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<SEC-DOCUMENT>0001121888-03-000042.txt : 20030730
<SEC-HEADER>0001121888-03-000042.hdr.sgml : 20030730
<ACCEPTANCE-DATETIME>20030730160211
ACCESSION NUMBER:		0001121888-03-000042
CONFORMED SUBMISSION TYPE:	10QSB
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20030630
FILED AS OF DATE:		20030730

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BOVIE MEDICAL CORP
		CENTRAL INDEX KEY:			0000719135
		STANDARD INDUSTRIAL CLASSIFICATION:	INDUSTRIAL ORGANIC CHEMICALS [2860]
		IRS NUMBER:				112644611
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10QSB
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-12183
		FILM NUMBER:		03811595

	BUSINESS ADDRESS:	
		STREET 1:		734 WALT WHITMAN ROAD
		CITY:			MELVILLE
		STATE:			NY
		ZIP:			11747
		BUSINESS PHONE:		5164215452

	MAIL ADDRESS:	
		STREET 1:		734 WALT WHITMAN ROAD
		CITY:			MELVILLE
		STATE:			NY
		ZIP:			11747

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AN CON GENETICS INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>10QSB
<SEQUENCE>1
<FILENAME>qjune.htm
<DESCRIPTION>JUNE 30, 2003
<TEXT>
<html>
<head>
<title>
</title>
</head>
<body>
<H1 ALIGN=CENTER><FONT SIZE=3>U.S. SECURITIES AND EXCHANGE COMMISSION
</FONT></H1>

<H1 ALIGN=CENTER><FONT SIZE=3>Washington, D.C. 20549</FONT></H1>
<HR SIZE=1 WIDTH=15% ALIGN=CENTER>
<H1 ALIGN=CENTER><FONT SIZE=4>FORM 10-QSB</FONT></H1>
<H1 ALIGN=CENTER><FONT SIZE=2>(Mark One)</FONT></H1>
<HR SIZE=1 WIDTH=15% ALIGN=CENTER>
<H1 ALIGN=CENTER><FONT SIZE=3>[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE<BR>SECURITIES EXCHANGE ACT OF 1934</FONT></H1>

<P ALIGN=CENTER><FONT SIZE=3>For the quarterly period ended June 30,
2003</FONT></P>

<H1 ALIGN=CENTER><FONT SIZE=3>[&nbsp;&nbsp;] TRANSITION REPORT UNDER
SECTION 13 OR 15(d) OF THE<BR>EXCHANGE ACT</FONT></H1>

<HR SIZE=1 WIDTH=15% ALIGN=CENTER>

<P ALIGN=CENTER><FONT SIZE=2>For the Transition Period from<U> </U></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>Commission file number 0-12183</FONT></P>

<H1 ALIGN=CENTER><FONT SIZE=4>BOVIE MEDICAL CORPORATION</FONT></H1>
<H1 ALIGN=CENTER><FONT SIZE=1>(Exact name of small business issuer as specified
in its charter)</FONT></H1>

<P ALIGN=CENTER><FONT SIZE=2><U>Delaware&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No. 11-2644611
</U></FONT></P>

<P ALIGN=CENTER><FONT SIZE=1>(State or other jurisdiction of incorporation or
organization)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;(IRS&#151; Employer Identification No.)</FONT></P>

<HR SIZE=1 WIDTH=15% ALIGN=CENTER>

<P   ALIGN=CENTER><FONT   SIZE=3>734  Walt  Whitman  Rd.,  Melville,   New  York
11747</FONT></P>

<P ALIGN=CENTER><FONT SIZE=1>(Address of principal executive offices)</FONT></P>

<P ALIGN=CENTER><FONT SIZE=3>(631) 421-5452</FONT></P>
<P ALIGN=CENTER><FONT SIZE=1>(Issuer's telephone number)</FONT></P>

<HR SIZE=1 WIDTH=15% ALIGN=CENTER>

<P  ALIGN=CENTER><FONT  SIZE=1>Indicate by check mark whether the registrant (1)
has  filed  all  reports  required  to be  filed by  Section  13 or 15(d) of the
Securities  Exchange  Act of 1934  during the  preceding  12 months (or for such
shorter  period that the  registrant  was required to file such reports) and (2)
has  been   subject  to  such  filing   requirements   for  the  past  90  days.
Yes&nbsp;[X]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;[&nbsp;&nbsp;] </FONT></P>

<P ALIGN=CENTER><FONT  SIZE=1>APPLICABLE ONLY TO CORPORATE ISSUERS</FONT></P>

<P  ALIGN=CENTER><FONT  SIZE=1>Indicate the number of shares outstanding of each
of  the  issuer's  class  of  common  stock,   as  of  the  latest   practicable
date:13,062,180 </FONT></P>


<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BOVIE MEDICAL CORPORATION<br>
INDEX TO FORM 10-QSB</FONT></H1>

<pre>

Contents

Part I.   Financial Information.................................................

Item 1:   Consolidated Financial Statements:....................................

          Consolidated Balance Sheet - June 30, 2003
          and December 31, 2002.................................................

          Consolidated Statements of Operations for the
          Three Months Ended June 30, 2003 and 2002 and the Six Months Ended
          June 30, 2003 and 2002................................................

             Consolidated Statements of Cash Flows for the
               Six Months Ended June 30, 2003 and 2002..........................

              Notes to Financial Statements ....................................

        Item 2: Management's Discussion and
               Analysis of Financial Conditions and Results of Operations.......

Part II.   Other Information....................................................

 Item 1:  Legal Proceedings.....................................................

 Item 2:  Changes in Securities.................................................

 Item 3:  Defaults Upon Senior Securities.......................................

 Item 4:  Submission of Matters to Vote of Security Holders.....................

 Item 5:  Exhibits and Reports on Form 8-K......................................

</pre>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART I. FINANCIAL INFORMATION</FONT></H1>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 1: CONSOLIDATED FINANCIAL STATEMENTS</FONT></H1>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BOVIE MEDICAL CORPORATION<BR>
CONSOLIDATED BALANCE SHEET<BR>
JUNE 30, 2003 AND DECEMBER 31, 2002</FONT></H1>

<Pre>

                                     Assets

                                         (Unaudited)              (Audited)
                                        June 30, 2003         December 31, 2002
                                        -------------         -----------------

Current assets:

Cash                                 $       672,861           $     379,209
Trade accounts receivable                  1,553,294               1,350,487
Inventories                                2,563,274               2,357,505
Prepaid expenses                              89,702                 164,264
Deferred tax asset                           386,200                 386,200
Other assets                                      --                  45,044
                                          ----------             -----------

Total current assets                        5,265,331              4,682,709

Property and equipment, net                1,576,927               1,559,080

Other assets:

Repair parts                                 255,256                 281,746
Trade name                                 1,509,662               1,509,662
Patent rights, net                           178,756                 258,214
Deposits                                       9,470                   9,470
Investment - Joint Venture                   200,000                 200,000
                                           ---------               ----------

                                            2,153,144               2,259,092
                                            ---------               ---------

                                        $  8,995,402              $ 8,500,881
                                           ==========               =========

The accompanying notes are an integral part of the financial statements.

</Pre>


<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BOVIE MEDICAL CORPORATION<BR>
CONSOLIDATED BALANCE SHEET<BR>
JUNE 30, 2003 AND DECEMBER 31, 2001<BR>
(CONTINUED)</FONT></H1>

<PRE>
                      Liabilities and Stockholders' Equity


                                           (Unaudited)              (Audited)
                                         June 30, 2003         December 31, 2002
                                         -------------         -----------------
Current liabilities:

Accounts payable                       $    720,569              $    478,668
Accrued expense                             400,924                   396,949
Notes payable - current portion             300,702                   525,467
Due to shareholders                             --                     37,214
Customer deposits                           112,000                   128,000
Current maturities of long-term debt         31,668                    31,668
                                         ----------                ----------

     Total current liabilities            1,565,863                 1,597,966

Long Term Liabilities                       395,830                   411,664

Stockholders' equity:

Preferred Stock, par value $.001
 10,000,000 shares authorized
 0 issued and outstanding                        --                        --
 on June 30, 2003 and December 31, 2002

Common stock par value $.001; 40,000,000
shares authorized, issued and outstanding
13,062,180 shares and 13,204,755 shares
on June 30, 2003 and December 31,
2002 respectively                            13,131                    13,274
Additional paid in capital               19,841,941                19,820,044
Accumulated deficit                     (12,821,363)              (13,342,067)
                                         ----------                ----------

    Total stockholders' equity            7,033,709                 6,491,251
                                        -----------                ----------

    Total liabilities and
     stockholders' equity             $   8,995,402             $   8,500,881
                                        ===========                 =========


The accompanying notes are an integral part of the financial statements.

</PRE>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BOVIE MEDICAL CORPORATION.<BR>
CONSOLIDATED STATEMENTS OF OPERATIONS<BR>
AND FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002<BR>
(UNAUDITED)</FONT></H1>

<pre>
                                                     2003              2002
                                                     ----              ----

Sales                                           $ 8,039,902       $ 6,231,467
Cost of sales                                     4,505,369         3,688,365
                                                  ---------         ---------

Gross profit                                      3,534,533         2,543,102

Costs and expenses:
Research and development                            488,464           502,078
Professional services                               214,931           188,053
Salaries and related costs                          771,354           648,222
Selling, general and administrative               1,516,421         1,292,374
                                                  ---------        ----------

                                                  2,991,170         2,630,727
                                                  ---------        ----------

Gain (Loss) from operations                         543,363       (    87,625)

Other income (expense):
Interest                                        (    22,659)      (    21,980)
Miscellaneous                                            --                --
                                                 ----------        ----------

                                                (    22,659)      (    21,980)
                                                 ----------        ----------

Income (loss)                                       520,704        (  109,605)

Provision for income tax                            182,246                --
Realized benefit of loss carryforward             ( 182,246)               --
                                                   ---------   --------------

Net income                                       $  520,704      $  ( 109,605)
                                                   ========         ==========

Earnings per share

Net income (loss):
      Basic                                           .04               (.01)
      Diluted                                         .04               (.01)

Weighted average number of shares
 outstanding                                    13,169,111          13,204,755
Weighted average number of shares
 adjusted for dilutive securities               14,083,111          16,201,755


(1) Certain accounts have been reclassified to conform to current years
presentation.

The accompanying notes are an integral part of the financial statements.
</pre>


<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BOVIE MEDICAL CORPORATION.<BR>
CONSOLIDATED STATEMENTS OF OPERATIONS<BR>
FOR THE THREE MONTHS ENDED JUNE 30, 2003 AND 2002<BR>
(UNAUDITED)</FONT></H1>
<pre>
                                                            Quarter
                                              ----------------------------------
                                                  2003                     2002
                                              ----------------------------------

Sales                                         $ 4,369,848         $ 3,202,868
Cost of sales                                   2,398,378           1,983,853
                                                ---------           ---------

Gross profit                                    1,971,470           1,219,015

Costs and expenses:
Research and development                          214,103             202,542
Professional services                              84,512              90,033
Salaries and related costs                        370,318             318,435
Selling, general and administrative               827,176             652,642
                                                ---------          ----------

                                                1,496,109           1,263,652
                                                ---------          ----------

Gain (Loss) from operations                       475,361         (    44,637)

Other income (expense):
Interest                                      (    12,147)        (    10,512)
Miscellaneous                                          --                  --
                                               ----------          ----------

                                              (    12,147)        (    10,512)
                                               ----------          ----------

Income (loss)                                     463,214         (    55,149)

Provision for income tax                       (  162,125)                 --
Realized benefit of loss carryforward             162,125                  --
                                                ---------           ---------

Net income                                    $   463,214       $  (   55,149)
                                                =========           =========

Earnings per share

Net income (loss):
      Basic                                            .04                NIL
      Diluted                                          .03                NIL

Weighted average number of shares
 outstanding                                   13,133,467           13,204,755
Weighted average number of shares
 adjusted for dilutive securities              14,047,467           16,201,755

(1) Certain accounts have been reclassified to conform to current years
presentation.

The accompanying notes are an integral part of the financial statements.
</PRE>


<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BOVIE MEDICAL CORPORATION AND SUBSIDIARIES<BR>
CONSOLIDATED STATEMENT OF CASH FLOWS<BR>
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS<BR>
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002<BR>
(UNAUDITED)</FONT></H1>

<pre>
                                                      2003             2002
                                                      ----             ----
Cash flows from operating activities

Net income (loss)                                $   520,704     $ (  109,605)
Adjustments to reconcile net income
  to net cash provided by (used in)
operating activities:
Depreciation and amortization                        191,731          129,876

Changes in current assets and liabilities:

Receivables                                       (  202,807)       ( 254,003)
Inventories and repair parts                      (  179,009)       (  74,183)
Prepaid expenses                                      74,562        (  91,679)
Accounts payable                                     241,901           82,184
Accrued expense                                        3,705        ( 138,628)
Other assets                                          45,044              770
Obligations to shareholders                      (    18,427)           3,382
Customers Deposits                               (    16,000)              --
                                                   ---------         --------

Net cash provided (applied) by
 operating activities                                661,404         (451,886)
                                                   ---------         --------

Cash flows from investing activities

Increase in fixed assets                          (  130,120)       (  95,520)
Increase in patents                                       --        (   4,519)
                                                   ---------         --------

Net cash used in investing activities             (  130,120)       ( 100,039)
                                                   ---------         --------

Cash flows from financing activities

Borrowing - line of credit
/Insurance Premium Financing                         200,000          260,651
(Decrease) in obligations to shareholders                 --               --
(Decrease) in notes payable                         (440,599)        ( 60,027)
Common shares purchased                                2,967            2,381
Increase in notes payable                                 --               --
                                                    --------        ---------

Net cash used in financing activities              ( 237,632)         203,005
                                                     -------        ---------
Net increase (decrease) in
 cash and cash equivalents                           293,652         (348,920)

Cash and cash equivalents,
beginning of period                                  379,209          578,354
                                                     -------         --------

Cash and cash equivalents,
 end of period                                     $ 672,861        $ 229,434
                                                    ========         ========

The accompanying notes are an integral part of the financial statements.
</pre>


<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BOVIE MEDICAL CORPORATION AND SUBSIDIARIES<BR>
CONSOLIDATED STATEMENT OF CASH FLOWS<BR>
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS<BR>
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002</FONT></H1>

<pre>
Cash paid during the six months ended June 30:

                                                2003              2002
                                                ----              ----

Interest paid                                $ 22,730           $ 24,790
Income Taxes                                    - 0 -              - 0 -

</PRE>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SUPPLEMENTAL
SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:</FONT></H1>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FOR THE SIX
MONTHS ENDED JUNE 30, 2002:</FONT></H1>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>There were no
non-cash investing and financing activities in the first six months of the year 2002.</FONT></P>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FOR THE SIX MONTHS ENDED JUNE 30, 2003:</FONT></H1>


<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1)The Company issued stock options pursuant to its 2003 executive and employee stock option plan to directors and certain
  employees to purchase 525,000 shares of the Company's common stock at the bid price when granted.  The options give the
  recipients the right to purchase the shares for 10 years.</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2)The Company cancelled 142,575 shares that were held in trust where the trust was no longer valid.</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3)The Company  evaluated certain  intangible  assets and found that they no longer had sales potential.  The Company has written
  off these assets which had net book value of $20,750.</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4)The Company  charged  capital in excess for a liability to the former  shareholders  of Aaron  Medical which was a result of a
  recission  offer made to the Aaron  shareholders  in 1996.  This  liability  was due to  certain  Aaron  shareholders  who had
  received shares of An-Con  Genetics  (predecessor  to Bovie) but had not responded to the recission  offer.  An  investigation
  showed  these  shareholders  had either 1) sold the shares,  2)  increased  their  holdings or moved the stock to street name.
  Based on the above the Company believes it no longer has a obligation to these shareholders.</FONT></P>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BOVIE MEDICAL CORPORATION<BR>
NOTES TO FINANCIAL STATEMENTS</FONT></H1>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART I.  FINANCIAL INFORMATION (CONTINUED)</FONT></H1>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOTE 1. INTERIM CONSOLIDATED FINANCIAL STATEMENTS</FONT></H1>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The consolidated financial
statements include the accounts of Bovie Medical Corporation and its wholly
owned subsidiary Aaron Medical Industries, Inc. In the opinion of management,
the interim financial statements reflect all adjustments, consisting of only
normal recurring items, which are necessary for a fair presentation of the
results for the interim periods presented. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The results for interim
periods are not necessarily indicative of results for the full year. These
financial statements should be read in conjunction with the significant
accounting policies and the other notes to the financial statements included in
the Corporation&#146;s 2002 Annual Report to the SEC on Form 10-KSB. </FONT></P>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOTE 2.  SIGNIFICANT ACCOUNTING POLICIES</FONT></P>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Use of Estimates in the Preparation of Financial Statements</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The preparation of
consolidated financial statements, in conformity with generally accepted
accounting principles, requires management to make estimates and assumptions
that affect the amounts reported in the financial statements and accompanying
notes. Actual results could differ from those estimates. </FONT></P>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fair Values of Financial Instruments</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cash and cash equivalents.
Holdings of highly liquid investments with maturity of three months or less,
when purchased, are considered to be cash equivalents. The carrying amount
reported in the balance sheet for cash and cash equivalents approximates its
fair values. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accounts receivable and
accounts payable. The carrying amount of accounts receivable and accounts
payable on the balance sheet approximates fair value. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Short term and long term
debt. The carrying amount of the bonds and notes payable and amounts due to
shareholders approximates fair value. </FONT></P>


<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BOVIE MEDICAL CORPORATION<BR>
NOTES TO FINANCIAL STATEMENTS</FONT></H1>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART I.  FINANCIAL INFORMATION (CONTINUED)</FONT></H1>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOTE 2.  SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)</FONT></H1>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Inventories</FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Inventories are stated at
the lower of cost or market. Cost is determined principally on the average cost
method. Inventories at June 30, 2003 and December 31, 2002 were as follows: </FONT></P>

<pre>

                              June 30, 2003            December 31, 2002
                              -------------            -----------------

 Raw materials                $  1,021,783              $  1,180,758
 Work in process                   975,148                   524,322
 Finished goods                    566,343                   652,425
                               -----------               -----------

        Total                  $ 2,563,274              $  2,357,505
                                 =========               ===========

</pre>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Repair Parts. The Company
acquired the inventory of repair parts in  conjunction  with the purchase of the
Bovie line of generators  and Bovie trade name, on May 8, 1998.  The Company has
maintained the inventory to service the previously sold  generators.  The useful
life of repair  parts is estimated to be five to seven years and the Company has
set up an allowance for excess and obsolete parts. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As of June 30, 2003, the
inventory of parts was as follows: </FONT></P>

<pre>
   Raw materials                                        $ 542,565
   Allowance for excess or obsolete parts                (287,309)
                                                          -------

                                                        $ 255,256
                                                         ========
</pre>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Long-Lived Assets</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Long-lived and assets
consist of property, plant and equipment, and intangible assets. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Property, plant and
equipment are recorded at cost less depreciation and amortization. Depreciation
and amortization are accounted for on the straight-line method based on
estimated useful lives. The amortization of leasehold improvements is based on
the shorter of the lease term or the life of the improvement. Betterment and
large renewals, which extend the life of the asset, are capitalized whereas
maintenance and repairs and small renewals are expenses, as incurred. The
estimated useful lives are: machinery and equipment, 7-15 years; buildings, 30
years; and leasehold improvements; 10-20 years. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Intangible assets consist
of patent rights and goodwill. Goodwill represents the excess of the cost of
assets of the acquired companies over the values assigned to net tangible
assets. These intangibles are being amortized by the straight-line method over a
5 to 20 year period. </FONT></P>


<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BOVIE MEDICAL CORPORATION<BR>
NOTES TO FINANCIAL STATEMENTS</FONT></H1>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART I.  FINANCIAL INFORMATION (CONTINUED)</FONT></H1>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOTE 2.  SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)</FONT></H1>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Long-Lived Assets (Continued)</FONT></P>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Long-lived and assets consist of property, plant and equipment, and intangible assets. (Continued)</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company reviews
long-lived assets for impairment whenever events or changes in business
circumstances occur that indicate that the carrying amount of the assets may not
be recovered. The Company assesses the recoverability of long-lived assets held,
and to be used, based on undiscounted cash flows and measures the impairment, if
any, using discounted cash flows. </FONT></P>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Revenue Recognition and Product Warranty</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Revenue from sales of
products is generally recognized upon shipment to customers. The Company
warrants its products for one year. The estimated future costs of warranties
have been determined on past experience not to be material. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Income is recognized in the
financial statements (and the customer billed) when products are shipped from
stock. Net sales are arrived at by deducting discounts from and adding freight
charged to customers to gross sales. </FONT></P>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Environmental Remediation</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company accrues
environmental remediation costs if it is probable that an asset has been
impaired or a liability incurred at the financial statement date and the amount
can be reasonably estimated. Environmental compliance costs are expenses, as
incurred. Certain environmental costs would be capitalized if incurred based on
estimates and depreciated over their useful lives. </FONT></P>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Earnings Per Common and Common Equivalent Share</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Basic Earnings Per Shares
are computed by dividing income available to common stockholders by the weighted
average number of common shares outstanding during the period. Diluted Earnings
Per Share shall be computed by including contingently issuable shares with the
weighted average shares outstanding during the period. When inclusion of the
contingently issuable shares would have an antidilutive effect upon earnings per
share no diluted earnings per share shall be presented. </FONT></P>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Research and Development Costs</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Only the development costs
that are purchased from another enterprise and have alternative future use are
capitalized and amortized over five years. </FONT></P>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BOVIE MEDICAL CORPORATION<BR>
NOTES TO FINANCIAL STATEMENTS</FONT></H1>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART I.  FINANCIAL INFORMATION (CONTINUED)</FONT></H1>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOTE 2.  SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)</FONT></H1>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Income Taxes</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company and its
wholly-owned subsidiary, Aaron Medical Industries, Inc. file a consolidated
federal income tax return. Income taxes are accounted for under the asset and
liability method. Deferred tax assets and liabilities are recognized for the
future tax consequences attributable to differences between the financial
statement carrying amounts of existing assets and liabilities and their
respective tax bases and operating loss and tax credit carryforwards. Deferred
tax assets and liabilities are measured using enacted tax rates expected to
apply to taxable income in the years in which those temporary differences are
expected to be recovered or settled. The effect on deferred tax assets and
liabilities of a change in tax rates is recognized in income in the period that
includes the enactment date. </FONT></P>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Non-monetary Transactions</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The accounting for
non-monetary assets is based on the fair values of the assets involved. Cost of
a non-monetary asset acquired in exchange for another non-monetary asset is
recorded at the fair value of the asset surrendered to obtain it. The difference
in the costs of the assets exchanged is recognized as a gain or loss. The fair
value of the asset received is used to measure the cost, if it is more clearly
evident than the fair value of asset surrendered. </FONT></P>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Stock-Based Compensation</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company has adopted
SFAS No. 148 and Accounting Principles Board Opinion 25 for its accounting for
stock based compensation. Under this policy: </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.  Compensation costs are recognized as an expense over the period of employment attributable to the employee stock options.</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. Shares  issued in  accordance  with a plan for past or future  services of an employee are  allocated  between the expired costs and
future costs.  Future costs are charged to the periods in which the services are  performed.  The pro forma  amounts of the  difference
between  compensation  cost included in net income,  and related cost,  measured by the fair value based method  including tax effects,
are disclosed.</FONT></P>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>New Accounting Standards</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Effective February 3, 2002
the Company adopted SFAS No. 142, &#147;Goodwill and Other Intangible
Assets&#148;. SFAS No. 142 requires that ratable amortization of goodwill be
replaced by periodic tests for impairment within six months of the date of
adoption, and then on a periodic basis thereafter. Based on the impairment
testing performed in February 2003, management determined that there was no
impairment loss related to the net carrying value of the Company&#146;s recorded
goodwill. </FONT></P>


<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BOVIE MEDICAL CORPORATION</FONT></H1>

<H1 ALIGN=lefT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART I.  FINANCIAL INFORMATION (CONTINUED)</FONT></H1>

<H1 ALIGN=lefT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOTE 2.  SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)</FONT></H1>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>New Accounting Standards (Continued)</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In July 2001, the Financial
Accounting Standards Board (the &#147;FASB&#148;) issued SFAS No. 143,
&#147;Accounting for Asset Retirement Obligations&#148;, which provides
accounting requirements for retirement obligations associated with tangible
long-lived assets. SFAS No. 143 are effective for fiscal years beginning after
June 15, 2002. The adoption of SFAS No. 143 has not had a significant impact on
the Company&#146;s consolidated financial statements. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In August 2001, the FASB
issued SFAS No. 144, &#147;Accounting for the Impairment or Disposal of
Long-Lived Assets&#148;. This statement addresses accounting and reporting for
the impairment or disposal of long-lived assets, other than goodwill, including
discontinued operations. SFAS No. 144 are effective for fiscal years beginning
after December 15, 2001. Management has determined that the adoption of SFAS No.
144 has had no impact on the Company&#146;s consolidated financial statements. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In April 2002, the FASB
issued SFAS No. 145, &#147;Rescission of FASB Statements No. 4, 44, and 64,
Amendment of FASB Statement No. 13, and Technical Corrections&#148;. SFAS No.
145 primarily affects the reporting requirements and classification of gains and
losses from the extinguishments of debt, rescinds the transitional accounting
requirements for intangible assets of motor carriers, and requires that certain
lease modifications with economic effects similar to sale-leaseback transactions
be accounted for in the same manner as sale-leaseback transactions. SFAS No. 145
is effective for financial statements issued after April 2002, with the
exception of the provisions affecting the accounting for lease transactions,
which should be applied for transactions entered into after May 15, 2002, and
the provisions affecting classification of gains and losses from the
extinguishments of debt, which should be applied in fiscal years beginning after
May 15, 2002. Management has determined that the adoption of SFAS No. 145 will
have no immediate impact on the Company&#146;s consolidated financial
statements, but will evaluate in future periods the classification of any debt
extinguishments costs in accordance with APB Opinion No. 30 &#147;Reporting the
Results of Operations - Reporting the Effects of Disposal of a Segment of a
Business, and Extraordinary, Unusual and Infrequently Occurring Events and
Transactions&#148;. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In June 2002, the FASB
issued SFAS No. 146, &#147;Accounting for Costs Associated with Exit or Disposal
Activities&#148;. SFAS No. 146 requires companies to recognize costs associated
with exit or disposal activities when they are incurred, rather than at the date
of a commitment to an exit or disposal plan. Examples of costs covered by the
standard include lease termination costs and certain employee severance costs
that are associated with a restructuring, discontinued operation, plant closing,
or other exit or disposal activity. Previous accounting guidance was provided by
Emerging Issues Task Force (&#147;EITF&#148;) No. 94-3, &#147;Liability
Recognition for Certain Employee Termination Benefits and Other Costs to Exit an
Activity (including Certain Costs Incurred in a Restructuring)&quot;. SFAS No.
146 replace EITF No. 94-3, and are required to be applied prospectively to exit
or disposal activities initiated after December 31, 2002. The Company adopted
SFAS No. 146 during the fourth quarter of Fiscal 2002 with no material impact on
the Company&#146;s consolidated financial statements. </FONT></P>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BOVIE
MEDICAL CORPORATION</FONT></H1>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART I.  FINANCIAL INFORMATION (CONTINUED)</FONT></H1>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOTE 2.  SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)</FONT></H1>


New Accounting Standards (Continued)

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In November 2002, the FASB
issued FASB Interpretation (&#147;FIN&#148;) No. 45, &#147;Guarantor&#146;s
Accounting and Disclosure Requirements for Guarantees, Including Indirect
Guarantees of Indebtedness of Others&#148;. FIN No. 45 clarifies and expands on
existing disclosure requirements for guarantees, and clarifies that a guarantor
is required to recognize, at the inception of the guarantee, a liability equal
to the fair value of the obligation undertaken in issuing the guarantee. The
initial recognition and measurement provisions of FIN No. 45 are applicable on a
prospective basis for guarantees issued or modified after December 31, 2002. The
disclosure requirements of FIN No. 45 are effective for financial statements
issued after December 15, 2002. The Company adopted FIN No. 45 during the fourth
quarter of Fiscal 2002 with no material impact on the Company&#146;s
consolidated financial Statements. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In December 2002, the FASB
issued SFAS No. 148, Accounting for Stock-Based Compensation - Transition and
Disclosure. SFAS No. 148 amends SFAS No. 123;Accounting for Stock-Based
Compensation to provide alternative methods of transition for a voluntary change
to the fair value based method of accounting for stock-based employee
compensation. In addition, this Statement amends the disclosure requirements of
Statement No. 123 to require prominent disclosures in both annual and interim
financial statements about the method of accounting for stock-based employee
compensation and the effect of the method used on reported results. SFAS No. 148
is effective for periods beginning after December 15, 2002. Accordingly, the
Company has started making the disclosures required by SFAS No. 148 beginning in
the first quarter of fiscal year 2003. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In January 2003, the FASB
issued FIN No. 46, &#147;Consolidation of Variable Interest Entities - an
Interpretation of Accounting Research Bulletin No. 51&quot;. FIN No. 46 requires
unconsolidated variable interest entities to be consolidated by their primary
beneficiaries if the entities do not effectively disperse the risks and rewards
of ownership among their owners and other parties involved. The provisions of
FIN No. 46 are applicable immediately to all variable interest entities created
after January 31, 2003 and variable interest entities in which a company obtains
an interest after that date. For variable interest entities created before
January 31, 2003, the provisions of this interpretation are effective July 1,
2003. Management is currently evaluating the provisions of this interpretation,
and does not believe that it will have a significant impact on the
Company&#146;s consolidated financial statements. </FONT></P>


<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BOVIE
MEDICAL CORPORATION</FONT></H1>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART I.  FINANCIAL INFORMATION (CONTINUED)</FONT></H1>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND  RESULTS OF OPERATIONS</FONT></H1>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Results of
Operations &#150; Six Months Ended June 30, 2003</FONT></H2>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The results of operations
for the six months ended June 30, 2003 show increased sales and increased
profitability, as compared to the first six months of 2002. As part of
2002&#145;s operating revenues, a one-time development fee of $177,500 was
included which was not considered in determining the gross profit percentage.
The Company&#146;s sales revenues increased by 29%, from $6,231,467 to
$8,039,902. Gross profit percentage of 44% was up from 41% for the same period
in 2002. The reason for the 3% increase in gross profit was that as
electrosurgical sales grow indirect manufacturing overhead associated costs
remains relatively constant. Overall margins will likely increase as sales
increase even though margins on electrosurgical products are less than other
product margins. Gross profit increased from $2,543,102 in 2002 to $3,534,533 in
2003. Increased gross profit was mainly attributable to increased sales of
electrosurgical devices. For the first six months of 2003 and 2002, cauteries
accounted for 29% and 39% of sales, respectively. For the same period,
electrosurgical devices accounted for 42% and 28% of sales, respectively.</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating salaries and
related expenses had increased 19% and went from $648,222 to $771,354 in the six
months ended June 30, 2003 as compared to the same period in 2002. The main
reason for the increase was in the area of customer service and employee
training. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Research and development
costs decreased by $13,614 or 3% from $502,078 to $488,464 from the six months
ended 2002 to the six months ending June 30, 2003. The high cost of research and
development are mainly attributable to engineering costs on new generator models
being developed and the cost of the continued development of the J-Plasma
device. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Expenses for professional
services increased by $26,878 or14% to $214,931 in the six months ended June 30,
2003, as compared to $188,053 in the same period of the previous year. The main
reason for this increase was professional fees associated with legal matters,
audit of the year 2002 and consulting services. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Selling, General and
Administrative expenses increased by $224,047 or 17%. These expenses were
$1,292,374 in the six month period ended June 30, 2002 as compared to $1,516,421
for the six months ended June, 2003. The increase was mainly attributable to the
expense of additional personnel, advertising promotions and the disposition of
unmarketable inventory of products. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Interest expense net of
interest income, increased from $21,980 in the six months ended June 30, 2002 to
$22,659 in 2003. The largest part of the interest the Company pays is on its
building mortgage and its line of credit. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The operating gain was
$543,363 in the first six months of 2003 as compared to an operating loss of
$87,625 in the same period in 2002. An increase in operating profit of $630,988
or 720%. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company had a net gain
of $520,704 for the six months ended June 30, 2003 as compared to net loss of
$109,605 in 2002 for the same period. The most significant reason for the
increase in income of $630,309 for the six months of 2003 from the first six
months of 2002 was an increase in OEM (Original Equipment Manufacturer) sales of
the companies generators. </FONT></P>


<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BOVIE MEDICAL CORPORATION</FONT></H1>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART I.  FINANCIAL INFORMATION (CONTINUED)</FONT></H1>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND  RESULTS OF OPERATIONS  (CONTINUED)</FONT></H1>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Results of
Operations (continued)</FONT></H2>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company sells its
products mostly through distributors OEM agreements and, independent
representatives who service the distributors, both in the international market
and in the USA. Distributors are contacted through response to company
advertising in international medical journals or at domestic or international
trade shows. The main focus for export sales has been Western Europe. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company has
distributors in all major markets in Europe and is expanding into the Far East.
The Company intends to continue marketing its products internationally by
concentrating on major markets for increased market exposure and the
introduction of new products. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>During the first six months
of 2003, international sales increased by $36,875. These sales were $1,259,523,
which represented 15% of total sales, while in 2002 total international sales
were $1,222,648 and 20% of total sales. The Company is ISO 9001 certified. </FONT></P>

Results of Operations - Three Month Period Ended June 30, 2003

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sales for the three month
period ended June 30, 2003 were 4,369,848 as compared to $3,202,868 for the same
period in 2002, an increase of $1,166,980 or 36%. The increase was mainly
attributed to increased sales of electro surgical products. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cost of goods sold
increased from $1,983,853 to $2,398,378 an increase of $414,525 or 21% for the
three month period ended June 30, 2003 as compared to the period in 2002. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Gross profit increased from
$1,219,015 to $1,971,470 an increase of $752,455 or 61%. Gross profit percentage
increased from 38% in 2002 to 45% in 2003. The reason for the increase is that
the direct overhead to produce the products remained constant for the first two
quarters of 2003 therefore causing the gross profit to increase. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Research and development
increased by $11,561 or 6% from $202,542 to $214,103 for the quarters ended June
30, 2003 and June 30, 2002, respectively. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Professional fees decreased
by $5,521 or 6% from $90,033 to 84,512 for the quarters ended June 30, 2002 to
June 30, 2003, respectively. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Salaries and related costs
increased from $318,435 to $370,318 an increase of $51,883 or 16%. The main
areas of increase were in customer service and training for the IDS 300. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Selling, general and
administrative increased by $174,534 or 27% from $652,642 to $827,176 for the
quarters ended June 30, 2002 to June 30, 2003, respectively. The largest areas
of increased costs were for advertising, travel and the disposition of obsolete
material. </FONT></P>


<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BOVIE
MEDICAL CORPORATION</FONT></H1>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART I.  FINANCIAL INFORMATION (CONTINUED)</FONT></H1>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND  RESULTS OF OPERATIONS  (CONTINUED)</FONT></H1>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Financial Condition</FONT></H2>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As of June 30, 2003, the
amount of cash was $672,861 as compared to $229,434 at June 30, 2002. Cash
provided by operating activities was $661,404 in the first six months of 2003 as
compared to funds applied of $451,876 in 2002. Net working capital of the
Company on June 30, 2003 was $3,699,468 as compared to $3,486,992 in 2002 and
increase of $212,476. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Investing activities
utilized $130,120 in cash during the first six months of 2003, compared to
$100,039 in the first six months of 2002. In 2003, the Company continued its
policy of investing in property, plant and equipment needed for future business
requirements, including manufacturing capacity. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The amount of cash applied
to financing activity was $237,632 and provided $203,005 respectively, in the
first six months of 2003 and 2002. The most significant financing activity in
the six months ended June 30, 2003 was the reduction of credit line debt by
$400,000. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company&#146;s ten
largest customers accounted for approximately 65% of net revenues for the first
six months of 2003. As of June 30, 2003, the ten largest receivables accounted
for approximately 60% of outstanding accounts receivable. For the six months
ended June 30, 2003 one customer accounted for 20% of total sales. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company believes that
it has the financial resources needed to meet business requirements in the
foreseeable future, including capital expenditures for the expansion of its
manufacturing site, working capital requirements, and product development
programs. </FONT></P>


<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BOVIE
MEDICAL CORPORATION</FONT></H1>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART I.  FINANCIAL INFORMATION (CONTINUED)</FONT></H1>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)</FONT></H1>

Financial Condition (continued)


<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Outlook</FONT></H2>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The statements contained in
this Outlook are based on current expectations. These statements are forward
looking, and actual results may differ materially. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company has continued
to expand its line of electrosurgery products which include the standard
stainless steel electrodes, the Bovie/Aaron 800, Bovie/Aaron 900, Bovie/Aaron
950, Bovie/Aaron 1250, and the Aaron 2250 high frequency generators. Pursuant to
perceived market demands, the Company has developed and is currently marketing
the Bovie IDS 300-Watt and Bovie IDS 200-Watt digital generators under the newly
formed Bovie sales division. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>From the first six months
of 2002 to the first six months of 2003, the Company&#146;s electrosurgical
sales increased by $2,165,901 or 99% from $2,184,757 to $4,350,658. This
increase was mainly attributable to contract purchasers. With the introduction
of new electrosurgical products, the Company expects electrosurgical sales to
increase significantly in 2003. The Company, through its private label
capability, anticipates new opportunities in the domestic market. The
electrosurgical product market is larger than the Company&#146;s traditional
market and is dominated by two main competitors, ValleyLab and Conmed. The
Company believes combined markets for these products exceeds $500 million
worldwide, annually. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company believes that
the world market for disposable medical products, including the Company&#146;s
battery-operated cauteries continued to have growth potential domestically and
abroad. Accordingly, the Company has designed certain disposable products to be
reusable. The Company presently has a significant portion of the U.S. cautery
market and expects moderate growth in sales of cautery-related products to
continue. </FONT></P>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Non-Medical
Products</FONT></H2>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sales of the Company
flexible lighting products had been on the decline for several years. In 2002,
the Company sales of these products, used primarily in the automotive and
locksmith industries, totaled $736,758. One customer accounted for $561,276
(77%) of such sales. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sales for the first six
months of 2003 and 2002 of industrial lighting products was $282,012 and
$380,701, respectively. In May of 2003 the Company executed an exclusive license
agreement with its largest customer of industrial lighting products to transfer
its technology and manufacturing capability to that customer for a royalty fee
of $8,250 per month for five years. The Company will no longer sell industrial
lighting products. </FONT></P>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Scientific Advisory Board</FONT></H2>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On July 8, 2003, The Company  announced the formation of a scientific  advisory board to assist in the  advancement of new products and
technologies.  The advisory board includes:  Yuval Carmel, Ph. D., Peter M. Pardoll, MD and Mr. Gregory Konesky.</FONT></P>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BOVIE MEDICAL CORPORATION</FONT></H1>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Backgrounds</FONT></H2>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dr.  Yuval  Carmel is a senior  research  scientist  at the  University  of  Maryland.  Dr.  Carmel has over 20 years of  research  and
development  experience  in the areas of advanced  electrosurgical  equipment  for  medical  applications,  physics of plasma,  applied
physics,  electromagnetics and  electro-physics.  He has published over 90 papers in scientific journals, a holder of three patents and
five pending patents.</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dr. Peter Pardoll is a  Gastroenterologist  and the president of Medical  Education  Associates  (MEA), a healthcare  consulting group.
Dr.  Pardoll is a trustee of the Board of the American  College of  Gastroenterology,  past  president of the Florida  Gastroenterology
Society and current  president  of the  National GI Political  Action  Committee  as well as a  practicing  physician at the Center for
Digestive Diseases in St. Petersburg, Florida.</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mr. Gregory  Konesky has been Bovie's lead scientist in new product  development  for J-Plasma,  advanced  plasma  applicator  designa,
plasma physical research and other  electrosurgical  products.  Mr. Konesky has published over 13 scientific papers,  holds one patent,
with another  pending.  He has also  presented at a variety of scientific  forums over the past several years as well as being a member
of over 10 scientific societies.</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Board&#146;s term is
for one year and the members will be compensated with stock options and at their
per diem rate. </FONT></P>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Reliance on
Collaborative, Manufacturing and Selling Arrangements</FONT></H2>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company is dependent on
certain contractual partners for manufacturing and product development. Should a
collaborative partner fail to develop and manufacture products., the
Company&#146;s future business and value of related assets could be negatively
affected. No assurance can be given that a collaborative partner may give
sufficient high priority to the Company&#146;s products. In addition,
disagreements or disputes may arise between the Company and its contractual
partners which could adversely affect production of its products. </FONT></P>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Liquidity and
Future Plans</FONT></H2>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company&#146;s focus is
to acquire, develop, and manufacture new product technologies and to expand its
manufacturing capabilities. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In order to increase
international sales growth and maintain its ability to sell in Europe, the
Company has been certified as ISO9001/EN46001 quality system compliant and has
been granted its CE mark (International Quality Control.) </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In December 2001, the
Company satisfied its first mortgage on the building it owns in St. Petersburg,
Florida and replaced it with a new first mortgage from its prime lender in the
amount of $475,000. The mortgage loan is to be repaid over 5 years with a
variable interest starting at the bank&#146;s present base rate of 4.25%. The
Company pays a principal payment of $2,639 plus interest each month. A balloon
payment of $316,660 is due in December 2006. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In May 2001, the Company
changed commercial lenders and increased its credit line from $600,000 to
$1,500,000. The interest rate on the line is variable and is presently at the
bank&#146;s base rate, which is 4.25% per annum. The outstanding balance on the
credit line on June 30, 2003 was $200,000. </FONT></P>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BOVIE MEDICAL CORPORATION</FONT></H1>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company&#146;s future
results of operations and the other forward-looking statements contained herein
particularly the statements regarding growth in the medical products industry,
capital spending, research and development, and marketing and general and
administrative expenses, involve a number of risks and uncertainties. In
addition to the factors discussed above, other factors that could cause actual
results to differ materially, are the following: business conditions and the
general economy; competitive factors such as rival manufacturers&#146;
availability of products at reasonable prices; risk of nonpayment of accounts
receivable; risks associated with foreign operations; and litigation involving
intellectual property and consumer issues. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The management of Bovie
Medical Corporation believes that it has the product mix, facilities, personnel,
and competitive and financial resources for business success, but future
revenues, costs, margins, product mix and profits are all subject to the
influence of a number of factors, as discussed above. </FONT></P>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 3.  DISCLOSURE CONTROLS AND PROCEDURES</FONT></H2>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) Evaluation of disclosure controls and procedures</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For purposes of rule 13a-14
and 15d-14 of the Securities Exchange Act of 1934 (&#147;Exchange Act&#148;) the
term &#147;disclosure controls and procedures&#148; refers to the controls and
other procedures of a company that are designed to ensure that information
required to be disclosed by a company in the reports that it files under the
Exchange Act is recorded, processed, summarized and reported within required
time periods. Within 90 days prior to the date of this report (&#147;Evaluation
Date&#148;), the Company carried out an evaluation under the supervision and
with the participation of the Company&#146;s Chief Executive Officer and its
Chief Financial Officer of the effectiveness of the design and operation of its
disclosure controls and procedures. Based on that evaluation, the Company&#146;s
Chief Executive Officer and Chief Financial Officer have concluded that, as of
the Evaluation Date, such controls and procedures were effective at ensuring
that required information will be disclosed on a timely basis in our periodic
reports filed under and pursuant to the Exchange Act. </FONT></P>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) Changes in internal controls</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>There were no significant
changes to our internal controls or in other factors that could significantly
affect our internal controls subsequent to the Evaluation Date. </FONT></P>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART II.  OTHER INFORMATION</FONT></H2>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 1.  LEGAL PROCEEDINGS</FONT></H2>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>See Form 10-KSB for the
year ended December 31, 2002, Part I, Item 3. </FONT></P>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 2.  CHANGES IN SECURITIES</FONT></H2>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>There have been no changes
in the instruments defining the rights or rights evidenced by any class of
registered securities. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>There have been no dividends declared. </FONT></P>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BOVIE MEDICAL CORPORATION</FONT></H1>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 3.  DEFAULTS UPON SENIOR SECURITIES</FONT></H2>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In February of 1997, the
10-year notes came due and the Company offered each bond holder 2,200 shares of
common stock for their $1,000 bond and accrued interest of $550. Nineteen
bondholders accepted the offer and forty-three bondholders received cash for
their bonds and accrued interest. The balance of the bondholders have not
redeemed their bonds or accepted the shares offered. The Company is presently
trying to locate the remaining eight bond holders. </FONT></P>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 4.  SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS</FONT></H2>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>During 2003 there has been
no meeting of the shareholders. </FONT></P>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 5.  EXHIBITS AND REPORTS ON FORM 8-K</FONT></H2>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibits</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) Certification  pursuant to Section 906 of Sarbanes-Oxley Act of 2002.</FONT></P>
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) Certification  pursuant to Section 906 of Sarbanes-Oxley Act of 2002.</FONT></P>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Report on Form 8-K</FONT></P>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>None</FONT></P>


<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BOVIE
MEDICAL CORPORATION</FONT></H1>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT 99(a) </FONT></P>

<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In connection with the
Quarterly Report of Bovie Medical Corporation (the &#147;Company&#148;) on Form
10-QSB of the period ended June 30, 2003 as filed with the Securities and
Exchange Commission on the date hereof, I, Andrew Makrides, President and
Chairman of the Board of the Company, certify, pursuant to section 906 of the
Sarbanes-Oxley Act of 2002, that to my knowledge: (1) the quarterly report fully
complies with the requirements of section 13(a) of the Securities Exchange Act
of 1934; and (2) the information contained in the quarterly report fairly
presents, in all material respects, the financial condition and results of
operations of the Company. </FONT></P>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: July 28, 2003</FONT></P>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ Andrew Makrides<br>
President, Chief<br>
Executive Officer, Chairman<br>
of the Board and Director</FONT></P>


<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A signed original of this
written statement required by Section 906 of the Sarbanes-Oxley Act has been
provided to the Company and will be retained by the Company and furnished to the
Securities and Exchange Commission or its staff upon request. </FONT></P>



<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BOVIE MEDICAL CORPORATION</FONT></H1>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT 99(b)</FONT></P>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In connection with the
Quarterly Report of Bovie Medical Corporation (the &#147;Company&#148;) on Form
10-QSB of the period ended June 30, 2003 as filed with the Securities and
Exchange Commission on the date hereof, I, Charles Peabody, Chief Financial
Officer, certify, pursuant to section 906 of the Sarbanes-Oxley Act of 2002,
that to my knowledge: (1) the quarterly report fully complies with the
requirements of section 13(a) of the Securities Exchange Act of 1934; and (2)
the information contained in the quarterly report fairly presents, in all
material respects, the financial condition and results of operations of the
Company. </FONT></P>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date:   July 28, 2003</FONT></P>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ Charles Peabody<br>
 Chief Financial Officer,</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A signed original of this
written statement required by Section 906 of the Sarbanes-Oxley Act has been
provided to the Company and will be retained by the Company and furnished to the
Securities and Exchange Commission or its staff upon request. </FONT></P>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BOVIE MEDICAL CORPORATION</FONT></H1>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURES:</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In accordance with the
requirements of the Exchange Act, the registrant caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized. </FONT></P>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Bovie Medical Corporation.
(Registrant)</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Date:  July 28, 2003</u></FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>/s/Andrew Makrides</u></FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Chief Executive Officer - Andrew Makrides,</u></FONT></P>


<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>CERTIFICATIONS</U></FONT></P>


<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I, Andrew Makrides, the Registrant's Chief Executive Officer, certify that:</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. I have reviewed this quarterly report on Form 10-QSB of Bovie Medical Corporation;</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. Based on my knowledge,  this quarterly  report does not contain any untrue  statement of a material fact or omit to state a material
fact necessary to make the statements  made, in light of the  circumstances  under which such statements were made, not misleading with
respect to the period covered by this quarterly report;</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. Based on my knowledge,  the financial statements,  and other financial information included in this quarterly report, fairly present in
all material  respects the  financial  condition,  results of operations  and cash flows of the  registrant as of, and for, the periods
presented in this quarterly report;</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4. The  Registrant's  other  certifying  officers and I are  responsible  for  establishing  and  maintaining  disclosure  controls and
procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant  and we have: a) designed such  disclosure  controls
and procedures to ensure that material information relating to the registrant,  including its consolidated subsidiaries,  is made known
to us by others within those entities,  particularly during the period in which this quarterly report is being prepared;  b) evaluated the
effectiveness  of the  Registrant's  disclosure  controls and  procedures  as of a date within 90 days prior to the filing date of this
quarterly  report (the  "Evaluation  Date");  and c)  presented  in this quarterly  report our  conclusions  about the  effectiveness  of the
disclosure controls and procedures based on our evaluation as of the Evaluation Date;</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5. The Registrant's other certifying officers and I have disclosed,  based on our most recent evaluation,  to the registrant's auditors
and the audit  committee of  Registrant's  board of directors (or persons  performing  the  equivalent  function):  a) all  significant
deficiencies  in the design or  operation  of  internal  controls  which could  adversely  affect the  registrant's  ability to record,
process,  summarize and report  financial data and have identified for the  Registrant's  auditors any material  weaknesses in internal
controls;  and b) any fraud,  whether or not material,  that involves  management or other employees who have a significant role in the
Registrant's internal controls; and</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6. The  Registrant's  other  certifying  officers and I have indicated in this quarterly  report whether or not there were  significant
changes in internal controls or in other factors that could  significantly  affect internal controls subsequent to the date of our most
recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.</FONT></P>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: July 28, 2003</FONT></P>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>/s/Andrew Makrides</U></FONT></P>
<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Chief Executive Officer</FONT></P>


<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>CERTIFICATIONS</U></FONT></P>


<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I, Charles Peabody, the Registrant's Chief Financial Officer, certify that:</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. I have reviewed this quarterly report on Form 10-QSB of Bovie Medical Corporation;</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. Based on my knowledge,  this quarterly  report does not contain any untrue  statement of a material fact or omit to state a material
fact necessary to make the statements  made, in light of the  circumstances  under which such statements were made, not misleading with
respect to the period covered by this quarterly report;</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. Based on my knowledge,  the financial statements,  and other financial information included in this quarterly report, fairly present in
all material  respects the  financial  condition,  results of operations  and cash flows of the  registrant as of, and for, the periods
presented in this quarterly report;</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4. The  Registrant's  other  certifying  officers and I are  responsible  for  establishing  and  maintaining  disclosure  controls and
procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant  and we have: a) designed such  disclosure  controls
and procedures to ensure that material information relating to the registrant,  including its consolidated subsidiaries,  is made known
to us by others within those entities,  particularly during the period in which this quarterly report is being prepared;  b) evaluated the
effectiveness  of the  Registrant's  disclosure  controls and  procedures  as of a date within 90 days prior to the filing date of this
quarterly  report (the  "Evaluation  Date");  and c)  presented  in this annual  quarterly our  conclusions  about the  effectiveness  of the
disclosure controls and procedures based on our evaluation as of the Evaluation Date;</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5. The Registrant's other certifying officers and I have disclosed,  based on our most recent evaluation,  to the registrant's auditors
and the audit  committee of  Registrant's  board of directors (or persons  performing  the  equivalent  function):  a) all  significant
deficiencies  in the design or  operation  of  internal  controls  which could  adversely  affect the  registrant's  ability to record,
process,  summarize and report  financial data and have identified for the  Registrant's  auditors any material  weaknesses in internal
controls;  and b) any fraud,  whether or not material,  that involves  management or other employees who have a significant role in the
Registrant's internal controls; and</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6. The  Registrant's  other  certifying  officers and I have indicated in this quarterly  report whether or not there were  significant
changes in internal controls or in other factors that could  significantly  affect internal controls subsequent to the date of our most
recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.</FONT></P>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: July 28, 2003</FONT></P>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>/s/Charles Peabody</U></FONT></P>
<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Chief Financial Officer</FONT></P>

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