Pacific Biometrics, Inc. Awarded Major Research Contract as Part of Global Phase III Arthritis Program; Contract Represents Significant Revenue Growth Opportunity

SEATTLE--(BUSINESS WIRE)--June 22, 2005--Pacific Biometrics, Inc. (OTCBB: PBME "PBI") has been awarded a contract worth an estimated $2.0 million with a top multinational pharmaceutical company (the "Sponsor"). This contract, part of a series of previously announced contracts related to a biological treatment for rheumatoid arthritis (RA), will provide essential clinical data for a pivotal, global Phase III program.

PBI is specifically contracted to provide arthritis biomarker testing to support three new studies in the Sponsor's phase III clinical development program. The Sponsor ultimately hopes to submit a new drug application (NDA) filing with the FDA and equivalent filings with regulatory agencies in other jurisdictions. Testing for the newly awarded contract is expected to begin in Q1 2006 and to last 36 months. These phase III trials bring the number of major studies in arthritis to fourteen for which PBI is providing, or will provide, specialty testing.

“Our inclusion in this pivotal, international phase III arthritis program is exciting on multiple fronts”

"Our inclusion in this pivotal, international phase III arthritis program is exciting on multiple fronts," said Ron Helm, Chief Executive Officer of Pacific Biometrics. "First of all, these studies will further strengthen our relationship with this Sponsor, who accounts for an important and growing percentage of our more diversified customer base. Furthermore, our selection for this project is validation for our worldwide, best-in-class testing of biomarkers as they relate to the diagnosis and treatment of arthritis -- a growing area of expertise for the Company. Finally, assuming the scope of the studies remains unchanged, the contract should have a meaningful impact on our fiscal 2006 and 2007 financial results."

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, diabetes, osteoporosis, arthritis, 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).