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<SEC-DOCUMENT>0001121888-03-000059.txt : 20031113
<SEC-HEADER>0001121888-03-000059.hdr.sgml : 20031113
<ACCEPTANCE-DATETIME>20031113131706
ACCESSION NUMBER:		0001121888-03-000059
CONFORMED SUBMISSION TYPE:	10QSB
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20030930
FILED AS OF DATE:		20031113

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:	001-31885
		FILM NUMBER:		03996989

	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>qsept.htm
<DESCRIPTION>SEPTEMBER 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 September 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>to</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>Commission file number 000-12183</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<br>
(Address of principal executive offices)</FONT></P>

<P ALIGN=CENTER><FONT SIZE=3>(631) 421-5452<br>
(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:13,169,680 </FONT></P>


<HR SIZE=5 COLOR=GRAY NOSHADE>


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

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



<pre>
Contents                                                              Page

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

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

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

          Consolidated Statements of Operations for the Nine
           Months Ended September 30, 2003 and 2002 and the
           Three Months Ended September 30, 2003 and 2002

          Consolidated Statements of Cash Flows for the
           Nine Months Ended September 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>
SEPTEMBER 30, 2003 AND DECEMBER 31, 2002</FONT></H1>


<PRE>

                                                        Assets

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

Current assets:
Cash                                     $   577,523           $      379,209
Trade accounts receivable                  1,776,981                1,350,487
Inventories                                2,559,017                2,357,505
Prepaid expenses                              78,655                  164,264
Deferred tax asset                           386,200                  386,200
Other assets                                      --                   45,044
                                           ---------                ---------

      Total current assets                 5,378,376                4,682,709

Property and equipment, net                1,710,204                1,559,080

Other assets:
Repair parts                                 241,606                  281,746
Trade name                                 1,509,662                1,509,662
Patent rights, net                           159,395                  258,214
Deposits                                       9,470                    9,470
Investment - Joint Venture                   200,000                  200,000
                                           ---------               ----------
                                           2,120,133                2,259,092
                                           ---------               ----------

                                        $  9,208,713              $ 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>
SEPTEMBER 30, 2003 AND DECEMBER 31, 2002<BR>
(CONTINUED)</FONT></H1>

<PRE>
                      Liabilities and Stockholders' Equity

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

Accounts payable                           $  644,246             $  478,668
Accrued expense                               490,560                396,949
Notes payable - current portion                    --                525,467
Due to shareholders                                --                 37,214
Customer deposits                             112,000                128,000
Current maturities of long-term debt           49,515                 31,668
                                            ---------              ---------

     Total current liabilities              1,296,321              1,597,966

Long Term Liabilities                         387,913                411,664

Stockholders' equity:

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

Common stock par value $.001; 40,000,000 shares
 authorized, issued and outstanding
 13,169,680 shares and 13,204,755 shares
 on September 30, 2003 and December 31,
 2002 respectively                            14,,206                 13,274
Additional paid in capital                 19,908,015             19,820,044
Accumulated deficit                       (12,397,742)           (13,342,067)
                                           ----------            -----------

    Total stockholders' equity              7,524,479              6,491,251
                                           ----------            -----------

    Total liabilities and stockholders'
                equity                  $   9,208,713          $   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>
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002<BR>
(UNAUDITED)</FONT></H1>
<pre>
                                                 2003               2002
                                                 ----               ----

Sales                                       $ 12,363,919        $ 9,277,461
Cost of sales                                  7,018,704          5,624,097(1)
                                               ---------          ---------

Gross profit                                   5,345,215          3,653,364

Costs and expenses:
Research and development                         720,473            770,610
Professional services                            307,500            247,935
Salaries and related costs                     1,167,791            998,168(1)
Selling, general and administrative            2,177,855          1,776,872
                                               ---------         ----------

                                               4,373,619          3,793,585
                                               ---------         ----------

Gain (Loss) from operations                      971,596        (   140,221)

Other income (expense):
Interest                                     (    27,272)       (    33,933)
                                               ---------         ----------

                                             (    27,272)       (    33,933)
                                              ----------         ----------

Income (loss)                                    944,324        (   174,154)

Provision for income tax                        (330,513)                --
Realized benefit of loss carryforward            330,513                 --
                                               ---------         ----------

Net income                                    $  944,324       $ ( 174,154)
                                                ========         ==========

Earnings per share

Net income (loss):
      Basic                                      .07                  (.01)
      Diluted                                    .06                  (.01)

Weighted average number of shares outstanding  13,187,217        13,204,755
Weighted average number of shares adjusted
 for dilutive securities                       14,946,001            N/A

(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 SEPTEMBER 30, 2003 AND 2002<BR>
(UNAUDITED)</FONT></H1>
<pre>
                                                           Quarter
                                             -----------------------------------
                                                   2003                2002
                                                   ----                ----

Sales                                          $ 4,324,017        $ 3,045,994
Cost of sales                                    2,513,335          1,935,732(1)
                                                 ---------          ---------
Gross profit                                     1,810,682          1,110,262

Costs and expenses:
Research and development                           232,009            268,532
Professional services                               92,569             59,882
Salaries and related costs                         396,437            349,946(1)
Selling, general and administrative                661,434            484,498
                                                ----------        -----------

                                                 1,382,449          1,162,858
                                                 ---------        -----------

Gain (Loss) from operations                        428,233        (    52,596)

Other income (expense):
Interest                                        (    4,613)       (    11,953)
                                                ----------         ----------

                                                (    4,613)       (    11,953)
                                                ----------         ----------

Income (loss)                                      423,620        (    64,549)

Provision for income tax                        (  148,267)                --
Realized benefit of loss carryforward              148,267                 --
                                                 ---------         -----------

Net income                                     $   423,620      $  (   64,549)
                                                 =========         ===========
Earnings per share

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

Weighted average number of shares outstanding    13,115,930        13,204,755
Weighted average number of shares adjusted for
  dilutive securities                            15,638,212            N/A

(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 NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002<BR>
(UNAUDITED)</FONT></H1>

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

Net income (loss)                            $   944,325        $ (  174,155)
Adjustments to reconcile net income
  to net cash provided by (used in)
  operating activities:
Depreciation and amortization                    211,435             204,274
Write off of patent rights                        54,790                  --
Changes in current assets and liabilities:
Receivables                                   (  426,494)          ( 180,014)
Inventories and repair parts                  (  161,372)          ( 178,643)
Prepaid expenses                                  85,609           (  22,285)
Accounts payable                                 165,578              71,448
Accrued expense                                   93,611           (   9,946)
Other assets                                      45,044              10,338
Obligations to shareholders                  (    37,214)              3,946
Customers Deposits                           (    16,000)                 --
                                              ----------          ----------

  Net cash provided (applied)
    by operating activities                      959,312          ( 275,037)
                                              ----------          ----------
 Cash flows from investing activities

Increase in fixed assets                     (  318,530)          ( 109,911)
Increase in patents                                  --           (  25,300)
                                              ----------           --------

  Net cash used in investing activities      (  318,530)          ( 135,211)
                                               ---------           ---------

 Cash flows from financing activities

Borrowing - line of credit/insurance
 premium financing                                    --             410,651
(Decrease) in notes payable                   (  531,371)         (  121,191)
Common shares purchased                           88,903               4,216
                                                ---------          ---------

  Net cash used in financing activities       (  442,468)            293,676
                                                ---------          ---------

Net increase (decrease) in cash
 and cash equivalents                            198,314           ( 116,572)
Cash and cash equivalents,
 beginning of period                             379,209             578,354
                                                --------            --------

 Cash and cash equivalents,
   end of period                              $  577,523          $  461,782
                                                 =======            ========

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 NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002</FONT></H1>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cash paid during the nine
months ended September 30: </FONT></P>

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

Interest paid                                $  26,210              $ 32,910
Income Taxes                                    - 0 -                 - 0 -

</pre>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:</FONT></P>
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002:</FONT></P>

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

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003:</FONT></P>

<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,  certain  employees and  consultants to purchase
1,090,000  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 $54,790.</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>

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

<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 align=left><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 September 30, 2003 and December 31, 2002 were as follows: </FONT></P>

<pre>
                             September 30, 2003       December 31, 2002
                             ------------------       -----------------

 Raw materials                  $  1,262,441            $  1,180,758
 Work in process                     762,711                 524,322
 Finished goods                      533,865                 652,425
                                 -----------             -----------

 Total                           $ 2,559,017            $  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>The inventory of parts was
as follows: </FONT></P>

<pre>
                               September 30, 2003         December 31, 2002
                               ------------------         -----------------

  Raw materials                    $ 542,295                 $ 498,136
  Allowance for excess
   or obsolete parts                (300,689)                 (216,390)
                                     -------                   -------
                                   $ 241,606                 $ 281,746
                                    ========                   =======
</pre>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Long-Lived Assets</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. </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</FONT></H1>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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 nine 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>


<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 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>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Results of Operations &#150; Nine Months Ended September 30, 2003</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The results of operations
for the nine months ended September 30, 2003 show increased sales and increased
profitability, as compared to the first nine months of 2002. The Company&#146;s
sales revenues increased by 33%, from $9,277,461 to $12,363,919. Gross profit
percentage of 43% was up from 39% for the same period in 2002. The reason for
the four percentage points increase in gross profit ratio 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 $3,653,364 in 2002 to $5,345,215 in
2003. Increased gross profit was mainly attributable to increased sales of
electrosurgical products. For the first nine months of 2003 and 2002, cauteries
accounted for 30% and 41% of sales, respectively. For the same period,
electrosurgical devices accounted for 54% and 35% of sales, respectively. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating salaries and
related expenses had increased 17% to $1,167,791 from $998,168 in the nine
months ended September 30, 2003 as compared to the same period in 2002. The main
reason for the increase was in the area of customer service, employee training
and independent representative training. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Research and development
costs decreased by $50,137 or 7% from $770,610 to $720,473 from the nine months
ended 2002 to the nine months ending September 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 $59,565 or 24% to $307,500 in the nine months ended
September 30, 2003, as compared to $247,935 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 $400,983 or 23%. These expenses were
$2,177,855 in the nine month period ended September 30, 2003 as compared to
$1,776,872 for the nine months ended September 30, 2002. 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, decreased from $33,933 in the nine months ended September 30,
2002 to $27,272 in 2003. The largest part of the interest the Company pays is on
its building mortgage and its line of credit. During the third quarter of 2003
the Company paid off the outstanding balance due under its line of credit. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The operating gain was
$971,596 in the first nine months of 2003 as compared to an operating loss of
$140,221 in the same period in 2002, constituting an increase in operating
profit of $1,111,817 or 793%. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company had a net gain
of $944,324 for the nine months ended September 30, 2003 as compared to net loss
of $174,154 in 2002 for the same period. The most significant reason for the
increase in income of $1,118,478 for the nine months of 2003 from the first nine
months of 2002 was an increase in OEM (Original Equipment Manufacturer) sales of
the Company&#146;s generators and accessories. </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 nine
months of 2003, international sales increased by $70,643. These sales were
$1,852,943, which represented 15% of total sales, while in 2002 total
international sales were $1,782,300 and 19% of total sales. The Company is ISO
9001 certified. </FONT></P>

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

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sales for the three-month
period ended September 30, 2003 were 4,324,017 as compared to $3,045,994 for the
same period in 2002, an increase of $1,278,023 or 42%. 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 $1,935,732 to $2,513,335 an increase of $577,603 or 30% for the
three-month period ended September 30, 2003 as compared to the same period in
2002. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Gross profit for the
quarterly period increased from $1,110,262 to $1,810,682 an increase of $700,420
or 63%. Gross profit percentage for the quarterly period increased from 36% in
2002 to 42% in 2003. The reason for the increase is that the direct overhead to
produce the products remained relatively constant for the first three 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
decreased by $31,523 or 14% from $268,532 to $232,009 for the quarters ended
September 30, 2003 and September 30, 2002, respectively. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Professional fees increased
by $32,687 or 55% from $59,882 to 92,569 for the quarters ended September 30,
2002 to September 30, 2003, respectively. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Salaries and related costs
increased from $349,946 to $396,437 an increase of $46,491 or 13%. The main
areas of increase were in customer service, training of employees and sales
representatives. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Selling, general and
administrative increased by $176,936 or 37% from $652,642 to $661,434 for the
quarters ended September 30, 2002 to September 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 September 30, 2003,
the amount of cash was $577,523 as compared to $461,782 at September 30, 2002.
Cash provided by operating activities was $959,312 in the first nine months of
2003 as compared to funds applied of $275,037 in 2002. Net working capital of
the Company on September 30, 2003 was $4,082,055 as compared to $3,464,169 in
2002 and increase of $617,886. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Investing activities
utilized $318,530 in cash during the first nine months of 2003, compared to
$135,211 in the first nine 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 $442,468 for the period ended September 30, 2003. The
amount of cash provided for the nine month period ended September 30, 2002 was
$293,676. The most significant financing activity in the nine months ended
September 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
nine months of 2003. As of September 30, 2003, the ten largest receivables
accounted for approximately 62% of outstanding accounts receivable. For the nine
months ended September 30, 2003 one customer accounted for 19% 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>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On August 20, 2003, the
Company signed an agreement to lease approximately 20,000 square feet of
manufacturing, warehousing, and office space for sixty-two months commencing on
September 1, 2003 and terminating on October 31, 2008, with an option to renew
for an additional five years. The building leased is in close proximity to the
Company&#146;s present manufacturing facility in St. Petersburg, Florida. The
base monthly rent is $8,750 commencing on November 1, 2003. The base rent
increases by 3% for each year of the lease, commencing on November 1, 2004. The
Company is responsible for common area maintenance, insurance and real estate
taxes, which have been established at $1,667 per month for the first year of the
term of the lease. </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>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Financial Condition (continued)</FONT></P>

<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.  The newly  formed  Bovie sales  division  is
experiencing  competition  from companies with greater  financial  resources and
personnel.  Currently, the division is exploring new marketing programs with the
goal to place the Bovie IDS-300 in a wider cross section of medical facilities.
 </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>During the first nine
months of 2003 the Company&#146;s electrosurgical sales increased a total of
105% to $6,623,448 from $3,233,043 for the similar period in 2002 for a total
increase in electrosurgical sales of $3,390,405 for the period. This increase
was mainly attributable to contract purchasers. The Company expects
electrosurgical sales to continue to increase 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 $800 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 in that year. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sales for the first nine
months of 2003 and 2002 of industrial lighting products was $367,491 and
$589,748, 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 manufacture or
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 Konesty.</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, as required. </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 September 30, 2003 was $0. </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>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 3.  DISCLOSURE CONTROLS AND PROCEDURES</FONT></H1>

<P align=justify><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>

(b) Changes in internal controls

<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>

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

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 1.  LEGAL PROCEEDINGS</FONT></H1>

<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>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 2.  CHANGES IN SECURITIES</FONT></H1>

<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>The Company began trading
it&#146;s securities on the American Stock Exchange on November 5, 2003 under
the symbol BVX. </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>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 3.  DEFAULTS UPON SENIOR SECURITIES</FONT></H1>

<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 has located and
paid off the remaining bondholders or has turned over their funds to the
bondholders&#146; respective states. The balance of the bonds outstanding on
September 30, 2003 was zero. </FONT></P>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 4.  SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS</FONT></H1>

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

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ITEM 5.  EXHIBITS AND REPORTS ON FORM 8-K</FONT></H1>

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

<P align=left><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=left><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=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 September 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:November 5, 2003</FONT></P>



<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/<u>Andrew Makrides</u><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=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 September 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:  November 5, 2003</FONT></P>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/<u>Charles Peabody</u><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=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURES:</FONT></P>

<P><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.<br>
(Registrant)</FONT></P>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date:  November 5, 2003</FONT></P>

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

<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CERTIFICATIONS</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 November 5, 2003</FONT></P>

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

<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CERTIFICATIONS</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 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: November 5, 2003</FONT></P>

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


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