Bioscrypt Fingerprint Biometric Algorithms Receive GSA Qualification for use in FIPS 201Personal Identity Verification Program

Toronto, ON -- August 31, 2006

Bioscrypt Fingerprint Biometric Algorithms Receive GSA Qualification for use in FIPS 201Personal Identity Verification Program
Bioscrypt algorithm qualified both for use as generator in PIV issuance system and as a matcher for physical and logical verification systems

Toronto, ON (August 31, 2006) - Bioscrypt Inc. (TSX: BYT), a leading provider of identity verification technology, announced today that its fingerprint algorithms have been qualified by the General Services Administration (GSA) for use in the United States government’s Personal Identity Verification (PIV) program.

In August 2004, Homeland Security Presidential Directive 12 (HSPD-12) was issued mandating the establishment of a standard for identification of federal employees and contractors and that a common identification credential be created to access both physical and logical assets. In response to this Directive, the National Institute of Standards and Technology (NIST) published the Federal Information Processing Standard Publication 201 (FIPS 201), Personal Identity Verification (PIV) of Federal Employees and Contractors in February 2005.

Under FIPS 201, the PIV credential is required to contain two fingerprint templates that are compliant with the ANSI/INCITS 378 fingerprint minutiae data interchange format standard, to enable the authentication of an individual. These two standards-based fingerprint templates are mandated to be stored on the PIV card and made available for use by agencies for physical and/or logical access control.

With the GSA listing, Bioscrypt’s fingerprint algorithms are now qualified to be used to create the ANSI 378 templates required for PIV card issuance and for cardholder verification.

“The qualification of our minutiae based algorithm for use in the PIV program marks another important stage in the development of our product portfolio for the U.S. Government market”, said Dr. Colin Soutar, CTO Bioscrypt Inc. “This qualification is a direct result of our success as one of the initial six interoperable matchers following NIST's Minutiae Interoperability tests.”

In addition to GSA approved fingerprint algorithms, Bioscrypt will also address FIPS 201 access control requirements with its Veri-Series readers for physical access control as well as its VeriSoft software application for logical access control.

“We believe the FIPS 201 requirements are tailor made for Bioscrypt solutions as they incorporate the products we have brought together to form our Door to Desktop® technology. The opportunity exists to sell our biometric algorithm for use at the point of credential issuance; our readers for physical access control; and our software for logical access control,” said Robert L. Williams, President and CEO of Bioscrypt. “Our ability to sell our Veri-Series readers has positioned us as the market share leader in the biometric physical access control market as recognized by third party consulting firm Frost and Sullivan, and we plan on leveraging this position as we bring FIPS 201 compliant readers to market. We have also begun to position our VeriSoft application for this opportunity having already integrated the product with one of our partner’s end-to-end FIPS 201 solution.”

About Bioscrypt Inc.

Bioscrypt Inc. is a leader in identity verification technologies, 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.

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Door to Desktop is a registered trademark and Bioscrypt, Veri-Series and VeriSoft Access Manager are trademarks of Bioscrypt Inc. All other trademarks or registered trademarks referenced herein are properties of their respective owners.

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