INCREASED SALES AND FURTHER FOCUSING OF BUSINESS OPERATION

Sales in the remaining operation, Fingerprint Technology, increased during the quarter. The partnership with Silead has resulted in substantial royalty revenues as Precise BioMatch Mobile has been launched in a number of phone models from one of the world’s biggest manufacturers. Precise Biometrics concluded an agreement with IDENTOS to divest the Mobile Smart Card Solutions business area in order to focus its activities on the Fingerprint Technology business area.

NEW CUSTOMER AGREEMENTS AND CONTINUED INVESTMENTS

Growth in the fingerprint market is still strong. Revenues from several of our customers are growing. As previously indicated, sales during the first quarter were lower than in the previous year and are a consequence of the ongoing market and customer transformation. Together with investments in the business for growth, operating profit ended up negative.