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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001104659-06-054994.txt : 20060815
<SEC-HEADER>0001104659-06-054994.hdr.sgml : 20060815
<ACCEPTANCE-DATETIME>20060815085231
ACCESSION NUMBER:		0001104659-06-054994
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20060814
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20060815
DATE AS OF CHANGE:		20060815

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BIO KEY INTERNATIONAL INC
		CENTRAL INDEX KEY:			0001019034
		STANDARD INDUSTRIAL CLASSIFICATION:	COMPUTER COMMUNICATIONS EQUIPMENT [3576]
		IRS NUMBER:				411761861
		STATE OF INCORPORATION:			MN
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13463
		FILM NUMBER:		061033116

	BUSINESS ADDRESS:	
		STREET 1:		1285 CORPORATE CENTER DR.
		STREET 2:		SUITE 175
		CITY:			EAGAN
		STATE:			MN
		ZIP:			55121
		BUSINESS PHONE:		6516870414

	MAIL ADDRESS:	
		STREET 1:		1285 CORPORATE CENTER DR.
		STREET 2:		SUITE 175
		CITY:			EAGAN
		STATE:			MN
		ZIP:			55121

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SAC TECHNOLOGIES INC
		DATE OF NAME CHANGE:	19961115
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a06-18085_18k.htm
<DESCRIPTION>CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES
<TEXT>
<html>

<head>






</head>

<body lang="EN-US">

<div style="font-family:Times New Roman;">
 <div style="border:none;border-top:double windowtext 6.0pt;padding:0pt 0pt 0pt 0pt;"> <p style="border:none;margin:0pt 0pt .0001pt;padding:0pt;"><a name="scotch"></a></p> </div>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Washington,
D.C. 20549</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">FORM 8-K</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">CURRENT REPORT</font></b></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to
Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934</font></p>

<p style="margin:0pt 0pt 5.5pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date of Report (Date of
earliest event reported): <b>August 14, 2006</b></font></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">BIO-key International, Inc.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact name of registrant
as specified in its charter)</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="33%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:33.08%;">
  <p align="center" style="font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:center;"><!-- SET mrlNoTableShading --><b>Delaware</b></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="28%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:28.86%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1-13463</font></b></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="33%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:33.28%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">41-1741861</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="33%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:33.08%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State or other jurisdiction</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="28%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:28.86%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="33%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:33.28%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(I.R.S. Employer</font></p>
  </td>
 </tr>
 <tr>
  <td width="33%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:33.08%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">of incorporation)</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="28%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:28.86%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">File Number)</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="33%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:33.28%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Identification
  No.)</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">3349
Highway 138, Building D, Suite B<br>
Wall, NJ 07719<br>
</font></b><font style="font-weight:normal;">(Address of principal
executive offices)</font></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">(732)&nbsp;359-1100<br>
</font></b><font style="font-weight:normal;">(Registrant&#146;s telephone
number, including area code)</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Check the appropriate box below if the Form 8-K filing
is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see
General Instruction A.2 below):</font></p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font>&nbsp;&nbsp; Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font>&nbsp;&nbsp; Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font>&nbsp;&nbsp; Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))</p>

<p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font>&nbsp;&nbsp; Pre-commencement
communications pursuant to Rule 13e-4(c) under Exchange Act (17 CFR
240.13e-4(c))</p>


 <div style="border:none;border-bottom:double windowtext 6.0pt;padding:0pt 0pt 0pt 0pt;"> <p style="border:none;margin:0pt 0pt .0001pt;padding:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p> </div>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<div>
 <p style="margin:0pt 0pt .0001pt;text-align:center;"></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 2.02.&nbsp;&nbsp; Results of
Operations and Financial Condition.</font></b><a name="Item2_02_ResultsOfOperationsAndFi_204205"></a></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On August [15], 2006, BIO-key
International, Inc. (the &#147;Company&#148;) issued a press release announcing its
financial results for its second quarter ended June 30, 2006.&#160; A copy of such press release of the Company
is attached as Exhibit 99.1 to this Current Report on Form 8-K and is
incorporated herein by reference in its entirety.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The information, including the exhibit attached
hereto, in this Current Report on Form 8-K shall not be deemed &#147;filed&#148; for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the &#147;Exchange
Act&#148;), or otherwise subject to the liabilities of that Section, nor shall it be
deemed incorporated by reference in any filing under the Securities Act of 1933
or the Exchange Act, except as otherwise expressly stated in such filing.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 5.02</font></b><a name="Item5_02_204222"></a></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On August 14, 2006, Thomas J. Colatosti
voluntarily resigned as co-Chief Executive Officer of the Company and Michael
W. DePasquale, formerly co-Chief Executive Officer, was elected by the Board of
Directors of the Company as sole Chief Executive Officer. Mr. Colatosti will
continue to serve as Chairman of the Board of Directors of the Company and will
focus his attention on external aspects of the Company, including without limitation,
corporate financing and strategic alliances</font><font size="2" face="Times New Roman" style="font-size:10.0pt;">.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">Mr. DePasquale<b> </b></font>has
served as the Chief Executive Officer and a Director of the Company since
January&nbsp;3, 2003. He served as Co-Chief Executive Officer since
July&nbsp;2005. Mr.&nbsp;DePasquale brings more than 20&nbsp;years of executive
management, sales and marketing experience to the Company. Prior to joining the
Company, Mr.&nbsp;DePasquale served as the President and Chief Executive
Officer of Prism eSolutions,&nbsp;Inc., a Pennsylvania based provider of
professional consulting services and online solutions for ISO-9001/14000
certification for customers in manufacturing, healthcare and government
markets, since February&nbsp;2001. From December&nbsp;1999 through
December&nbsp;2000, Mr.&nbsp;DePasquale served as Group Vice President for WRC
Media, a New York based distributor of supplemental education products and
software. From January&nbsp;1996 until December&nbsp;1999, Mr.&nbsp;DePasquale
served as Senior Vice President of Jostens Learning Corp., a California based
provider of multi media curriculum. Prior to Jostes, Mr.&nbsp;DePasquale held
sales and marketing management positions with McGraw-Hill and Digital Equipment
Corporation. Mr.&nbsp;DePasquale earned a Bachelor of Science degree from the
New Jersey Institute of Technology.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On
March&nbsp;28, 2006, the Company entered into a two-year employment agreement
with Michael W. DePasquale to serve as the Co-Chief Executive Officer of the
Company at an annual base salary of $250,000 subject to adjustment by the Board
of Directors as well as $1,000 per month in lieu of participating in the
Company&#146;s medical plan. In addition to the Base Salary and Stock Options, a &#147;Discretionary
Bonus&#148; may be awarded to Mr.&nbsp;DePasquale on the basis of merit performance
on an annual basis in the sole discretion of the Board of Directors. The
employment agreement also provides for the grant of options to purchase up to
400,000 shares of Company common stock payable at the discretion of the Board
of Directors.</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">2</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the
event that Mr.&nbsp;DePasquale is terminated without cause, Mr.&nbsp;DePasquale
will receive severance payment equal to his base salary for the 6&nbsp;months.
The employment agreement contains standard and customary confidentiality,
non-solicitation and &#147;work made for hire&#148; provisions as well as a covenant not
to compete which prohibits Mr.&nbsp;DePasquale from doing business with any
current or prospective customer of the Company or engaging in a business
competitive with that of the Company during the term of his employment and for
the one year period thereafter. The Company may terminate the agreement at any
time with or without cause. In the event of termination without cause,
Mr.&nbsp;DePasquale shall continue to be paid his then current base salary for
the greater of six months from the date of such termination or the number of
months remaining until the end of the term of the employment agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 9.01.&nbsp;&nbsp; Financial
Statements, Pro Forma Financial Information and Exhibits.</font></b><a name="Item9_01_FinancialStatementsProFo_204243"></a></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Exhibits</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Press Release, dated August 14, 2006,
issued by </font><font size="2" face="Times New Roman" style="font-size:10.0pt;">the
Company.</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">3</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SIGNATURES</font></b><a name="Signatures_204253"></a></p>

<p style="margin:6.0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.66%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="56%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:56.34%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">BIO-KEY
  INTERNATIONAL, INC.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.66%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: August 15,
  2006</font></p>
  </td>
  <td width="56%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:56.34%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.66%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.96%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="21%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:21.84%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/Francis J.
  Cusick</font></p>
  </td>
  <td width="29%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.66%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.96%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="51%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:51.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Francis J.
  Cusick</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="43%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.66%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.96%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="51%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:51.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Financial
  Officer</font></p>
  </td>
 </tr>
</table>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">4</font></p>
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 <p style="margin:0pt 0pt .0001pt;text-align:center;"></p> <p style="color:black;margin:0pt 0pt 12.0pt 274.5pt;text-align:center;text-indent:-274.5pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p><p style="color:black;margin:0pt 0pt 12.0pt 274.5pt;text-align:center;text-indent:-274.5pt;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">EXHIBIT INDEX</font></b><a name="ExhibitIndex_205521"></a></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="11%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:11.9%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --><b>Exhibit No.</b></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.0%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="87%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:87.1%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Description</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="11%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:11.9%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="87%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:87.1%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="11%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:11.9%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="87%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:87.1%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Press Release, dated August 14, 2006</font></p>
  </td>
 </tr>
</table>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p style="margin:0pt 0pt 12.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;"><font style="text-decoration:none;">&nbsp;</font></font></u></p>

<p align="right" style="margin:0pt 0pt 12.0pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
99.1</font></b></p>

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  <p style="margin:0pt 0pt .0001pt;"><b><i><font size="5" face="Times New Roman" style="font-size:18.0pt;font-style:italic;font-weight:bold;">NEWS RELEASE</font></i></b></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;"><font style="text-decoration:none;">&nbsp;</font></font></u></p>
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  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Contacts:&nbsp;&nbsp;&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">BIO-key International, Inc.</font></u></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mike DePasquale, CEO</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="225" valign="top" style="padding:0pt .7pt 0pt 0pt;width:168.55pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">732-359-1111</font></p>
  </td>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">DRG&amp;E</font></u></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Gus Okwu, Managing Director</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">203-752-0446</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ken Dennard, Managing Partner</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">713-529-6600</font></p>
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<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="font-family:Times New Roman;margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">BIO-key
International Announces Strong Revenue Growth For Second Quarter 2006<br>
</font></b><i><font size="3" style="font-size:12.0pt;font-style:italic;">New Common Equity Raised at Premium to Market<br>
Debt Reduced By More Than 50%</font></i></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WALL,
NJ &#151; August 15, 2006</font></b> &#151;
BIO-key International, Inc. (OTC Bulletin Board: BKYI), a leading supplier of
mobile and wireless solutions for public safety worldwide, today announced its
financial results for the second quarter ended June 20, 2006.</p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For the second quarter of 2006, the Company reported revenue of $3.8
million or 22% sequential growth from the $3.1 million reported for the first
quarter of 2006.&#160; The operating loss for
the second quarter was $1.3 million or an improvement of 27% from the $1.8
million reported for the first quarter of 2006.&#160;
Gross margin for the quarter improved to 78.9% compared to 76.0% for the
first quarter of 2006.&#160; Net loss for the
quarter was $1.1 million or a net loss per basic share of $0.02 compared to a
net loss of $3.8 million or a net loss per basic share of $0.08 in the first
quarter of 2006.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mike DePasquale, BIO-key&#146;s Chief Executive Officer, stated, &#147;I am pleased
and excited at the solid progress the Company has made over the last few months
resulting in strong sequential organic revenue growth.&#160; During that period we have seen continued growth
in maintenance revenues, including $635,000 from the completion of a long-term
contract, providing us with an on-going annuity stream, greater activity in our
sales pipeline and an increase in the size of contracts won and are currently
pursuing.&#160; In addition, we continue to
focus on cost containment that led to a 27% sequential quarterly reduction in
operating losses during the second quarter of 2006.&#160; We believe this progress is a significant
inflection point for the Company&#146;s continued and future success.&#148;</font></p>

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr. DePasquale added, &#147;Subsequent to the close of the second quarter we
completed several initiatives that significantly improve the Company&#146;s
liquidity and strengthens our balance sheet.&#148;&#160;&#160;
These initiatives included:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>A recapitalization of the balance sheet that
resulted in a reduction of total debt of more than 50%, and included the
conversion of all of the Company&#146;s 2009 15% Subordinated Notes to preferred
equity.&#160; As part of this restructuring,
the company also converted a portion of its senior debt to common equity and
extended the maturity of the remaining payments due in 2006.&#160; The resulting improvements from the
recapitalized debt reduced our debt from approximately $11 million at the end
of the second quarter to approximately $5 million.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The completion of a common equity raise of $2
million at 50 cents per share or a 25% premium to market from the stock&#146;s
closing price on July 31, 2006.&#160; We
believe the significant premium paid by institutional investors reflects their
confidence in the Company&#146;s business strategy and growth potential.&#160; This new common equity will provide the
company with additional capital for growth.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Board of Directors has approved Mike
DePasquale as the sole Chief Executive Officer.&#160;
As a result, former co-CEO, Tom Colatosti, will remain Chairman of the
Board.</p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DePasquale concluded, &#147;We are pleased with our strong second quarter
revenue growth performance.&#160; Furthermore,
recent activity in the sales pipeline lead us to believe that we should
continue to see revenue growth in the second half of 2006 as well as continued
progress towards profitability.&#160; The
recapitalized debt and new equity provide us with the financial resources to
execute our plan.&#148;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Additional information on revenue and the Company&#146;s financial performance
will be provided on BIO-key&#146;s second quarter 2006 earnings conference call to
be held on Tuesday, August 15</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font>&#160;at 9:00 a.m. Eastern Time.&#160; Dialing 303-262-2139 and asking for the
BIO-key call at least 10 minutes prior to the start time can access the
conference call live.&#160; The conference
call will also be broadcast live over the Internet by logging onto
www.bio-key.com.&#160; A telephonic replay of
the conference call will be available through August 22<font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">nd</font>, 2006 and may be accessed by dialing
303-590-3000 and using the pass code 11068298#.&#160;
Additionally, an archive of the webcast will </p>

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">be available shortly after completion of the call on the Company&#146;s
website (www.bio-key.com) for a period of three months.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">About
BIO-key</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">BIO-key International, Inc., headquartered in Wall, New Jersey, develops
and delivers advanced identification solutions and information services to law
enforcement departments, public safety agencies, government and private sector
customers.&#160; BIO-key&#146;s mobile wireless
technology provides first responders with critical, reliable, real-time data
and images from local, state and national databases.&#160; BIO-key&#146;s high performance, scalable,
cost-effective and easy-to-deploy biometric finger identification technology
accurately identifies and authenticates users of wireless and enterprise data
to improve security, convenience and privacy and to reduce identity theft.&#160; Over 2,500 police, fire and emergency
services departments in North America use BIO-key solutions, making BIO-key the
leading supplier of mobile and wireless solutions for public safety
worldwide.&#160; (http://www.bio-key.com)</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This news release contains forward-looking statements that are subject
to certain risks and uncertainties that may cause actual results to differ
materially from those projected on the basis of these statements.&nbsp; The
words &#147;estimate,&#148; &#147;project,&#148; &#147;intends,&#148; &#147;expects,&#148; &#147;believes&#148; and similar
expressions are intended to identify forward-looking statements.&nbsp; Such
forward-looking statements are made based on management&#146;s beliefs, as well as
assumptions made by, and information currently available to, management
pursuant to the &#147;safe-harbor&#148; provisions of the Private Securities Litigation
Reform Act of 1995.&nbsp; For a more complete description of these and other
risk factors that may affect the future performance of BIO-key International,
see &#147;Risk Factors&#148; in the Company&#146;s Annual Report on Form 10-KSB and its other
filings with the Securities and Exchange Commission.&nbsp; Readers are
cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date made.&nbsp; The Company also undertakes no
obligation to disclose any revision to these forward-looking statements to
reflect events or circumstances after the date made or to reflect the
occurrence of unanticipated events.</font></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"># # #</font></p>

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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
