Announces Second Quarter 2015 Financial Results

Announces Second Quarter 2015 Financial Results

Revenue for Q2 2015 of $2.7 Million

Conference Call to be Held Today at 4:30

SEATTLE, August 6, 2015 - Atossa Genetics Inc. (NASDAQ:

ATOS) today announced second quarter 2015 financial results and provided an update on recent company developments.

Dr. Steven C. Quay, Chairman, CEO & President, commented, "We

are highly encouraged by our second quarter performance with record revenues for our Pharmacogenomics tests and our acquisition

of the rights to Besins Healthcare's Afimoxifene Gel, which we are developing for the potential treatment of hyperplasia

of the breast. We've made great advancements towards achieving our goals for 2015 and we look forward to continued progress

towards initiating clinical trials using our microcathers for the local administration of a pharmaceutical and growing our revenues

with our products and services."

Recent Corporate Developments

Important recent corporate developments include the following:

Second Quarter 2015 Financial Results

For the three months and six months ended June 30, 2015, we had

total net revenue of $2,694,157 and $4,567,425, respectively, from our pharmacogenomics testing, compared to $9,875 and $33,999

of revenue in the same periods in 2014, which consisted of additional cash collections on NAF cytology tests performed in 2013.

In March 2015, we began the launch of the FullCYTE Breast Aspirator in the U.S. and the ForeCYTE Breast Aspirator in the EU, focusing

initially on the Netherlands, Germany, Switzerland and the United Kingdom. These devices are in the early stages of commercialization

and have not yet generated revenue.

For the three months and six months ended June 30, 2015, gross profit

totaled $839,446 and $1,504,760, compared to $9,875 and $33,999 in the same period in 2014. Total cost of revenue for the three

months and six months ended June 30, 2015 was $1,854,711 and $3,062,665, respectively, consisting of costs relating to pharmacogenomics

testing services; there was no cost of revenue during the same periods in 2014 as the only revenue generated during those periods

was from additional cash collections on NAF cytology tests performed in 2013.

For the three months ended June 30, 2015, total operating expenses

were $4,033,391 consisting of general and administrative (G&A) expenses of $2,790,872, research and development (R&D) expenses

of $510,458, and selling expenses of $732,061, representing an increase of $836,983, or 26% from $3,196,408 in the same period

in 2014, consisting of G&A expenses of $2,462,256, R&D expenses of $510,767, and selling expenses of $223,385. Operating

expenses for the six months ended June 30, 2015 were $7,982,581 consisting of G&A expenses of $5,395,983, R&D expenses

of $1,307,683, and selling expenses of $1,278,915. Operating expenses increased $2,351,124, or 42% from $5,631,457 for the same

period in 2014 consisting of $4,236,964 in G&A expenses, $933,270 in R&D expenses, and $461,223 in selling expenses.

The increase in selling expenses is mainly due to increases in compensation

expenses, travel, and advertisement as a result of the ForeCYTE and FullCYTE launch and commercialization in Europe and the United

States. We expect that our selling expenses will continue to increase during 2015, as we build a sales force in the United States

and outside the United States to support the launch and commercialization of the FullCYTE and ForeCYTE Breast Aspirators and our

laboratory service offerings. Selling expenses may also increase as we market and sell the services offered by the NRLBH, including

NAF cytology tests, pharmacogenomics tests and potentially other tests.

G&A expenses consist primarily of personnel and related benefit

costs, facilities, professional services, insurance, and public company related expenses. The increase in G&A expenses is mainly

due to increases in compensation expenses, professional fees, and recruiting fees as we hired additional headcounts to support

the launch of our new products; as well as an increase in bad debt expenses as a result of significant increases in revenue.

We expect our G&A and selling expenses to continue to grow throughout

2015 as we hire additional administrative and manufacturing personnel to support increased sales and operating activities as we

commercialize the ForeCYTE Breast Aspirator and FullCYTE Breast Aspirator, pharmacogenomics testing and our other products and

services under development and as we incur additional costs associated with being a publicly traded company.

The increase in R&D expenses is attributed to additional R&D

expenditures on the launch and development of ForeCYTE and FullCYTE in the first quarter of 2015. We expect that our R&D expenditures

will continue to grow as we develop our new products and tests in the pipeline, including Afimoxifene Gel, our NextCYTE test and

other laboratory tests we may develop. We will add additional full time employees and incur additional costs to continue the development

of our products and services under development, including the development of Afimoxifene Gel and other potential pharmaceuticals

and conducting one or more clinical studies.

Conference Call Information

Management will host a conference call on Thursday, August 6, 2015

at 4:30 pm eastern time to review financial results and corporate highlights. Following management's formal remarks, there will

be a question and answer session.

To listen to the call by phone, interested

parties within the U.S. should call 1-866-652-5200 and

International callers should call 1-412-317-6060.

All callers should ask for the Atossa Genetics conference call. The conference call will also be available through a live webcast

at www.atossagenetics.com. Details for the webcast may be found on the Company's IR events page at http://ir.atossagenetics.com/ir-calendar.

A replay of the call will be available approximately

one hour after the end of the call through September 7, 2015. The replay can be accessed via Atossa's website or by dialing 877-344-7529

(domestic) or 412-317-0088 (international) or Canada Toll Free at 855-669-9658. The replay conference ID number is 10070543.

About Atossa Genetics

Atossa Genetics Inc. is focused on improving breast health through

the development of laboratory services, medical devices and therapeutics. The laboratory services are being developed by its subsidiary,

The National Reference Laboratory for Breast Health Inc. The laboratory services and the Company's medical devices are being developed

so they can be used as companions to therapeutics to treat various breast health conditions. For more information, please visit

www.atossagenetics.com.

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, the outcome or timing of regulatory approvals needed by Atossa

to sell its products, responses to regulatory matters, Atossa's ability to achieve its objectives, continue to manufacture and

sell its products, recalls of products, the safety and efficacy of Atossa's products and services, performance of distributors,

whether Atossa can launch and commercialize in the United States and foreign markets the additional tests, devices and therapeutics

in its pipeline in a timely and cost effective manner, 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. Atossa does not undertake any obligation to update any forward-looking statement.

Atossa Genetics Inc.

CFO and General Counsel

ATOSSA GENETICS INC.

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ATOSSA GENETICS INC.

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