For Immediate Release:

             BIO-KEY INTERNATIONAL PROVIDES 2004 FINANCIAL GUIDANCE

MINNEAPOLIS, MINNESOTA - MARCH 18, 2004-- BIO-key International, Inc. (OTC
Bulletin Board: BKYI - News), the leader in finger-based biometric
identification technology, today provided financial guidance for the Company's
2004 fiscal year ending December 31, 2004.

Revenue results for 2003 of $524,101 reflected an important milestone in the
company's history as it marked the transition of BIO-key from a development
company to a revenue generating company, reflecting the growing interest and
acceptance of BIO-key's highly accurate, vendor independent, scalable
"one-to-many" fingerprint biometric technology.

During 2003, BIO-key announced new contracts and strategic partnerships with
premier integrators such as Oracle, Northrop Grumman, HP, ChoicePoint, Autodesk,
SAFlink and Netegrity, becoming a qualified supplier under the GSA contract and
winning a project with the National Sheriffs' Association.

Notably, BIO-key achieved superior performance results in independent testing
done by the International Biometric Group and received a "Product of the Year
Award" by BiometriTech, a leading authority on biometrics and security.

The Company strengthened its balance sheet by retiring approximately $6.5
million of its long-term debt for equity, without increasing the number of
shares outstanding on a fully diluted basis.

Additionally, BIO-key formed a joint venture with ClassifEye Ltd., to compress
BIO-key's biometric identity algorithms into embedded security solutions for
mobile and wireless devices; and announced an agreement to acquire Public Safety
Group, Inc., a privately held leader in wireless solutions for law enforcement
and public safety markets. PSG's PocketCop(C) solution provides security
officials instantaneous wireless access to important criminal, civil and private
database information such as Wanted, Warrant, Vehicle Registration and Driver
License information.

Based upon momentum coming out of 2003 and the plans in place for 2004, the
Company believes it can deliver dramatic revenue growth of $7 - $9 million and
income from operations of $1 million.





ABOUT BIO-KEY

BIO-key develops and licenses advanced biometric finger identification
technologies that are cost effective, scalable and easy to deploy. BIO-key
products provide "True User Identification(TM)" for the prevention of data and
identity theft while preventing false aliases. BIO-key pioneered the only finger
identification algorithm that has been certified by the ICSA, and today
continues that innovation by offering cost effective, high-performance one-to-
many finger and one-to-one identification solutions that provide security and
positive identification for both government and enterprise applications.
( http://www.bio-key.com  )


BIO-KEY SAFE HARBOR STATEMENT

This news release contains forward-looking statements that are subject to
certain risks and uncertainties that may cause actual results to differ
materially from those projected on the basis of such forward-looking statements.
The words "estimate," "project," "intends," "expects," "believes" and similar
expressions are intended to identify forward-looking statements. Such
forward-looking statements are made based on management's beliefs, as well as
assumptions made by, and information currently available to, management pursuant
to the "safe-harbor" provisions of the Private Securities Litigation Reform Act
of 1995. For a more complete description of certain risks and uncertainties that
may affect the future performance of BIO- key International, see "Risk Factors"
in the Company's Annual Report on Form 10-KSB and its other filings with the
Securities and Exchange Commission. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
made and the Company undertakes no obligation to disclose any revision to these
forward-looking statements to reflect events or circumstances after the date
made or to reflect the occurrence of unanticipated events.


CONTACT:
Albert Maruggi,
+1-651-695-0174
amaruggi@providentpartners.net