Implant Sciences Awarded $1.7 Million U.S. Navy Contract to Deliver 'Production Ready' Explosives Detection Equipment.

Business Editors

WAKEFIELD, Mass.--(BUSINESS WIRE)--Jan. 7, 2004

Implant Sciences Corporation (AMEX: "IMX," "IMX.WS"), a developer, manufacturer and distributor of products for national security, industry, and medicine, announced today that it was awarded a $1.7 million contract by the U.S. Navy for the delivery of three (3) "production ready" Quantum Sniffers, the Company's hand-held, portable trace explosives detection device, which uses the Company's unique Laser Ion Mobility Spectrometry ("IMS") technology. Upon completion of the contract, and the successful testing of the three (3) deliverables, the Company expects to be ready to accept orders for the production and sale of commercial units. The equipment is designed to detect six (6) specific explosives from their vapor alone, with sensitivities equal to or greater than the prototype the Company developed under a previous U.S. Navy contract. The total contract duration is nine (9) months.

After deployment, the equipment is slated to provide protection of U.S forces against the asymmetric terrorist Improvised Explosive Device threat by providing the AntiTerrorism/Force Protection and Physical Security personnel the ability to quickly determine the presence, or confirm the absence of, trace amounts of explosives in personal articles, personal equipment, packages, postal mail, and cargo that may be conveyed by persons, vehicles, watercraft, and aircraft entering U.S. controlled areas or routes.

Dr. Anthony J. Armini, President and CEO of Implant Sciences commented, "This new contract, which represents a follow-on award to our successful U.S. Navy R&D program, will accelerate the building of a production line to deliver a large number of hand-held units for deployment by our U.S. Forces. This $1.7 million, plus the nearly $3 million in cash currently on hand, should be more than adequate to accomplish this goal, as well as maintain working capital for normal operations."

Dr. Armini further stated, "We are gratified at the U.S. Navy's quick response to our recent proposal and the continued support of our efforts to bring to market a device that we believe will more efficiently detect explosives and will, more importantly, contribute to the safety of the men and women of our armed forces."

The Company believes that the application of its proprietary laser ion technology for explosives detection is more sensitive, more selective, safer, and easier to use than existing technologies which employ radioactive isotopes to detect explosives material. Implant Sciences technology uses a cyclonic system to collect air containing as little as parts per trillion concentrations of explosive vapor. The device then uses Laser IMS technology to identify the chemical signature of potential explosives without the need for any physical contact with the articles under evaluation. The Company has also received recent awards from the U.S. Army and the Transportation Security Administration for the development of explosives detection devices using the Company's Laser IMS technology. The total market for explosives detection systems in the United States alone is estimated to be in excess of $1.9 billion.

About Implant Sciences:

Implant Sciences, incorporated in 1984, is using its core ion technology to develop, manufacture and market products for national security, industry, and medicine. Under development is a portable trace explosives detection device to identify explosives, narcotics and other toxic materials. Implant has received development grants from the US Army, Navy, and Air Force, and, signed a cooperative R&D agreement with the Transportation Security Administration, which facilitates equipment evaluation and new government contracts. Implant also recently signed an exclusive agreement with InVision Technologies, Inc. (NASDAQ: "INVN") to jointly evaluate the capabilities of Implant's non-contact trace explosives detection technology for future incorporation in an automated explosives detection system for airport checkpoint screening of passengers and/or carry-on bags. Using its proprietary ion implantation and thin film coating technologies, Implant also manufactures and markets radioactive and non-radioactive products for medical use. Implant derives revenues from its radioactive seeds for treating prostate cancer that are distributed throughout the U.S. by its direct sales force. Implant is also developing brachytherapy products for the treatment of breast, eye, and other cancers. Additionally, Implant modifies the surface characteristics of orthopedic joint implants to reduce polyethylene wear, thereby increasing the life of the implants.

This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products and services in the marketplace, the ability of the Company to develop effective new products and receive governmental approvals of such products, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.