Calypte Biomedical Notified of Potential Nasdaq Delisting.

Business Editors & Health/Medical Writers

ALAMEDA, Calif.--(BUSINESS WIRE)--May 16, 2001

Calypte Biomedical Corporation (Nasdaq: CALY) today announced that it was notified by Nasdaq that the Nasdaq staff had reached a determination to delist Calypte's common stock from the Nasdaq SmallCap Market. Nasdaq's decision to delist Calypte's common stock was based on Nasdaq Marketplace Rule 4310(c)(2)(B) and results from Calypte's failure to meet the three criteria relating to net assets, market capitalization or net income.

Calypte has requested an oral hearing to review Nasdaq's determination. The hearing request stays the delisting of Calypte's common stock, which otherwise would have occurred on May 21, 2001, pending the decision of a Nasdaq Listing Qualifications Panel. There can be no assurance that the decision of the Nasdaq Listing Qualifications Panel will be favorable to Calypte. If Calypte's common stock is delisted following the hearing, the Company's shares would likely trade over the counter. Additionally, the Company's continued ability to use its equity line of financing facility is dependent upon its continued listing on the Nasdaq SmallCap Market and any outstanding balance on its 6% convertible debenture would become due and payable should the delisting occur.

Calypte's President, CEO and CFO, Nancy Katz, stated, "We previously announced this possible action by Nasdaq a month ago, and this determination letter from the Nasdaq staff is one more step in the delisting process. While there can be no assurance that the Listing Qualifications Panel will grant the company's request for continued listing on the Nasdaq National Market, we will continue to pursue all available means to maintain this listing in concert with our active search for strategic opportunities including investment in the Company, a merger or other comparable transaction, the sale of certain of our assets or a financial restructuring to sustain our operations. While some of these opportunities are promising, we do not have any agreements in place."

Calypte Biomedical Corporation (Nasdaq: CALY) headquartered in Alameda, California, is a public healthcare company dedicated to the development and commercialization of urine-based diagnostic products and services for Human Immunodeficiency Virus Type 1 (HIV-1), sexually transmitted diseases and other infectious diseases. Calypte's tests include the screening EIA and supplemental Western Blot tests, the only two FDA-approved HIV-1 antibody tests that can be used on urine samples. The company believes that accurate, non-invasive urine-based testing methods for HIV and other infectious diseases may make important contributions to public health by helping to foster an environment in which testing may be done safely, economically, and painlessly. Calypte sells its products in over 40 countries worldwide through international distributors and strategic partners.

Statements in this press release that are not historical facts are forward-looking statements, including statements regarding the outcome of a Nasdaq hearing on delisting. Such statements reflect management's current views, are based on certain assumptions and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to our ability to obtain additional financing that will allow us to continue our current and future operations, our ability to draw down funds under our existing equity line of credit and debenture agreements and whether demand for our product in domestic and international markets will continue to expand. The Company undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in the company's expectations with regard to these forward-looking statements or the occurrence of unanticipated events. Factors that may impact the Company's success are more fully disclosed in the Company's most recent public filings with the U.S. Securities and Exchange Commission, including the periodic report on Form 10-K for the year ended December 31, 2000 and its Form 10-Q for the quarter ended March 31, 2001.