PositiveID Corporation Achieves Milestone in Development of Glucose-Sensing RFID Microchip

DELRAY BEACH, Fla.--(BUSINESS WIRE)--PositiveID Corporation ("PositiveID" or the “Company”) (NASDAQ: PSID), in conjunction with its development partner RECEPTORS LLC, (“Receptors”) announced today that the companies have achieved a milestone in the development of their in vivo glucose-sensing RFID microchip to detect glucose levels in the body. The companies have completed the synthesis of a new chemical building block that will serve as the anchor of their next generation of Combinatorial Artificial Receptor (CARA™) surfaces for the sensing system component of the implantable glucose sensor.

The Company is currently in Phase II development of its glucose-sensing microchip. As previously announced, the goal of Phase II is to optimize the sensing system for its glucose response in the presence of blood and interstitial fluid matrix components and demonstrate the integration of the components into a stable and reproducible glucose sensor.

Receptors' CARA Affinity by Design™ Discovery Platform enables the discovery and application of binding environments to any target. In order for an affinity binding system to be useful, it must specifically and sensitively detect the target glucose molecule within the complex in vivo blood and interstitial fluid matrices. The design and development of this new “anchor” building block was based on the successful Phase I proof-of-principle study. The anchor building block will be used in conjunction with the Phase I CARA technology to produce an expanded library of surfaces specifically tailored to matrix selective and sensitive glucose binding. The Company believes this development is significant because it enables an expanded range of control over the paramount in vivo glucose specificity and sensitivity parameters.

Robert E. Carlson, Ph.D., President and Chief Science Officer at Receptors, said, “The development of a commercially successful in vivo glucose sensor requires the execution of a comprehensive plan that recognizes the critical nature of each of the component parts of the system and their integration into a functional system. Phase I established the glucose sensing system proof-of-concept. Phase II builds on that foundation and is designed to achieve three critical goals: development of the second generation glucose sensing system based on the anchor strategy; evaluation of the sensing system to electronics interface/signal transduction methods that fit our key criteria of signal stability and dynamic range; and initiation of model system in vivo biocompatibility evaluation of the system critical components. The production of the “anchor” building block establishes the foundation for all of the subsequent development effort.”

Scott R. Silverman, Chairman and CEO of PositiveID, said, “The Phase II development of our in vivo glucose-sensing microchip is on target to be completed in mid-2010. We are pleased with our progress and we believe the development of this anchor will enhance glucose binding within the sensor to make for a better, more effective product to potentially help the more than 23 million diabetics in the U.S. manage their disease.”

According to a November 2009 study by researchers at the University of Chicago published in the journal Diabetes Care, the number of diabetics in the U.S., which currently stands at 23.7 million, may almost double in 25 years, and the annual cost of treating them may triple to $336 billion.

About PositiveID Corporation

PositiveID Corporation develops and markets healthcare and information management products through its RFID-based diagnostic devices and identification technologies, and its proprietary disease management tools. PositiveID operates in two main divisions: HealthID and ID Security. For more information on PositiveID, please visit www.PositiveIDCorp.com.

About Receptors LLC

Receptors LLC develops Smart Materials products for laboratory, clinical, industrial hygiene and healthcare use that selectively capture and measure chemical, biochemical and cellular targets from complex biological, environmental or industrial samples. The Company's patented Affinity by Design™ platform has broad applicability, ranging from the isolation of disease pathway proteins for drug discovery and production of therapeutic antibodies, to the capture of bacteria and viruses for disinfection and diagnostic purposes. Receptors LLC is a private company based in suburban Minneapolis, Minnesota. For further information please visit http://www.receptorsllc.com.

Statements about PositiveID’s future expectations, including the likelihood that completion of the synthesis of the “anchor” building block establishes the foundation for the second generation glucose sensing system, the Company’s ability to optimize the sensing system for its glucose response in the presence of blood and interstitial fluid matrix components and demonstrate the integration of the components into a stable and reproducible glucose sensor, the likelihood that the development of the anchor building block enables an expanded range of control over the paramount in vivo glucose specificity and sensitivity parameters, the ability of the Company to achieve the goals of Phase II development including development of the second generation glucose sensing system based on the anchor strategy; evaluation of the sensing system to electronics interface/signal transduction methods that fit our key criteria of signal stability and dynamic range; and initiation of model system in vivo biocompatibility evaluation of the system critical components, the likelihood that the Company will complete phase II development of its in vivo glucose-sensing microchip in mid-2010, the likelihood that the number of diabetics in the U.S., which currently stands at 23.7 million, may almost double in 25 years, and the annual cost of treating them may triple to $336 billion, and all other statements in this press release other than historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and PositiveID’s actual results could differ materially from expected results. These risks and uncertainties include the Company’s ability to complete Phase II development of the glucose-sensing microchip, the capabilities of the microchip, the Company’s ability to receive FDA approval of and commercialize the glucose-sensing microchip, as well as certain other risks. Additional information about these and other factors that could affect the Company’s business is set forth in the Company’s various filings with the Securities and Exchange Commission, including those set forth in the Company’s 10-K filed on March 19, 2010, under the caption “Risk Factors.” The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law.