Calypte Reports Third Quarter 2001 Financial Results; Revenues Increase 75% Compared With Third Quarter 2000.

Business Editors/Health & Medical Writers

ALAMEDA, Calif.--(BW HealthWire)--Oct. 18, 2001

Calypte Biomedical Corporation (OTCBB:CALY) announced today that its revenues for the third quarter ended September 30, 2001 increased 75% to $1,465,000 compared to $835,000 for the same period last year. Revenues for the nine months ended September 30, 2001 were $4,478,000, compared with $2,720,000 for the first nine months of last year, an increase of 65%.

"While revenues from all products increased compared to third quarter 2000 levels, third quarter 2001 revenues from the sale of the company's HIV-1 Western Blot serum assay more than doubled", said Nancy Katz, President, Chief Executive Officer, and Chief Financial Officer of Calypte. "We are very pleased with our 2001 operating results to date."

"Revenues for the first nine months of 2001 already exceed those of full-year 2000 by 36%. The temporary product supply interruptions we experienced during the third quarter have been resolved and, looking forward, we expect strong performance during the fourth quarter. As blood donations across the nation have reached unparalleled levels, we are experiencing a significant increase in demand for our serum Western Blot test. Our employees are working seven days a week to meet the demands of blood banks, the military and other organizations monitoring the safety of the nation's blood supply and these organizations have our highest priority in product availability. We expect to exceed $7 million in revenues for the full year 2001," Katz said.

Calypte's domestic urine HIV testing business also continues to grow. Sales to the reference labs supporting the domestic life insurance business increased by more than 40% for the first nine months of 2001 compared to the same period in 2000. The major life insurance companies continue to expand their acceptance of urine testing as a part of their underwriting standards and Calypte now counts nine of the ten "most admired" life insurance companies, as identified by Fortune magazine, as among those companies using its urine test to screen policy applicants. The company's sales force closed a number of new Sentinel Testing Service accounts during the third quarter and has a number of product evaluations in process across the country.

Katz continued, "With this demonstrated base of support for urine-based testing, Calypte is developing a urine based rapid test for the detection of HIV-1 as its highest new product priority. Results of laboratory testing to this point have encouraged us to continue the development of this new product."

Calypte completed its first urine HIV-1 antibody test shipment of significant size to its distributor in the People's Republic of China earlier this week and expects another order and shipment later this quarter. These tests are destined for epidemiological uses in at least 20 of the country's 28 provinces. China has recently announced the creation of a Five Year Plan against HIV/AIDS and HIV epidemiological baseline screening combined with ongoing surveillance will be key elements of the plan. The company expects its products to play a key role in this effort as the Plan is implemented.

During the third quarter, Calypte completed its first shipment of urine HIV-1 EIA tests to its distributor in Malaysia. That distributor is optimistic that additional regulatory reviews currently in process will expand the market for the company's tests to additional public and private sector entities in Malaysia. The regulatory approval process is moving forward in both the Philippines and South Korea, where, in both cases, the company expects to receive a formal request for a small clinical evaluation in the near future. Calypte is also working with its distributor in Brazil to formulate the protocol for a local clinical trial that has been requested by regulatory authorities. In cooperation with its new distributors in Thailand and Taiwan, the company plans to make regulatory submissions to the appropriate authorities shortly. Although Calypte already has regulatory approval in the Republic of South Africa, its distributor for that territory and other countries in sub-Saharan Africa has undergone a corporate restructuring that has disrupted sales efforts for the company's tests. The company is actively looking to expand its distribution channels in those territories. The company continues to actively seek product evaluations and regulatory approval in a number of other international venues, including Mexico and France.

The company has reduced its burn rate significantly compared to the prior year. The net loss for the third quarter improved by $1.4 million from a year ago. The net loss attributable to common stockholders for the third quarter of 2001 was $1.7 million, or $0.05 per share, compared with a net loss attributable to common stockholders of $3.1 million, or $0.13 per share, for the same quarter of 2000. The net loss attributable to common stockholders for the first nine months of 2001 was $8.1 million, or $0.27 per share, compared with a net loss attributable to common stockholders of $8.6 million, or $0.37 per share, for the first nine months of last year.

During the third quarter, Calypte continued the aggressive cost control measures implemented earlier in the year. Coupled with its increased revenues, those measures continue to generate improved margins at the company's Alameda, Calif. and Rockville, Md. manufacturing facilities. As a further cost reduction step, the company plans to reduce the size of its Rockville, Md. manufacturing facility. This change will not impact workforce size, product supply or quality from that plant, but by reducing space needs by approximately 50%, the company expects to reduce operating costs by approximately $400,000 annually.

"Based on the growth that we project both domestically and internationally, we remain on track to double revenues in 2002 compared to calendar year 2001 and to achieve profitability in the fourth quarter of 2002," Katz continued. "But, as the company's cash on-hand as of September 30, 2001 was $48,000 and with negative working capital of $4.9 million, we will require additional external financing to continue our current level of operations through the fourth quarter of 2001. The company expects to register the equity line of financing announced in September in the near future and plans to begin drawing on the line once the SEC declares the registration statement effective. At this time, however, we are unable to predict how long the SEC review process might take. Beyond the equity line, although we do not have any financing agreements in place, we are continuing to investigate funding sources that can enable the company to achieve its milestones. There can, however, be no assurance that additional capital will be available to the Company on acceptable terms, or at all," Katz concluded.

Calypte Biomedical Corporation (OTC Bulletin Board: 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 also markets one of only two FDA-approved HIV-1 supplemental Western Blot tests available for testing serum 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 regarding future revenues and sales projections, plans for future financing, the ability to meet operational milestones, and shipments to and regulatory approvals in international markets. 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 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 ("SEC"), including its annual report on Form 10-K for the year ended December 31, 2000 and its subsequent filings with the SEC.

Calypte Biomedical has scheduled a conference call to discuss financial results for the third quarter at 11:00 a.m. (EDT) on Friday, October 19, 2001. All interested parties are invited to listen to this call. To listen to the call from the US, please dial 1-888-997-8642 and ask to be connected to the Calypte conference call. International callers please dial 973-694-6836. This conference call will also be webcast on the Internet. A link to a live broadcast of the call on the Internet can be found at "Investor" at www.calypte.com or at www.companyboardroom.com.

If you are unable to participate, a rebroadcast of the call will be available beginning 2:00 p.m. (EDT) on Friday, October 19, 2001 until Friday, October 26, 2001 at 2:00 p.m. (EDT). To access the rebroadcast domestically, please dial: 1-800-428-6051, conference no.: 213772. International callers please dial: 973-709-2089. To access a rebroadcast of the webcast, please visit "Investor" at www.calypte.com or visit www.companyboardroom.com.

             CALYPTE BIOMEDICAL CORPORATION AND SUBSIDIARY
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                 (in thousands, except per share data)
                               Unaudited

                        Three Months Ended          Nine Months Ended
                    Sept. 30,  June 30,  Sept. 30,    September 30,
                       2001      2001      2000       2001     2000
                     --------  --------  --------  --------  --------

Revenues:
 Product sales       $  1,465  $  1,612  $    835  $  4,478  $  2,720
                     --------  --------  --------  --------  --------
 Cost of product
  sales                 1,486     1,743     1,588     5,218     4,312
                     --------  --------  --------  --------  --------
  Loss on product
   sales                  (21)     (131)     (753)     (740)   (1,592)

Other operating
 expenses:
 Research and
  development
  costs                   351       354       496     1,201     1,612
 Selling, general and
  administrative
  costs                 1,249     2,138     1,915     5,343     5,437
                     --------  --------  --------  --------  --------
  Total other
   operating expenses   1,600     2,492     2,411     6,544     7,049
                     --------  --------  --------  --------  --------
   Loss from
    operations         (1,621)   (2,623)   (3,164)   (7,284)   (8,641)

Interest income             1         1        85         8       247
Interest expense
 (non-cash expense
 of $830 for the
 three months ended
 June 30, 2001 and
 $1,318 for nine
 months of 2001)           (6)     (838)      (29)   (1,357)      (93)
Other income
 (expense)               --         501         5       524         4
                     --------  --------  --------  --------  --------
  Loss before
   income taxes        (1,626)   (2,959)   (3,103)   (8,109)   (8,483)

Income taxes             --        --        --          (2)       (2)
                     --------  --------  --------  --------  --------
  Loss before
   extraordinary
   item                (1,626)   (2,959)   (3,103)   (8,111)   (8,485)
Extraordinary gain
 on repurchase of
 beneficial conversion
 feature, net of
 tax expense             --         145      --         145      --
                     --------  --------  --------  --------  --------
  Net loss             (1,626)   (2,814)   (3,103)   (7,966)   (8,485)

Less dividends on
 mandatorily redeemable
 Series A preferred
 stock                    (30)      (30)      (30)      (90)      (90)
                     --------  --------  --------  --------  --------
Net loss
 attributable
 to common
 stockholders        $ (1,656) $ (2,844) $ (3,133) $ (8,056) $ (8,575)
                     ========  ========  ========  ========  ========
Net loss per share
 attributable to
 common stockholders
 (basic and diluted) $  (0.05) $  (0.10) $  (0.13) $  (0.27) $  (0.37)
                     ========  ========  ========  ========  ========
Weighted average
 shares used to
 compute net loss
 per share
 attributable
 to common
 stockholders
 (basic and diluted)   33,153    29,070    24,969    29,373    23,362
                     ========  ========  ========  ========  ========


             CALYPTE BIOMEDICAL CORPORATION AND SUBSIDIARY
                    CONSOLIDATED BALANCE SHEET DATA
                            (in thousands)
                               Unaudited

                                                 Sept. 30,  Dec. 31,
                                                   2001       2000
                                                 --------   --------
Cash, cash equivalents, and restricted cash      $    48    $ 1,203
Working capital                                   (4,867)      (875)
Total Assets                                       3,524      5,006
Current portion of notes payable                     400        471
Long-term portion of capital lease obligations        56         78
Mandatorily redeemable
Series A preferred stock                           2,426      2,336
Total stockholders' equity                        (5,943)    (1,531)