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Implant Sciences Innovation in Explosives Detection. July 2011 Glenn Bolduc, President & CEO. Safe Harbor Statement.

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Implant SciencesInnovation in Explosives Detection

July 2011

Glenn Bolduc, President & CEO

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Safe Harbor Statement

During today’s presentation, we will make forward-looking statements concerning upcoming events and our expectations regarding the Company's financial performance. Each time we do, we will try to identify these statements with words such as “expect,” “believe,” “anticipate” or other words that indicate potential events.

These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those in the forward-looking statements. Please consider the risk factors contained in our latest Form 10-K for the fiscal year ended June 30, 2010 and Form 10-Q for the three and six months ended December 31, 2010, both of which were filed with the Securities and Exchange Commission.

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About Implant Sciences (IMSC)

  • Small, U.S. company using Ion Mobility Spectrometry in the manufacture of Explosives Trace Detection Systems

    • Narcotics trace detection coming in 2011

  • 12 patents, 6 pending

  • Strong BoD and Advisory Team includes

    • Robert Liscouski, DHS Assistant Secretary

    • Howard Safir, NY City Police Commissioner

    • William McGann, Industry Founder

    • Paul McHale, Assistant Secretary of Defense

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What is Trace Detection?

  • Trace Detection – the targeted collection of microscopic explosive residue

  • Investigation occurs based on finding explosive residue and contamination

  • Where do trace explosives come from?

    • When explosives are handled or touched, they leave behind residue

    • Highly volatile explosives emit vapor

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ETD Market Opportunities

  • $1 billion market by 2014

  • North America largest segment

    • 43% of world market

    • The QS – B220 will increase access to this market

  • Asia fastest growing

    • 21.7% CAGR forecast

    • Implant Sciences is very strong in Asia and is already seeing benefit from market growth

  • IMSC has distribution partners in all BRIC countries

    • Over 1,000 systems sold in China and India

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  • Homeland Security and Defense

    • Aviation Security and Air Cargo

    • Ports, Borders, and Customs Control

    • Force Protection and Critical Infrastructure Protection

    • Rail and Subway Security

    • Nuclear Power Plants

    • VIP Protection

    • Public Safety

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The QS-H150 Advantage

  • Non radioactive ion source

  • Low operating expense

  • Rapid detection

  • Fast clear down

  • Ease of use

  • Choice of non-contact or wipe sampling

  • Configurable, user-expandable threat library

  • Designated as Qualified Anti-Terrorism Technology by the U.S. Department of Homeland Security SAFETY Act

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The QS-B220 Advantage

  • Non radioactive ion source

  • The advantages of an QS–H150 in a bench top unit

  • Smaller and lighter than our competitors

  • Ability to detect both explosives and narcotics traces, opening up new markets

  • Targeted toward TSA certification and air cargo screening applications

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Technology Proven Effective

  • 819 units are in Chinese railways, subways, and with police forces

  • The Indian Ministry of Defense has ordered 226 units

  • The Spanish Armyis using our products in Afghanistan

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Low cost for consumers

  • GAO report shows that our competitors’ units cost $10,000 a piece to operate per year

  • Implant Sciences’ cost less than $1,000

  • As government budgets tighten, our product will prove more affordable and effective

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Security with Respect

Respect for Passengers

  • Non-contact sampling for dignified passenger screening

    Respect for the Environment

  • No radioactive materials

  • Fewer Chemicals

  • Fewer Consumables

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Made in the USA

  • Employ 50 Massachusetts citizens

  • We source 95% of our inputs locally

  • For every 45 units we sell above our annual sales volume, we can create another US job

  • IMSC’s positioning as the American brand will increase government sales

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  • Our technology can be applied to several security solutions, expanding market share

    • Non Contact Passenger Screening

    • In-line Baggage/Cargo Screening

    • Vehicle Scanner

    • Remote Sensory Applications