Milestone Scientific Announces 2010 Year End Results

Year-Over-Year Revenues Climbed 14% to $9.75 Million from $8.55 Million; Net Loss Decreases 60% over the same period in 2009

Management to Host Teleconference Today Beginning at 4:15 PM, EDT

LIVINGSTON, N.J., April 4, 2011 /PRNewswire/ -- Milestone Scientific Inc. (OTCQB: MLSS), the recognized leader in advanced drug delivery technologies, today announced its results for the year ended December 31, 2010.

Financial Highlights When Comparing 12-Months Ended December 31, 2010 with 12-Month Ended December 31, 2009:

    --  Total revenues were $9.75 million, rising 14% from $8.55 million.
            --  Sales in the U.S. decreased 16% to $4.53 million from $5.28
                million.
            --  International sales increased 65% to $5.22 million from $3.17
                million.
            --  Instrument sales totaled $3.69 million, a 16% increase from
                $3.18 million.
            --  Disposable handpiece sales climbed 13% to $5.96 million from
                $3.18 million.
    --  Gross profit margin was 64% in 2010 as compared to 60% in 2009.
    --  Net loss for the year ended December 31, 2010 decreased to $615,000 as
        compared to $1,530,000 for the same period in 2009. The decrease in the
        loss was primarily due to increased gross margin dollars as well as a
        reduction in selling, general and administrative expenses of $304,000.
        The combination of these results decreased our loss from operations to
        $700,857 in 2010 as compared to $2,103,513 in 2009.


As of December 31, 2010, Milestone had $627,000 in cash, negative working capital of $7,000, and total shareholders' equity of $2.33 million. The negative working capital was due to an increase in advances to, and payable to, a contract manufacturer due to a delay in shipping the STA instruments to a Chinese distributor. The delay was caused by the distributor not yet receiving regulatory approval to sell the instruments in China. The delay in shipping also resulted in the delay in full payment for the shipment of instruments in June 2010. The original purchase order for the instruments did not provide for delayed payments.

According to Leonard Osser, Chief Executive Officer of Milestone Scientific, "2010 can be classified as a defining year of change for the Company. Not only did we reduce the yearly loss significantly, but we have established a building block for growth. Domestically, with the direction of Marvin Terrell, Director of Domestic Sales, and the use of independent clinical consultants,(generally hygienists), the Company is strategically positioned to sell, implement and train all forms of dental practices, from individual to group dental practices. Internationally, with the addition of Dale Johnson, Director of International Sales, our business is growing steadily. At the recent International Dental Show in Cologne, Germany, the Company established significant in-roads into territories previously unavailable to Milestone. The only low spot for 2010 was the delay in obtaining regulatory approval to sell our instruments and handpieces in China. However, it is expected that such approval will be received in 2011. Therefore, the solid foundations created in 2010 should provide a platform for growth in 2011."

Adding to Leonard Osser's sentiments, Joseph D'Agostino, Chief Financial Officer of Milestone Scientific, added," 2010 has provided a substantial improvement in operating results. The basic building blocks for market penetration into 2011 have been established. Milestone's addition of the sales directors for the domestic and international markets have already begun to show significant signs of success. On the domestic scene, Milestone established the STA Instrument as a premier anesthesia delivery system for Towncare Dental, a regional group practice in South Florida in January, 2011. This customer will provide a substantial motivation for other group dental practices to include our STA instruments in their practices. Internationally, our business continues to grow under the direction of our Director of International Sales. The number of first time distributors in Russia, the Middle East, Central America and South America has increased significantly in the last half of the year."

Milestone's executive management team will host a teleconference this afternoon, Monday, April 4, 2011, beginning at 4:15 PM, EDT, and invites all interested parties to join them in a discussion regarding the Company's financial results, corporate progress and other meaningful developments. The conference call can be accessed via telephone by dialing toll free 1-877-941-8418. For those unable to participate at that time, a replay of the teleconference can be accessed domestically by dialing 1-800-406-7325 and entering the pass code 4430692. The replay will be available for 90 days.


MILESTONE SCIENTIFIC INC. CONDENSED BALANCE SHEET

For the Years Ended December 31, 2010 and 2009 (AUDITED)





                                           December 31, 2010  December 31, 2009



ASSETS

Current Assets:

Cash and cash equivalents                  $ 627,082          $ 1,029,129

Accounts receivable, net of allowance for
doubtful accounts of $202,160 in 2010 and
$5,000 in 2009                             796,221            1,063,742

Inventories                                986,947            804,736

Advances to contract manufacturer          730,491            151,995

Prepaid expenses and other current assets  247,465            254,501

Total current assets                       3,388,206          3,304,103

Accounts receivable-long term, net of
allowance for doubtful accounts of
$438,840 in 2010                           361,160            -

Advances to contract manufacturer          1,713,794          311,230

Investment in distributor, at cost         76,319             76,319

Furniture, Fixtures & Equipment net of
accumulated depreciation of $426,482

as of December 31, 2010 and $395,630 as of
December 31, 2009                          66,936             77,353

Patents, net of accumulated amortization
of $294,934 as of December 31, 2010

and $211,539 as of December 31, 2009       944,858            947,315

Other assets                               57,750             133,674

Total assets                               $ 6,609,023        $ 4,849,994



LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Accounts payable - short term              $ 2,883,587        $ 1,154,013

Accrued expenses and other payable         511,304            524,017

Total current liabilities                  3,394,891          1,678,030



Long-term Liabilities:

Accounts payable - long term               440,376            -

Accrued Interest - 6% note                 -                  92,000

Notes Payable-net of discount of $8,361
and $11,157, respectively                  441,639            438,843

Total long-term liabilities                882,015            530,843



Commitments and Contingencies



Stockholders' Equity

Common stock, par value $.001; authorized
50,000,000 shares; 14,915,959 shares
issued

637,013 shares to be issued and 14,882,626
shares outstanding as of December 31,
2010;

14,781,295 shares issued, 692,498 shares
to be issued, and 14,747,962 shares
outstanding

as of December 31, 2009                    15,552             15,472

Additional paid-in capital                 62,606,043         62,300,619

Accumulated deficit                        (59,377,962)       (58,763,454)

Treasury stock, at cost, 33,333 shares     (911,516)          (911,516)

Total stockholders' equity                 2,332,117          2,641,121

Total liabilities and stockholders' equity $ 6,609,023        $ 4,849,994








MILESTONE SCIENTIFIC INC. RESULTS OF OPERATIONS

(Audited)





                                                    2010         2009

 Product sales, net                                 $ 9,749,968  $ 8,549,060

 Cost of products sold                              3,531,452    3,458,279

 Gross profit                                       6,218,516    5,090,781

 Selling, general and administrative expenses       6,648,859    6,952,976

 Research and development expenses                  270,494      241,318

                                                    6,919,353    7,194,294

 Loss from operations                               (700,837)    (2,103,513)

 Other income (expense)

 Other income                                       183,673      777,609

 Interest income                                    587          3,146

 Interest expense                                   (95,135)     (154,027)

 Amortized debt issuance                            (2,796)      (53,300)

 Total other income                                 86,329       573,428

 Net loss                                           $ (614,508)  $ (1,530,085)



 Net loss applicable to common stockholders         $ (614,508)  $ (1,530,085)

 Loss per share applicable to common stockholders -

 basic and diluted                                  $ (0.04)     $ (0.11)

 Weighted average shares outstanding and to be
 issued -

 basic and diluted                                  14,824,802   13,389,872





About Milestone Scientific Inc.

Headquartered in Livingston, New Jersey, Milestone Scientific is engaged in pioneering advanced computer-controlled drug delivery technologies for the medical and dental markets; and currently sells its award-winning products through a global distribution network serving North and South America, Asia, Africa and Europe. For more information on the STA System and other innovative Milestone products, please visit the Company's websites 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 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.


 FOR MORE INFORMATION, PLEASE CONTACT:

 Milestone Scientific Inc.

 Joseph D'Agostino, Chief Financial Officer

 For Media Inquiries: Laura Kaunitz, Office Manager

 973-535-2717 or via e-mail atlkaunitz@milestonescientific.com





SOURCE Milestone Scientific Inc.