Pacific Biometrics, Inc. Establishes New Technology Subsidiary; PBI Technology, Inc. to Address Market Demand in Molecular Diagnostic Technologies

SEATTLE--(BUSINESS WIRE)--March 15, 2004--Pacific Biometrics, Inc. (OTCBB:PBME) today announced the formation a new wholly owned subsidiary, PBI Technology, Inc.

PBI Technology was created to develop and commercialize molecular diagnostic products and tests that are used in large central laboratories, as well as decentralized point-of-care markets. The core technologies will be transferred to PBI Technology from two wholly owned subsidiaries of Pacific Biometrics. The goal of the new company is to more effectively leverage Pacific Biometrics' core patented and patent-pending intellectual property, including an isothermal DNA amplification method (LIDA), a novel chemistry platform designed to rapidly replicate DNA, Cell Viability technology, a genetic method for distinguishing live from dead cells, and Saliva Sac(R), a sample-collection device for non-invasive testing in point-of-care markets.

“The new structure more clearly divides PBI's future opportunity into two key areas: 1) providing specialized central laboratory services, and 2) developing molecular diagnostic technology products for use by central labs, as well as decentralized point-of care markets.”

"This new corporate structure will enable PBI to more effectively finance and manage the development of these core technologies. In addition, we believe the separation of these entities will enable us to more expeditiously unlock the value in each of these business," said Ron Helm, Chief Executive Officer of Pacific Biometrics. "The new structure more clearly divides PBI's future opportunity into two key areas: 1) providing specialized central laboratory services, and 2) developing molecular diagnostic technology products for use by central labs, as well as decentralized point-of care markets."

Helm concluded, "The founding of PBI Technology, Inc. will likely enable us to offer an attractive investment opportunity to strategic and/or financial investors who are focused on developing and commercializing molecular diagnostic technologies. The separation of the two areas of business will enable PBI's current management team to focus its efforts and financial resources on marketing and sales initiatives within the central laboratory market."

About Pacific Biometrics, Inc.

About Pacific Biometrics, Inc. (PBI)

Established in 1989, PBI provides specialized central laboratory and contract research services to support pharmaceutical and diagnostic manufacturers conducting human clinical trial research. The company provides expert services in the areas of cardiovascular disease, osteoporosis, diabetes and nutrition. The PBI laboratory is accredited by the College of American Pathologists. PBI maintains an affiliation with the Pacific Biometrics Research Foundation, a non profit organization, which is one of three US Standardization Centers in the National Clinical Reference Method Laboratory Network, sponsored by the Centers of Disease Control and the National Heart, Blood & Lung Institute. PBI's clients include many of the world's largest pharmaceutical, biotech and diagnostic companies.

Pacific Biometrics also owns several patented and patent-pending technologies, including an advanced, proprietary, isothermal DNA amplification technology, and a gene-based cell viability technology to distinguish live from dead cells in a broad range of diagnostic.

For more information about Pacific Biometrics, visit the company's web site at www.pacbio.com or contact Investor Relations at [phone].

This release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements about the Company's future growth of its laboratory clinical trials services and its ability to successfully develop and commercialize its technology products. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. These risks also include, but are not limited to, the Company's ability to bid on and win laboratory services contracts, competition in the industry, market acceptance of our services and proprietary technology, and the success of our marketing and business development efforts, as well as the risks and other factors set forth in our periodic filings with the U.S. Securities and Exchange Commission (including our Form 10-KSB for the year ended June 30, 2003 and our Form 10-QSB for the quarter ended December 31, 2003).