Atossa Genetics Announces Third Quarter 2014 Financial Results and Provides Company Update Conference Call to be Held Today at 4:30 pm Eastern Time SEATTLE

Atossa Genetics Announces Third Quarter

2014 Financial Results

and Provides Company Update

Conference Call to be Held Today at 4:30

SEATTLE, November 12, 2014 -- Atossa Genetics, Inc. (NASDAQ:

ATOS) today announced Third Quarter 2014 financial results and provided an update on recent corporate developments.

"In October our subsidiary, The National Reference Laboratory

for Breast Health, Inc., or the NRLBH, began offering a new pharmacogenomics test" stated Dr. Steven C. Quay, Chairman, CEO

and President. "These genetic tests, which help doctors prescribe drugs and doses best suited for each person, are being

sold by the NRLBH's sales and marketing partner, BioVentive, Inc. In the past three weeks, the NRLBH has processed approximately

238 pharmacogenomics tests. We have been seeing a strong demand for pharmacogenomics tests and expect they will provide a positive

financial contribution to our business while complementing our other tests under development. We also continue to make significant

progress towards introducing the ForeCYTE Breast Aspirator into the European markets - having now received the CE Mark -

and developing the FullCYTE Breast Aspirator for a planned launch in the United States."

Recent Corporate Developments

Important recent corporate developments include the following:

Third Quarter 2014 Financial Results

Revenue for the three months and nine months

ended September 30, 2014, totaled $3,426 and $37,425, consisting of additional cash collected in excess of the amounts we accrued

previously at the Medicare rates. Total revenue for the three and nine months ended September 30, 2013 was $76,597 and $585,345.

Cost of revenue was $0 for the three months and nine months ended September 30, 2014, compared to $25,938 and $314,562 in the same

For the three months and nine months

ended September 30, 2014, gross profit totaled $3,426 and $37,425, compared to $50,659 and $270,783 in the same period in 2013.

Operating expenses for the three months ended

September 30, 2014 were $3,248,681 consisting of general and administrative (G&A) expenses of $2,043,138, research and development

(R&D) expenses of $923,169, and selling expenses of $282,374, representing an decrease of $303,875, or 9% from $3,552,556 in

the same period in 2013, which consisted of G&A expenses of $2,858,027, R&D expenses of $321,111, and selling expenses

of $373,418. Operating expenses for the nine months ended September 30, 2014 were $8,880,138 consisting of G&A expenses of

$6,280,102, R&D expenses of $1,856,439, and selling expenses of $743,597. Operating expenses increased $582,678, or 7% from

$8,297,460 for the same period in 2013, which consisted of $6,600,819 in G&A expenses, $731,258 in R&D expenses, and $965,383

in selling expenses.

G&A expenses decreased primarily

as a result of lower capital raising commissions, lower recall expenses, lower consulting fees, lower advertising and marketing

fees and lower bad debt expenses, offset by higher legal and regulatory and higher salaries, director fees and employees benefits.

Selling expenses decreased primarily as a result of our reduced sales and marketing efforts after our voluntary recall in October

2013. R&D increased primarily as a result of increased expenditures on the development of our new products and tests in the

pipeline, including the NextCYTE Test and FullCYTE microcatheters.

We expect that our G&A and selling expenses

will increase in future periods as we hire additional administrative and manufacturing personnel to prepare for and execute on

the launch of the ForeCYTE Breast Aspirator and FullCYTE Breast Aspirator, and our other products and services under development,

and as we incur additional costs associated with being a publicly traded company. We also expect that our R&D expenses will

continue to increase as we add additional full time employees and incur additional costs to continue the development of our products

and services under development throughout 2014.

Conference Call Information

Management will host a conference call today, November 12,

2014, at 4:30 pm Eastern Time to review the financial results and recent corporate developments. To listen to the call by phone,

interested parties within the U.S. may dial 866-652-5200 or 412-317-6060 for international callers. 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.

A replay of the call will be available one hour after the end

of the call through September 12, 2014, and can be accessed via Atossa's website or by dialing 877-344-7529 (domestic) or

412-317-0088 (international). The replay conference ID number is 10046259.

About Atossa Genetics

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 additional information, please visit

www.atossagenetics.com.

Forward-Looking Statements

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, including

the outcome of the FDA re-inspection completed on March 14, 2014, the outcome or timing of regulatory clearances, Atossa's ability

to continue to manufacture and sell its products in a timely fashion, recalls of products, the efficacy of Atossa's products and

services, performance of distributors, whether Atossa can launch in the United States and foreign markets it tests, devices and

therapeutics 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

Atossa Genetics, Inc.

CFO and General Counsel

ATOSSA GENETICS INC.

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ATOSSA GENETICS INC.

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