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

cts that have been pending for the past twelve to eighteen months.

Despite positive biometric industry trends and our strong public safety account base, the Company's market value currently stands below our industry peers on a Price /Sales ratio basis. We do not believe that this valuation accurately reflects the Company's opportunity with respect to ongoing biometric growth, add-ons, upgrades and new application sales as well as strategic possibilities and partnerships that are currently being explored.

We believe that we are operating in an increasingly visible and emerging market in biometrics -- as evidenced by global trends -- and are very excited about the ongoing development of new solutions in the Law enforcement sector. We remain focused on achieving near-term and sustained profitability. We believe that we are better positioned than ever before and intend on managing the Company to create shareholder value in a principled and straightforward fashion. We appreciate our shareholders' continued support and belief in the Company and we look forward to updating you further on the Company's financial performance on our next quarterly earnings call.

About BIO-key

BIO-key International, Inc., headquartered in Wall, New Jersey, develops and delivers advanced identification solutions and information services to law enforcement departments, public safety agencies, government and private sector customers. BIO-key's mobile wireless technology provides first responders with critical, reliable, real-time data and images from local, state and national databases. BIO-key's high performance, scalable, cost-effective and easy-to-deploy biometric finger identification technology accurately identifies and authenticates users of wireless and enterprise data to improve security, convenience and privacy and to reduce identity theft. Over 750 police departments in North America use BIO-key solutions, making BIO-key the leading supplier of mobile and wir
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SOURCE BIO-key International, Inc.
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