Calypte Seeks Shareholder Approval to Position Company for Future Acquisitions, Financings, and Employee Benefit Plans.

Business Editors & Health/Medical Writers

ALAMEDA, Calif.--(BW HealthWire)--July 18, 2002

Calypte Biomedical Corporation (OTCBB:CALY), the developer and marketer of the only two FDA-approved HIV-1 antibody tests that can be used on urine samples, stated today in a Preliminary Proxy statement filed with the Securities and Exchange Commission (SEC) that it is seeking shareholder approval of several proposals including an increase in its authorized common stock to 400 million shares from 200 million shares to facilitate possible future acquisitions, financings, or for issuance under employee benefit plans and for other corporate purposes.

The company also said that it is seeking shareholder approval to authorize a potential reverse split of its common stock at the Board's discretion, in any ratio between 1:2 and 1:10, in order to stimulate interest in the company's common stock and to promote greater liquidity.

Anthony Cataldo, Calypte's Executive Chairman, stated that while the company was seeking stockholder authorization for a potential reverse split of the outstanding shares of common stock, he noted that such a reverse split was not necessarily mandated by the proposal and that the Preliminary Proxy states the Board of Directors upon shareholder approval, would reserve the right at the Board's discretion to proceed with, hold in abeyance or to abandon such a reverse split.

Mr. Cataldo continued, "I want our shareholders to know that if this proposal is authorized, the Board would clearly take a number of factors into account, including the trading price of our common stock as well as a number of other considerations in determining whether or not to authorize a reverse split. I believe that it is extremely unlikely that the Board would authorize such a course of action until it believes that the company's common stock is more fully valued."

About Calypte Biomedical:

Calypte Biomedical Corporation 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. When compared with existing blood-based tests, our testing algorithms are non-invasive, easier to use, less expensive and have significantly less risk than blood-based testing, and they have 99.7% sensitivity in subjects previously identified as HIV-1 infected and 100% specificity in subjects at low risk when combined with the urine-based Western Blot supplemental test. 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 countries worldwide through international distributors and strategic partners.

Statements in this press release that are not historical facts are forward-looking statements within the meaning of the Securities Act of 1933, as amended. Those statements include statements regarding the intent, belief or current expectations of the Company and its management. 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 and access funds from our existing financing arrangements that will allow us to continue our current and future operations and whether demand for our product and testing service 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, 2001 and its subsequent filings with the SEC.