Precise Biometrics announces rights issue of SEK 54 million

Precise Biometrics announces rights issue of SEK 54 million


  · The Board of Directors of Precise Biometrics (“Precise Biometrics”)
has resolved, subject to approval of the AGM on April 27, to undertake
an issue with preferential rights for Precise Biometrics' shareholders
that will raise a maximum of SEK 54 million before deduction of issue
related costs.

  · Five (5) existing shares entitles to subscription of two (2) new
shares in Precise Biometrics. The subscription price is SEK 1.00 per
share.

  · The rights issue is guaranteed to SEK 38 million, 70% of the rights
issue. All current shareholders in the Board of Directors and company
management have already committed to subscribe for their pro-rata shares
in the rights issue.

  · The rights issue is carried out as a part of the Company's business
plan - Plan 2015 - which mainly includes further investments in sales,
marketing and product development targeted towards biometric solutions
for the SmartPhone and Tablet PC market. The rights issue will also set
the foundation for an ambitious market penetration through new human
resources within development and sales targeted towards specific
industries such as Banking and Government, as well as it will finance
working capital for new orders.

  · Following approval of the AGM on April 27 2011, the subscription
period will run from May 5 - 20, 2011.

”Plan 2015 is an ambitious and aggressive platform that will require
investments in product development and human resources. We see great
potential for biometric solutions targeted towards mobile handsets and
to achieve success in this field we are investing in product development
for the mobile segments in the coming period. Plan 2015 will also
require new skill sets and we are in the process of employing new people
with relevant sales experience from specific industries. But we also
need resources within product development that corresponds with the
journey we have begun. We furthermore continue to believe in strong
growth in the two other business units and we are also expecting large
hardware orders from US government agencies. The rights issue will help
finance these orders” says Thomas Marschall, CEO at Precise Biometrics.

Background and rationale

During 2010, Precise Biometrics developed a strategic platform for the
company's development up until the year 2015 - called Plan 2015. A part
of the plan includes developing a more efficient and customer oriented
organization. As of 2011, Precise Biometrics has therefore chosen to
divide its organization into three new business units: Mobile, IAM and
Access Solutions. The company's objective is that the new business unit
Mobile will have a significantly positive effect on profitability by
expanding Precise Biometrics' technology to a new market while
continuing to build upon the success the company has had in the other
two business units. As earlier communicated, IAM is expected to achieve
profitability in 2011. There is furthermore the possibility of Access
Solutions also being profitable in 2011.

To reach the targets set out in Plan 2015, the company will need to make
investments mainly in the Mobile business unit. The company is already
in the development process of products targeted towards the SmartPhone
and Tablet PC markets and in 2011 Precise Biometrics will launch more
products than any previous year. This initially requires significant
investments in Research & Development. To simultaneously boost the
company's market impact, the sales organisation shall be strengthened
with sales people with experience from specific industries such as
Banking and Government. As a result of increased demand in hardware,
particularly from the US market, a part of the net proceeds is intended
to be used to finance increased working capital needs.   

For more information
Thomas Marschall, President and CEO, Precise Biometrics AB
Tel. 46 (0)46 31 11 10 or 46 (0) 734 35 11 10
E-mail
thomas.marschall@precisebiometrics.com (thomas.marschall@precisebiometri
cs.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