PositiveID, Receptors announce milestone in development of in vivo glucose-sensing RFID microchip

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.