Milestone Scientific Provides Investor Update At Annual Stockholders' Meeting
LIVINGSTON, N.J., June 20 /PRNewswire-FirstCall/ -- Milestone Scientific Inc. , which develops, manufactures, and markets 'intelligent' computer controlled injection systems for medical and dental markets, today announced the voting results at its Annual Stockholders' Meeting and provided an update on corporate activities.
The Company's Annual Meeting of Stockholders was held at 10:00 a.m. Eastern Time on June 20, 2006. The following individuals were elected or re- elected to the Board of Directors by a plurality of votes cast at the Annual Meeting:
Leonard Osser Leonard M. Schiller Jeffrey Fuller Leslie Bernhard Pablo F. Serna C.
Shareholders also approved a plan to issue up to 300,000 shares of Common Stock in lieu of cash compensation for services performed by employees, officers, directors and consultants. The purpose of the Plan is to offset equivalent reductions in cash compensation, including bonuses.
Shareholders ratified the appointment of Eisner LLP as the Company's independent public accountants for the year ending December 31, 2006.
Chairman and Chief Executive Officer Leonard Osser provided an update on corporate activities at the Annual Meeting. Mr. Osser informed stockholders that the Company's cost-reduction initiatives have been successful and that Milestone's legacy dental business, although not its business overall, is now cash-flow-positive and is, in fact, contributing cash towards the development and commercialization of new products and technologies.
The Company believes it is on track to introduce its new CompuDent(R) Single-Tooth Anesthesia ("STA") system into the market by the first quarter of 2007. Management anticipates the filing of a 510(k) Pre-Market Notification with the U.S. Food and Drug Administration ("FDA") next month. The STA device is designed to significantly improve the efficiency of periodontal ligament injections by producing targeted numbness to a single tooth without numbing the lip or tongue of patients. The STA also offers benefits and advantages that make it faster, easier and more predictable to administer local anesthesia when compared with current techniques that are predominant in the dental industry.
Milestone is also in the process of expanding its distribution channels for the CoolBlue(TM) Professional Teeth Whitening System, which was introduced into the market towards the end of 2005. Mr. Osser noted that dentists using CoolBlue have been very pleased with the effectiveness of the system and its ability to deliver outstanding whitening results to patients at a lower cost than most competing products. To date, the Company has been selling CoolBlue systems directly to dentists, and management has now elected to broaden its sales channels to include one or more nationwide distributors of dental products. The CoolBlue system is designed to maximize long-term revenues from disposable per-patient kits that are utilized in the in-office whitening process and for at-home maintenance of teeth whiteness.
In December 2005, Milestone Scientific filed a 510(k) Premarket Notification with the FDA for its CompuFlo(TM) Computer Controlled Infusion Pump, which is designed to utilize pressure feedback data to monitor and regulate the delivery of local anesthesia, other medications and fluids to patients by physicians in hospitals and outpatient medical facilities. The Company has received initial comments from the FDA and is in the process of responding to requests for additional information. Management remains optimistic that FDA marketing approval can be secured prior to the end of 2006, and the Company plans to initially target the market for epidural injections, which are administered to over 3.2 million women in the U.S. each year during childbirth procedures and for the treatment of low back pain and pain in the lower extremities. Mr. Osser noted at the Annual Meeting that the Company has identified a number of potential strategic marketing partners for CompuFlo and has retained a consultant to review applications for the technology outside of epidurals and nerve blocks.
"We are very pleased with Milestone's progress during the past year in terms of (1) improving the performance of its legacy dental products business and (2) positioning the Company for future growth in new dental and medical markets," stated Mr. Osser at the Annual Stockholders' Meeting. "While we have incurred significant expenses during the first half of 2006 related to the development of the Single-Tooth Anesthesia System, such costs should decline in future quarters. With approximately $2 million of cash in the bank and no outstanding debt, we believe the Company can achieve profitability without having to raise additional capital."
Regarding the Company's recent notification from the staff of the American Stock Exchange that it no longer complies with the Exchange's continued listing standards requiring shareholder equity of at least $6,000,000, Company plans to appeal this determination and request a hearing before a Listing Qualification Panel. There can be no assurance that the Company's request for continued listing will be granted.
About Milestone Scientific, Inc.
Milestone Scientific Inc. is the developer, manufacturer and marketer of CompuMed(R) and CompuDent(R) computer controlled injection 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(TM)) and professional (CoolBlue(TM)) teeth whitening systems and is currently developing a Single-Tooth Anesthesia System for introduction to the market in early 2007.
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, 2005. 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 additional information, please contact: Leonard Osser, CEO, at (973) 535-2717 Web site: www.milesci.comMilestone Scientific Inc.
CONTACT: Leonard Osser, Chairman and CEO of Milestone Scientific Inc.,+1-973-535-2717, or fax, +1-973-535-2829
Web site: http://www.milesci.com/