Board of Directors in Precise Biometrics Sets Terms for New Issue of Shares

  · Shareholders in Precise Biometrics have a preferential right to subscribe
two (2) new shares for five (5) existing shares on the record day September 17,
2012.

  · The subscription price has been set to SEK 0,72 per share, which corresponds
to a total issue amount of approx. SEK 54,4 million, contingent on that the
share issue is fully subscribed.

  · A guarantee consortium has committed to subscribe to shares in the share
issue up to 70% of the total issue amount, corresponding to SEK 38,1 million.

  · The subscription period runs between September 19 – October 3, 2012.

"Precise Biometrics has over the past 18 months transformed the company from
focusing and depending upon MoC semiconductors and desktop solutions to new
innovative products and solutions for SmartPhones and Tablets. This
transformation which has established one more leg for Precise Biometrics to
stand on has required substantial investments relating to R&D, market launch and
growing our sales organization. Precise Biometrics is entering the Smartdevice
market at a time when biometrics is part of the product roadmap for all leading
Smartdevice manufacturers worldwide. This focus was further illustrated and
emphasized when Apple this summer bought the world’s leading fingerprint
biometrics company, Authentec.

With the Apple certifications of Tactivo™ for iPhone and iPad in place, and with
the first orders coming in, Precise Biometrics need to ensure that we have the
working capital required to continue the strong momentum built up over the past
year within all fields. This is why we have chosen to conduct the new share
issue at this time. The new share issue will allow us to continue to realize our
technology roadmap which in 2013 in addition to more hardware products will also
provide to the market software solutions for Android and other leading operating
systems. We are confident that Precise Biometrics will benefit tremendously from
the positive trends and substantial growth in the mobile industry.”, says Thomas
Marschall, CEO of Precise Biometrics.

TERMS AND CONDITIONS FOR THE RIGHTS ISSUE

The Board of Directors of Precise Biometrics has set the terms for the new share
issue with preferential rights for current shareholders that were decided by the
Board of Directors on August 8, 2012. The new share issue is subject to approval
of the EGM on September 11, 2012.

Each existing share in Precise Biometrics carries an entitlement to two (2)
subscription rights. Five (5) subscription rights entitle to subscription for
two (2) new shares. The subscription price has been set to SEK 0,72 per share,
which means that the new issue of shares will supply Precise Biometrics with a
total of approx. SEK 54,4 million through the issue of a total of 75 578 048 new
shares. The new issue of shares will increase the share capital by a total of
SEK 30 231 219,20 to maximum SEK 105 809 267,20.

The record day at Euroclear to obtain subscription rights is September 17, 2012.
The subscription period will run from September 19 – October 3, 2012, or a date
to be decided by the board of directors.

Shares that are not subscribed for on basis of subscription rights should
primarily be allocated to those who have subscribed for shares on basis of
subscription rights, pro rata in relation to their subscription on the basis of
subscription rights, secondarily to those who have declared their interest to
subscribe for shares without subscription rights, pro rata in relation to their
declared interest and thirdly, as agreed, to guarantors.

GUARANTEES

Precise Biometrics has received guarantees from external investors to subscribe
for additional shares to secure that the rights issue is subscribed up to a
subscription level of at least 70%, approximately an amount of SEK 38,1 million.
The guarantors have agreed to subscribe for the difference between 70% of the
rights issue and the amount subscribed (with and without subscription rights).

PRELIMINARY TIMETABLE FOR THE NEW ISSUE OF SHARES

Extraordinary general meeting in Precise
Biometrics                                            September 11, 2012

Prospectus
published
                         Around Sep 12, 2012

Last day of trading in the share with right to
participate                                          September 12, 2012
in the new issue

First day of trading without right to participate in the new
issue                             September 13, 2012

Record day for participation in the new issue of
shares                                          September 17, 2012

Trading in subscription rights on NASDAQ
OMX                                                     Sep 19 – Sep 28, 2012

Trading in paid subscribed shares on NASDAQ
OMX                                            September 19, 2012 until the new
issues of shares is registered at the Swedish Companies Registration Office

Subscription period for the new
issue                                                                         Se
p 
tember 19 – October 3, 2012

Moreover, Precise Biometrics refers to the notice to the EGM and prospectus
regarding the rights issue.

FINANCIAL ADVISOR

Remium Nordic AB is acting as financial advisor to Precise Biometrics in
conjunction with the new issue of shares.

Important information

The publication or distribution of this press release may in certain
jurisdictions be subject to restriction by law, and persons in the jurisdictions
where this press release has been published or distributed should inform
themselves of and follow such legal restrictions.

This press release may not be made public, published or distributed, either
directly or indirectly in the United States, Canada, Japan, New Zealand, South
Africa, Australia or any other country where such procedures are subject in full
or in part to legal restrictions. Nor may the information in this press release
may not be communicated, reproduced or presented in any way that is in conflict
with such restrictions. Failure to follow this instruction may involve a breach
of the United States Securities Act from 1933 ("Securities Act") or applicable
laws in other jurisdictions.

This press release does not contain or constitute an invitation or offer to
acquire, subscribe to or otherwise trade with shares, subscription rights or
other securities in Precise Biometrics. The invitation to the persons concerned
to subscribe to shares in Precise Biometrics will only take place through the
Prospectus that Precise Biometrics intends to publish around September 12, 2012,
and this Prospectus will contain financial statements and other information on
Precise Biometrics’ board of directors and auditors.

Neither the subscription rights, paid subscribed shares or the new shares will
be registered in accordance with the Securities Act or any other act in Canada,
and may not be transferred or offered for sale in the United States or Canada,
or to persons domiciled there, or on behalf of such persons, other than in such
exceptional cases where registering in accordance with the Securities Act or
other act in Canada is not required.
Point of contact
Thomas Marschall, President and CEO, 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 supplier of solutions for fingerprint
recognition that guarantee the identity of people. With the highest level of
competence in fingerprint biometrics, Precise Biometrics offers fast, precise
and secure verification of a person's identity.
This technology can be used for ID, company and bank cards, and for access to
mobile solutions, computers and networks. Precise Biometrics delivers its
solutions to companies and government agencies all over the world, and the
Company's technology is licensed to almost 160 million users..

For further information go to www.precisebiometrics.com