NEWS RELEASE
FOR MORE INFORMATION CONTACT:
Michael S. Williams
480-759-9400, ext. 100
FOR IMMEDIATE RELEASE
DYNAMIC BIOMETRIC SYSTEMS, INC.
REDUCES SERIES A WARRANT EXERCISE PRICE
THROUGH EXPIRATION DATE OF SEPTEMBER 30, 2006
VOLUNTARY CONVERSION OF ALL OUTSTANDING
SERIES A PREFERRED SHARES INTO COMMON STOCK
Tempe, Arizona (August 16, 2006) - Dynamic Biometric Systems, Inc. (OTC
Bulletin Board: DYBO.OB), a Nevada corporation ("DBSI"), announced that its
board of directors voted to reduce the exercise price of DBSI's Series A
Warrants from $2.00 to $.50 and to extend the expiration date of the Series A
Warrants until September 30, 2006. The Series A Warrants were scheduled to
expire on August 31, 2006. The Series A Warrants will expire on September 30,
2006 and will not be further extended. There are currently 8,423,491 Series A
Warrants outstanding held by approximately 330 registered holders. New funds
raised from the exercise of the Series A Warrants, if any, would be used for
general working capital, marketing, reduction of liabilities, and the
acquisition of materials, components and additional tooling. There is no
assurance that DBSI will be successful in obtaining any additional equity
capital from the exercise of the Series A Warrants.
DBSI's board of directors also agreed to increase retroactively the cumulative
dividend of the Series A Preferred from 15% to 30% per annum, if holders of the
Series A Preferred shares ("Shares") voluntarily convert their Shares and
cumulative dividends into common stock. Holders of 100% of the Shares agreed to
voluntarily convert their Shares and cumulative dividends into common stock.
DBSI is in the process of issuing 2,642,111 shares of common stock reflecting
this conversion. After this issuance, and without regard to the exercise of any
Series A Warrants, DBSI will have 13,989,884 shares of common stock outstanding.
In related actions, DBSI's board of directors extended the expiration date of
the Series B Warrants until December 31, 2006, which were scheduled to expire on
August 31, 2006, and also modified DBSI's agreement with Delta Resources, LLC, a
Scottsdale, Arizona-based sales agency ("Delta"), to reduce the initial exercise
price of a "commission warrant" that Delta could earn to $.50 per share for the
remainder of the fiscal quarter. The initial exercise price under Delta's
agreement with DBSI was $0.75. All of these board actions were announced in
DBSI's Form 10-QSB for the six months ended June 30, 2006 filed with the SEC on
August 14, 2006. DBSI's Annual Report on Form 10-KSB for the year ended
December 31, 2005 and all SEC filings may be viewed and downloaded at
www.sec.gov.
About DBSI
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Since 2003, DBSI has been developing proprietary hardware (the "Bio-Pen")
and software to allow for the verification of dynamic signatures, i.e. capturing
the unique act of signing rather than the signature image. DBSI has just
introduced its most robust application of this technology in its newest product,
the Bio-Pen Lockbox. The Bio-Pen Lockbox is a complete end-user application,
not an OEM product. DBSI has personal, professional and enterprise versions of
the Bio-Pen Lockbox with different features including verification of sender and
recipient, access and document execution by multiple verified signers, content
validation, and a permanent logbook of access. Although DBSI has yet to
generate material revenues from its technology, it currently has more than 600
finished Bio-Pens in inventory ready for sale. Since May 2006, Delta has been
appointed as DBSI's non-exclusive independent sales agent to solicit orders for
DBSI's products, on a best efforts basis and at Delta's own expense. DBSI has
also appointed AXT Media Group, LLC, a Tempe, Arizona-based Internet sales and
marketing agent ("AXTM") to be the online marketing and fulfillment center for
DBSI's standard products, on a best efforts basis and at AXTM's own expense.
DBSI's office is located at addressStreet1711 W. Greentree Drive, Suite 116,
CityTempe, StateAZ PostalCode85284 and its phone number is (480) 705-9110.
Information on DBSI is also available on its website at
www.dynamicbiometric.com.
FORWARD LOOKING STATEMENTS. Certain matters discussed within this press
release may be forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Although DBSI believes the
expectations reflected in any forward-looking statements are based on reasonable
assumptions, it can give no assurances that its expectations will be attained.
Such statements are inherently uncertain, and actual results and activities may
differ materially from those estimated or projected. Certain factors that can
affect DBSI's ability to achieve projected results include, among others,
uncertainties inherent in the biometric security business and limited capital.
DBSI has no obligation to update the statements contained in this release or to
take action that is described herein or otherwise presently planned.