Implant Sciences Receives an NCI Grant to Develop a New Device to Treat Eye Cancer.

Business Editors/Health/Medical Writers

WAKEFIELD, Mass.--(BUSINESS WIRE)--July 15, 2003

Implant Sciences Corporation, (AMEX: "IMX", "IMX.WS") announced that the company has received a $709,000 grant from the National Cancer Institute (NCI) to continue development of an improved brachytherapy plaque for the treatment of choroidal melanoma, a form of eye cancer. Brachytherapy is a cancer radiation therapy that involves placing a radioactive source in or near a tumor.

The Phase II grant, based upon a successful feasibility demonstration in a previous Phase I NCI grant to the company, will provide funds for the design and manufacture of plaques containing Iodine-125 isotopes. These plaques are expected to offer better radiation treatment for tumors because they eliminate the large deviations from the prescription dose that can occur with current techniques. The manufacturing process for this new plaque is based upon the same patented technology and ion implantation equipment used to produce the company's existing Iodine-125 prostate seeds.

This work will be done in collaboration with the brachytherapy physics team of the Memorial Sloan-Kettering Cancer Center in New York City who will provide the dosimetry measurements and medical input derived from their extensive history of clinical experience with the treatment of this disease.

The new conformal plaque will be thinner than the current seeded plaques and should confer a lesser degree of discomfort to the patient during the relatively long treatment period while concurrently delivering a more effective radiation treatment to the tumor. Subsequent clinical use is expected to show that a distributed Iodine-125 plaque is both safe and effective for the treatment of choroidal melanoma and is an improvement over the seeded plaques currently in use.

"We are very pleased that the prestigious National Cancer Institute, through their rigorous peer review system, has decided to continue to fund our new treatment device. This product also complements our existing prostate and breast cancer products and would be distributed through our existing sales channels," commented Dr. Anthony J. Armini, President and CEO. He added, "Since this device is expected to be an improvement over the existing ocular melanoma treatment modality, we anticipate that this will only require a 510(k) FDA clearance before commercial sales can begin."

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 Airforce, and, signed a cooperative R&D agreement with the Transportation Security Administration which facilitates equipment valuation and new government contracts. 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 US by MED-TEC, Inc. a leading manufacturer of equipment and supplies to the radiation oncology community. 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.