Newsletter

January 6, 2003

Volume VI, Issue 2

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To OTC Journal Members:

Caylpte Biomed (OTC BB: CALY) Kicks of New Year With Major Order

Calypte Biomed is starting the new year right, up in early trading on big volume. Just prior to today's opening bell, Calypte announced it had received its second large commercial order from it's Chinese distributor.

Calypte is the only company in the world with an FDA Approval for an AIDS test kit which uses urine as opposed to blood to determine if an individual is infected with the HIV Virus. Urine testing is considerably easier and less expensive. In 2001 most major US life insurance companies migrated to this test, and the company was rewarded with $6 million in sales in the first year of commercial introduction.

While the AIDS test kit market is substantial in North America, it pales in comparison to the market for AIDS testing worldwide where the spread of HIV has reached epidemic proportions and sample handling is considerably more difficult and dangerous.

Current estimates have the number of AIDS cases in Eastern Asia at about 5.3 million. China's health ministry has confirmed over one million cases in China and growing. A recent report by the UN estimates China could have more than 10 million HIV cases by 2010.

Sales Accelerating

While Calypte has done an adequate job penetrating the limited US market, sales are soaring in International markets where AIDS is an epidemic. Calypte has now obtained its second large order from its Chinese distributor, a market second only to the sub-Saharan African continent in terms of potential test sales. Today's order for 160,000 tests is 38% greater than the first order Calypte received from its Chinese distribution partner this past November.

Despite an excess supply of stock due to both raising of capital and use of equity to compensate consultants, the stock is beginning a rebound phase after a challenging November and December. The market seems to be willing to absorb the excess supplies of stock at current levels, and perhaps it is finally positioned to trade up.

This stock should be accumulated by long term investors only. In 2003 the company will be entrenched in the process of obtaining an approval for the rapid version of its HIV urine test which works just like a home pregnancy test. Approval of this test could catapult the company to new levels. In the interim the company will likely continue to raise capital, which could inhibit the stock's ability to move up. However, risk oriented investors could enjoy substantial gains as the company continues to demonstrate fundamental progress.

Here is the complete text of the news release for your review:

Press Release Source: Calypte Biomedical Corporation

Calypte Receives Second Commercial Order from China Distributor and Payment for First Order

Monday January 6, 7:00 am ET

New Order for 160,000 Tests to Ship in February 2003

ALAMEDA, Calif.--(BUSINESS WIRE)--Jan. 6, 2003--Calypte Biomedical Corporation (OTCBB:CALY - News), the developer and marketer of the only two FDA approved HIV-1 antibody tests for use with urine samples, announced that it has received its second commercial order for Urine HIV-1 EIA tests from its exclusive Chinese distributor, Zhong Yang Pute Co. ("ZYPute"), a distributor of medical products in China.

Calypte signed an exclusive two-year distributor agreement with ZYPute in October 2002. Calypte's first order from ZYPute for approximately 112,000 tests was shipped in December 2002 upon receipt of a Letter of Credit payment, which will be included in the company's 2002 fourth quarter financial results. The second order, totaling approximately 160,000 tests, is expected to ship in February 2003. The distribution agreement calls for minimum purchases of $3 million over the term of the agreement, which has provision for automatic extension for an additional two years contingent upon the distributor's performance.

Nancy Katz, president and CEO of Calypte, stated, "As China has recently made public the concern it has for its population and the potential for exposure to HIV, Calypte has made China one of our premier priorities. We are excited to be beginning 2003 completing our first shipment to ZYPute on schedule and receiving a second order for our tests. We believe this second order is a signal that we can expect ever-increasing activity in China, as the government there works to address its crisis. Calypte will be working very closely with ZYPute in 2003 to ensure that the HIV testing needs of the Chinese are met as quickly and efficiently as possible."

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.
--------------------------------------------------------------------------------
Contact:
     Calypte Biomedical Corporation
     Richard VanMaanen, 510/749-5153
     dvanmaanen@calypte.com
     www.calypte.com
        OR
     Lippert/Heilshorn & Associates
     Brendan Lahiff, 415/433-3777 (IR)
     brendan@lhai-sf.com
     Kirsten Chapman, 415/433-3777 (IR)
--------------------------------------------------------------------------------
Source: Calypte Biomedical Corporation

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