PRECISE BIOMETRICS IS INCREASING ITS HOLDING IN SMART UNICORN SOLUTIONS

Precise Biometrics AB (publ), a Swedish company that develops and
sells world-leading and user-friendly biometric security solutions
based on fingerprints and smart cards, is increasing its holding in
the previously partly owned company Smart Unicorn Solutions (SUS) to
38 per cent. This will enable Precise Biometrics to further
strengthen its position in the Chinese market.

In the first quarter of 2006, Precise Biometrics embarked upon a
joint venture with Smart Unicorn Group in Shanghai in China. The
agreement gave Precise Biometrics a 30 per cent holding in the
jointly owned company Smart Unicorn Solutions (SUS).

The initial acquisition was made to meet the demands of the Chinese
market for security solutions using biometrics. Bringing the
transaction to final completion suffered delays and last year the
project was written down by almost SEK 25 million. At that stage
opportunities for final completion of the deal were assessed as poor.
However, now a deal is finally made. The solution means that Precise
Biometrics, through an issue of 4,000,000 shares, is increasing its
holding in Smart Unicorn Solutions by an additional 8 per cent."There is enormous interest in biometrics in the Chinese market, and
as a result in the near future our core technology can be
incorporated in a large number of applications, such as mobile
phones, entrance control systems, security solutions for IT
applications, and even mobile fingerprint readers. The Chinese market
is exciting. It is expanding explosively, and thus it is a matter of
great satisfaction that we now have a definitive deal on the table. I
look forward to seeing how our jointly owned company develops in the
future, "says Thomas Marschall, President and CEO of Precise
Biometrics.

Thomas Marschall mentions four specific projects for which Smart
Unicorn Solutions has signed agreements in 2007 or started biometrics
tests. The energy company China Southern Power Grid Ltd, which has
some 130,000 employees has chosen SUS as sole supplier of biometric
security solutions to protect its technical management system,
information systems, its buildings and other systems. Together with
the Chinese authorities SUS will develop a mobile fingerprint reader
for police work in the field. Biometrics tests have started with
China Mobile and UMPay as part of a new mobile payment services
initiative, and an agreement has been signed with Beijing Hanwang
Technology Co. Ltd, which is one of China's largest companies in the
entrance control system area."We are extremely pleased that we now have made the deal with the
Swedish company Precise Biometrics, which has sound experience within
smart card based security
systems. The combination of our knowledge of the Chinese market and
Precise Biometrics' in-depth knowledge within the biometrics area
makes us a winning team in the Chinese market," says Jason Yuan,
President  & COO of Smart Unicorn Solutions.

The increased holding of Precise Biometrics in Smart Unicorn
Solutions will be financed by a non-cash issue of 4,000,000 shares
(PREC). With that the received authorization at the Annual General
Meeting of 4,000,000 shares (PREC) is exercised. In addition, a loan
of SEK 7 million has been granted for the continued running of Smart
Unicorn Solutions.


For further information, please contact
Niklas Andersson, CFO, Precise Biometrics AB
Telephone +46 46 31 11 02 or +46 730 35 67 02
E-mail   niklas.andersson@precisebiometrics.com

Ann-Sofi Höijenstam, Director IR & Communications, Precise Biometrics
ABTelephone +46 46 31 11 47 or +46 734 35 11 47
E-mail  ann-sofi.hoijenstam@precisebiometrics.com

Dave Wu, Chairman of the Board, Smart Unicorn Solutions
Telephone +86 2163 326 226. (CET +7)
E-mail   dave.wu@smartunicorn.com


Precise Biometrics AB (publ.) is an innovative security company  that
supplies world-leading systems for  fingerprint and smart  card-based
authentication. The company's solutions  replace keys, PIN codes  and
passwords and enhance the integrity  of ID cards and passports.  With
its Precise  Match-on-Card(TM) technology,  the company  is a  market
leader within smart ID cards.  The product line includes systems  for
access  control  to  buildings,   computers  and  networks  and   for
integration into ID cards and passports. The Precise Biometrics group
has subsidiaries in Sweden,  Great Britain, USA  and a joint  venture
agreement in  China.  The group  headquarters  are in  Lund,  Sweden.
Precise Biometrics is  listed on  the small  cap list  at the  Nordic
Exchange in Sweden (symbol: PREC). For more information, please visit
http://www.precisebiometrics.com/