SEC Filings
Leonard Osser, CEO
Stu Wildhorn - President
Milestone Scientific Inc.
(973) 535-2717; (973) 535-2829 (Fax)
Web site: www.milesci.com
MILESTONE SCIENTIFIC INC. ANNOUNCES RECEIPT OF INITIAL ORDER FOR 500,000 UNITS OF THE IONIC WHITE TOOTH WHITENING SYSTEM FOR CONSUMERS
March 21, 2005
COMPANY ENTERS INTO COLLABORATIVE ADVERTISING ARRANGEMENT WITH INFOMERCIAL MARKETING PARTNER
LIVINGSTON, New Jersey (March 21, 2005) -- Milestone Scientific Inc. (AMEX: MS) today announced the receipt of an initial order for 500,000 Ionic White consumer tooth whitening starter kits as a result of the infomercials that aired in 23 markets on March 12 and 13, 2005. The initial order will generate approximately $500,000 of additional revenue and $400,000 of pretax income for the Company. Milestone’s marketing partner also agreed to include in each 28.5-minute Ionic Whiteä infomercial 60 to 80 seconds of additional advertising and promotional material on other Milestone products, at its rate. Further, Milestone will be allowed to pay for this advertising through the issuance of shares of Common Stock valued at their then future market value.
In a related development, Milestone granted to its marketing partner a three-year option to purchase 100,000 shares of Common Stock at $4.89 per share, which option is not exercisable to any extent unless at least 2,000,000 Ionic Whiteä starter kits are purchased during the twelve-month period commencing April 1, 2005. The full option is not exercisable unless at least 3,000,000 starter kits are purchased during that twelve-month period. The partner has also agreed to buy, at $3.00 per share, 500,000 shares of Milestone Common Stock at the rate of 125,000 shares per quarter. Milestone is not obligated to sell such shares unless 625,000 starter kits (including the initial order) are sold during the first quarter, an aggregate of 1,250,000 kits are sold during the first two quarters, and 1,875,000 kits are sold during the first three quarters. All shares will be returned and money refunded, at Milestone’s option, unless at least 3,000,000 kits have been sold during that twelve-month period through March 31, 2006.
“We are very encouraged by the initial consumer response to the television launch of the Ionic White tooth whitening system,” stated Leonard Osser, Chief Executive Officer of Milestone Scientific Inc. “The convenience and comfort of this system, as demonstrated in the infomercial, has generated enthusiastic consumer response. Consumer use of the tooth whitening system will also generate future sales of StayWhite rinses.”
“Further, our ability to acquire television advertising time at the low rates available to our marketing partner, and to pay for this advertising in stock at future values, gives us an opportunity to promote our CompuDent computer controlled painless local anesthetic delivery system. Cost constraints have previously prevented us from advertising the benefits of the CompuDent system directly to consumers. Our ability to pay for this low rate airtime with Common Stock now makes this promotion possible,” concluded Osser.
Milestone Scientific is the developer, manufacturer and marketer of CompuMed® and CompuDent® computer controlled local anesthetic delivery systems for medical and dental applications. These systems are comprised of a microprocessor controlled drive unit and single patient use disposable handpieces. The Company recently announced its entry into the tooth whitening market through a third party mass-marketing organization. The consumer product is being marketed under the distributor’s trademark Ionic White. Milestone has also developed and patented its CompuFlo™ technology, which advances the delivery and removal of a wide array of fluids from the human body by providing real time displays of pressures, fluid densities and flow rates. In 2002, Milestone Scientific received United States patent protection on a safety engineered sharps technology that allows for fully automated true single-handed activation with needle anti-deflection and force-reduction capability. In 2003, Milestone received FDA Clearance to market SafetyWand®, which incorporates engineered sharps injury protection features to aid in the prevention of accidental needlesticks.
The Company is headquartered in Livingston, New Jersey, and its common stock trades on the American Stock Exchange under the symbol “MS”. For additional information, please visit the Company’s website at www.milesci.com