Patient Safety Technologies, Inc. Not in Compliance With Amex Continued Listing Standards

  
    
  
  
    
      Patient Safety Technologies, Inc. (AMEX:PST) announced today that it has 
      been notified by the American Stock Exchange (“Amex”) 
      on October 23, 2006, that the Company is not in compliance with its 
      continued listing standards, as listed below, and that Amex intends to 
      delist PST’s common stock from the exchange.
    
    
      
        It is not in compliance with Amex’s 
        stockholders’ equity requirement of $6 
        Million. For the period ended June 30, 2006, the Company reported 
        stockholders’ equity of $4,739,746.
      
      
        Amex has determined that the Company is financially impaired in that 
        it has a working capital deficit of $7.1 Million; a minimal cash 
        position and limited source of revenues; that it is in violation of 
        certain loan covenants and/or loan agreements; and that certain 
        vendors have suspended or terminated services due to lack of payment. 
        Further, the Company appears to have been funding its operations in 
        its current fiscal year primarily through the issuance of common stock 
        or loans convertible into common stock.
      
      
        The Company is currently in arrears for $39,329.06 in Amex listing 
        fees.
      
      
        The Company has issued at least 200,000 shares over the last year 
        without prior approval from the exchange.
      
    
    
      Further, Amex has expressed concern that a possible sale or spin-off of 
      SurgiCount Medical, as previously announced, may make it unlikely that 
      PST would regain compliance with its continued listing standards.
    
    
      “SurgiCount Medical represents an important 
      reason why the Company is listed on Amex,” 
      said Todd Ault, Chairman and CEO of PST. “If 
      SurgiCount were to be sold, it is understandable why Amex would be 
      concerned about our listing. However, the significant cash payment in 
      which PST would receive in the event of a sale of SurgiCount, would 
      yield the Company great resources and time to evaluate where to best 
      maximize those resources.”
    
    
      In accordance with the Amex Company Guide, PST has a right to appeal Amex’s 
      determination by requesting a hearing based on a written submission 
      before the Listing Qualifications Panel. The Company is reviewing Amex’s 
      findings for further clarification and determination on whether it will 
      proceed with an appeal to remain listed on the exchange. PST will 
      consider its options carefully to best benefit its shareholders, 
      including the feasibility and a cost comparison of trading on another 
      marketplace.
    
    
      About SurgiCount and the Safety-Sponge™ 
      System
    
    
      SurgiCount Medical's Safety-Sponge System works much like a grocery 
      store check-out system. Every surgical sponge and towel is pre-labeled 
      by the manufacturer with an individual and unique bar coded label, and a 
      scanning counter is used to read and record the labels. No change is 
      required in a hospital's established counting procedures: sponges are 
      counted and recorded by the system at the beginning of the procedure and 
      again as they are removed from the patient. For more information, visit www.surgicountmedical.com.
    
    
      About Patient Safety Technologies, Inc.
    
    
      Patient Safety Technologies, Inc. (PST) is a holding company that owns 
      assets in various businesses. Its wholly-owned subsidiary, SurgiCount 
      Medical, Inc., is a developer and manufacturer of patient safety 
      products and services. For more information on Patient Safety 
      Technologies, Inc., please contact the company directly at 310-895-7750, 
      or by email at [e-mail] 
      or www.patientsafetytechnologies.com.
    
    
      Forward-Looking Statements
    
    
      This press release contains certain forward-looking statements. These 
      forward-looking statements can generally be identified as such because 
      the context of the statement will include words such as Patient Safety 
      Technologies plans, expects, should, believes, anticipates or words of 
      similar import. Stockholders, potential investors and other readers are 
      cautioned that these forward-looking statements are predictions based 
      only on current information and expectations that are inherently subject 
      to risks and uncertainties that could cause future events or results to 
      differ materially from those set forth or implied by the forward-looking 
      statements. Certain of those risks and uncertainties are discussed in 
      our filings with the Securities and Exchange Commission, including our 
      annual report on Form 10-K and quarterly reports on Form 10-Q. These 
      forward-looking statements are only made as of the date of this press 
      release and Patient Safety Technologies does not undertake any 
      obligation to publicly update such forward-looking statements to reflect 
      subsequent events or circumstances.
    
  
Patient Safety Technologies, Inc. (AMEX:PST) announced today that
it has been notified by the American Stock Exchange ("Amex") on
October 23, 2006, that the Company is not in compliance with its
continued listing standards, as listed below, and that Amex intends to
delist PST's common stock from the exchange.

   --  It is not in compliance with Amex's stockholders' equity
        requirement of $6 Million. For the period ended June 30, 2006,
        the Company reported stockholders' equity of $4,739,746.

   --  Amex has determined that the Company is financially impaired
        in that it has a working capital deficit of $7.1 Million; a
        minimal cash position and limited source of revenues; that it
        is in violation of certain loan covenants and/or loan
        agreements; and that certain vendors have suspended or
        terminated services due to lack of payment. Further, the
        Company appears to have been funding its operations in its
        current fiscal year primarily through the issuance of common
        stock or loans convertible into common stock.

   --  The Company is currently in arrears for $39,329.06 in Amex
        listing fees.

   --  The Company has issued at least 200,000 shares over the last
        year without prior approval from the exchange.

   Further, Amex has expressed concern that a possible sale or
spin-off of SurgiCount Medical, as previously announced, may make it
unlikely that PST would regain compliance with its continued listing
standards.

   "SurgiCount Medical represents an important reason why the Company
is listed on Amex," said Todd Ault, Chairman and CEO of PST. "If
SurgiCount were to be sold, it is understandable why Amex would be
concerned about our listing. However, the significant cash payment in
which PST would receive in the event of a sale of SurgiCount, would
yield the Company great resources and time to evaluate where to best
maximize those resources."

   In accordance with the Amex Company Guide, PST has a right to
appeal Amex's determination by requesting a hearing based on a written
submission before the Listing Qualifications Panel. The Company is
reviewing Amex's findings for further clarification and determination
on whether it will proceed with an appeal to remain listed on the
exchange. PST will consider its options carefully to best benefit its
shareholders, including the feasibility and a cost comparison of
trading on another marketplace.

   About SurgiCount and the Safety-Sponge(TM) System

   SurgiCount Medical's Safety-Sponge System works much like a
grocery store check-out system. Every surgical sponge and towel is
pre-labeled by the manufacturer with an individual and unique bar
coded label, and a scanning counter is used to read and record the
labels. No change is required in a hospital's established counting
procedures: sponges are counted and recorded by the system at the
beginning of the procedure and again as they are removed from the
patient. For more information, visit www.surgicountmedical.com.

   About Patient Safety Technologies, Inc.

   Patient Safety Technologies, Inc. (PST) is a holding company that
owns assets in various businesses. Its wholly-owned subsidiary,
SurgiCount Medical, Inc., is a developer and manufacturer of patient
safety products and services. For more information on Patient Safety
Technologies, Inc., please contact the company directly at
310-895-7750, or by email at [e-mail] or
www.patientsafetytechnologies.com.

   Forward-Looking Statements

   This press release contains certain forward-looking statements.
These forward-looking statements can generally be identified as such
because the context of the statement will include words such as
Patient Safety Technologies plans, expects, should, believes,
anticipates or words of similar import. Stockholders, potential
investors and other readers are cautioned that these forward-looking
statements are predictions based only on current information and
expectations that are inherently subject to risks and uncertainties
that could cause future events or results to differ materially from
those set forth or implied by the forward-looking statements. Certain
of those risks and uncertainties are discussed in our filings with the
Securities and Exchange Commission, including our annual report on
Form 10-K and quarterly reports on Form 10-Q. These forward-looking
statements are only made as of the date of this press release and
Patient Safety Technologies does not undertake any obligation to
publicly update such forward-looking statements to reflect subsequent
events or circumstances.