Bioscrypt Expects Revenue For The Third Quarter Ended September 30, 2006 To Be In The Range Of $3.75 Million to $3.85 Million

Toronto, ON -- October 6, 2006

Bioscrypt Expects Revenue For The Third Quarter Ended September 30, 2006 To Be In The Range Of $3.75 Million to $3.85 Million

Toronto , ON (October 6, 2006) - Bioscrypt Inc. (TSX: BYT), a leading provider of identity verification technology, announced today that it expects third quarter revenue to be in the range of $3.75 million to $3.85 million. Year-to-date revenue growth will be approximately 10 percent to 13 percent over same period 2005.

“The occurrence of a number of independent events came together in the most recently completed quarter to cause the company to fall short of its revenue goals,” said Robert L. Williams, President and CEO of Bioscrypt. “First, factors within the European, Middle-Eastern and African regions (EMEA) have caused procurement of our products to be well short of what we had projected. We believe these factors to be short term matters and sales within this market will recover in the coming quarters . Secondly, with respect to licensing revenue, our PC OEM software sales fell short of expectations as new platforms were not launched in the timeframe anticipated and certain enterprise software license deals anticipated to close in the quarter were delayed.”

Mr. Williams added, “The future potential of the biometric industry and for Bioscrypt in particular is very strong. North American sales of our Veri-Series readers and MV Series modules remain robust while prospective sales of our software product are increasing in number. With numerous catalysts for growth including, but not limited to, the Homeland Security Presidential Directive 12’s Personal Identity Verification program, the Registered Traveler program and the Transportation Workers Identification Credential program advancing with short and long term objectives, the promise of the biometrics industry has never been greater.”

“Given the revenue generated in the third quarter and a detailed review of Q4 opportunities, we believe revenue growth over 2005 will be in the range of 5 percent to 15 percent or between $16.5 million and $18 million,” stated Mr. Williams. “While this is less than the objective of 25 percent growth or approximately $20 million in sales we set for ourselves entering the year, we remain confident that our industry is entering a new phase of growth and demand for our products will increase.”

“Results for the quarter are disappointing,” said Pierre Donaldson, Chairman of Bioscrypt. “The Board of Directors is evaluating the actions that will be taken to ensure that our position as a leading provider of identity verification technology continues to expand.”

Conference Call

The Corporation will be hosting an earnings report conference call on November 2, 2006 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=109981 .

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 number 216628, for one week after the call or by going to www.vcall.com/IC/CEPage.asp?ID=109981 .

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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