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BIO-key(R) Issues Open Letter to Shareholders
Date:7/14/2008

onsiderably increasing our distribution reach into the market. We believe this initiative will provide us with access to larger opportunities that were unavailable to us in the past and will also enhance our ability to win those opportunities.

In tandem with our program with the wireless carriers and RIM, we continue to experience positive feedback from our one-day regional user sessions. These events have exposed our solutions to over 250 agencies throughout the country and have enabled us to refine our software based on feedback and responses from participants. We have already experienced positive results in our add-on business from this initiative including a recent $335,000 contract with the Baltimore, MD Police Department for additional MobileCop(R) licenses. We believe that our installed base of 1,000 accounts provides us with a sound platform to leverage and sell our solutions to new accounts and add-ons. Over the last fourteen months, BIO-key added more than fifty new state, county and local agencies to its customer base. Each of these agencies licensed our MobileCop solution and other MobileCop customers hosted more than 50% of these new accounts.

Over the past two years, our operating profile has changed as we focused the Company on the core businesses of developing advanced biometric identification solutions and unique applications for mobile and handheld devices used by public safety professionals. Our focus remains clearly set on achieving consistent profitability while maintaining a balance sheet that provides us with the resources to grow our business. We continue to evaluate all of our non-dilutive options that will enable us to strengthen our balance sheet and achieve our operating goals.

As we discussed on the last several quarterly earnings calls, we are seeing an inflection point being reached in the biometric space and we anticipate making continued progress toward winning several high profile government and commercial proje
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SOURCE BIO-key International, Inc.
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5. BIO-key(R) International to Showcase Deployed Biometric Security Applications at 2007 Biometric Technology Expo
6. Youngstown, Ohio Police Award Mobile Data Contract to BIO-key(R) International
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11. BIO-key(R) Receives $344,000 Contract Award from Hawaii County
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