Pacific Biometrics, Inc. Reports Third Fiscal Quarter Results

SEATTLE--(BUSINESS WIRE)--May 17, 2005--Pacific Biometrics, Inc. (OTCBB:PBME) today announced financial results for its third fiscal quarter and nine-month period ended March 31, 2005. Revenues for the third fiscal quarter ended March 31, 2005 increased by 91% to $1,048,000 from $548,000 during the third fiscal quarter ended March 31, 2004. Net loss for the quarter ended March 31, 2005 improved 8% to $592,000 (or $0.05 per fully diluted share) from a loss of $641,000 (or $0.06 per fully diluted share) during the third fiscal quarter ended March 31, 2004.

Revenues for the nine-month period ended March 31, 2005 decreased by 27% to $2,492,000 from $3,390,000 during the nine-month period ended March 31, 2004. Net loss for the nine-month period ended March 31, 2005 increased 34% to $1,785,000 (or $0.14 per fully diluted share) from a loss of $1,337,000 (or $0.14 per fully diluted share) during the nine-month period ended March 31, 2004.

“We believe the demand for our expertise in clinical development studies for our clients will be a significant driver for future growth, especially in our core areas of cardiovascular disease, diabetes, and bone and joint disease.”

Ron Helm, Chief Executive Officer of Pacific Biometrics, commented "We are still feeling the effects on our nine-month results of the business slowdown we observed in 2004, especially from our poor results during the first fiscal 2005 quarter ended September 30, 2004. However, for the past two fiscal quarters our comparable period revenues have increased by more than 80 percent. This shows the beneficial effects of our intensified focus on business development activities with new and existing clients for our clinical testing services. While we continue these efforts, we are also positioning ourselves to absorb what we hope will be future revenue growth with substantial investments in our infrastructure, including our information technology, and in our personnel, especially in the areas of project management and customer service."

Helm concluded, "We believe the demand for our expertise in clinical development studies for our clients will be a significant driver for future growth, especially in our core areas of cardiovascular disease, diabetes, and bone and joint disease."

For additional information, see Pacific Biometrics quarterly report filed with the SEC on Form 10-QSB for the quarter ended March 31, 2005.

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 and through its non-profit affiliate Pacific Biometrics Research Foundation is one of only three U.S. based laboratories approved and accredited by the Center for Disease Control (CDC) as a Cholesterol Reference Laboratory. 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 monitoring devices for glucose and changes in bone turnover, 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 applications.

For more information about Pacific Biometrics, visit the company's web site at www.pacbio.com or contact Ronald Helm, Chairman / CEO at 206-298-0068.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release includes forward-looking statements including to but not limited to our strategic planning and business development plans, our future growth, and the viability and acceptance of our products and services in the market. These forward-looking statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from those described in the forward-looking statements. These risks include, but are not limited to, our ability to bid on and win laboratory services contracts, the success of our marketing and business development efforts, competition in the industry, and our ability to manage growth and our investments in our infrastructure, 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, Forms 10-QSB and our Form SB-2 registration statements).