Atossa Genetics Signs Distribution Agreement With McKesson Medical-Surgical

SEATTLE, WA--(Marketwired - Sep 18, 2013) - Atossa Genetics, Inc. (NASDAQ: ATOS), The Breast Health Company™, announced today that it has entered into a nationwide distribution agreement with McKesson Medical-Surgical to sell and distribute Atossa's MASCT device and patient collection kits. The MASCT device is used in OB/GYN, primary care, and women's clinics to perform a non-invasive collection of breast fluid. The specimens are analyzed at the National Reference Laboratory for Breast Health, a subsidiary of Atossa, with the ForeCYTE Breast Health Test, which assesses a woman's future risk of breast cancer.

Under terms of the agreement, McKesson Medical-Surgical will sell and distribute the MASCT device and patient collection kits nationwide through its sales force.

Dr. Steven C. Quay, Chairman, President & CEO of Atossa Genetics, commented, "Our agreement with McKesson Medical-Surgical is another important step forward in making the ForeCYTE test the standard of care in breast cancer risk assessment. McKesson Medical-Surgical is one of the country's top medical distributors and we are pleased that they have agreed to add the ForeCYTE test to their product portfolio. With their extensive market presence, we look forward to providing physicians a much needed early warning system by detecting the earliest, reversible precursors of breast cancer."

"We're pleased to be able to offer Atossa Genetics' products to our customers," said Joan Eliasek, Senior Vice President, Supplier Management, McKesson Medical-Surgical. "As a company, we are in business for one reason: better health. And fighting cancer is a major aspect of better health in our country. That's why Mckesson's corporate citizenship initiative is focused on supporting the fight against cancer. We are glad to offer products to our customers that help them deliver better care for their patients."

Chris Destro, Vice President, Sales and Marketing for Atossa, stated, "McKesson Medical-Surgical will enable us to further increase our penetration into all geographical markets while expanding our relationships with physician offices. With a large sales force calling on physician practices, we look forward to working closely with the McKesson Medical-Surgical sales team."

Breast cancer is the second most common form of cancer. One woman is diagnosed every minute. Current detection methods lack the ability to detect very small concentrations of precancerous cells (ductal hyperplasia) at breast cancer's earliest stages. Early detection enables lifestyle change and/or chemopreventative treatment to reverse the abnormal cells. Atossa's ForeCYTE Breast Health Test has been shown in analytical validation to detect as few as 10 precancerous breast cells.

About the ForeCYTE Breast Health Test

The ForeCYTE Breast Health Test, intended for the 110 million women in the U.S. ages 18 to 73, is a painless, quick and non-invasive procedure that can be done in a physician's office. A small sample of fluid, aspirated from the nipple of each breast with the Company's MASCT device, can provide vital early detection of cancer or pre-cancerous conditions that may progress to cancer over an approximately eight year period and before cancer can be detected by mammography or other means and without the risks of radiation, especially in women younger than age 50. No invasive biopsy needles or open surgical incisions are used in the Atossa test and the test is painless.

Just as the Pap smear has reduced cervical cancer rates by over 70 percent, becoming the most successful screening test in medicine, the goal of Atossa Genetics is to reduce the stubbornly high rate of breast cancer through the early detection of the pre-cancer changes that can lead to breast cancer and the treatment of those early changes.

About McKesson Medical-Surgical

McKesson Medical-Surgical Inc., with offices in Richmond, VA, and McKesson Medical-Surgical Minnesota Supply Inc. in Golden Valley, MN, are affiliates of the McKesson Corporation. McKesson, currently ranked 14th on the FORTUNE 500, is a healthcare services and information technology company dedicated to making the business of healthcare run better. We work with payers, hospitals, physician offices, pharmacies, pharmaceutical companies and others across the spectrum of care to build healthier organizations that deliver better care to patients in every setting. McKesson helps its customers improve their financial, operational, and clinical performance with solutions that include pharmaceutical and medical-surgical supply management, healthcare information technology, and business and clinical services. For more information, visit www.mckesson.com.

About Atossa Genetics, Inc.

Atossa Genetics, Inc. (NASDAQ: ATOS), The Breast Health Company™, based in Seattle, WA, is focused on preventing breast cancer through the commercialization of patented, FDA-designated Class II diagnostic medical devices and by providing, through its wholly-owned subsidiary, The National Reference Laboratory for Breast Health, Inc. (NRLBH), patented, laboratory developed tests (LDT) that can detect precursors to breast cancer up to eight years before mammography.

The NRLBH is a CLIA-certified high-complexity molecular diagnostic laboratory located in Seattle, Washington.

For additional information on Atossa, please visit www.atossagenetics.com. For additional information on the ForeCYTE test and the NRLBH, please visit www.nrlbh.com.

Atossa Genetics Forward-Looking Statements

Forward-looking statements in this press release are subject to risks and uncertainties that may cause actual results to differ materially from the anticipated or estimated future results, including the risks and uncertainties associated with actions by the FDA, regulatory clearances, responses to regulatory matters, Atossa's ability to continue to manufacture and sell its products, the efficacy of Atossa's products and services, the market demand for and acceptance of Atossa's products and services, performance of distributors and other risks detailed from time to time in Atossa's filings with the Securities and Exchange Commission, including without limitation its periodic reports on Form 10-K and 10-Q, each as amended and supplemented from time to time.