Calypte Provides Status Update.

Business Editors

ALAMEDA, Calif.--(BUSINESS WIRE)--June 27, 2001

Calypte Biomedical Corporation (Nasdaq:CALY) announced today that its second quarter revenues are on track to exceed any previous quarter.

The company also updated its previous guidance by announcing that it had sufficient cash flow to continue its operation beyond the second quarter of 2001 while it continues to pursue additional funding necessary for continuation of its near-term and long-term operations.

Nancy Katz, President, Chief Executive Officer and Chief Financial Officer of Calypte, said, "We are very pleased that our sales continue to ramp up. At this time, it appears that our second quarter will exceed first quarter 2001, itself a record for sales, as well as second quarter of last year. This performance, coupled with aggressive cost reduction, price increases and other internal steps which we have taken, has contributed greatly to our sufficiency of cash to finance our operations into the third quarter. The FDA approval reported in a companion release is one example of the comprehensive efforts we have undertaken to reduce our burn rate. We continue, however, to actively seek a solution to our financing need. As we previously announced, we are actively searching for strategic opportunities, including investment in the company, a merger or other comparable transaction, or a financial restructuring, to continue to sustain our operations. We currently do not have any agreements in place with respect to any such opportunity, and there can be no assurance that additional capital will be available to the company on acceptable terms, or at all. Hence we have nothing further to announce at this time."

Ms. Katz continued, "At this time, we have not heard from the Nasdaq SmallCap Market regarding our potentional delisting. We made a detailed presentation to the Listing Qualifications Panel at our June 14 hearing and emphasized the importance of our listing to our ability to generate sufficient capital, at reasonable cost, and to assure continued supply of our important HIV diagnostic products to the market. We may be informed of Nasdaq's determination at any time in the next two to three weeks."

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 markets 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 of plans regarding the company's strategic and financing opportunities, its final second quarter results, future product sales and modifications to the company's cost and pricing structures. 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 the company's ability to obtain additional financing that will allow it to continue its current and future operations, its ability to draw down funds under its existing equity line of financing agreements and whether demand for its 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 its most recent public filings with he U.S. Securities and Exchange Commission ("SEC"), including the periodic report on Form 10-K for the year ended December 31, 2000 and other filings with the SEC.