PositiveID Corporation Comments on Department of Homeland Security's Revised Procurement Strategy for BioWatch Generation 3, Phase II

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| Source: PositiveID Corporation

Updated Strategy Consists of a Two-Stage Procurement, the First Stage of Which is Planned to Begin Later This Year With the Release of Draft Request for Proposal

Company Believes it is Well Positioned for Performance Testing as Its M-BAND System Was the Only System of Its Kind Demonstrated Previously in the Field Under the DHS S&T BAND Program

DELRAY BEACH, Fla., Sept. 24, 2012 (GLOBE NEWSWIRE) -- PositiveID Corporation ("PositiveID" or "Company") (OTCBB:PSID), an emerging growth company and developer of airborne bio-threat detection systems for America's homeland defense industry as well as advanced technologies for diabetes management and rapid medical testing, today provided an update to its stockholders on its pursuit of BioWatch Generation 3, Phase II. Two weeks ago, the Department of Homeland Security ("DHS") revised its procurement strategy for BioWatch Generation 3, Phase II, which now will consist of a two-stage procurement which includes two to three years of testing estimated at $89 million. A draft request for proposal ("RFP") on this effort is scheduled for release in the fourth quarter of calendar 2012. PositiveID's patented M-BAND biodetector was developed under a competitive award from the DHS Science & Technology Directorate ("S&T").

The purpose of BioWatch Generation 3, Phase II is to obtain a fully autonomous networked biodetection capability that will be deployed, operated, and sustained, both indoor and outdoor, in selected U.S. BioWatch jurisdictions to continuously monitor the air for agents of biological concern. The original procurement outlined in the draft solicitation released by DHS in August 2011, with an estimated contract value of $3.1 billion, contemplated a single procurement resulting in a single award Indefinite Delivery Indefinite Quantity (IDIQ) contract for Performance Testing, Low Rate Initial Production (LRIP), Operational Test & Evaluation (OT&E), Detector Production, Deployment, Sustainment and Disposal.

The revised strategy, released by DHS two weeks ago, would consist of a two-stage procurement using a competitive down-selection between stages. Stage 1 would be for Performance Testing of candidate systems and may result in the award of multiple contracts depending on the technical merits of proposals submitted and the availability of funding. Stage 2 would be a separate competition and result in the award of a single contract for LRIP, OT&E, Full Rate Production, Deployment, Sustainment and Disposal. To be considered for the Stage 2 award, a company would need to demonstrate a design maturity and data set equivalent to that of Stage 1 participants.

William J. Caragol, Chairman and CEO of PositiveID, stated, "We believe the revised strategy for BioWatch, allowing for performance testing of qualifying systems in preparation for the full roll-out of the $3.1 billion procurement, provides us an opportunity to prove our M-BAND system, the only system of its kind that was demonstrated previously in the field under the DHS S&T BAND Program. Additionally, we continue to have discussions with potential strategic partners to prepare the Company for success in BioWatch Gen-3, Phase II."

About PositiveID Corporation

PositiveID Corporation is an emerging growth company and developer of airborne bio-threat detection systems for America's homeland defense industry as well as advanced technologies for diabetes management and rapid medical testing. Its wholly-owned subsidiary, Microfluidic Systems, is focused on the development of microfluidic systems for the automated preparation of and performance of biological assays in order to detect biological threats at high-value locations, as well as analyze samples in a medical environment.

The PositiveID Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7717

For more information on PositiveID, please visit http://www.PositiveIDCorp.com.

Statements about PositiveID's future expectations, including the likelihood that the Company is well positioned for performance testing as its M-BAND system was the only system of its kind demonstrated previously in the field under the DHS S&T BAND Program; the likelihood that DHS' revised procurement strategy for BioWatch Generation 3, Phase II will consist of a two-stage procurement which includes two to three years of testing estimated at $89 million; the likelihood that a draft RFP on this effort is scheduled for release in the fourth quarter of calendar 2012; the likelihood that Stage 1 would be for Performance Testing of candidate systems and may result in the award of multiple contracts depending on the technical merits of proposals submitted and the availability of funding; the likelihood that Stage 2 would be a separate competition and result in the award of a single contract for LRIP, OT&E, Full Rate Production, Deployment, Sustainment and Disposal; the likelihood that the original procurement for BioWatch Generation 3, Phase II outlined in the draft solicitation released by DHS in August 2011 will have an estimated contract value of $3.1 billion; the likelihood that the revised strategy would consist of a two-stage procurement using a competitive down-selection between stages; the likelihood that the revised strategy for BioWatch, allowing for performance testing of qualifying systems in preparation for the full roll-out of the $3.1 billion procurement, provides the Company an opportunity to prove its M-BAND system, the only system of its kind that was demonstrated previously in the field under the DHS S&T BAND Program; the likelihood that the Company's discussions with potential strategic partners will prepare the Company for success in BioWatch Gen-3, Phase II; 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 PositiveID's ability to successfully bid for the Stage 1 or Stage 2 procurement of BioWatch Generation 3, Phase II; the Company's ability to commercialize its M-BAND system; the Company's ability to attract strategic partners; 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 28, 2012, as amended on May 4, 2012, and 10-Qs filed on August 20, 2012, as amended on September 12, 2012, May 14, 2012, and November 14, 2011, 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.

PositiveID Corporation
Allison Tomek
561-805-8000