Growing Interest in Biometrics in the Mobile Market

PRECISE BIOMETRICS AB (PUBL), CORPORATE IDENTITY NO. 556545-6596
YEAR-END REPORT 2013

  · The group’s net sales for the year was SEK 34.9 million (28.3) and for the
fourth quarter SEK 2.9 million (8.4).

  · The groups income for the year was SEK –43.7 million (-47.0) and for the
fourth quarter SEK -19.0 million (-13.0).

  · Earnings per share for the year amounted to SEK -0.14 (-0.23) and for the
fourth quarter SEK -0.06 (-0.05).

  · Available cash at the end of the year amounted to SEK 101.2 million (37.6).

IMPORTANT EVENTS DURING THE YEAR

  · A market-leading global provider of financial information services selected,
in the first quarter, Precise Biometrics as their new fingerprint algorithm
vendor.

  · The Company announced follow-up orders for fingerprint readers of SEK 9.9
million from a government customer in the Middle East.

  · Precise Biometrics signed a framework agreement with Volkswagen, with an
expected duration of several years, for further supply of Tactivo™. Volkswagen
uses Tactivo as part of their security infrastructure.

  · One of the mobile operators in the U.S. placed an order of 5,000 Tactivo
units during the first quarter. After Precise Biometrics adjusted the sales
prices of Tactivo, the company and the operator have agreed on a retroactive
price reduction that negatively impacts Precise Biometrics’ sales for the fourth
quarter by SEK 1.8 million.

  · Precise Biometrics and Fingerprint Cards (FPC) entered into an agreement
where FPC will license Precise Biometrics’ fingerprint algorithm Precise
BioMatch™ Mobile to further enhance the performance of their world leading
sensors. The first smart phone that integrates a FPC sensor with Precise
BioMatch Mobile was launched on the Asian market.

  · Tactivo was the first mobile smart card reader that was FIPS 201-certified
(Federal Information Processing Standards) for the US Government Service
Administration Approved Products List.

  · During the year the company announced the launches of Tactivo for iPhone 5,
iPad 4 and Tactivo mini for Android.

  · Precise Biometrics’ rights issue, during the second quarter, with
preferential rights for Precise Biometrics’ shareholders, was oversubscribed and
supplied the company  with SEK 48.7 million after issue costs. The company
completed, during the third quarter, also a private placement that further
strengthened the company's available cash by SEK 80.9 million after issue costs.

  · The Board of Precise Biometrics hired Håkan Persson as interim CEO,
replacing former CEO Thomas Marschall, in order to provide the company with deep
sales competence and to further position the company on the growing mobile
market.
Point of contact
Håkan Persson, President and CEO, Precise Biometrics AB
Tel. 46 46 31 11 05 or 46 734 35 11 05
E-mail hakan.persson@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