Milestone Scientific Achieves Net Profitability in First Quarter 2010

PISCATAWAY, N.J., May 13 /PRNewswire-FirstCall/ -- Milestone Scientific Inc. (OTC Bulletin Board: MLSS), the recognized leader in advanced injection technologies, today announced its financial and operational results for the three months ended March 31, 2010.

"2010 has started off remarkably strong, marked by Milestone achieving its first quarterly net profit from operations in 12 years.  Robust sales, higher profit margins and reduced expenses all contributed to our positive performance and helped to fuel strong positive cash flow for our Company. We are enormously proud of these financial accomplishments and are working very hard to make 2010 a profitable year," stated Leonard Osser, Chief Executive Officer of Milestone.  

Financial Highlights When Comparing Three Months Ended March 31, 2010 with Three Months Ended March 31, 2009:

• Net income totaled $84,000, or $0.01 earnings per basic and diluted share, reflecting a notable improvement on a net loss of $562,000, or $0.05 loss per basic and diluted share.
• Revenues climbed 16% to $2.56 million from $2.20 million.
  • International sales rose 85% to $1.34 million from $726,000.
  • U.S. sales declined 19% to $1.20 million from $1.48 million.
  • Disposable handpiece sales increased 39% to $1.94 million, up from $1.40 million.
  • Sales of instruments decreased 24% to $600,000 from $792,000.
• Gross profit margin improved, rising to 65% from 58%.
• Total operating expenses declined 9% to $1.63 million from $1.80 million.  

During the first three months of 2010, Milestone generated net cash of $248,000 from its operating activities, compared to using $200,000 in its operations during the same period in 2009.  As of March 31, 2010, Milestone had $2.15 million in cash and accounts receivables, working capital of $1.94 million, and total shareholders' equity of $2.92 million.  Based on the Company's history of losses, the financial statements continue to carry a going concern qualification.

Continuing, Osser added, "With the recently announced issuance of a Notice of Allowance from the U.S. Patent and Trademark Office for our self-administered, computer-controlled injection system, we intend to begin aggressively pursuing collaborative opportunities with major pharmas and medical technology companies to develop and commercialize what we believe can be a truly disruptive self-injection device for those requiring routine injections for treatment of chronic diseases.  This is an exciting and potentially meaningful opportunity for Milestone and one that should greatly complement our other product development efforts in the medical arena."

Milestone's executive management team will host a teleconference this afternoon, Thursday, May 13, 2010, beginning at 4:15 PM Eastern Time, and invites all interested parties to join them in a discussion regarding the Company's financial results, corporate progression and other meaningful developments.  The conference call can be accessed via telephone by dialing toll free 1-888-846-5003.  For those unable to participate at that time, a replay of the teleconference can be accessed domestically by dialing toll free 1-800-406-7325 and entering the passcode 4293219.  The replay will be available for 90 days.

About Milestone Scientific Inc.

Headquartered in Piscataway, New Jersey, Milestone Scientific is engaged in pioneering advanced computer-controlled injection technologies for the medical and dental markets; and currently sells its award-winning products through a global distribution network serving North America, Asia, Africa and Europe.  For more information on the STA System and other innovative Milestone products, please visit the Company's web sites found at www.milestonescientific.com and www.STAis4U.com.

Safe Harbor Statement

This press release contains forward-looking statements regarding the timing and financial impact of Milestone's ability to implement its business plan, expected revenues and future success.  These statements involve a number of risks and uncertainties and are based on assumptions involving judgments with respect to future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond Milestone's control. Some of the important factors that could cause actual results to differ materially from those indicated by the forward-looking statements are general economic conditions, failure to achieve expected revenue growth, changes in our operating expenses, adverse patent rulings, FDA or legal developments, competitive pressures, changes in customer and market requirements and standards, and the risk factors detailed from time to time in Milestone's periodic filings with the Securities and Exchange Commission, including without limitation, Milestone's Annual Report  for the year ended December 31, 2009. The forward looking-statements in this press release are based upon management's reasonable belief as of the date hereof.  Milestone undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

SOURCE Milestone Scientific Inc.