Implant Sciences Corporation Signs Definitive Agreement to Sell Medical IP and Related Assets

Implant Sciences Corporation (AMEX: IMX), a high technology supplier of sophisticated systems and sensors for the homeland security market and related industries, today announced that it has signed a definitive agreement with Best Medical International, Inc. ("Best”), a medical device manufacturer, to sell certain intellectual property and other medical assets used in Implant Sciences’ discontinued brachytherapy products business. The agreement provides for Best to make an initial $100,000 payment to Implant Sciences upon execution of the agreement, as well as pay an additional $100,000 and $200,000 thirty days and sixty days following the signing of the agreement, respectively. The transaction is expected to close by September 18, 2008. "We continue to execute on our operating plan to withdraw from our medical and semiconductor businesses by the end of the calendar year,” said Phillip C. Thomas, CEO and President of Implant Sciences. "This agreement, combined with the recent sale of our medical related xenation assets, brings us closer toward achieving that goal. The transaction allows us to further streamline our business and focus on continued growth and expansion of our security products while generating additional cash for the Company.” 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 contains 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 sell and withdraw from its medical and semiconductor businesses by the end of the calendar year, the risk that the Company will not realize the anticipated benefits of the agreement, that the transactions contemplated by the agreement will not be consummated, and other risks and uncertainties 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 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.