Milestone Scientific Announces First Quarter 2007 Results

Company Also Announces Details for Upcoming 2007 Annual Meeting of Stockholders

LIVINGSTON, N.J., May 17 /PRNewswire-FirstCall/ -- Milestone Scientific, Inc. (OTC Bulletin Board: MLSS), the recognized leader in advanced injection technologies, today reported results for the three months ended March 31, 2007.

Financial Highlights for the Three Months Ended March 31, 2007 Compared to the Three Months Ended March 31, 2006:

    *  Revenues rose 36% to $2,309,963 from $1,697,756 million.  Domestic
       sales of the Company's new Single Tooth Anesthesia (STA(TM)) delivery
       system, which began shipping in late March, were $632,309, representing
       27% of total sales for the current first quarter period.

    *  Gross profit margins improved to 64% from 54%.

    *  Despite factoring a non-cash charge of $248,700 associated with the
       accounting of stock options pursuant to FASB Rule 123-R, coupled with
       increased marketing expense related to the launch of the STA delivery
       system in February of this year, net loss declined 22% to $535,117, or
       $0.05 basic and diluted share, from $685,679, or $0.06 basic and
       diluted share.

As of March 31, 2007, Milestone had approximately $1.9 million in cash and receivables; $2.4 million in working capital and $3.5 million in total stockholders' equity.

"2007 started off on a firm footing, thanks in part to our valued new business relationship with Henry Schein, Inc. and the soft launch of the STA(TM) system in the domestic professional dentistry market. As the year unfolds and we progress towards STA's full scale launch in late 2007/early 2008, we expect that ensuing momentum associated with this innovative new product will help to drive improvement in our overall financial performance in subsequent quarters," stated Leonard Osser, Chairman and CEO of Milestone.

Continuing, Osser noted, "We are also very pleased to see global sales of our disposable handpieces used in conjunction with our legacy system, CompuDent(TM), gain meaningful traction in the first quarter, with revenues rising 23% to $1.2 million from $980,000. This is a clear sign that our razor/razor blade business model is delivering desired results and supports our goal of building multiple recurring revenue streams from a global customer base of dental and medical professionals who look to Milestone Scientific for best of class, innovative and highly effective technologies and solutions."

Due to the fact that the Company's Chairman and CEO has encountered an unexpected scheduling conflict and is required to travel overseas, the teleconference originally scheduled for this afternoon at 4:15 PM ET has been cancelled. Milestone further announced that it will host its 2007 Annual Meeting of Stockholders beginning at 10:00 AM ET on June 5, 2007 at the offices of Brown, Rudnick, Burlack and Israel, located at 7 Times Square in New York, New York. Only stockholders of record at the close of business on April 30, 2007 are entitled to vote at the Annual Meeting. Milestone's management team invites and encourages all shareholders to attend. A formal notice of the Meeting and accompanying proxy materials were mailed to all stockholders of record on May 4, 2007. If you would like to view a copy of the proxy materials, please visit or contact Elite Financial Communications Group, LLC at 407-585-1080 or via email at

About Milestone Scientific, Inc.

Headquartered in Livingston, New Jersey, Milestone Scientific is engaged in pioneering proprietary, highly innovative technological solutions for the medical and dental markets. Central to the Company's IP platform and product development strategy is its patented CompuFlo(TM) technology for the improved and painless delivery of local anesthetic. Specifically, CompuFlo is a computer-controlled, pressure sensitive infusion, perfusion, suffusion and aspiration technology, which provides real-time readouts of pressures, fluid densities and flow rates, enabling the advanced delivery and removal of a wide array of fluids. The Single Tooth Anesthesia (STA(TM)) computer-controlled local anesthesia delivery system which uses this technology provides dentists with audible and visual signals as to in-tissue pressure. Milestone's existing painless injection systems are currently sold in 25 countries. For more information on these and other innovative Milestone products, please visit the Company's web site found at

                            MILESTONE SCIENTIFIC, INC.
                            CONSOLIDATED BALANCE SHEET

                                         March 31, 2007    December 31, 2006

    Current Assets:
      Cash and cash equivalents              $451,202          $1,160,116
      Accounts receivable, net of
       allowance for doubtful accounts
       of $21,441 in 2007 and $16,519
       in 2006                              1,414,132             346,619
      Royalty receivable                       47,936              60,107
      Inventories                           1,224,412           1,323,338
      Advances to contract manufacturer     1,096,935           1,077,871
      Prepaid expenses                        122,558              97,073
         Total current assets               4,357,175           4,065,124
    Investment in distributor, at cost         76,319              76,319
    Equipment, net of accumulated
     depreciation of $427,767 as of
     March 31, 2007 and $402,914
     as of December 31, 2006                  449,720             459,259
    Patents, net of accumulated
     amortization of $47,651 as of
     March 31, 2007 and $41,939 as of
     December 31, 2006                        521,042             526,753
    Other assets                               13,206              14,153
                Total assets               $5,417,462          $5,141,608

    Current Liabilities:
      Accounts payable                     $1,462,020          $1,196,107
      Accrued expenses                        449,137             232,076
      Deferred compensation payable
       to officers                             44,497
          Total current liabilities         1,955,654           1,428,183

    Stockholders' Equity
      Common stock, par value $.001;
       authorized 50,000,000 shares;
       11,707,637 shares issued,
       337,036 shares to be issued,
       and 11,674,304 shares outstanding       12,046              12,031
      Additional paid-in capital           58,003,614          57,720,129
      Accumulated deficit                 (53,642,336)        (53,107,219)
      Treasury stock, at cost,
       33,333 shares                         (911,516)           (911,516)
          Total stockholders' equity        3,461,808           3,713,425
                Total liabilities and
                 stockholders' equity      $5,417,462          $5,141,608

                            MILESTONE SCIENTIFIC INC.

                                                    Three Months Ended
                                            March 31, 2007    March 31, 2006
    Product sales, net                        $2,262,027         $1,560,919
    Royalty income                                47,936            136,837
    Total revenue                              2,309,963          1,697,756

    Cost of products sold                        831,210            751,162
    Royalty expense                                5,752             16,421
    Total cost of revenue                        836,962            767,583

    Gross profit                               1,473,001            930,173

    Selling, general and administrative
     expenses                                  1,836,888          1,479,714
    Research and development expenses            178,566            163,442
    Total operating expenses                   2,015,454          1,643,156

    Loss from operations                        (542,453)          (712,983)

    Interest income                                7,336             27,404

    Net loss applicable to common
     stockholders                              $(535,117)         $(685,579)

    Loss per share applicable to common
     stockholders - basic and diluted             $(0.05)            $(0.06)

    Weighted average shares outstanding
     and to be issued - basic and diluted     11,958,098         11,741,578

Safe Harbor Statement

This press release contains forward-looking statements regarding the timing and financial impact of the 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 on Form 10-KSB for the year ended December 31, 2006. 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.

                  Elite Financial Communications Group, LLC
                      Dodi Handy, President and CEO, or
                       Daniel Conway, Chief Strategist
                  407-585-1080 or via email at

SOURCE Milestone Scientific, Inc.