BIO-key International Inc.

WALL, N.J., March 29 /PRNewswire-FirstCall/ -- BIO-key International Inc. (OTC Bulletin Board: BKYI - News), a leader in finger-based biometric identification and wireless public safety solutions, today reported its financial results for its fourth quarter and year ended December 31, 2005.

For the year ended December 31, 2005, revenue totaled $14.2 million, an increase of 149% from the $5.7 million reported for the same period in the prior year. BIO-key reported a net profit of $358,000 or 0 cents per share, compared with a loss of $14.3 million or 42 cents per share a year earlier. Net income for both 2005 and 2004 were materially impacted by the adoption in Q4 2005 of EITF 00-19 "Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company's Own Stock." On an "Operating Income/Loss" basis, BIO-key reported a net loss of $8.3 million or $0.18 cents per share for 2005, compared with a loss of $6.4 million or $0.18 cents per share for 2004.

Comment - These are fantastic numbers. Gross margins are also impressive.