Calypte Reports First Quarter Results.

ALAMEDA, Calif.--(BUSINESS WIRE)--May 14, 1999--

Calypte Biomedical Corporation (Nasdaq: CALY) announced today its first quarter financial results, for the period ending March 31, 1999.

"We are pleased to report an increase in product revenues over the prior quarter," commented William Boeger, Chairman and CEO of Calypte. "The results represent the second full quarter of urine EIA and urine Western blot sales since the approval of the urine HIV Western blot by the FDA, and our first full quarter of sales from our serum Western blot product."

"Recently we have made significant progress by signing Letter Agreements with the Ministry of Health in China regarding use of our products in China, and with Carter-Wallace, Inc. regarding the distribution of our products to laboratories, hospitals, HMO organizations, and public health labs in the U.S. In addition , we will continue to actively market to the life insurance industry using our own sales force. We believe that we are building a foundation necessary to support our future. A major part of this foundation includes having a high quality distribution partner, entering into partnerships with foreign health organizations, and actively pursuing sales in the life insurance market."

Calypte Biomedical is a manufacturer of HIV-related diagnostic tests. These tests include a serum Western blot supplemental test and the only two FDA-licensed HIV-1 antibody tests that can be used on urine samples. These tests include the screening EIA and supplemental Western blot tests. Urine testing is non-invasive, less costly, does not require sample storage or a trained health care worker for sample collection, and it is safer because there are no risks of accidental needle sticks.

Statements in this press release that are not historical facts are forward-looking statements, including statements regarding market adoption of the HIV-1 urine testing method and statements regarding marketing and distribution plans. 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 the Company's ability, directly or through third parties, to successfully manufacture and market the HIV-1 serum & urine testing products and the ability of the Company to continue to finance its operations. Factors which may impact the Company's success are more fully discussed in the Company's most recent quarterly report on Form 10-Q. -0-

            CALYPTE BIOMEDICAL CORPORATION AND SUBSIDIARY

           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                (in thousands, except per share data)
                             (unaudited)

                                                   Three Months Ended
                                                         March 31,
                                                    1999         1998
Revenues:
         Product sales                            $   834      $   241
                                                  -------      -------
           Total revenue                              834          241
                                                  -------      -------
Operating expenses:
         Product costs                                997          489
         Research and development costs             1,660          790
         Selling, general and administrative costs  1,130          685
                                                  -------      -------
           Total expenses                           3,787        1,964
                                                  -------      -------
             Loss from operations                  (2,953)      (1,723)
Interest income (net of interest expense)
  and other income                                     29          117
                                                  -------      -------
             Loss before income taxes              (2,924)      (1,606)
Income taxes                                           (2)          (-)
                                                  -------      -------
             Net loss                              (2,926)      (1,606)
Less dividends on mandatorily redeemable
  Series A preferred stock                            (30)         (30)
                                                  -------      -------
Net loss attributable to common stockholders      $(2,956)     $(1,636)
                                                  =======      =======
Net loss per share attributable to common
  stockholders (basic and diluted)                $ (0.18)     $ (0.12)
                                                  =======      =======
Weighted average shares used to compute
  net loss per share attributable to common
  stockholders (basic and diluted)                 16,336       13,379
                                                  =======      =======
-0-

            CALYPTE BIOMEDICAL CORPORATION AND SUBSIDIARY

                CONDENSED CONSOLIDATED BALANCE SHEETS
                            (in thousands)
                                                  3/31/99      12/31/98
                                                (Unaudited)

Cash and cash equivalents                         $ 3,718      $ 3,121
Securities available for sale                         625          650
Working capital                                     1,732        4,444
Total assets                                        9,305        9,945
Long-term portion of capital lease
  obligations and notes payable                        77           23
Mandatorily redeemable Series A preferred stock     2,126        2,096
Total stockholders' equity                          1,374        4,631

Three Months Ended March 31, 1999 and 1998

In the first quarter of 1999, revenue increased $593,000 or 246% to $834,000 from $241,000 in the prior year's comparable period due primarily to the acquisition of certain assets of Cambridge Biotech Corporation and the sale of products related to that acquisition.

Product costs increased $508,000 or 104% to $997,000 for the three months ended March 31, 1999 from $489,000 for the three months ended March 31, 1998. Product costs during the three months ended March 31, 1999 were higher due to the sale of products related to the acquisition of Cambridge Biotech Corporation. In addition, more product was being retained as saleable inventory in 1998 in anticipation of FDA approval of the supplemental test for Calypte's HIV-1 urine screening test.

Research and development expenses increased $870,000 to $1.7 million for the three months ended March 31, 1999 from $790,000 in the corresponding period of the prior year. The increase was due to a reduction in the use of consultants offset by the write-off of note and interest receivable from a related party as research and development.

Selling, general and administrative expenses increased $445,000 or 65% to $1.1 million for the three months ended March 31, 1999 from $685,000 for the three months ended March 31, 1998. The increase was primarily related to more sales personnel and related travel expenses as well as increased expenses related to the marketing of the HIV-1 urine test method.

Interest income (net of interest expense) and other income decreased $88,000 to $29,000 for the three months ended March 31, 1999 from $117,000 for the three months ended March 31, 1998. The decrease was primarily due to a decrease in the interest earned from proceeds of a private placement of Common Stock in October 1997 and the increase in interest expense related to borrowings on the bank line of credit.