Calypte Secures Equity Line Financing Commitment.

Business Editors/Health & Medical Writers

ALAMEDA, Calif.--(BW HealthWire)--Sept. 5, 2001

Calypte Biomedical Corporation (OTCBB: CALY) announced today that it has secured an equity financing commitment from a private investment fund in the form of an equity line facility. Under the terms of the facility, Calypte would have the right, but not the obligation, to obtain, based on factors such as the trading volume and price of Calypte shares, as much as $10 million through the issuance of common stock to the fund in a series of draw downs over a twenty-four-month period at a discount to market. There are no assurances that Calypte will or would be able to use the entire facility. The facility is similar in structure to an equity line facility Calypte secured earlier this year that is now closed after having provided the company with $1.1 million in additional cash, net of a $0.9 million bridge loan repayment.

Nancy Katz, Chief Executive Officer, President and Chief Financial Officer of Calypte, stated that the funds raised through the equity line facility will be used to fund Calypte's ongoing operations and that the facility is one component of an overall financing strategy Calypte is seeking to implement to ensure continuation of its business at current levels.

The Company currently expects to commence monthly draw downs under the equity line upon effectiveness of a registration statement for the facility that it plans to file with the Securities and Exchange Commission (SEC) following the Company's September 20, 2001 annual meeting of stockholders.

As part of the financing, the company will issue warrants to the investment fund to purchase $1 million of additional common stock.

This press release does not constitute an offer to sell or the solicitation to buy nor shall there be any sale of these securities in any state under which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such a state.

Calypte Biomedical Corporation (OTCBB:CALY), headquartered in Alameda, Calif., 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-licensed HIV-1 antibody tests that can be used on urine samples.

Statements in this press release that are not historical facts are forward-looking statements, including statements regarding 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.