Precise Biometrics implements rights issue of SEK 50 million tofinance expansion

*            New issue of shares of approximately SEK 50 million with
  preferential rights for Precise Biometrics' shareholders
 
*            The new issue of shares will be implemented to finance
  further expansion and increase market penetration in prioritized
  market segments
 
*            Following approval at the extraordinary general meeting
  on August 21, the subscription period will run from August 31 -
  September 14, 2009
 
*            The terms and conditions for the new issue of shares,
  including the subscription price and ratio basis, will be
  established and announced on August 20, 2009
 
"The order recently received from the US authorities is further
evidence of our successful offer. The new issue of shares is expected
to produce the financial flexibility required to take new orders of a
similar size and to focus on long-term and profitable transactions,
and to further reinforce the position of the company in the market"
says Thomas Marschall, President and CEO of Precise Biometrics AB.
 
Background and rationale
On July 8, 2009, Precise Biometrics reported the largest order in the
history of the company. The value of the order amounts to USD 6.1
million and refers to fingerprint readers and software for the US
authorities to be delivered in 2009. The US order will give Precise
Biometrics excellent prospects of achieving the target communicated
in 2006 for the company to become profitable in the fiscal year of
2009.
 
To continue to maintain a high rate of expansion and enable the next
stage in the development of the company, it is necessary to increase
the company's working capital; partly because there has been a
radical decline in opportunities to obtain order financing from the
banks in the last nine months in the current financial climate, and
partly because suppliers are demanding shorter payment terms, which
is affecting the liquidity. The company also intends to increase its
marketing efforts in prioritized market segments and in geographic
markets by expanding its resources in marketing and sales. A strong
financial position is also expected to result in a higher credit
rating, which will further improve prospects of obtaining new orders
in line with the recently advised record US order. In this context,
the board of directors has therefore decided to implement a new issue
of shares to an amount of SEK 50 million.
 
Terms and conditions for the new issue of shares
The board of directors of Precise Biometrics decided on July 30,
2009, conditional on approval at an extraordinary general meeting on
August 21, to implement a rights issue with preferential right for
existing shareholders of approximately SEK 50 million. In the event
that all shares are not subscribed for on basis of subscription
rights, allocation of shares shall be made within the scope of the
maximum amount of the share issue, at which the Board of Directors
shall allocate the shares primarily 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 and secondarily to
those who have declared their interest to subscribe for shares
without subscription rights, pro rata in relation to their declared
interest.  The subscription period runs from August 31 - September
14, 2009, following approval at an extraordinary meeting on August
21, 2009. The board of directors will on August 20, 2009 establish
and publish the subscription price for the new shares and the ratio
basis.
 
Preliminary timetable for the rights issue
 
The subscription price and ratio basis will be determined
on               August 20, 2009
 
Extraordinary general meeting in Precise
Biometrics                           August 21, 2009
 
Prospectus is published
 
around Aug 24, 2009
 
Last day of trading in the share with right to
participate in the new
issue                                                                August
24, 2009
 
First day of trading in the share without right to
participate in the new
issue
August 25, 2009
 
Record day for participation in the new issue of
shares                        August 27, 2009
 
Trading in subscription rights
                                                              Aug 31
- Sept 9,  2009
 
Trading in paid subscribed
shares                                                        August
31, 2009 until
                      the share issue is registered
                                                              at the
Swedish Companies
                                            Registration Office
 
Subscription period for the new issue
                                                 Aug 31 - Sept14,
2009
 
Otherwise refer to the notice of the extraordinary general meeting in
Precise Biometrics and the  pending prospectus concerning the  rights
issue.
 
Financial advisor
Remium AB is  acting as  financial adviser to  Precise Biometrics  in
conjunction with the rights issue.
 
For more information:
Thomas Marschall, 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 (0)46 31 11 47 or +46 (0) 734 35 11 47
E-mail patrik.norberg@precisebiometrics.com
 
Precise Biometrics is a market-leading provider of products and
solutions for fingerprint recognition. The technology proves people's
identities in a fast and secure way, while it reduces costs related
to password management, identity theft and fraud.
 
Precise Biometrics serves business and government organizations
throughout the world and its technology is licensed to close to 100
million users. Precise Biometrics is listed on NASDAQ OMX Stockholm
small cap list (PREC).
For more information, please visit www.precisebiometrics.com or view
an information video at www.precisebiometrics.com/share-issue-video
 
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 August  24,  2009,  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.
 
This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.