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<SEC-DOCUMENT>0001121888-04-000055.txt : 20041115
<SEC-HEADER>0001121888-04-000055.hdr.sgml : 20041115
<ACCEPTANCE-DATETIME>20041115172604
ACCESSION NUMBER:		0001121888-04-000055
CONFORMED SUBMISSION TYPE:	10QSB
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20040930
FILED AS OF DATE:		20041115
DATE AS OF CHANGE:		20041115

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:		041147000

	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>qsb.htm
<TEXT>
<HTML>
<HEAD>
<TITLE>
</TITLE>
</HEAD>
<BODY>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>U.S.
Securities and Exchange Commission</FONT></H1>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Washington
D.C. 20549</FONT></H1>
<HR SIZE=1 WIDTH=15% ALIGN=CENTER>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>FORM 10-QSB</FONT></H1>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Mark One)</FONT></H1>
<HR SIZE=1 WIDTH=15% ALIGN=CENTER>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>[ X ]
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</FONT></H1>

<P ALIGN=CENTER><FONT SIZE=3>For the quarterly period ended September 30, 2004</FONT></P>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[ ]
TRANSITION REPORT UNDER SECTION 13 OR 15(d)OF THE EXCHANGE ACT</FONT></H1>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the transition period from to Commission file number 0-12183</FONT></H1>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3 COLOR=RED>BOVIE MEDICAL CORPORATION</FONT></H1>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(Exact name of small business issuer as specified in its charter)</FONT></H1>
<HR SIZE=1 WIDTH=15% ALIGN=CENTER>

<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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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;(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>


<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>Yes [ X ] No [ ]</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>APPLICABLE ONLY TO CORPORATE ISSUERS</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>Indicate the number of shares outstanding of each of the issuer's class of common stock, as of the latest practicable date: 13,853,628.</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 - September 30, 2004
            and December 31, 2003...............................................
           Consolidated Statements of Operations for the Nine
            Months Ended September 30, 2004 and
            2003 and Three Months Ended September 30, 2004 and 2003.............
           Consolidated Statements of Cash Flows for the
            Nine Months Ended September 30, 2004 and 2003.......................
           Consolidated Statements of Shareholders' Equity for the
            Nine Months Ended September 30, 2004................................

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

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

  Item 3: Disclosure Controls and procedures....................................

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>

<H2 align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART I. FINANCIAL INFORMATION<br>
ITEM 1: CONSOLIDATED FINANCIAL STATEMENTS</FONT></H2>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BOVIE MEDICAL CORPORATION<br>
CONSOLIDATED BALANCE SHEET<br>
SEPTEMBER 30, 2004 AND DECEMBER 31, 2003<br>
(UNAUDITED)</FONT></H1>
<pre>

                                     Assets
                                               September 30,        December 31,
                                                   2004                2003(1)
                                               ---------------------------------

Current assets:

Cash                                          $   1,771,130         $   306,137
Trade accounts receivable                         2,298,851           1,708,181
Inventories                                       2,005,003           2,451,149
Prepaid expenses                                    150,993             390,025
Deferred tax asset                                  386,200             386,200
                                                 ----------          ----------

Total current assets                              6,612,177           5,241,692

Property and equipment, net                       2,166,281           1,900,015

Other assets:
Repair parts                                        142,203             228,226
Trade name                                        1,509,662           1,509,662
Patent rights, net                                  102,671             144,967
Deposits                                              6,111               9,470
Investment - in unconsolidated affiliate            200,000             200,000
                                                  ---------          ----------
                                                  1,960,647           2,092,325
                                                  ---------          ----------

                                              $  10,739,105        $  9,234,032
                                                 ==========           =========

(1)  Derived from audited financial statements.

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, 2004 AND DECEMBER 31, 2003<br>
(CONTINUED)<br>
(UNAUDITED)</FONT></H1>

<pre>
                      Liabilities and Stockholders' Equity

                                               September 30,        December 31,
                                                   2004                2003(1)
                                               ---------------------------------


 Current liabilities:

 Accounts payable                               $   770,491          $  679,792
 Accrued expense                                    478,673             473,630
 Deferred revenue                                   159,554             103,445
 Customer deposits                                   36,000             112,000
 Current maturities of long-term debt                31,668              31,668
                                                  ---------            --------

     Total current liabilities                    1,476,386           1,400,535

 Long Term Liabilities                              356,246             383,670

 Stockholders' equity:

 Preferred Stock, par value $.001
  10,000,000 shares authorized
  0 issued and outstanding                               --                 --
  on September 30, 2004 and
  December 31, 2003

 Common stock par value $.001; 40,000,000
  shares authorized, issued and outstanding
  13,853,628 shares and 13,464,528 shares
  on September 30, 2004 and December 31,
  2003 respectively                                  20,532             16,641
 Additional paid in capital                      20,379,499         20,093,936
 Accumulated deficit                            (11,493,558)       (12,660,750)
                                                 ----------        -----------

     Total stockholders' equity                   8,906,473          7,449,827
                                                 ----------        -----------

     Total liabilities and stockholders'
       equity                                  $ 10,739,105      $   9,234,032
                                                 ==========        ===========

(1)  Derived from audited financial statements.

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, 2004 AND 2003<br>
(UNAUDITED)</FONT></H1>
<pre>
                                                         2004          2003
                                                         ----          ----

Sales                                             $ 15,629,483     $ 12,363,919
Cost of sales                                        9,498,374        7,183,850
                                                    ----------      -----------

Gross profit                                         6,131,109        5,180,069

Costs and expenses:
Research and development                               836,661          668,490
Professional services                                  307,717          307,500
Salaries and related costs                           1,346,904        1,167,791
Selling, general and administrative                  2,434,565        2,012,709
Equity in net loss of unconsolidated affiliate          26,886           51,983
                                                   -----------      -----------

                                                     4,952,733        4,208,473
                                                   -----------       ----------
Gain (Loss) from operations                          1,178,376          971,596

Other income (expense):
Interest                                           (    11,185)     (    27,272)
                                                    ----------       ----------

Income                                               1,167,191          944,324

Provision for income tax                             ( 420,200)       ( 330,513)
Realized benefit of loss carryforward                  420,200          330,513
                                                      --------          -------

Net income                                        $  1,167,191       $  944,324
                                                    ==========         ========
Earnings per share
Net income:
      Basic                                            .09               .07
      Diluted                                          .07               .06

Weighted average number of shares outstanding       13,721,602       13,187,217
Weighted average number of shares adjusted for
  dilutive securities                               16,515,281       15,359,284

(1)  Certain  accounts  have been  reclassified  to conform  to  current  year's
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, 2004 AND 2003<br>
(UNAUDITED)</FONT></H1>
<pre>
                                                          Third Quarter
                                                          -------------
                                                       2004             2003
                                                       ----             ----

Sales                                               $ 5,616,662     $ 4,324,017
Cost of sales                                         3,346,904       2,524,953
                                                      ---------       ---------

Gross profit                                          2,269,758       1,799,064

Costs and expenses:
Research and development                                297,291         199,983
Professional services                                    84,869          92,569
Salaries and related costs                              439,444         396,437
Selling, general and administrative                     910,572         649,816
Equity in net loss of unconsolidated affiliate           10,919          32,026
                                                     ----------      ----------
                                                      1,743,095       1,370,831
                                                     ----------      ----------

Gain (Loss) from operations                             526,663         428,233

Other income (expense):
Interest                                           (      3,848)     (    4,613)
                                                    -----------       ---------

Income                                                  522,815         423,620

Provision for income tax                              ( 194,668)     (  148,267)
Realized benefit of loss carryforward                   194,668         148,267
                                                        -------       ---------

Net income                                           $  522,815      $  423,620
                                                       ========       =========
Earnings per share

Net income:
      Basic                                              .04             .03
      Diluted                                            .03             .03

Weighted average number of shares outstanding        13,834,101      13,115,930
Weighted average number of shares adjusted for
  dilutive securities                                16,438,199      15,512,953

(1)  Certain  accounts  have been  reclassified  to conform  to  current  year's
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, 2004 AND 2003<br>
(UNAUDITED)</FONT></H1>
<pre>
                                                      2004              2003
                                                      ----              ----
Cash flows from operating activities:

Net income                                     $    1,167,191     $   944,324
Adjustments to reconcile net income
  to net cash provided by (used in)
  operating activities:
Depreciation and amortization                         295,320         211,436
Write off of patent rights                                 --          54,790
Write down fixed assets,                               54,700              --
Changes in current assets and liabilities:
Receivables                                         ( 296,822)     (  426,494)
Inventories and repair parts                          238,321      (  161,372)
Prepaid expenses                                      239,032          85,609
Accounts payable                                       90,700         165,578
Accrued expense                                         5,043          93,611
Other assets                                               --          45,044
Obligations to shareholders                                --     (    37,214)
Customers Deposits                                    (76,000)    (    16,000)
Deferred revenue                                       56,109              --
                                                  -----------   -------------

Net cash provided by operating activities           1,773,594         959,312
                                                  -----------   -------------

Cash flows from investing activities

Fixed assets                                         (571,989)     (  318,530)
Patents                                              (  2,001)            --
Decrease in deposits                                    3,359             --
                                                  -----------    ------------

Net cash used in investing activities                (570,631)     (  318,530)

Cash flows from financing activities

(Decrease) in notes payable                        (   27,424)       (531,371)
Common shares purchased                               289,454          88,903
                                                    ---------       ---------
Net cash provided by (used in)
 financing activities                                 262,030       ( 442,468)
                                                    ---------         -------

Net increase (decrease) in cash
 and cash equivalents                               1,464,993         198,314
Cash and cash equivalents, beginning of period        306,137         379,209
                                                   ----------         -------

Cash and cash equivalents, end of period         $  1,771,130     $   577,523
                                                    =========         =======

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, 2004 AND 2003</FONT></H1>

<pre>
Cash paid during the nine
months ended September 30:

                                                 2004              2003
                                                 ----             -----
Interest paid                                 $ 13,294           $ 26,210
Income Taxes                                      -0-               - 0 -


SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:

FOR THE NINE MONTHS ENDED SEPTEBER 30, 2004:

1) Pursuant to our 2003  executive and employee  stock option plan, on April 23,
July 1, and  September  23, 2004, we issued  35,000,  50,000,  and 225,000 stock
options,  respectively, to our directors, certain employees and consultants. The
options are to purchase  310,000  shares at various  prices from $1.30 to $2.95,
the bid prices when options were granted.  The options  expire 10 years from the
dates of issue.

2) During 2004, the Company identified  indicators of possible impairment of its
property and equipment.  These indicators  included the significant  decrease in
the market value of equipment  compared to new  technologies  and the history of
cash flows to date. The Company  performed an asset impairment test by comparing
the projected  undiscounted  cash flows to the carrying cost of the property and
equipment.  Based on the  results  of this test,  the  Company  determined  that
certain  property  and  equipment  with net  carrying  cost of $54,700  that was
replaced was impaired. The cost of the impaired equipment was written off.


FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003:

1) On September 29, 2003, we issued stock options pursuant to our 2003 executive
and employee stock option plan to directors,  certain  employees and consultants
to purchase  1,090,000 shares of our common stock at the bid price of $3.25, the
stock price when options were granted. The options give the recipients the right
to purchase the shares for 10 years from the date of issue.

2) The Company  determined that,  based on the results of its operations  during
2003,  it  was  appropriate  to  test  its  intangible  assets  for  impairment.
Accordingly the Company  evaluated the fair value of certain  acquired  research
and  development  based on the estimated  future cash flows related to the asset
and recorded an impairment charge of $54,790, which has been included in general
and administrative expenses.

3) In conjunction with the acquisition of Aaron and the recission offer of 1996,
142,575 shares were issued and  contingently  held in trust and a  corresponding
contingent liability of $18,787 was set up until final disposition of the actual
number of  outstanding  shares.  In 2003,  it was  determined  that all existing
shareholders  had  converted  their  shares and the  contingent  shares were not
necessary.  The shares were  cancelled  and the  additional  paid in capital was
increased by $18,787.

</pre>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BOVIE MEDICAL CORPORATION<br>
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY<br>
FOR THE YEAR ENDED DECEMBER 31, 2003 AND FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004</FONT></H1>

<pre>
                                          Options                Preferred
                                        Outstanding          Shares      Value
                                        -----------          ------      -----
   Balance as of
   January 1, 2003                         2,909,000           --          --
   Subscription Receivable
   Cancelled shares on
   Recission offer                                --            --         --
   Exercise options for cash                (350,000)           --         --
   Options cancelled or forfeited           (361,200)           --         --
   Options granted                         1,791,000            --         --
   Shares issued for promotion                    --            --         --
   Income for period                              --            --         --
                                       -------------            --         --

   December 31, 2003 (1)                   3,988,800            --         --

   (Unaudited)
   Exercise options for cash               ( 167,100)           --         --
   Subscription receivable                        --            --         --
    Income for period                             --            --         --
                                       -------------            --         --

   March 31, 2004                          3,821,700            --         --

   Exercise options for cash            (    163,000)           --         --
   Subscription receivable                        --            --         --
   Options granted                            85,000            --         --
   Options forfeited                    (     10,000)           --         --
   Income for period                              --            --         --
                                        ------------            --         --

   June 30, 2004                           3,733,700            --         --
   Exercise options for cash            (    59,000)            --         --
   Subscription receivable                        --            --         --
   Options granted                           225,000            --         --
   Income for period                              --            --         --
                                        ------------            --         --

   September 30, 2004                      3,899,700            --         --
                                         ===========            ==         ==



                                                 Common                Paid-in
                                          Shares         Value         Capital
                                          --------------------       -----------
   Balance as of
   January 1, 2003                        13,256,103   $ 13,274     $19,820,044
   Subscription Receivable                                                6,131
   Cancelled shares on
   Recission offer                          (142,575)      (143)         18,931
   Exercise options for cash                 350,000      3,500         247,500
   Options cancelled or forfeited                 --         --              --
   Options granted                                --         --              --
   Shares issued for promotion                 1,000         10           1,330
   Income for period                              --         --              --
                                          ----------    -------      ----------

   December 31, 2003 (1)                  13,464,528    $16,641     $20,093,936

   (Unaudited)
   Exercise options for cash                 167,100      1,671         118,254
   Subscription receivable                        --         --           1,113
    Income for period                             --         --              --
                                          ----------    --------      ---------

   March 31, 2004                         13,631,628    $18,312     $20,213,303

   Exercise options for cash                 163,000      1,630         130,870
   Subscription receivable                        --         --           1,595
   Options granted                                --         --              --
   Options forfeited                              --         --              --
   Income for period                              --         --              --
                                          ----------     ------      ----------

   June 30, 2004                          13,794,628    $19,942     $20,345,768
   Exercise options for cash                  59,000        590          32,160
   Subscription receivable                        --         --           1,571
   Options granted                                --         --              --
   Income for period                              --         --              --
                                          -----------    -------     ----------

   September 30, 2004                     13,853,628     $20,532    $20,379,499
                                          ==========    ========     ==========


- --------

                                            Deficit             Total
                                          ----------           -------
   Balance as of
   January 1, 2003                        $(13,342,067)       $6,491,251
   Subscription Receivable                                         6,131
   Cancelled shares on
   Recission offer                                  --            18,788
   Exercise options for cash                        --           251,000
   Options cancelled or forfeited                   --                --
   Options granted                                  --                --
   Shares issued for promotion                      --             1,340
   Income for period                           681,317           681,317
                                           -----------        ----------

   December 31, 2003 (1)                  $(12,660,750)       $7,449,827

   (Unaudited)
   Exercise options for cash                                     119,925
   Subscription receivable                                         1,113
    Income for period                          239,832           239,832
                                           -----------         ---------

   March 31, 2004                         $(12,420,918)       $7,810,697

   Exercise options for cash                        --           132,500
   Subscription receivable                          --             1,595
   Options granted                                  --                --
   Options forfeited                                --               --
   Income for period                           404,547           404,547
                                             ---------          --------

   June 30, 2004                         $(12,016,371)        $8,349,339
   Exercise options for cash                       --            32,750
   Subscription receivable                          --             1,571
   Options granted                                  --                --
   Income for period                           522,813           522,813
                                          ------------         ---------

   September 30, 2004                    $  11,493,558        $8,906,473
                                           ===========         =========

(1) The figures for 2003 were derived from the audited financial  statements for
that year.

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>
NOTES TO FINANCIAL STATEMENTS</FONT></H1>

<H2 align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART I.  FINANCIAL INFORMATION (CONTINUED)</FONT></H2>

<H2 ALIGN=LEFT><FONT SIZE=2>NOTE 1. INTERIM CONSOLIDATED FINANCIAL STATEMENTS</FONT></H2>

<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 2003 Annual Report filed with the SEC on Form 10-KSB. </FONT></P>

<H2 ALIGN=LEFT><FONT SIZE=2>NOTE 2.  SIGNIFICANT ACCOUNTING POLICIES</FONT></H2>

<P ALIGN=LEFT><FONT 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 SIZE=2>Fair Values of Financial Instruments</FONT></P>

<P ALIGN=LEFT><FONT SIZE=2>Cash and cash equivalents:</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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=LEFT><FONT SIZE=2>Accounts receivable and Accounts payable:</FONT></P>

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

<P ALIGN=LEFT><FONT SIZE=2>Short term and long term debt: </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The carrying amount of
notes payable 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>

<H2 align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART I.  FINANCIAL INFORMATION (CONTINUED)</FONT></H2>

<H2 ALIGN=LEFT><FONT SIZE=2>NOTE 2.  SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)</FONT></H2>

<P ALIGN=LEFT><FONT SIZE=2>Inventories: </FONT></P>

<P align=justify><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, 2004 and December 31, 2003 were as follows: </FONT></P>

<pre>
                                    September 30, 2004        December 31, 2003
                                    ------------------        -----------------

     Raw materials                     $      783,754       $    1,332,742
     Work in process                          733,040              616,837
     Finished goods                           488,209              501,570
                                           ----------          -----------

          Total                        $    2,005,003        $   2,451,149
                                           ==========          ===========
</pre>

<P ALIGN=LEFT><FONT SIZE=2>Repair Parts:</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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 September 30, 2004
and December 31, 2003, the inventory of parts was as follows: </FONT></P>

<pre>
                                     September 30, 2004    December 31, 2003
                                     ------------------    -----------------

 Raw materials                          $   317,614        $      317,614
 Allowance for excess or
  obsolete parts                           (175,411)         (     89,388)
                                            -------             ---------
                                        $   142,203        $      228,226
                                           ========         =============
</pre>
<P ALIGN=LEFT><FONT SIZE=2>Long-Lived Assets</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Long-lived 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>

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

<H2 align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART I.  FINANCIAL INFORMATION (CONTINUED)</FONT></H2>

<H2 ALIGN=LEFT><FONT SIZE=2>NOTE 2.  SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)</FONT></H2>

<P ALIGN=LEFT><FONT SIZE=2>Long-Lived Assets (Continued)</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>

<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 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. Items where sales
are made currently for future delivery are shown as deferred sales. </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 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 expensed, 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 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 Share
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 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>

<H2 align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART I.  FINANCIAL INFORMATION (CONTINUED)</FONT></H2>

<H2 ALIGN=LEFT><FONT SIZE=2>NOTE 2.  SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)</FONT></H2>

<P ALIGN=LEFT><FONT SIZE=2>Income Taxes</FONT></p>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Bovie and its wholly-owned
subsidiary 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 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 the asset surrendered. </FONT></P>

<P ALIGN=LEFT><FONT SIZE=2>Stock-Based Compensation</FONT></p>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company had adopted SFAS
123 and has adopted the amendments to SFAS 123 disclosure provisions required
under SFAS 148. Bovie will continue to account for stock-based compensation
utilizing the intrinsic value method pursuant to Accounting Principles Board
Opinion No. 25 (APB 25), Accounting for Stock Issued to Employees. Under this
policy: </FONT></P>
<pre>
1.   Compensation  costs  are  recognized  as an  expense  over  the  period  of
     employment attributable to any employee stock options.

2.   Stocks 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.

</pre>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In December 2002, the FASB
issued Statement No. 148, Accounting for Stock-Based compensation - Transition
and Disclosure - an amendment of FASB Statement No. 123. Statement No. 148
amends Statement 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,
Statement No. 148 amends the disclosure requirements of Statement No. 123 to
require disclosure in interim financial statements regarding the method of
accounting for stock-based employee compensation and the effect of the method
used on reported results. Bovie does not intend to adopt a fair-value based
method of accounting for stock-based employee compensation until a final
standard is issued by the FASB that addresses concerns related to the
applicability of current option pricing models to non-exchange traded employee
stock option plans. SFAS 148 also amends the disclosure requirements of SFAS 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 148 is effective for
financial statements for annual periods ending after December 15, 2002 and
interim periods beginning after December 31, 2002. </FONT></P>


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

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOTE 1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)</FONT></H2>

<P ALIGN=LEFT><FONT SIZE=2>New Accounting Standards</FONT></P>

<P ><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Bovie has adopted the
amendments to SFAS 123 disclosure provisions required under SFAS 148 but will
continue to use intrinsic value method under APB 25 to account for stock-based
compensation. As such, the adoption of this statement has not had a significant
impact on Bovie&#146;s financial position, results of operations or cash flows. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pursuant to the disclosure
requirements of SFAS 148, the Company provides an expanded reconciliation for
all periods presented in Note 9. </FONT></P>

<P ALIGN=LEFT><FONT SIZE=2>Recently Issued Accounting Standards:</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In November 2002, the FASB issued
FASB Interpretation (FIN) No. 45, Guarantor s Accounting and Disclosure
Requirements for Guarantees, including Indirect Guarantees of Indebtedness of
Others. This interpretation addresses the disclosures to be made by a guarantor
in its interim and annual financial statements about its obligations under
certain guarantees. It also clarifies (for guarantees issued after January 1,
2003) that a guarantor is required to recognize, at the inception of a
guarantee, a liability for the fair value of the obligations undertaken in
issuing the guarantee. At December 31, 2002, Bovie did not have any significant
guarantees. Bovie adopted the disclosure requirements of FIN 45 for the year
ended December 31, 2002, and the recognition provisions effective January 1,
2003. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In January&#160;2003, the
FASB issued FASB Interpretation No.&#160;46 (&#147;FIN 46&#148;),
&#147;Consolidation of Variable Interest Entities.&#148; FIN 46 clarifies the
application of Accounting Research Bulletin No.&#160;51, &#147;Consolidated
Financial Statements,&#148; to certain entities in which equity investors do not
have the characteristics of a controlling financial interest or do not have
sufficient equity at risk for the entity to finance its activities without
additional subordinated financial support from other parties. FIN 46 applies
immediately to variable interest entities (&#147;VIE&#146;s&#148;) created after
January&#160;31, 2003, and to VIE&#146;s in which an enterprise obtains an
interest after that date. On October&#160;9, 2003, the FASB issued FASB Staff
Position No.&#160;FIN 46-6 &#147;Effective Date of FASB Interpretation No.46
<I>Consolidation of Variable Interest Entities,</I>&#148; which defers the
implementation date for public entities that hold an interest in a variable
interest entity or potential variable interest entity from the first fiscal year
or interim period beginning after June&#160;15, 2003 to the end of the first
interim or annual period ending after December&#160;15, 2003. This deferral
applies only if 1) the variable interest entity was created before
February&#160;1, 2003 and 2) the public entity has not issued financial
statements reporting that variable interest entity in accordance with FIN 46,
other than disclosures required by paragraph 26 of FIN 46. The adoption of FIN
46 did not have a material impact on the Company&#146;s financial position,
liquidity or results of operations. In May&#160;2003, the FASB issued SFAS
No.&#160;149, &#147;Amendment of Statement 133 on Derivative Instruments and
Hedging Activities.&#148; This Statement amends and clarifies financial
accounting and reporting for derivative instruments, including certain
derivative instruments embedded in other contracts (collectively referred to as
derivatives) and for hedging activities under FASB Statement No.&#160;133,
&#147;Accounting for Derivative Instruments and Hedging Activities.&#148; SFAS
No.&#160;149 is effective for contracts entered into or modified after
June&#160;30, 2003, and for hedging relationships designated after June&#160;30,
2003. The adoption of SFAS No.&#160;149 did not materially impact the Company's
financial position or results of operations.</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In May&#160;2003, the FASB issued
SFAS No.&#160;150, &#147;Accounting for Certain Financial Instruments with
Characteristics of both Liabilities and Equity.&#148; The statement requires
that an issuer classify financial instruments that are within its scope as a
liability. Many of those instruments were classified as equity under previous
guidance. SFAS No.&#160;150 is effective for all financial instruments entered
into or modified after May&#160;31, 2003. Otherwise, it is effective on July 1,
2003 except for mandatorily redeemable non-controlling (minority)&#160;interest
which, on October&#160;29, 2003, the FASB decided to defer indefinitely. The
adoption of SFAS No.&#160;150 did not materially impact the Company&#146;s
financial position or results of operations. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In December 2003, the SEC
issued Staff Accounting Bulletin (&#147;SAB&#148;) No. 104, &#147;Revenue
Recognition,&#148; which supercedes SAB No. 101, &#147;Revenue Recognition in
Financial Statements.&#148; SAB No. 104 rescinds accounting guidance in SAB No.
101 related to multiple element arrangements, which was previously superceded by
EITF 00-21 (see above). The adoption of SAB No. 104 did not have a material
impact on the Company&#146;s results of operations or financial position. </FONT></P>

<H2 align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART I.  FINANCIAL INFORMATION (CONTINUED)</FONT></H2>

<H2 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></H2>

<P ALIGN=LEFT><FONT SIZE=2>Results of Operations - Nine months ended September 30, 2004 and September 30, 2003</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The results of operations
over the nine months ended September 30, 2004 show increased sales and increased
profitability, as compared to the first nine months of 2003. Our sales revenues
increased by 26%, from $12,363,919 to $15,629,483. Gross profit percentage of
39% in 2004 was down from 42% for the same period in 2003. The reason for the 3%
decrease in gross profit was that although electrosurgical sales increased, such
sales consisted largely of sales of OEM products which have a lower gross profit
margin. Overall dollar margins will increase as sales increase even though
margins on electrosurgical products are less than other product margins. Gross
profit increased from $5,180,069 in 2003 to $6,131,109 in 2004, an increase of
18%. Increased gross profit was mainly attributable to increased sales of
electrosurgical devices. Bovie is increasing the volume of accessory and
component manufacturing being undertaken in Europe and the Far East in order to
reduce costs. The difference in cost of sales and gross profit were principally
due to an increase in sales and increase in cost of sales of our family of OEM
electrosurgical generators and accessories. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating salaries and
related expenses increased 15% and went from $1,167,791 to $1,346,904 in the
nine months ended September 30, 2004 as compared to the same period in 2003. The
main reason for the increases were employee raises, increased health insurance
costs, additional personnel in sales, marketing, customer service and an
increase in employee procurement costs. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Research and development
costs increased by 25% from $668,490 to $836,661 for the nine months ended
September 30, 2004 as compared to the nine months ended September 30, 2003. The
cost of research and development was mainly attributable to engineering on new
generator models as well as other development projects. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Expenses for professional
services increased by $217 to $307,500 in the nine months ended September 30,
2003, as compared to $307,717 in the same period of 2004. </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>PART I.  FINANCIAL INFORMATION (CONTINUED)</FONT></H2>

<H2 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></H2>

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Results of Operations - Nine months ended September 30, 2004 and September 30, 2003</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Selling, General and
Administrative expenses increased by $421,850 (21%). These expenses were
$2,434,565 for the nine months ended September 30, 2004 as compared to
$2,012,709 for the nine months ended September 30, 2003. The increase was mainly
attributable to the expense of additional personnel, advertising, promotions,
commissions, insurance, and depreciation of fixed assets. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net interest expense
decreased from $27,272 for the nine months ended September 30, 2003 to $11,185
in the same period of 2004. The largest part of the interest we pay is on our
building mortgage and line of credit. There was no borrowing on the line of
credit for the first nine months of 2004, which accounts for the decrease. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The operating gain was
$1,178,376 in the first nine months of 2004 as compared to an operating gain of
$971,596 in the same period in 2004, an increase of 21%. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Total other costs of
$4,952,733 for 2004 and $4,208,473 for 2003 as a percentage of sales were 32% in
2004 as compared to 34% in 2003, an increase of 18%. Total costs increased of
$744,260 was mostly due to the costs associated with the increase in selling,
general and administrative expenses. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We had a net income of
$1,167,191 for the nine months ended September 30, 2004 as compared to a net
income of $944,324 for the same period in 2003. The main reason for the increase
in income of $222,867 for the first nine months of 2004 from the first nine
months of 2003 was an increase in OEM (Original Equipment Manufacturer) sales of
the company&#146;s generators and disposable electrosurgical accessories. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our effective federal
income tax rate is 35%. As a result of the net gain in the past year, Bovie has
reduced its projected net operating loss tax benefit asset. The net operating
loss carryover is now approximately $7 million. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We sell our products
through distributors both overseas and in U.S. markets. New distributors are
contacted through responses to our advertising in international and domestic
medical journals and domestic or international trade shows. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>During the first nine
months of 2004, international sales of our product lines increased by $369,136
or (20%). In 2004, these sales were $2,222,079 (14% of total sales) as compared
to $1,852,943 (15% of total sales) in 2003. We are marketing our products
overseas through a network of foreign distributors. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In the fourth quarter of
1998, Bovie made agreements with various sales representatives to develop
markets for its new products and to maintain customer relations. The
representatives receive an average commission of approximately 2% of sales in
their market areas. In the nine months of 2004 and 2003, commissions paid were
$257,237 and $186,460, respectively, an increase of 38%. This is attributable to
our distributors giving us sales tracking information to allow us to pay
representatives in those areas previously unpaid. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>An adequate supply of raw
material is available from both domestic and international suppliers. The
relationship between Bovie and its suppliers is generally limited to individual
purchase order agreements, supplemented by contractual arrangements with key
vendors to ensure availability of certain products. We have developed multiple
sources of supply where possible. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In order to provide additional
working capital, the Company has secured a $1,500,000 credit facility with a
local commercial bank. This facility is payable on demand. For the period
January 1, 2004 to October 31, 2004, the Company had zero funds drawn down on
this credit facility. </FONT></P>


<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Results of Operations - Three months ended September 30, 2004 and September 30, 2003</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sales for the three month
period ended September 30, 2004 were $5,616,662 as compared to $4,324,017 for
the same period in 2003, an increase of $1,292,645 or 30%. The increase was
mainly attributed to increased sales of electrosurgical products. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cost of goods sold
increased from $2,524,953 to $3,346,904 an increase of $821,951 or 33% for the
three month period ended September 30, 2004 as compared to the same period in
2003. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Gross profit increased from
$1,799,064 to $2,269,758 an increase of $470,694 or 26% for the three months
period ended September 30, 2004 as compared to the same period in 2003. Gross
profit percentage decreased during such comparative periods from 42% in 2003 to
40% in 2004. The reason for the decrease is that the margin on sales of
electrosurgical products is not as great as other products and as
electrosurgical sales increase in relation to other products overall margins
decrease. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Research and development
increased by $97,308 or 49% from $199,983 to $297,291 for the three months ended
September 30, 2003 and September 30, 2004, respectively. The increase is due to
our focus on developing new specialty use electrosurgical products. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Professional fees decreased
by $7,700 or 8% from $92,569 to $84,869 for the three months ended September 30,
2003 when compared to September 30, 2004, respectively. </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>PART I.  FINANCIAL INFORMATION (CONTINUED)</FONT></H2>

<H2 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></H2>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Results of Operations - Three months ended September 30, 2004 and September 30, 2003</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Salaries and related costs
increased from $396,437 to $439,444 an increase of $43,007 or 11%. The main
reason for the increases were employee raises, increased health insurance costs,
additional personnel in sales, marketing, customer service and an increase in
employee procurement costs. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Selling, general and
administrative expenses increased by $260,756 or 40% from $649,816 to $910,572
for the three months ended September 30, 2003 as compared to September 30, 2004,
respectively. The largest areas of increased costs were for advertising, travel
and the costs relating to a recall of a product. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net interest expense
decreased from $4,613 to $3,848 for the three months ended September 30, 2004 as
compared to three months ended September 30, 2003. The reason for the decrease
was that we did not use our credit facility during the three months ended
September 30, 2004. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Total other costs went from
$1,370,831 for the three months ended September 30, 2003 to $1,743,095 for the
same period in 2004, an increase of $372,264 or 27%. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net income for the three
months ended September 30, 2004 was $522,815 as compared to $423,620 for the
same quarter in 2003, an increase of $99,195 or 23%. The main reason was an
increase in OEM (Original Equipment Manufacturer) sales of the company&#146;s
generators and disposable electrosurgical accessories. </FONT></P>

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

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As of September 30, 2004,
cash totaled $1,771,130 as compared to $577,523 at September 30, 2003. Cash
provided by operating activities was $1,987,807 in the first nine months of 2004
as compared to $959,312 in 2003. Net working capital of Bovie was $5,135,791 and
$4,082,055 on September 30, 2004 and 2003, respectively. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The amount of cash used in
investing activities was $784,844 in the first nine months of 2004, compared to
$318,530 in 2003. We continued to invest in property, plant and equipment needed
for anticipated future business requirements, including manufacturing capacity
for the nine months ended September 30, 2004. We invested $571,989 in plant and
equipment predominately for the new facility. In the year 2001, the Company
invested $200,000 in a joint venture involving a new unipolar low temperature
plasma technology. Since 2001, the Company has invested additional funds in such
developments which have been charged as a net loss of an unconsolidated
affiliate. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The net cash provided by
financing activities in the first nine months of 2004 was $262,030. In the same
period of 2003, net cash used by financing activities was $442,468. A
significant item of financing activity in 2004 resulted from the exercise of
330,100 stock options by current and former employees and consultants for
$252,425. In each of the first nine months of 2004 and 2003, Bovie reduced its
first mortgage by $19,507. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our ten largest customers
accounted for approximately 72% of net revenues for the nine months of 2004 as
compared to 65% in the same period of 2003. For both periods ended September 30,
2004 and September 30, 2003, our ten largest trade receivable customers
accounted for approximately 66% of outstanding receivables. For the first nine
months of 2004, one customer accounted for 31% of total sales. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We believe that Bovie has
the financial resources needed to meet business requirements in the foreseeable
future, including capital expenditures needed for the expansion of our
manufacturing site, working capital requirements, and product development
programs, subject to us maintaining compliance with our credit facility. </FONT></P>

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

<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>Our line of electrosurgery
products now include standard stainless steel electrodes, the Bovie/Aaron 800,
Bovie/Aaron 900, Bovie/Aaron 950, Bovie/Aaron 1250, the Bovie 2250 and IDS 300
high frequency generators. </FONT></P>


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

<H2 align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART I.  FINANCIAL INFORMATION (CONTINUED)</FONT></H2>

<H2 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></H2>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Outlook (continued)</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>During the first nine
months of 2003, versus 2004, Bovie&#146;s electrosurgery sales increased by 50%
from $6,520,728 to $9,778,827. The increase was mainly attributable to OEM
sales. Through our private label capability and our sales division, we
anticipate continued opportunities in the domestic and foreign markets. The
electrosurgery product market is larger than our other traditional markets and
is dominated by two competitors, Valleylab and Conmed. The global market for
electrosurgery products exceeds $800 million annually. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Non-Medical Products</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In 2003, our sales of
flexible lighting products, used primarily in the automotive and locksmith
industries, totaled $375,250. One customer accounted for 80% of such sales. We
discontinued our non-medical product line by entering into a license agreement
to our largest customer in that field for $500,000, payable in equal monthly
installments over 5 years. </FONT></P>

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

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On July 8, 2003,  we  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>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Reliance on Collaborative, Manufacturing and Selling Arrangements</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Bovie is dependent on
certain contractual partners for manufacturing and product development. Should a
collaborative partner reduce its business to us, our future business and value
of related assets could be negatively impacted. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Liquidity and Future Plans</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our focus is to acquire,
develop, and manufacture new product technologies and to expand our
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 our ability to sell in Europe, we have
been certified as ISO9001/EN46001 quality system compliant and 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, we
satisfied our first mortgage on the building that we own in St. Petersburg,
Florida and replaced it with a new first mortgage from our 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 4.00%. Bovie
pays a principal payment of $2,639 plus interest each month. On September 30,
2004, the balance of the loan was $387,913. A balloon payment of $316,660 is due
in December 2006. </FONT></P>


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

<H2 align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART I.  FINANCIAL INFORMATION (CONTINUED)</FONT></H2>

<H2 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></H2>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Liquidity and Future Plans (continued)</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In May 2001, we changed
commercial lenders and increased our 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 due on the credit
line on October 31, 2004 was zero. </FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our 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, involves a number of risks and uncertainties. In
addition to the factors discussed above, there are other factors that could
cause actual results to differ materially, such as business conditions and the
general economies; competitive factors including 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>Our management believes
that Bovie 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=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 the 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=justify><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, 2003, Part I, Item 3, which is incorporated herein by reference.</FONT></P>


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

<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>

<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>None</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>There has been no
submission of a matter to vote by security holders since July of 2003. </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>(31)Certification  pursuant to Section 302 of Sarbanes-Oxley Act of 2002.</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(32)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>Report on Form 8-K</FONT></P>

<P align=justify><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>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURES:</FONT></H1>


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

<P align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Date:  November 15, 2004</u></FONT></P>

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


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 31.1</FONT></H1>

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

<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 for the period ended September 30, 2004;</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  the 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><u>Date:  November 15, 2004</u></FONT></P>

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

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 31.2</FONT></H1>

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

<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 for the period ended September 30, 2004;</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  the 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 15, 2004</FONT></P>

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

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

<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT 32.1</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, 2004 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 15, 2004</FONT></P>


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

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

<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT 32.2</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, 2004 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 15, 2004</FONT></P>

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