Atossa Genetics Reports Second Quarter 2013 Results and Operating Highlights Second Quarter Revenue Up 46%; Year-to-date Revenue Up 83% over Prior Year Seattle

Atossa Genetics Reports Second Quarter 2013

Results and Operating Highlights

Second Quarter Revenue Up 46%; Year-to-date

Revenue Up 83% over Prior Year

Seattle, August 14, 2013 -- Atossa Genetics, Inc. (NASDAQ:

ATOS), the Breast Health Company , today announced its second quarter 2013 financial results and corporate highlights. Revenue

for the second quarter was $326,078 compared to $223,097 for the same period in the prior year. Year-to-date revenue was $508,748

compared to $277,810 for the same period in the prior year. Cash and cash equivalents were $2,439,512 at the end of the second

quarter, up 41% from $1,725,197 as of December 31, 2012.

"Interest in our ForeCYTE test continues to grow, as evidenced

by the increasing numbers of doctors signing up to provide the test and the increasing number of doctors submitting specimens to

our lab for analysis," said Dr. Steven C. Quay, Chairman, CEO & President. "We will continue to sign up new doctors

while focusing intently on driving volume from existing doctors through a comprehensive follow up program. In addition, we are

working closely with our marketing partners to create awareness, interest and further adoption of the ForeCYTE test among general

practitioners, OB/GYNs, breast clinics and hospitals."

Dr. Quay continued, "While the roll out of the ForeCYTE test

remains our major focus, we look forward to accomplishing several important milestones within the next 12 months including the

launch of our FullCYTE test, which identifies the location of a lesion using our proprietary microcatheters, the NextCYTE test,

which uses genomic analysis to provide important insights to inform and improve the effectiveness of breast cancer treatment for

women with early-stage breast cancer, and the ArgusCYTE test, a liquid biopsy' used to identify circulating breast

tumor cells in women who have been treated for breast cancer and help inform treatment options. In addition, it is our intention

to partner next year with a major pharmaceutical company for the clinical development of our intraductal therapy program for treatment

of ductal carcinoma in situ."

Corporate Highlights

Second Quarter 2013 Financial Results

Revenues for the three months ended June 30, 2013, were $326,078,

which included $205,590 of product sales from the sale of MASCT Systems and kits, and $120,488 of diagnostic testing service revenue

from the ForeCYTE breast health tests. This compares with total revenues of $223,097 for the second quarter ended June 30, 2012.

Year-to-date revenue as of June 30, 2013 was $508,748 compared to $277,810 for the same period in the prior year. The year-over-year

increase in total revenue was driven by increased product sales from the national rollout of the ForeCYTE test, which commenced

Gross profit for the three months ended June 30, 2013, was $103,918

versus gross profit of $205,295 for the quarter ended June 30, 2012.

Total operating expenses were $2,687,265 for the three months ended

June 30, 2013, consisting of G&A expenses of $2,177,920, selling expenses of $319,390 and research and development expenses

of $189,955. This compares to total operating expenses of $1,371,121 for the three months ended June 30, 2012, consisting of G&A

expenses of $704,208, selling expenses of $123,832 and research and development expenses of $543,081. The increase in G&A expenses

from the second quarter of 2012 to the second quarter of 2013 is attributed to increased costs of stock and options granted to

services providers, the launch of the Company's MASCT System and ForeCYTE test, continued development of the FullCYTE, NextCYTE

and ArgusCYTE tests and the related growth in expenses to hire additional staff and expand the Company's operations. G&A

expenses for the six months ended June 30, 2013 included $1,193,618 in expenses associated with granting options and stock to service

providers, compared to $70,662 in these expenses in the same period of 2012. Atossa expects that its G&A expenses will continue

to increase as it adds employees and increases headcount to continue the national rollout of the MASCT System and ForeCYTE test,

coordinate the production and manufacture of our products, and the expected increase in service revenue.

Selling expenses increased $195,558 from the second quarter of 2012

to the second quarter of 2013 as a result of hiring additional sales and marketing personnel, incurring additional marketing expenses

and adding to the Company's distributors for the national launch of the ForeCYTE test. Research and development expenses

decreased by $353,126 from the second quarter of 2012 to the second quarter of 2013 as a result of completion of the development

of the ForeCYTE test and ArgusCYTE test in 2012 and Atossa's focus in 2013 on the national launch of ForeCYTE.

Net loss for the quarter ended June 30, 2013, was $2,583,699, or

a loss of $0.17 per share, compared with net loss of $1,167,948, or a loss of $0.10 per share, for the second quarter ended June

30, 2012. The increase in net loss was primarily attributable to an increase in general and administrative expense, including increased

expenses related to the national launch of the ForeCYTE test.

At June 30, 2013, Atossa Genetics had cash and cash equivalents

of $2,439,512 versus $1,725,197 at December 31, 2012.

Conference Call Information

Management will host a conference call today, Wednesday, August

14, 2013, at 4:45 pm Eastern time to review financial results and corporate highlights. 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 http://services.choruscall.com/links/atossa130725.html

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

the call through September 16, 2013, 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 10031764.

About Atossa Genetics

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, 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

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 National Reference Laboratory for Breast Health, please visit www.nrlbh.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 planned and ongoing product launches, expected levels of future expenditures, 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 most recent Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q, each as amended and

supplemented from time to time.

Atossa Genetics, Inc.

CFO and General Counsel

Matthew D. Haines (Investors)

Jules Abraham (Media)

ATOSSA GENETICS INC.

(A DEVELOPMENT STAGE COMPANY)

CONSOLIDATED BALANCE SHEETS

ATOSSA GENETICS, INC.

(A DEVELOPMENT STAGE COMPANY)

CONSOLIDATED STATEMENTS OF OPERATIONS