Bioscrypt Reports Record Revenue for the Fourth Quarter and Year Ended December 31, 2006

Sales Growth Continues with 12% Annual Increase

Toronto , ON (March 1, 2007) - Bioscrypt Inc. (TSX: BYT), a leading provider of enterprise access control technology, today announced its financial results for the fourth quarter and year ended December 31, 2006.

Bioscrypt’s fourth quarter revenue of US$5.0 million increased by 9% from the US$4.5 million reported during the same period in the previous year. Overall gross margins were 47%, a 3 percent increase over 44% in the same period a year ago. Gross margin for the combined VeriSeries and MVSeries products was 44%, approximately three percentage points higher than the same quarter in 2005.

"The solid revenue growth we achieved in the fourth quarter and the investments we have made in research and development to support our government programs, give me confidence that we will continue to lead the industry in enterprise access control" said Robert L. Williams, President and CEO, Bioscrypt. "Recent events, including our announced intent to purchase A4 Vision, demonstrate that Bioscrypt continues to advance on its strategy of providing technologies supporting strong multi-factor authentication for both physical and logical access. 2006 was a year of transition, where Bioscrypt enhanced its product offerings to support the demands of the EU directives and US government markets, all of which we look to benefit from in 2007".

Expenses before amortization and other for the quarter were US$2.8 million compared to US$2.9 million in the third quarter of 2006.

Bioscrypt’s loss before interest, tax, foreign exchange, depreciation and amortization (“EBITDA”) 1 of US$0.5 million or $0.01 per share in the fourth quarter is slightly narrower than the EBITDA loss of US$0.6 million or $0.01 per share for the same period in 2005.

The fourth quarter net loss was US$1.0 million or $0.02 per share versus a net loss of US$1.1 million in 2005, or $0.02 per share.

For the quarter product sales represented 94% of total sales or US$4.7 million on 14,150 units sold, in line with the 14,200 units sold in the fourth quarter a year ago. Sales of the MVSeries products represented approximately 63% of total shipments or US$1.7 million while sales of VeriSeries™ products represented approximately 27% of shipments or US$3.0 million. Licensing of software represented 6% of total sales.

Bioscrypt’s revenue for the year ended December 31, 2006 of US$17.6 million increased by 12% from the US$15.7 million reported during the same period of the previous year. EBITDA loss for the year ended December 31, 2006 of US$3.4 million or $0.06 per share is slightly narrower than the loss of US$3.5 million reported the previous year.

“With an operating loss for the period of approximately $500,000, following a difficult third quarter, we will continue our efforts to streamline the organization and further improve our bottom line results,” said Bruce MacInnis, CFO of Bioscrypt Inc. “Bioscrypt has already begun progressive steps to consolidate our operations, reducing our California offices from 2 to 1, and realign our resources to deliver continued sales growth at less cost.”

Net loss for the year ended December 31, 2006 was US$5.6 million or $0.09 per share, consistent with the same period of the previous year of US$5.4 million or $0.09 per share.

For the year, product sales represented 94% of total sales or US$16.7 million on 50,300 units sold, an 8 percent increase over the 46,500 units or US$14.7 million sold a year ago. Sales of the MVSeries products represented approximately 64% of total shipments or US$6.3 million, while sales of VeriSeries™ products represented approximately 26% of shipments or US$10.2 million. The total number of units the company has sold to date is now beyond 210,000. Licensing of software represented 6% of total sales.

Select Q4 Highlights

• The largest courthouse system in Latin America, the Superior Tribunal of Justice of Mexico City selected Bioscrypt’s V-Station Biometric Reader.

• Bioscrypt announced a new reader is being designed to address the requirements of the U.S. government’s Personal Identity Verification program.

• Bioscrypt’s Minutiae Algorithm paired with UPEK’s silicon fingerprint sensor met the International Labour Organization Requirements for Use in Seafarers’ Identity Documents and qualified as Biometric Service Provider for Seafarers’ Identification Credential.

• The Artemis Solutions Group partnered with Bioscrypt to enhance PC security and deliver Multi-Factor authentication, Single Sign-On and Encryption Software marketed through ASG’s BioCert Brand.

• Bioscrypt's VeriSoft Access Manager was chosen by Cherry Electrical Products to support Cherry’s FingerTIP ID biometric USB keyboards.

Select 2006 Highlights

• Bioscrypt was recognized as one of only six initial certified vendors of finger matching technology to the US Government and was placed on the Personal Identity Verification (PIV) Interoperable Matcher Products list following NIST performance testing.

• Bioscrypt’s fingerprint biometric algorithms receive GSA qualification for use in FIPS 201 PIV Program qualifying both for use as a generator in PIV issuance system and as a matcher for physical and logical verification systems.

• New features added to Bioscrypt’s VeriSoft Access Manager™ were developed to support logical access control for the US Government’s PIV Program, allowing federal government employees to log-on to their computer using a PIV Card with fingerprint biometric templates, as mandated by the US government.

• Lenel Integrates Bioscrypt VeriSoft Access Manager™ Into IdentityDefender® and OnGuard® 2006 so that Lenel can offer a totally converged physical and logical security solution.

• A major U.S. International Port selected Bioscrypt and AMAG to provide Multi-Factor authentication solution for key security initiative.

• ASUSTeK Computer Inc. selected Bioscrypt’s VeriSoft Application for biometric-enabled Notebook Computers.

Click here to view Financial Statement

Conference Call

The Corporation will be hosting an earnings report conference call today at 8:00 a.m. Eastern Standard Time. The call can be accessed by phone by dialing 1-877-407-8035 or at www.vcall.com/IC/CEPage.asp?ID=113220.

If you are unable to attend the original call, you may subsequently listen to the playback at 1-877-660-6853, account number 286, conference ID number 228449, for one week after the call or by going to www.vcall.com/IC/CEPage.asp?ID=113220 for three months after the call.

1 - EBITDA is defined as operating revenues less operating expenses and therefore reflects earnings before interest, foreign exchange, taxes, depreciation and amortization. Bioscrypt uses EBITDA, amongst other measures, to assess the operating performance of its on-going business, and applies the use of such measure consistently from quarter to quarter. The term EBITDA does not have a standardized meaning prescribed by Canadian generally accepted accounting principles and therefore may not be comparable to similarly titled measures presented by other companies. EBITDA should not be construed as the equivalent of net cash flows from operating activities.

Financial Statements Attached

For more information, contact:

About Bioscrypt Inc.

Bioscrypt Inc. is a leader in enterprise access control, providing solutions for converged physical and logical access, enabling unified authentication from Door to Desktop®. Bioscrypt's offerings simplify the task of implementing secure access to facilities, equipment and IT networks. The company develops and sells biometric embedded solutions, access control readers and identity and access management software to protect the physical and network assets of international government agencies and leading organizations in the financial services, healthcare, and manufacturing sectors. More information is available at www.bioscrypt.com .

Forward-looking (safe harbour) statement

Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement containing words such as "believes", "plans", "expects" or "intends" and other statements which are not historical facts contained in this release are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.

Bioscrypt Inc. and Bioscrypt, are trademarks of Bioscrypt Inc. All other trademarks or registered trademarks referenced herein are properties of their respective owners.

Bruce MacInnis, CFO
Bioscrypt Inc.
905-940-7752
bruce.macinnis@bioscrypt.com

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