THE NEW STANDARD IN TRACE DETECTION

Corporate Overview

Glenn BolducPresident & CEO

Company Confidential 2

Safe Harbor StatementDuring today’s presentation, we will make 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 risks that our explosives detection products and technologies (including any new products we may develop) may not be accepted by the Transportation Security Administration or by other U.S. or foreign government and law enforcement agencies or commercial consumers of security products; economic, political and other risks associated with international sales and operations could adversely affect our sales; our business is subject to intense competition and rapid technological change; the risks that our markets are subject to technological change and that our success depends on our ability to develop and introduce new products; and other risks and uncertainties described in our filings with the Securities and Exchange Commission, including its most recent Forms 10-K, 10-Q and 8-K. Such statements are based on management's current expectations and assumptions which could differ materially from the forward-looking statements.

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An American Security Innovator

 Implant Sciences is proud to be contributing to the worldwide fight against terrorism

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About Implant Sciences (IMSC)Proven provider of explosives & drugs trace detection equipment

• Our systems detect microscopic amounts left behind after person handles explosives or drugs

• Global customer base, large U.S. opportunity• Over 2,000 systems sold in more than 50 countries• Strong cadre of industry veterans• Presence in government and corporate markets

Innovator in trace detection technology• Unmatched technology, new product• Strong IP portfolio: 17 patents, 6 pending

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The Challenge More bomb attacks, new targets

• Critical infrastructure• Public transportation

 Changing tactics• Shoe bomber• Underwear bomber• Printer cartridge bomb

 Different types of threats• “Home-grown” terrorism increasing• Smuggling and narco-terrorism

New answers are needed to fight the evolving threat

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Problems with Existing Methods

• Lack of privacy and dignity• Concerns over radioactive

materials

• Clogged security checkpoints• Operational availability• Growing security costs

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Implant Sciences’ Technology Patented technology

• inCal™ automatic internal calibration• Non-radioactive IMS analysis• Non-contact vortex collector

 Engineered for the real world• Low maintenance, low TCO• Rapid clear-down• No rest breaks required• Identifies substances by name

“[The industry] will develop a non-contact (non-swabbing) sampling

approach which eliminates the inconsistencies that

plague manual swabbing and allows targets of varied

surface types, structures, and materials to be sampled efficiently.”

-Homeland Security Research Corporation

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Implant Sciences’ Vision Improving science with innovative IP

 The non-contact sampling alternative• Screening with dignity• Integrated solutions to unclog

security checkpoints• Layered security approach

Homeland Security Research Corporation states that there is “no competitive explosives and narcotics trace detection modality on the

horizon” to compete with today’s trace detection systems.

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Implant Sciences’ Products Industry leading design

• No radioactive materials• Low operating expense• Rapid detection, fast clear-down• inCalTM fully automatic internal calibration

 QS-H150 Handheld Explosives Trace Detector• Choice of non-contact or wipe sampling• Flexibility for Risk-Based Screening CONOPS

 QS-B220 Desktop Explosives & Drugs Trace Detector• Small footprint ideal for crowded checkpoint• Drug detection capability opens new markets

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The New Standard in Trace Detection

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Global Presence in Various Applications

Over 2,000 systems sold in over 50 countries

Strong BRIC Presence

Africa, EU, & Mid-East growth

Focus on U.S. Penetration

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Growing Momentum for QS-B220Jan 2013 TSA Approval for Cargo Screening

Jul 2013 TSA Approval for Passenger and Baggage Screening

Sept 2013 STAC Approval for Cargo, Passenger, and Baggage Screening

Oct 2013 Added to TSA Qualified Products List for Cargo Screening

Oct 2013 Designated as Qualified Anti-Terrorism Technology by DHS

Feb 2014 Qualified Testing & Evaluation for TSA Checkpoint complete

Currently In final stage of TSA checkpoint qualification – OT&E (field trial)

Looking ahead… TSA Checkpoint and Baggage Qualification (expected June 2014)

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2012 2013 2014 2015 2016

Growing IMSC Market Opportunity

Aviation Security – 46%

Customs & Borders

Government

Public EventsSeaportsRailEducationCommercialMilitary and Police

ETD Market Segments

Source: IMS Research, and Management Estimates

Handheld Systems

Desktop Systems

Implant Sciences’ Market Opportunity

TSA Checkpoint and Baggage Qualification

Additional Int’l

Approva

ls

Focus on regulatory approvals grows IMSC opportunity.

ACSTLSTAC

350% market opportunity growth

2012-2106.

Pote

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Pro

duct

Rev

enue

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Growth Strategy Expand U.S. market penetration

• Dedicated government sales team in place now• Negotiate IDIQ with TSA for checkpoint and baggage• Leverage QPL status with other agencies

 Enhance international sales, marketing & distribution• STAC certification opens the European market• QPL with STAC provides greatly expanded global reach• Collaboration opportunity with other security providers

 IP Leverage• New products, new technologies• Licensing• Development agreements

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High Profile Board of Directors/Advisors

Howard Safir (Board Member)• Former NYC Police Commissioner and Former NYC Fire Commissioner• Assistant Director of the DEA • Chief of the Witness Security Division, U.S. Marshals Service

Robert Liscouski (Board Member)• First Assistant Secretary for Infrastructure Protection at DHS• 11 years with the Diplomatic Security Service at the State Department• Director of Information Assurance for The Coca-Cola Company

Dr. Bill McGann (COO, Board Member)• Original developer of ETD technology at Ion Track, successfully sold to GE• Chief Technology Officer at GE Homeland Security• Strong TSA/TSL relationships

Mo McGowan (Advisor)• One of the founders of the Transportation Security Administration• Assistant Administrator for Security Operations• General Manager for Cargo and Supply Chain Security

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Made in USA

  Implant Sciences currently employs 75 direct employees and an additional 10-20 through contract manufacturers

 We source 95% of our inputs locally, affecting an additional 50-75 jobs

 For every 45 incremental units, we can create another U.S. job

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Thank You

 We welcome your questions and comments

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