONFERENCE CALL

On the occasion of today's interim report, we are pleased to invite investors and journalists to an informational conference call today.

The conference call starts at 10:00 AM (CET)

To participate in the call, please call +46 (0)8-566 426 91

An operator will note your name and connect you to the conference call. She/he will also provide you with information about what to do if you have any questions.

The conference call will be in English. Participants will be given the opportunity to ask questions in Swedish.

Participating on behalf of Precise Biometrics:

Håkan Persson, CEO

Tommy Nilsson, CFO

A recording of the conference call will be available for three days after the call. To listen to the conference call after the session, please dial +46 (0)8- 566 426 38. When you are asked to enter a reference number, then enter 667692 and press the pound key (#).

You are also welcome to go to http://precisebiometrics.com/investor/ where you will find a presentation to download.

ABOUT PRECISE BIOMETRICS Precise Biometrics is a market-leading supplier of solutions that safeguard people's identities with smart cards and fingerprint technology. The company's products can be used for ID, company and bank cards, and for access to mobile solutions, computers and networks. Precise Biometrics delivers solutions to companies and government agencies throughout the world. The company's products are licensed to almost 160 million users. More information is available at; http://precisebiometrics.com/