Implant Sciences Receives $750,000 Contract Award from Department of Homeland Security

Business Wire, Oct 6, 2008

Phase II Contract to Deliver Handheld Trace Explosives Sampler Using Proprietary Vortex Collection Technology

WAKEFIELD, Mass. -- Implant Sciences Corporation (NYSE Alternext US: IMX), a high technology supplier of sophisticated systems and sensors for the homeland security market and related industries, today announced the award of a thirteen (13) month, $750,000 Phase II Small Business Innovation Research ("SBIR") contract by the Department of Homeland Security ("DHS"), Science & Technology Directorate in Washington, DC for the delivery of a handheld trace explosives sampler (the "Handheld Sampler"). Development of the Company's Handheld Sampler technology began earlier this year with the assistance of a previously funded Phase I SBIR contract. The Phase II contract calls for the Company to incorporate this technology into a prototype to be delivered to DHS.

The Company plans to use its proprietary vortex collection technology in this Handheld Sampler to augment the process of collecting samples used in detecting and identifying a range of explosives materials. The contract will be administered by the Department of Interior ("DOI") Acquisition Services Directorate, National Business Center.

Phillip C. Thomas, President and CEO of Implant Sciences, stated, "We are pleased to continue working in partnership with the DOI and DHS in advancing our Handheld Sampler technology. This effort is expected to culminate with the introduction of a new innovative explosives detection product for the security marketplace. We believe the use of a compact, lightweight handheld sampler, incorporating our proprietary vortex collection technology, could significantly improve explosives detection capabilities while also being very user friendly. This non-contact method could prove to be much more effective than traditional contact sample collection, and at a much lower cost to users. This improved sampling process has applicability for use in detecting trace amounts of explosives found on a wide range of objects such as carry-on luggage, parcels, packages and cargo. In addition, multiple handheld sampling units could be systematically deployed in concert with a centralized trace explosives detection system to improve efficiency and increase the volume of articles screened. We think this product could usher in a new way of thinking about how cargo and other items can be properly examined in a cost effective and user friendly manner. It is with this objective in mind that we anticipate the introduction of our first air cargo screening system, which will utilize our Handheld Sampler technology, at the AVSEC 2008 exhibition in Seoul, South Korea later this year."

About Implant Sciences

Implant Sciences develops, manufactures and sells sophisticated sensors and systems for the Security, Safety and Defense (SS&D) industries. The Company has developed proprietary technologies used in its commercial portable and bench-top explosive trace detection systems which ship to a growing number of locations domestically and internationally. For further details on the Company and its products, please visit the Company's website at www.implantsciences.com.

Safe Harbor Statement

This press release may contain certain "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to risks and uncertainties that could cause the Company's actual results to differ materially from the forward-looking statements. Such risks and uncertainties include, but are not limited to, the Company's ability to successfully integrate its handheld sampler technology into a prototype, delivery of a handheld sampler prototype to DHS, commercialization of a prototype handheld sampler, market acceptance of a commercially available handheld sampler, and are subject to risks and uncertainties that could cause the Company's actual results to differ materially from the forward-looking statements. Such risks and uncertainties are described in the Company's filings with the Securities and Exchange Commission, including its most recent Forms 10-K, 10-Q and 8-K.

For further information, you are encouraged to review Implant Sciences' filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the period ended June 30, 2007 and Quarterly Reports on Form 10-Q for the periods ended September 30, 2007, December 31, 2007 and March 31, 2008. The Company assumes no obligation to update the information contained in this press release.