Bioscrypt Obtains Receipt For Its Short Form Preliminary Prospectus



    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES/

    TORONTO, Oct. 5 /CNW/ - Bioscrypt Inc. (TSX: BYT), a leading provider of
identity and access management solutions, is pleased to announce today that it
has obtained a receipt dated October 5, 2007 for its short form preliminary
prospectus in connection with the previously announced new issue offering. The
Company has agreed to issue 12 million units (each comprised of one common
shares and one-half of one common share purchase warrant of the Company) at a
purchase price of $0.50 per unit for gross proceeds to the Company of
$6 million. The issue will be conducted on "bought deal" basis subject to
various conditions, including market out, material change out and disaster out
provisions. Evergreen Capital Partners Inc. ("Evergreen") is acting as the
exclusive underwriter for the offering.
    The units will be publicly offered in the provinces of British Columbia,
Alberta and Ontario. Bioscrypt has granted Evergreen an over-allotment option,
exercisable for 30 days from the closing date, to purchase up to an additional
1.8 million units at the issue price. In addition to its cash commission of
6.75%, Bioscrypt has agreed to grant the Underwriter compensation warrants to
purchase up to such number of units as is equal to 8% of the aggregate number
of units issued (including any units issued pursuant to the exercise of the
over-allotment option). The compensation warrants are exercisable for a period
of 24 months from the date of closing at a price of $0.50 per unit. The
Company has the right, beginning on the date that is 180 days following the
closing of the offering, to require the holders to exercise the warrants
should the 20 day volume weighted average price of its common shares equal or
exceed $0.80 per share.
    The offering is subject to the receipt of all necessary regulatory and
stock exchange approvals and is scheduled to close on or about October 26,
2007.
    The securities offered have not been registered under the U.S. Securities
Act of 1933, as amended, and may not be offered or sold in the United States
absent registration or applicable exemption from the registration
requirements. This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the securities
in any State in which such offer, solicitation or sale would be unlawful.

    About Bioscrypt Inc.

    Bioscrypt is an enterprise access control solution provider, enabling the
unification of physical and logical access with its Door to Desktop(R)
products. Bioscrypt's hardware and software solutions deliver strong
authentication processes to facilities, equipment, IT networks and computer
applications and allow organizations to administer unified identities across
the enterprise.
    Building on its proven expertise in biometric technology and its unique
multi-factor authentication platform, Bioscrypt integrates all major secure
authentication standards, transforming how organizations are bridging the gap
between physical and logical access to create secure working environments.
More information is available at www.bioscrypt.com.

    Forward-looking (safe harbour) statement

    Statements made in this news release that relate to future plans, events
or performances are forward-looking statements. Any statement containing words
such as "believes", "plans", "expects" or "intends" and other statements which
are not historical facts contained in this release are forward-looking, and
these statements involve risks and uncertainties and are based on current
expectations. These risks and uncertainties include but are not limited to
pricing competition, dependency on new product development, reliance on major
customers, customer demand for our products and services, the ability to
successfully integrate acquired companies, control of costs and expenses,
international growth, general industry and market conditions and growth rates
and general domestic and international economic conditions including interest
rate and currency exchange rate fluctuation. Consequently, actual results
could differ materially from the expectations expressed in these
forward-looking statements.

    Bioscrypt and Door to Desktop(R) are registered trademarks and
    Veri-Series and VeriSoft are trademarks of Bioscrypt Inc. All other
    product and company names mentioned are the property of their respective
    owners and are mentioned for identification purposes only.

    %SEDAR: 00002471E




For further information:

For further information: Laura Slater, High Road Communications, (613)
688-1192, lslater@highroad.com; Matthew Bogart, Bioscrypt Inc., (905)
940-7771, matthew.bogart@bioscrypt.com

Organization Profile

BIOSCRYPT INC.

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