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New Products Set Stage for Expanded Market Opportunities LIVINGSTON, N.J., March 6 /PRNewswire-FirstCall/ -- Milestone Scientific Inc. (AMEX:MSS), which develops, manufactures, and markets 'intelligent' computer controlled local anesthetic delivery systems, today provided shareholders with an update on the Company's strategic objectives for the year 2006. "We believe 2006 will be a 'watershed' year for our Company," stated Leonard Osser, Chairman and Chief Executive Officer of Milestone Scientific Inc. "We are moving forward aggressively with a new product development program that is expected to allow Milestone to further penetrate its existing markets and exploit new medical and dental market opportunities. During 2006, we expect a number of strategic objectives that we have been pursuing for quite some time to come to fruition, thereby expanding significantly the Company's long-term revenue and profit opportunities." Products under development or recently introduced are briefly described below. CoolBlue Professional Teeth Whitening System Towards the end of 2005, Milestone Scientific announced the market launch of its CoolBlue system, which targets the $5 billion worldwide teeth whitening market. The CoolBlue system is designed to maximize long-term revenues from disposable per-patient kits that are utilized in the whitening treatment process. "We are in the very early stages of a marketing program for CoolBlue, and 2006 will be the first year of meaningful revenues from this new product," noted Osser. "Initial feedback from dentists has been outstanding, with a number of users telling us that CoolBlue does a better job of whitening teeth, in less time and more comfortably for the patient, than the most costly professional teeth whitening systems currently in the market. This suggests that dentists can expand their revenue opportunities by offering teeth whitening services at a lower price to a larger percentage of their patients, while at the same time generating high-margin recurring revenues to Milestone from the sale of disposable kits." The Company's first significant direct marketing program for CoolBlue is scheduled to launch in the second quarter of 2006. Single-Tooth Anesthesia (STA) System For several years, Milestone has been developing a product that combines the capabilities of its CompuDent local anesthetic delivery system and its CompuFlo pressure-sensing technology (see discussion below). This is currently referred to as the Company's "single-tooth anesthesia" or "STA" device, and management's goal is to have the device on the market by the end of 2006. "The STA device is designed to significantly improve the efficiency of a procedure that is highly popular among dentists - the periodontal ligament injection," observed Osser. "Currently, dentists typically assure effective anesthetic administration by using a mandibular block, which effectively deadens a quarter of the face instead of just the single tooth being worked on. Unfortunately, dentists 'miss' the targeted area for the anesthesia about 30% of the time, requiring multiple injections and more patient time in the chair. In addition, "block" anesthesia inconveniences the patient in a number of ways; the lip and tongue are made numb as an avoidable side effect of this technique; and when a patient requires anesthesia for work on the opposite side of the mouth, dentists must currently schedule two separate appointments due to the impossibility of administering simultaneous mandibular blocks. Our STA device will produce targeted numbness to a single tooth without numbing the lip or tongue. The STA also offers benefits and advantages that make it faster, easier and more predictable to administer dental anesthesia when compared with current techniques. While the periodontal ligament injection has been around for some time, there has been no effective technology that allows it to be performed painlessly, safely and predictably until now. We believe that a device which allows dentists to effectively anesthetize a single tooth will greatly enhance the productivity of dental practices and, when combined with the painless injection capabilities already present in our CompuDent system, such a device should represent a compelling value in the marketplace." As with the Company's CompuDent system, the STA device will generate recurring revenues from disposable handpieces. CompuFlo Computer Controlled Infusion Pump In December 2005, Milestone Scientific announced that it had begun the process of obtaining U.S. Food and Drug Administration (FDA) acceptance for the marketing and sale of its CompuFlo Computer Controlled Infusion Pump by submitting its 510(k) Premarket Notification to the FDA. The CompuFlo system enhances the utility of the typical infusion pump by utilizing pressure feedback data to monitor and regulate the delivery to patients of medications and other fluids, and the submission of the 510(k) marks Milestone's first step in the commercialization of its patented CompuFlo technology. "We are very excited about the filing of our 510(k) Premarket Notification with the FDA, because we have long believed that the Company's greatest market opportunities will derive from the utilization of its CompuFlo technology in the medical field," continued Osser. "Dr. Mark Hochman, Milestone's Director of Clinical Affairs, has identified a number of high-revenue opportunities in the administration of local anesthesia where safety is of paramount concern. We plan to initially target the $200 million annual market for epidural injections that are administered to over 3.2 million women in the U.S. each year during childbirth procedures. Epidural injections are also used in the treatment of low back pain, as well as pain in the lower extremities. CompuFlo's pressure sensing technology clearly identifies the epidural space for the doctor, thereby greatly reducing the risks of paralysis and other complications that can occur when physicians attempt to locate the epidural space using tactile senses." When administering epidural injections, it is critical to recognize the risks associated with the introduction of potentially neurotoxic substances into the subarachnoid space, from which 40% of spinal fluid is produced. If local anesthesia is injected into this space, instead of the epidural space, the patient may face a lifetime of continuing agony due to adhesive arachnoiditis. This represents a potential risk for any patient undergoing an epidural injection today, because doctors must rely upon tactile "feel" to identify the epidural space. Clinical studies using Milestone's CompuFlo Computer Controlled Infusion Pump in the administration of epidural anesthesia have provided highly encouraging results. In a presentation to the 2005 Annual Meeting of the International Anesthesia Research Society last October, Dr. Oscar Ghelber, Assistant Professor of Anesthesiology at the University of Texas Health Science Center (Houston), noted that existing epidural techniques use subjective feedback to identify the epidural space, while the CompuFlo technology provides precise and objective feedback and also allows anesthesiologists to use both hands to advance and direct the needle, thereby making it easier to perform this task. Dr. Ghelber further advised the meeting that CompuFlo accurately identified the epidural space in 100% of the cases tested in his pilot study. "While it is impossible to predict the timing and content of an FDA response to our 510(k) submission," continued Osser, "we believe that, because of the risks associated with current epidural injection techniques, CompuFlo has the potential to become a 'standard of care' within the anesthesiology profession, with applications in other pain management procedures as well." Summary "Of course, pursuit of these strategic initiatives, which we believe have the potential to dramatically increase Milestone's long-term revenue and earnings potential, involves expenditures that penalize near-term financial results," continued Osser. "Nonetheless, based upon information currently available to management, including growing acceptance of the SafetyWand(R) -- our safety engineered sharps protection device designed to comply with OSHA regulations under the Federal Needle Stick Safety Act - among leading dentists, we believe the Company has the potential to become cash-flow- positive as 2006 progresses." To accelerate becoming cash-flow-positive, which was not achieved in 2005, the Company has instituted an immediate $30,000 per person reduction in annual cash compensation to its President, Chief Financial Officer and Director of Professional Relations, and a $10,000 reduction in the cash compensation of the Chief Operating Officer. (The COO already receives $20,000 of his compensation in stock, and the CEO receives half of his compensation in stock.) These cash compensation reductions will be offset by grants to such individuals, subject to Stockholder approval, of restricted stock with the same value. "With approximately $2.5 million currently in the bank, we believe the financial resources available to the Company will be adequate to achieve our short- and long-term strategic goals," concluded Osser. Osser also noted that Milestone expects to timely file its Annual Report on Form 10-KSB by the March 31, 2006 due date. About Milestone Scientific Inc. Milestone Scientific Inc. is the developer, manufacturer and marketer of CompuMed(R) and CompuDent(R) computer controlled local anesthetic delivery systems. These systems comprise a microprocessor controlled drive unit as well as The Wand(R) handpiece, a single patient use product that is held in a pen- like manner for injections. The Company also sells the SafetyWand(R), which incorporates engineered sharps injury protection features to aid in the prevention of accidental needlesticks. Milestone has also developed proprietary consumer (Ionic White) and professional (CoolBlue) teeth whitening systems that were introduced to the market in early 2005. In 2001, Milestone Scientific received broad United States patent protection on an enabling technology for computer controlled, pressure sensitive infusion, perfusion, suffusion and aspiration, which provides real time displays of pressures, fluid densities and flow rates, that advances the delivery and removal of a wide array of fluids. Development of this CompuFlo technology is currently underway. The Company is headquartered in Livingston, New Jersey, and its common stock trades on the American Stock Exchange under the symbol "MSS". 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, 2004. 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. CONTACT Leonard Osser, CEO Milestone Scientific Inc. (973) 535-2717; (973) 535-2829 (Fax) Web site: http://www.milesci.com/ DATASOURCE: Milestone Scientific Inc. CONTACT: Leonard Osser, CEO of Milestone Scientific Inc., +1-973-535-2717; Fax: +1-973-535-2829 Web site: http://www.milesci.com/

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