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<SEC-DOCUMENT>0001140361-05-006294.txt : 20050816
<SEC-HEADER>0001140361-05-006294.hdr.sgml : 20050816
<ACCEPTANCE-DATETIME>20050815173424
ACCESSION NUMBER:		0001140361-05-006294
CONFORMED SUBMISSION TYPE:	10QSB
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20050630
FILED AS OF DATE:		20050816
DATE AS OF CHANGE:		20050815

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BOVIE MEDICAL CORP
		CENTRAL INDEX KEY:			0000719135
		STANDARD INDUSTRIAL CLASSIFICATION:	SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841]
		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:		051028368

	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>body.htm
<DESCRIPTION>BOVIE MEDICAL CORP 10QSB 06-30-2005
<TEXT>
<html>
  <head>
    <title>
      Bovie Medical Corp 10QSB 06-30-2005
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><strong>U.S.
        Securities and Exchange Commission</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Washington
        D.C. 20549 </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 180pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong>FORM
        10-QSB</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Mark
        One)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings"><strong>x</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>
        QUARTERLY REPORT PURSUANT TO SECTION 13 </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>OR
        15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
        the
        quarterly period ended June 30, 2005 </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings"><strong>o</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>
        TRANSITION REPORT UNDER SECTION 13 OR 15(d) </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>OF
        THE EXCHANGE ACT </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
        the
        transition period from</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>&#160;</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        to</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Commission
        file number</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>
        0-12183</u></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 24pt; FONT-FAMILY: Times New Roman"><strong>BOVIE
        MEDICAL CORPORATION </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
        name of small business issuer as specified in its charter) </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div align="center">
        <table cellpadding="0" cellspacing="0" width="92%">

            <tr>
              <td valign="top" width="44%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Delaware</font></div>
              </td>
              <td valign="top" width="4%">&#160;</td>
              <td valign="top" width="44%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11-2644611</font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="44%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -23.4pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
                  or other jurisdiction</font></div>
              </td>
              <td valign="top" width="4%">&#160;</td>
              <td valign="top" width="44%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS
                  Employer Identification No.)</font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="44%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Of
                  incorporation or organization)</font></div>
              </td>
              <td valign="top" width="4%">&#160;</td>
              <td valign="top" width="44%">&#160;</td>
            </tr>
            <tr>
              <td valign="top" width="44%">&#160;</td>
              <td valign="top" width="4%">&#160;</td>
              <td valign="top" width="44%">&#160;</td>
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        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">734
        Walt
        Whitman Rd., Melville, New York 11747</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
        of principal executive offices)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(631)
        421-5452 </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Issuer's
        telephone number)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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 </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings"><strong>x</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
        No </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings"><strong>o</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">APPLICABLE
        ONLY TO CORPORATE ISSUERS</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Indicate
        the number of shares outstanding of each of the issuer&#8217;s class of common stock,
        as of the latest practicable date: 13,909,858.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="10%">&#160;</td>
              <td align="left" valign="top" width="90%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Contents</font></div>
              </td>
              <td align="left" valign="top" width="90%">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Part
                  I:</font></div>
              </td>
              <td align="left" valign="top" width="90%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
                  Information</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                  1:</font></div>
              </td>
              <td align="left" valign="top" width="90%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
                  Financial Statements</font></div>
              </td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="top" width="10%">&#160;</td>
              <td align="left" valign="top" width="90%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
                  Balance Sheet - June 30, 2005 And December 31, 2004</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="10%">&#160;</td>
              <td align="left" valign="top" width="90%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
                  Statements of Operations for the three Months Ended June 30, 2005
                  and
                  2004</font></div>
              </td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="top" width="10%">&#160;</td>
              <td align="left" valign="top" width="90%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
                  Statements of Operations for the six Months Ended June 30, 2005
                  and
                  2004</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="10%">&#160;</td>
              <td align="left" valign="top" width="90%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
                  Statement of Shareholders' Equity for the period January 1, 2004
                  to June
                  30, 2005</font></div>
              </td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="top" width="10%">&#160;</td>
              <td align="left" valign="top" width="90%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
                  Statements of Cash Flows for the six Months Ended June 30, 2005
                  and
                  2004</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="10%">&#160;</td>
              <td align="left" valign="top" width="90%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Notes
                  to Financial Statements</font></div>
              </td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                  2:</font></div>
              </td>
              <td align="left" valign="top" width="90%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management's
                  Discussion and Analysis </font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="10%">&#160;</td>
              <td align="left" valign="top" width="90%">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Part
                  II. </font></div>
              </td>
              <td align="left" valign="top" width="90%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  Information</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="10%">&#160;</td>
              <td align="left" valign="top" width="90%">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                  1: </font></div>
              </td>
              <td align="left" valign="top" width="90%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Legal
                  Proceedings</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                  2: </font></div>
              </td>
              <td align="left" valign="top" width="90%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unregistered
                  Sales of Equity Securities and use of Proceeds</font></div>
              </td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                  3: </font></div>
              </td>
              <td align="left" valign="top" width="90%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Defaults
                  Upon Senior Securities</font></div>
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              <td align="left" valign="top" width="10%">
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                  4: </font></div>
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                  of Matters to Vote of Security Holders</font></div>
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              <td align="left" valign="top" width="10%">
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        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
          </div>
          <div id="PN" style="PAGE-BREAK-AFTER: always">
            <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
            </div>
          </div>
          <div id="HDR">
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        I.
        FINANCIAL INFORMATION</font></div>
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        1:
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div>
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            <tr>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr>
              <td colspan="7" valign="bottom" width="98%" style="BORDER-BOTTOM: medium none">
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            <tr>
              <td colspan="7" valign="bottom" width="98%" style="BORDER-BOTTOM: medium none">
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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            <tr>
              <td colspan="7" valign="bottom" width="98%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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            <tr>
              <td colspan="7" valign="bottom" width="98%" style="BORDER-BOTTOM: medium none">
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr>
              <td colspan="7" valign="bottom" width="98%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Unaudited)</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Audited)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">June
                  30, 2005</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
                  31, 2004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  assets:</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,090,376</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,294,746</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Trade
                  accounts receivable</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,541,639</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,954,287</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Inventories</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,517,818</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,001,637</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prepaid
                  expenses</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">314,329</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">328,765</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  tax asset</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">386,200</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">386,200</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  receivables</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">55,000</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  current assets</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,905,362</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
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              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
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            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
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              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
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            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
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            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Repair
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              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">124,363</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Brand
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              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,509,662</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,509,662</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
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            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Patent
                  rights, net</font></div>
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              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">60,375</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">88,572</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">License
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              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">323,334</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">350,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
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            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deposits</font></div>
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              <td width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">16,445</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">14,445</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,973,595</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,087,042</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11,449,740</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11,169,001</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" colspan="8" valign="bottom" width="100%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" colspan="8" valign="bottom" width="100%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                  accompanying notes are an integral part of the financial
                  statements.</font></div>
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        <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
          </div>
          <div id="PN" style="PAGE-BREAK-AFTER: always">
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            <div style="WIDTH: 100%; TEXT-ALIGN: center">
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            </div>
          </div>
          <div id="HDR">
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          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
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            <tr>
              <td colspan="7" valign="bottom" width="98%" style="BORDER-BOTTOM: medium none">
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                  MEDICAL CORPORATION</strong></font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr>
              <td colspan="7" valign="bottom" width="98%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CONSOLIDATED
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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            <tr>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>JUNE
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(CONTINUED)</strong></font></div>
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            <tr>
              <td colspan="7" valign="bottom" width="98%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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            <tr>
              <td colspan="7" valign="bottom" width="98%" style="BORDER-BOTTOM: medium none">
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            <tr>
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Unaudited)</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Audited)</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">June
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
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              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
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              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">620,151</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accrued
                  expense</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">717,863</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">568,482</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  Revenue</font></div>
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              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">132,023</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">157,844</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
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            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Customer
                  deposits</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">107,211</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">36,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  maturities of long-term debt</font></div>
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              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">31,668</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">31,668</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  current liabilities</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,715,916</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,414,145</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Long
                  Term Liabilities</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">332,494</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">348,325</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Minority
                  interest </font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">145,000</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">150,000</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stockholders'
                  equity:</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Preferred
                  Stock, par value $.001</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10,000,000
                  shares authorized</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0
                  issued and outstanding on June 30, 2005 and December 31,
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
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              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                  stock par value $.001; 40,000,000 shares authorized, issued and
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              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
                  31, 2004 respectively</font></div>
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              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13,928</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13,881</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
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              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additional
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              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20,420,473</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20,391,407</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accumulated
                  deficit</font></div>
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              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11,178,071</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11,148,757</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  stockholders' equity</font></div>
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              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9,256,330</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9,256,531</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  liabilities and stockholders' equity </font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11,449,740</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11,169,001</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" colspan="8" valign="bottom" width="100%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 34.8pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                  accompanying notes are an integral part of the financial statements.
                  </font></div>
              </td>
            </tr>

        </table>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
          </div>
          <div id="PN" style="PAGE-BREAK-AFTER: always">
            <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
            </div>
          </div>
          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td colspan="13" valign="bottom" width="98%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">BOVIE
                  MEDICAL CORPORATION</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr>
              <td colspan="13" valign="bottom" width="98%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CONSOLIDATED
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              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr>
              <td colspan="13" valign="bottom" width="98%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FOR
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                  30</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr>
              <td colspan="13" valign="bottom" width="98%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIX
                  MONTHS ENDED JUNE 30, 2005 AND 2004</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="5" valign="bottom" width="26%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(UNAUDITED)</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="5" valign="bottom" width="25%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="5" valign="bottom" width="26%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="5" valign="bottom" width="25%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="5" valign="bottom" width="26%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Three
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="5" valign="bottom" width="25%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Six
                  Months Ended June 30,</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sales</font></div>
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              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,057,912</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,268,863</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9,801,123</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10,012,821</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost
                  of sales</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,467,454</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,312,611</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,560,195</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,309,118</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gross
                  Profit</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,590,458</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,956,252</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,240,928</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,703,703</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Costs
                  and expenses:</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Research
                  and development</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">174,545</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">215,912</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">354,089</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">361,121</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Professional
                  services</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">89,499</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">93,596</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">237,521</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">222,848</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Salaries
                  and related costs</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">466,179</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">465,343</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">887,651</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">907,460</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Selling,
                  general and administrative</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">955,008</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Development
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">30,579</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,500</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">73,882</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15,968</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
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            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,715,810</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,548,265</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,286,446</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,051,990</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gain/(loss)
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              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">407,987</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(
                  45,518</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">651,713</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  income (expense):</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
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              </td>
              <td width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,515</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3,440</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11,204</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(7,337</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
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              </td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(120,837</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">404,547</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(34,314</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Provision
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              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(139,192</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(225,532</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Realized
                  benefit of loss carryforward</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">139,192</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">225,532</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  income/(loss) before minority interest</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(
                  120,837</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">404,547</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(
                  34,314</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">644,376</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Minority
                  interest</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,500</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,000</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  Income (loss)</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(
                  118,337</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">404,547</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">29,314</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">644,376</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
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              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
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              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">N/A</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.03</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">N/A</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.04</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
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              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted
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              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13,762,430</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13,897,055</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
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              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted
                  average number of shares outstanding adjusted for dilutive securities
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              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">N/A</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">16,024,195</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">N/A</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
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          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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              <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13,482</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20,097</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(12,660,750</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,449,827</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options
                  granted</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">370,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options
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              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(397,600</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">397,600</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">399</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">294,312</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
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                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
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            <tr bgcolor="white">
              <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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              <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,511,993</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,511,993</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
                  31, 2004</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,951,200</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13,862,128</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13,881</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20,391407</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(11,148,757</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9,256,531</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options
                  exercised</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">47,730</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(
                  47,730</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6 thin solid">
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6 thin solid">
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              <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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              <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Loss
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              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
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              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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            <tr bgcolor="white">
              <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">June
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              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,903,470</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13,909,858</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13,928</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20,420,473</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(11,178,071</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9,256,330</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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            <tr bgcolor="white">
              <td align="left" colspan="20" valign="bottom" width="100%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                  accompanying notes are an integral part of the financial
                  statements.</font></div>
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        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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          </div>
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        <div id="HDR">
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      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
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              <td colspan="7" valign="bottom" width="98%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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            <tr>
              <td colspan="7" valign="bottom" width="98%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BOVIE
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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            <tr>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INCREASE
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FOR
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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            <tr>
              <td colspan="7" valign="bottom" width="98%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(UNAUDITED)</strong></font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Cash
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              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
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              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">644,376</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
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            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Adjustments
                  to reconcile net income to net cash provided by (used in) operating
                  activities:</font></div>
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              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Depreciation
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              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">254,081</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">193,070</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
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            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Changes
                  in current assets and liabilities:</font></div>
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              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Receivables</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(
                  587,352</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(
                  575,044</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Inventories
                  and repair parts</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(
                  455,597</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">90,833</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prepaid
                  expenses</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">14,436</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">195,899</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  receivable</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(
                  55,000</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                  payable</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">178,210</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">209,866</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accrued
                  expense</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">149,381</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">64,407</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  Revenue</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">25,821</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">37,004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  cash provided (applied) by operating activities</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(
                  556,976</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">860,411</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
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              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Cash
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              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Increase
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              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Increase
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              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(
                  2,000</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,359</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Patents</font></div>
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              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(
                  2,001</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  cash used in investing activities</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(660,676</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">523,850</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Cash
                  flows from financing activities</strong></font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Decrease)
                  in mortgage payable</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(
                  15,831</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(
                  19,507</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                  shares purchased</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">29,113</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">252,425</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Obligations
                  from shareholders</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,708</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  cash provided in financing activities</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13,282</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">235,626</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  increase (decrease) in cash and cash equivalents</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1,204,370</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">572,187</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
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              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,294,746</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">306,137</font></div>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,090,376</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">878,324</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white solid">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" colspan="8" valign="bottom" width="100%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" colspan="8" valign="bottom" width="100%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                  accompanying notes are an integral part of the financial
                  statements.</font></div>
              </td>
            </tr>

        </table>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
          </div>
          <div id="PN" style="PAGE-BREAK-AFTER: always">
            <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
            </div>
          </div>
          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BOVIE
        MEDICAL CORPORATION AND SUBSIDIARIES</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CONSOLIDATED
        STATEMENT OF CASH FLOWS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INCREASE
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        THE SIX MONTHS ENDED , 2005 AND 2004</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
        paid
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      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
                  paid</font></div>
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              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10,675</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,450</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                  taxes</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  0
                  -</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
                  0
                  - </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>

        </table>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SUPPLEMENTAL
        SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FOR
        THE
        SIX MONTHS ENDED JUNE 30, 2005 AND 2004:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
        were no non-cash investing and financing activities in the first two quarters
        of
        the year 2005 or 2004.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
        the first six months of 2005 amortization expenses charged to the minority
        interest of Jump Joint Venture were $5,000.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
          </div>
          <div id="PN" style="PAGE-BREAK-AFTER: always">
            <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
            </div>
          </div>
          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BOVIE
        MEDICAL CORPORATION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTE
        1. INTERIM FINANCIAL INFORMATION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        accompanying unaudited condensed consolidated financial statements have been
        prepared in accordance with accounting principles generally accepted in the
        United States of America (U.S.) for interim financial information and with
        the
        instructions to Form 10-QSB and Article 10 of Regulation S-X. Accordingly,
        they
        do not include all of the information necessary for a fair presentation of
        results of operations, financial position, and cash flows in conformity with
        accounting principles generally accepted in the U.S. In the opinion of
        management, the condensed consolidated financial statements reflect all
        adjustments (consisting of normal recurring adjustments) considered necessary
        for a fair presentation of the results of Bovie Medical Corporation and its
        subsidiaries for the periods presented. Operating results for interim periods
        are not necessarily indicative of results that may be expected for the fiscal
        year as a whole. The preparation of the financial statements in conformity
        with
        accounting principles generally accepted in the U.S. requires management
        to make
        estimates and assumptions that affect the reported amounts of assets,
        liabilities, revenues, expenses, and the related disclosures at the date
        of the
        financial statements and during the reporting period. Actual results could
        materially differ from these estimates. For further information, refer to
        the
        consolidated financial statements and notes thereto included in the Company&#8217;s
        Annual Report on Form 10-KSB for the year ended December 31, 2004. Certain
        prior
        year amounts have been reclassified to conform with the presentation used
        in
        2005.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTE
        2. STOCK-BASED COMPENSATION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company accounts for its employee stock option and stock purchase plans using
        the intrinsic value method in accordance with Accounting Principle Board
        Opinion
        No. 25, &#8220;Accounting for Stock Issued to Employee.&#8221; Accordingly, the Company does
        not recognize compensation expense for employee or director stock options
        granted not less than fair market value. For purposes of disclosures pursuant
        to
        Statement of Financial Accounting Standards No. 123, &#8220;Accounting for Stock-Based
        Compensation,&#8221; (SFAS 123), as amended by SFAS 148, &#8220;Accounting for Stock-Based
        Compensation, Transition and Disclosure,&#8221; the estimated fair value of options is
        amortized to expense over the options&#8217; vesting period. The fair value of the
        options is estimated at the date of grant using the Black-Scholes option
        pricing
        model.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTE
        3. INVENTORIES</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Inventories
        are stated at the lower of cost or market. Cost is determined principally
        on the
        average cost method. Inventories June 30, 2005 and December 31, 2004 were
        as
        follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div align="center">
        <table cellpadding="0" cellspacing="0" width="90%">

            <tr>
              <td valign="bottom" width="61%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">June
                  30, 2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
                  31, 2004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="justify" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="justify" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Raw
                  materials </font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">776,803</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">705,188</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Work
                  in process</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,108,377</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">742,289</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Finished
                  goods</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">632,638</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">554,160</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,517,818</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,001,637</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">REPAIR
        PARTS</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        of
        June 30, 2005 and December 31, 2004, the inventory of parts was
        follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div align="center">
        <table cellpadding="0" cellspacing="0" width="90%">

            <tr>
              <td valign="bottom" width="61%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">June
                  30, 2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
                  31, 2004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="justify" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="justify" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Raw
                  materials/Repair parts </font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">63,779</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">124,363</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
          </div>
          <div id="PN" style="PAGE-BREAK-AFTER: always">
            <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
            </div>
          </div>
          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BOVIE
        MEDICAL CORPORATION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTE
        4. INTANGIBLE ASSETS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
        December 31, 2004 and June 30, 2005 intangible assets consisted of the
        following:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div align="center">
        <table cellpadding="0" cellspacing="0" width="90%">

            <tr>
              <td valign="bottom" width="61%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">June
                  30, 2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
                  31, 2004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="justify" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="justify" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Indefinite
                  life assets:</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Brand
                  name/Trademark (life indefinite)</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,509,662</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,509,662</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  intangibles:</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
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            <tr bgcolor="white">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">License
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              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">400,000</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">400,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
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            <tr bgcolor="white">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: white solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Less:
                  Accumulated amortization</font></div>
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              <td width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">76,666</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(
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              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  carrying amount</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">350,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Purchased
                  technology (5 yr life)</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">280,764</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">278,763</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: white solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Less:
                  Accumulated amortization</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">220,389</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">190,191</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: white solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  carrying amount</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">60,375</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">88,572</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white solid">&#160;</td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTE
        5. NEW ACCOUNTING PRONOUNCEMENTS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>FASB
        Interpretation No. 46R, Consolidation of Variable Interest Entities - An
        Interpretation of ARB51</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        The FASB
        finalized FIN 46R in December 2003. FIN 46R expands the scope of ARB51 and
        various EITFs and can require consolidation of legal structures, called
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Variable
        Interest Entities (VIEs)</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
        Companies with investments in </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Special
        Purpose Entities (SPEs)</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        were
        required to implement FIN 46R in 2003; however, companies with VIEs are
        permitted to implement in the first quarter of 2004. While we do not have
        SPEs,
        we do have a VIE that we have determined will qualify for consolidation.
        This
        include </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">joint
        venture with Jump Agentur Fur Electrotechnik GMBH (&#8220;the Joint Venture&#8221;,
&#8220;JAG&#8221;).</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        We have
        consolidated this VIE for period ended June 30, 2005 and for the year ended
        December 31, 2004. The most significant impact to our financial statements
        is to
        add the net intangible assets of JAG, totaling $323,334 for the period ended
        June 30, 2005, and minority interest of $145,000 as of June 30, 2005 to our
        balance sheets. The impacts on our consolidated statements of net income
        or cash
        flows are not material. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        November 2003 and March 2004, the Emerging Issues Task Force (EITF) reached
        a
        consensus on Issue No. 03-1, &#8220;The Meaning of Other-Than-Temporary Impairment and
        Its Application to Certain Investments.&#8221; The consensus reached requires
        companies to apply new guidance for evaluation whether an investment is
        other-than-temporarily impaired and also requires quantitative and qualitative
        disclosure of debt and equity securities, classified as available-for-sale
        or
        held-to-maturity, that are determined to be only temporarily impaired at
        the
        balance sheet date. In September 2004, the adoption date of the consensus
        was
        indefinitely delayed as it relates to the measurement and recognition of
        impairment losses for all securities in the scope of paragraphs 10-20 of
        Issue
        No. 03-1. The disclosures prescribed by Issue No. 03-1 and guidance related
        to
        impairment measurement prior to the issuance of this consensus continues
        to
        remain in effect. Adoption is not expected to have a material impact on our
        consolidated earnings, financial position or cash flows.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        December 2003, the Financial Accounting Standards Board (FASB) issued SFAS
        No.
        132&#174; &#8220;Employers&#8217; Disclosure about Pensions and Other Post-retirement Benefits.&#8221;
This standard increases the existing disclosure requirements by requiring
        more
        details about pension plan assets, benefit obligations, cash flows, benefit
        costs and related information. The expanded disclosure require that plan
        assets
        be segregated by category, such as debt, equity and real estate, and that
        disclosures on certain expected rates of return be incorporated. SFAS No.
        132&#174;
will also require us to disclose various elements of pension and post-retirement
        benefit costs in interim-period financial</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">statements.
        We adopted SFAS No. 132&#174; in 2003. The Company does not have a pension plan or
        post retirement benefits.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
          </div>
          <div id="PN" style="PAGE-BREAK-AFTER: always">
            <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
            </div>
          </div>
          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BOVIE
        MEDICAL CORPORATION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTE
        5. NEW ACCOUNTING PRONOUNCEMENTS (Continued)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        September 2004, the EITF reached a consensus regarding Issue No. 04-8, &#8220;The
        Effect of Contingently Convertible Instruments on Diluted Earnings Per Share,&#8221;
requiring that the dilutive effect of contingent convertible debt instruments
        (CoCos) be included in diluted earnings per share calculations for all periods
        (if dilutive), regardless of whether the triggering contingency has been
        satisfied. Adoption of Issue No. 04-8 requires retroactive restatement of
        prior
        period dilutive earnings per share for CoCos outstanding at the implementation
        date. The Company does not have contingently convertible instruments and
        the
        adoption of this consensus for periods ending after December 15, 2004 did
        not
        have a material impact on diluted earnings per share for the three months
        ended
        March 31, 2005.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        September 2004, the EITF reached a consensus on Issue No. 04-1 &#8220;Accounting for
        Preexisting Relationships between the Parties to a Business Combination,&#8221; which
        requires that preexisting relationships between two parties of a business
        combination be settled prior to the combination. The EITF also addresses
        the
        measurement and recognition of settlements related to-preexisting receivables
        and payables, executory contracts, intangible asset rights, and gain settlements
        among the parties to a business combination. This consensus is effective
        for the
        fiscal year 2005. Adoption did not have a material impact on our consolidated
        earnings, financial position or cash flows.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        September 2004, the EITF reached a consensus on Issue No. 04-10, &#8220;Applying
        Paragraph 19 of FASB Statement No. 131, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Disclosure
        about Segments of an Enterprise and Related Information </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(SFAS
        No.
        131), in Determining Whether to Aggregate Operating Segments That Do Not
        Meet
        the Quantitative Thresholds.&#8221; Issue No. 04-10 clarifies the criteria for
        aggregating an operating segment that does not meet all of the aggregation
        criteria in paragraph 17 of SFAS No. 131, but also falls below the quantitative
        criteria that would dictate that the segment be reported separately. The
        consensus reached would enable an entity to aggregate two or more segments
        that
        have similar economic characteristics and share a majority of the aggregation
        criteria in paragraph 17 of SFAS No. 131. Although Issue No. 04-10 was to
        be
        effective immediately, in November 2004 the EITF delayed the implementation
        of
        this issue in order to have its effective date coincide with a related FASB
        Staff Position (FSP), which will clarify the meaning of similar economic
        characteristics. Issue No. 04-10 is to be applied by retroactive restatement
        of
        previous periods. Adoption of Issue No. 04-10 is not expected to have an
        impact
        on our consolidated earnings, financial position or cash flows.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        November 2004, the FASB issued SFAS No. 151, &#8220;Inventory Costs, an amendment of
        Accounting Research Bulletin No. 43, Chapter 4,&#8221; which adopts wording from the
        International Accounting Standards Board&#8217;s (IASB) IAS 2 &#8220;Inventories&#8221; in an
        effort to improve the comparability of cross-border financial reporting.
        The
        FASB and IASB both believe the standards have the same intent; however, an
        amendment to the wording was adopted to avoid inconsistent application. The
        new
        standard indicates that abnormal freight, handling costs, and wasted materials
        (spoilage) are required to be treated as current period charges rather than
        as a
        portion of inventory cost. Additionally, the standard clarifies that fixed
        production overhead should be allocated based on the normal capacity of a
        production facility. The Statement is effective beginning in fiscal year
        2007.
        Adoption is not expected to have a material impact on our consolidated earnings,
        financial position or cash flows.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        December 2004, the FASB issued FSP FAS 109-1, &#8220;Application of FASB Statement No.
        109, Accounting for Income Taxes, to the Tax Deduction on Qualified Production
        Activities Provided by the American Jobs Creation Act of 2004.&#8221; The FSP
        clarifies that the manufacturer&#8217;s deduction provided for under the American Jobs
        Creation Act of 2004 (the Act) should be accounted for as a special deduction
        in
        accordance with SFAS No. 109, &#8220;Accounting for Income Taxes,&#8221; and not as a tax
        rate reduction. The Qualified Production Activities Deduction will not impact
        our consolidated earnings, financial position or cash flows for fiscal year
        2005
        because the deduction is not available to us. We are currently evaluating
        the
        effect that this deduction will have in subsequent years.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        December 2004, the FASB issued SFAS No. 123 (revised 2004), &#8220;Share-Based
        Payment&#8221; (&#8220;SFAS 123R&#8221;), which replaces SFAS No. 123, &#8220;Accounting for Stock-Based
        Compensation&#8221; (&#8220;SFAS 123&#8221;) and supercedes APB Opinion No. 25, &#8220;Accounting for
        Stock Issued to Employee. &#8220;SFAS 123R requires that all share-based payments to
        employees, including grants of employee stock options, be recognized in the
        financial statements based on their fair values, beginning with the first
        interim or annual period after June 15, 2005, with early adoption encouraged.
        The pro forma disclosures previously permitted under SFAS 123, no longer
        will be
        an alternative to financial statement recognition. We are required to adopt
        SFAS
        123R in the fiscal year 2006. Under SFAS 123R, we must determine </font></div>
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      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BOVIE
        MEDICAL CORPORATION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTE
        5. NEW ACCOUNTING PRONOUNCEMENTS (Continued)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
        appropriate fair value model to be used in valuing share-based payments the
        amortization method for compensation cost and the transition method to be
        used
        at the date of adoption. Upon adoption, we may choose from two transition
        methods: the modified-prospective transition approach or the
        modified-retroactive transition approach. Under the modified-prospective
        transition approach we would be required to recognize compensation cost for
        awards that were granted prior to, but not vested as of the date of adoption.
        Prior periods remain unchanged and pro forma disclosures previously required
        by
        SFAS No. 123 continue to be required. Under the modified-retrospective
        transition method we would be required to restate prior periods by recognizing
        compensation cost in the amounts previously reported in the pro forma disclosure
        under SFAS No. 123. Under this method, we would be permitted to apply this
        presentation to all periods presented or to the start of the fiscal year
        in
        which SFAS No. 123R is adopted. We would also be required to follow the same
        guidelines as in the modified-prospective transition method for awards granted
        subsequent to adoption and those that were granted and not yet vested. We
        are
        currently evaluating the requirements of SFAS 123R and its impact on our
        consolidated results of operations and earnings per share. We have not yet
        determined the method of adoption or the effect of adopting SFAS 123R, and
        it
        has not been determined whether the adoption will result in amounts similar
        to
        the current pro forma disclosures under SFAS 123.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        December 2004, the FASB issued Staff Position (&#8220;FSP) No. 109-2, &#8220;Accounting and
        Disclosure Guidance for the Foreign Earnings Repatriation Provision within
        the
        American Jobs Creation Act of 2004&#8221; (FSB 109-2&#8221;). This position provides
        guidance under FASB Statement No. 109 (&#8220;SFAS 109&#8221;), &#8220;Accounting for Income
        Taxes&#8221;, with respect to recording the potential impact of the repatriation
        provisions of the American Jobs Creation Act of 2004 (the &#8220;Jobs Act&#8221;) on
        enterprises income tax expense and deferred tax liability. The Jobs Act was
        enacted on October 22, 2004. FSP 109-2 states that an enterprise is allowed
        time
        beyond the financial reporting period of enactment to evaluate the effect
        of the
        Jobs Act on its plan for reinvestment or repatriation of foreign earnings
        for
        purposes of applying SFAS 109. The Company does not have accumulated income
        earned abroad and The Act and the FSP No. 109-2 do not have any effect on
        the
        Company&#8217;s financial statements.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        December 2004, the FASB issued SFAS No. 153, &#8220;Exchanges of Nonmonetary Assets -
        An Amendment of APB Opinion No. 29, Accounting for Nonmonetary Transactions&#8221;
(SFAS 153&#8221;). SFAS 153 eliminates the exception </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">From
        fair
        value measurement for nonmonetary exchanges of similar productive assets
        in
        paragraph 21(b) of APB Opinion No. 29, &#8220;Accounting for Nonmonetary
        Transactions,&#8221; and replaces it with an exception for exchanges that do not have
        commercial substance. SFAS 153 specifies that a nonmonetary exchange has
        commercial substance if the future cash flows of the entity are expected
        to
        change significantly as a result of the exchange. SFAS 153 is effective for
        fiscal periods beginning after June 15, 2005. We have considered SFAS 153
        and
        have determined that this pronouncement is not applicable to our current
        operations.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        November 2004, the FASB issued SFAS No. 152, &#8220;Accounting for Real Estate
        Time-Sharing Transactions- An amendment of SFAS No. 66 and 67&#8221;. This statement
        amends SFAS No. 66,&#8221; Accounting for Sales of Real Estate, to reference the
        financial accounting and reporting guidance for real estate time-sharing
        transactions which is provided in AICPA Statement of Position (&#8220;SOP&#8221;) 04-2,
&#8220;Accounting for Real Estate Time-Sharing Transaction.&#8221; This statement also
        amends SFAS No. 67, &#8220;Accounting for Costs and Initial Rental Operations of Real
        Estate Projects,&#8221; to state the guidance for (a) incidental costs and (b) costs
        incurred to sell real estate projects does not apply to real estate time-sharing
        transactions. The accounting for those costs is subject to guidance in SOP
        04-2.
        SFAS 152 is effective for fiscal years beginning after June 15, 2005. We
        have
        considered SFAS 152 and have determined that this pronouncement is not
        applicable to our current operations. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTE
        6. SHAREHOLDERS&#8217; EQUITY</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
        the six-month period ending June 30, 2005, we issued 47,730 common shares
        in
        exchange for employee exercised options. The issuance of the common stock
        resulted in an increase in capital of $29,113.</font></div><br>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BOVIE
        MEDICAL CORPORATION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTE
        7. EARNINGS PER SHARE</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        compute basic earnings per share (&#8220;basic EPS&#8221;) by dividing net income by the
        weighted average number of common shares outstanding for the reporting period.
        Diluted earnings per share (&#8220;diluted EPS&#8221;) gives effect to all dilutive
        potential shares outstanding resulting from employee stock options during
        the
        period. When there is a loss we do not compute diluted earnings per share.
        The
        following table sets forth the computation of basic and diluted earnings
        per
        share for the six-month periods ended June 30, 2004 and 2005, where
        applicable.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div align="center">
        <table cellpadding="0" cellspacing="0" width="90%">

            <tr>
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" colspan="5" valign="bottom" width="26%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Six
                  months ended June 30 (000 omitted)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  income (loss)</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(29</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic-weighted
                  average shares outstanding </font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13,897</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13,133</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effect
                  of dilutive potential securities</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">N/A</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">581</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Diluted
                  - weighted average shares outstanding</font></div>
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              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">N/A</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13,714</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                  EPS</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.01</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.04</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="61%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Diluted
                  EPS</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">N/A</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.03</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
        above
        figures are in thousands except basic and diluted earnings per share which
        are
        not. For the six months ended June 30, 2004 the shares used in the calculation
        of diluted EPS exclude options to purchase shares where the exercise price
        was
        greater than the average market price of common shares for the period.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        2. MANAGEMENT&#8217;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
        OPERATIONS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Executive
        Level Overview</em></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        are a
        medical device company engaged in the manufacturing and marketing of
        electrosurgical devices. Our medical products include a wide range of devices
        including electrosurgical generators and accessories, cauteries, medical
        lighting, nerve locators and other products.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        divide
        our operations into three reportable business segments: Electrosurgical
        products, battery operated cauteries and other products. The electrosurgical
        segment sells electrosurgical products generators, electrodes, electrosurgical
        pencils and various ancillary disposable products. These products are used
        in
        surgery for the cutting and coagulation of tissue. Battery operated cauteries
        are used for precise hemostasis (to stop bleeding) in ophthalmology and in
        other
        fields. Our other revenues are derived from nerve locators, disposable and
        reusable penlights, medical lighting, license fees, development fees and
        other
        miscellaneous income. Domestic sales accounted for 87% of total revenues
        for the
        six months ended June 30, 2005 as compared to 86% in the first six months
        of
        2004. Most the Company&#8217;s products are marketed through medical distributors
        which distribute to more than 6,000 hospitals and to doctors and other
        health-care facilities.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">International
        sales accounts for 13% of total revenues for the period ended June 30, 2005
        as
        compared to 14% for for six months ended 2004. The Company&#8217;s products are sold
        in more than 150 countries through local dealers. Local dealer support is
        coordinated by sales and marketing personnel at the St. Petersburg, Florida
        facility. We have no branch offices other than the Florida facility. We sell
        our
        products to distributors that distribute them in the following countries:
        Argentina, Australia, Belgium, Brazil, Canada, Chile, Denmark, Finland, France,
        Germany, Greece, India, Italy, Japan, Korea, Mexico, The Netherlands, New
        Zealand, Norway, Poland, Portugal, Singapore, South Africa, Spain, Sweden,
        Switzerland, Taiwan and the United Kingdom, China, the CIS (former Soviet
        Union), Cyprus, Indonesia, Ireland, Korea, Latin America, Malaysia, the
        Philippines, Thailand, Turkey, and Vietnam. Our business is generally not
        seasonal in nature.</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BOVIE
        MEDICAL CORPORATION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Outlook
        for 2005</em></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Based
        upon current preliminary forecasts, diluted net earnings per share from
        operations for 2005 may be less than 2004. In addition, net earnings may
        be
        negatively impacted by increased costs of selling, general payroll, professional
        fees, research and development and administrative. Sales for the year 2005
        are
        expected to be comparable to 2004. For the next six months of the current
        fiscal
        year, we expect similar sales to the same period last year, despite a decline
        in
        orders from our main OEM customer. If foreign currency exchange rates hold
        at
        current levels, we anticipate a favorable impact on foreign sales for the
        full
        year of 2005.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Even
        though our main OEM customer has reduced its orders during the third quarter
        of
        2005 our overall sales for that period may be comparable with sales for the
        same
        period last year. OEM business is marked by variables, making it difficult
        to
        forecast future performance, as OEM contracts create limited visibility.
        Significant OEM orders or new product development can favorably and materially
        impact our performance. During fiscal 2005 we will direct increased effort
        and
        resources at advancing product development, and geographic expansion of
        distributors while continuing to take advantage of selective OEM opportunities
        as they occur. We believe that this course of action will result in a greater
        diversification to our revenue stream.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        have
        paid off all previously outstanding borrowings under our existing credit
        facility. We anticipate investing in future business growth, including business
        and product line acquisitions to supplement our current product offerings,
        new
        product launches and future manufacturing building expansions.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Result
        of Operations (to be read in conjunction with the profit and loss
        statement)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        table
        below outlines the components of the consolidated statements of earnings
        as a
        percentage of net sales and the year-to-year percentage change in dollar
        amounts:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Analysis
        of Quarter Ended June 30, 2005/2004 and the six months ended June 30,
        2005/2004</font><br></div>
      <div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td colspan="5" valign="bottom" width="21%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: medium none">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Percentage</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td colspan="5" valign="bottom" width="21%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: medium none">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Percentage</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td colspan="5" valign="bottom" width="21%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: medium none">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Change
                    in</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td colspan="5" valign="bottom" width="21%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: medium none">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Change
                    in</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td colspan="5" valign="bottom" width="21%" style="BORDER-BOTTOM: medium none">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Quarter</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: medium none">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dollar
                    amounts</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td colspan="5" valign="bottom" width="21%" style="BORDER-BOTTOM: medium none">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Six
                    months</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: medium none">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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              <tr>
                <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: medium none">
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                <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
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                <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: medium none">%</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: medium none">%</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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                <td colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: medium none">%</td>
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              <tr>
                <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: medium none">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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              <tr bgcolor="#e2eef6">
                <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sales</font></div>
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                <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4.0</font></div>
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                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">100.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2.0</font></div>
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                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">67.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
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              <tr bgcolor="#e2eef6">
                <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gross
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                <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">31.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">37.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(19.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">33.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">37.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(12.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: white">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              </tr>
              <tr bgcolor="#e2eef6">
                <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                    costs:</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">R
                    &amp; D</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2.0</font></div>
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                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
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                <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Salaries</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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              <tr bgcolor="#e2eef6">
                <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SGA</font></div>
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                <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">25.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">18.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
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              <tr bgcolor="white">
                <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: white solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Equity
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                <td width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">274.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">331.0</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
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              <tr bgcolor="#e2eef6">
                <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: white solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
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                <td width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">34.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">29.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
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                <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
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                <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(130.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(106.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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              <tr bgcolor="#e2eef6">
                <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
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              <tr bgcolor="white">
                <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: white solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
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                <td width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.00</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(130.0</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.0</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.0</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#e2eef6">
                <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
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                </td>
                <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2.0</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8.0</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(130.0</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(106.0</font></div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#e2eef6">
                <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="32%" style="BORDER-BOTTOM: white">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
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                </td>
                <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
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                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black thin solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
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                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
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                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
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                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
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                <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">&#160;</td>
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                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black double">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 solid">
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                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black double">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.00</font></div>
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                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black double">
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                <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: black double">
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          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005/2004</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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              <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,519</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">International</font></div>
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              <td width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">747</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(28</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">208</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  net sales</font></div>
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              <td width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,058</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,269</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(.04</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(
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              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Product
                  line sales:</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Electrosurgical</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,987</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,471</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(14</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(484</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cauteries</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,272</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,269</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">799</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">529</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">51</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">270</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  net sales</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,058</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,269</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(.04</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(
                  211 </font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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            </tr>

        </table>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        table
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  Sales (in thousands)</font></div>
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              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="justify" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="justify" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Percentage
                  change</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Increase/</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005/2004</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Decrease)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Domestic/international
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              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Domestic</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,534</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8,585</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.0</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(
                  51</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">International</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,267</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,428</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11.0</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">161</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  net sales</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9,801</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10,013</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.0</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">212</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Product
                  line sales:</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Electrosurgical</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,498</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,328</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(13</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(830</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cauteries</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,602</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,527</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.0</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">75</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other</font></div>
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              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,701</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,158</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">47.0</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">543</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  net sales</font></div>
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              <td width="2%" style="BORDER-BOTTOM: #e2eef6 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9,801</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10,013</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2.0</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black double">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black double">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(
                  212</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6 solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>

        </table>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
          </div>
          <div id="PN" style="PAGE-BREAK-AFTER: always">
            <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
            </div>
          </div>
          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BOVIE
        MEDICAL CORPORATION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005
        Compared with 2004</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        net
        sales decreased 2% for the first six months of 2005 as compared to the first
        six
        months of 2004. Total sales were $9.8 million in 2005 and 10.0 million for
        2004
        a decrease of .2 million. Sales of electrosurgical products decreased by
        13% or
        $.83 million during the same period of 2004 while sales of cauteries increased
        by 3% from 2.53 million to $2.60 million. Other sales increased by 47% from
        $1.2
        million to $1.7 million. This increase in other sales was the result of $.9
        million increase in development cost income and $.3 million in other medical
        product sales. No sales of one particular electrosurgical product dominated
        the
        number of units sold. Sales of electrosurgical generators and accessories
        to
        Arthrex decreased from 3.2 million in the first six months of 2004 to 1.3
        in the
        first six months of 2005.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Domestic
        sales were $8.5 million for first six months of 2005, representing a decrease
        of
        1% from the same period last year. International sales were $1.3 million
        for the
        first six month of 2005, representing an increase of 11.0% over the same
        period
        2004.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost
        of
        sales represented 67% of sales in the first six months of 2005 as compared
        to
        63% of sales in the first six months of 2004, a total of $6.6 million and
        $6.3
        million, respectively, an increase of $.25 million. The reason for the increase
        in cost of sales was due to an increase of 13% in indirect costs and a decrease
        in material cost of 3.5%. Increased indirect costs of .35 million was the
        result
        of increase costs of quality control payroll, development costs, freight
        in and
        material cost and price adjustments.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Research,
        development and engineering expenses were 4.0% and 4.0% of sales for the
        first
        six months of 2005 and 2004, respectively. These expenses decreased 2% in
        2005
        to $354,089, a decrease over the corresponding period of 2004 spending of
        $6,032. The high spending level is the result of development costs in advance
        of
        our proposed product launches in 2005. New products under development are
        the
        suture removal device, plasma technology, GI device and various improvements
        to
        our line of electrosurgical generators.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Professional
        fees increased from $222,848 in the first six months of 2004 to $237,521
        in the
        first six months of 2005, an increase of $14,673 or 7%. Other legal fees
        increased by $26,151, mainly associated with defense litigation.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Salaries
        and related costs decreased by 2.0% from $.91 million to $.89 million from
        the
        first six monthsof 2004 to the first six months of 2005. The decrease was
        mainly
        attributable to the decreased cost of representative training. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Selling,
        general and administrative expense increased for the first six month of 2005
        as
        compared to the first six months of 2004, by .19 million. This was mostly
        attributable to an increase in general liability insurance.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
        interest earned increased by $20,611 from a net expense in the first months
        of
        2004 to net income in the first quarter of 2005 as a result of our higher
        cash
        balances being invested.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        a
        result of the loss for the first six months of 2005, the effective income
        tax
        rate was 0%. and 36.2% the first six months of 2004. There was also a tax
        loss
        carryover benefit of 36.2% for 2004.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
        was
        net loss of $.00 per share of $29,314 in the first six month of 2005 as compared
        to $644,376 or $.05 per share in the first six months of 2004. The decrease
        in
        earnings from the first six months of 2004 to the first quarter of 2005 was
        mostly attributable to an decrease in gross profit of $462,775 and an increase
        in SG &amp; A of $187,710 over the same period in 2004.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Results
        of Operations- Three months ended June 30, 2005 and June 30, 2004</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sales
        for
        the three month period ended June 30, 2005 were 5.1 million as compared to
        $5.3
        million for the same period in 2004, a decrease of $.2 million or 4%. The
        decrease was mainly attributed to decreased sales of electrosurgical
        products.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost
        of
        goods sold increased from $3.3 million to $3.5 million an increase of $.2
        million or 5% for the three month period ended June 30, 2005 as compared
        to the
        same period in 2004.</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
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          </div>
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        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BOVIE
        MEDICAL CORPORATION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gross
        profit decreased from $2.0 million to $1.6 million a decrease of $.4 million
        or
        19%. Gross profit percentage decreased from 37% in 2004 to 31% in 2005. The
        reason for the decrease was mainly attributed to an increase in factory overhead
        of 8%. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Research
        and development decreased by $41,367 or 20% from $215,912 to $174,545 for
        the
        quarters ended June 30, 2005 and June 30, 2004, respectively. The decrease
        is
        due to certain development costs are being charged directly to customers
        as part
        of other income.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Professional
        fees decreased by $4,097 or 4% from $93,596 to 89,499 for the quarters ended
        June 30, 2004 to June 30, 2005, respectively.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Salaries
        and related costs increased from $465,344 to $466,179 an increase of $836.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Selling,
        general and administrative expenses increased by $189,094 or 25% from $765,914
        to $955,008 for the quarters ended June 30, 2004 to June 30, 2005, respectively.
        The largest areas of increased costs were for commissions and liability
        insurance</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
        other costs went from $1,549,394 for the three months ended June 30, 2004
        to
        $1,713,310 for the same period in 2005, and increase of $163,916 or
        11%.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
        interest expense decreased from $3,440 to $4,515 in income for the quarter
        ended
        June 30, 2005 as compared to quarter ended June 30, 2004. The reason for
        the
        decrease was that we did not use our credit facility during the quarter ended
        June 30, 2005 and we earning interest on our deposits.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
        loss
        for the three months ended June 30, 2005 was $118,337 or $.01 per share as
        compared to net income of $404,547 for the same quarter in 2004, a decrease
        of
        $522,884 or 129%. The main reason for the decrease in income was the decrease
        in
        gross profit and increase in SG &amp; A.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        the
        fourth quarter of 1998, we made agreements with various sales representatives
        to
        develop markets for our new products and to maintain customer relations.
        Our
        current representatives receive an average commission of approximately 4%
        of
        sales in their market areas. In the first six months of 2005 and 2004,
        commissions paid were $208,522 and $164,257 respectively, an increase of
        27%.
        Increase was due to the hiring to two direct sales people.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">An
        adequate supply of raw materials is available from both domestic and
        international suppliers. The relationship between us and our 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></div><br>
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        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BOVIE
        MEDICAL CORPORATION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        order
        to provide additional working capital, we have secured a $1.5 million credit
        facility with a local commercial bank. This facility is payable on demand.
        For
        the period ended June 30, 2005, we had zero funds drawn down on this credit
        facility.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        ten
        largest customers accounted for approximately 60% of net revenues for the
        first
        six month of 2005 as compared to 71% in the same period of 2004. For both
        periods ended June 30, 2005 and 2004, our ten largest trade receivables
        accounted for approximately 62% and 66% of outstanding receivables,
        respectively. In the first six month of 2005 and 2004 one customer, Arthrex,
        accounted for 13% and 32% of total sales, respectively.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Product
        Development</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Most
        of
        the Company&#8217;s products and product improvements have been developed internally.
        Funds for this development have come from internal cash flow and the sale
        of
        common stock upon the exercise of stock options. The Company maintains close
        working relationships with physicians and medical personnel in hospitals
        and
        universities who assist in product research and development. New and improved
        products play a critical role in the Company&#8217;s sales growth. The Company
        continues to place emphasis on the development of proprietary products and
        product improvements to complement and expand its existing product lines.
        The
        Company has a centralized research and development focus, with its one
        manufacturing location responsible for new product development and product
        improvements. Our research, development and engineering units at the
        manufacturing location maintain relationships with distribution locations
        and
        customers in order to provide an understanding of changes in the market and
        product needs. During 2004 and into 2005 we invested in the J Plasma Technology,
        the Suture Removal Technology, the Gastrointestinal &#8220;GI&#8221; device and undertook
        development of Cardio and Urological Electrosurgical devices for a contractual
        partner. The suture removal device and the GI device are slated to be marketed
        during the fourth quarter of 2005. The ongoing cost for this development
        will be
        paid from operating cash flows.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        the
        next year we do not contemplate any material purchase or acquisition of assets
        which our ordinary cash flow and or credit line would not be able to
        sustain.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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 Bovie maintaining compliance with
        our
        credit facility. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Reliance
        on Collaborative, Manufacturing and Selling Arrangements</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        are
        dependent on certain contractual OEM customers for product development wherein
        we are to provide the manufacturing of the product developed. However, the
        customers have no legal obligation to purchase the developed products. Should
        the collaborative customer fail to give us purchase orders for the product
        after
        development, our future business and value of related assets could be negatively
        affected. Furthermore, no assurance can be given that a collaborative customer
        may give sufficient high priority to our products. In addition, disagreements
        or
        disputes may arise between Bovie and its contractual customers which could
        adversely affect production of our products. We also have similar informal
        collaborative arrangements with two foreign suppliers except that we request
        the
        development of certain items and components and we purchase them from the
        foreign supplier pursuant to purchase orders. Our purchase orders are never
        for
        more than one year and are supported by customer purchase orders from our
        customers.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Liquidity
        and Capital Resources</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        working capital at June 30, 2005 decreased $.36 million to $5,190 million
        from
        $5,551 million at December 31, 2004. The decrease in working capital was
        primarily a result of investing in fixed assets and not financing those
        purchases. Accounts payable and other accrued liabilities together increased
        to
        a small degree in 2004 as a result of the growth in the business. Accounts
        receivable days sales outstanding were 48.9 days and 48.3 days at June 30,
        2005
        and June 30, 2004 respectively. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          </div>
          <div id="PN" style="PAGE-BREAK-AFTER: always">
            <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
            </div>
          </div>
          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BOVIE
        MEDICAL CORPORATION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        applied cash to operations of .57 million for the six months ended June 30,
        2005
        compared with providing $.86 million in the same period of 2004. The decrease
        in
        cash from operations for the period end June 30, 2005 in comparison to the
        prior
        year is primarily due to the reduction of earnings of $.67 million in the
        six
        months ended June 30, 2005.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        the
        six months ended June 30, 2005 we used $.65 million for the purchase of fixed
        assets. Total borrowing declined by $15,831 which is the amount by which
        we
        reduced our first mortgage. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        had
        1.09 million in cash and cash equivalents at June 30, 2005. We also had
        outstanding borrowings totaling $.36 million at that date. Current maturities
        of
        long-term debt at June 30, 2005 were $31,668. We believe our cash on hand,
        as
        well as anticipated cash flows from operations, will be sufficient to fund
        future operating capital requirements, future manufacturing facility
        construction and other capital expenditures and future acquisitions to
        supplement our current product offerings. Should additional funds be required,
        we have $1.5 million of additional borrowing capacity available under our
        existing credit facility.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company&#8217;s future contractual obligations for agreements with initial terms
        greater than one year, including agreements to purchase materials in the
        normal
        course of business, are summarized as follows (in thousands):</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
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            <tr>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="justify" colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: #ffffff thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;Six
                  Months</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="justify" colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: #ffffff thin solid">
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              <td colspan="5" valign="bottom" width="21%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Payment
                  Period</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="justify" colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: #ffffff thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2007</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2008</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2009</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Long-term
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              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">16</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">348</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-0-</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-0-</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-0-</font></div>
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            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
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              <td width="2%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">73</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">142</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">135</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">115</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: white">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-0-</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: white">&#160;</td>
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            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="43%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unconditional
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              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,027</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">681</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-0-</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-0-</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-0-</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
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            <tr>
              <td align="left" valign="bottom" width="57%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
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              <td align="left" valign="bottom" width="57%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Expiration
                  Per Period</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="57%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amount</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
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                  than</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                  excess of</font></div>
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            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Committed</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1
                  year</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1
                  year</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="57%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Secured
                  revolving credit agreement and other lines of credit</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.5</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.5</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #e2eef6">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-0-</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        of
        June 30, 2005 the total amount is available.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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, involve 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&#8217;
availability of components at reasonable prices; risk of nonpayment of accounts
        receivable; risks associated with foreign operations; and litigation involving
        intellectual property and consumer issues. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        believe that we have the product mix, facilities, personnel, competitive
        edge,
        operating cash flows and financial resources for business success in the
        immediate (1 year) future and distant future (after 1 year), but future
        revenues, costs, margins, product mix and profits are all subject to the
        influence of a number of factors, as discussed above. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Critical
        Accounting Estimates</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        have
        adopted various accounting policies to prepare the consolidated financial
        statements in accordance with accounting principles generally accepted (GAAP)
        in
        the United States of America (U.S.). Our most significant accounting policies
        are disclosed in Note 1 to the consolidated financial
        statements.</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        </div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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          </div>
        </div>
        <div id="HDR">
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      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BOVIE
        MEDICAL CORPORATION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        preparation of the consolidated financial statements, in conformity with
        U.S.
        GAAP, requires us to make estimates and assumptions that affect the amounts
        reported in the consolidated financial statements and accompanying notes.
        Our
        estimates and assumptions, including those related to bad debts, inventories,
        intangible assets, property, plant and equipment, minority investment, legal
        proceedings, research and development, warranty obligations, product liability,
        pension obligations, sales returns and discounts, and income taxes are updated
        as appropriate, which in most cases is at least quarterly. We base our estimates
        on historical experience, actuarial valuations, or various assumptions that
        are
        believed to be reasonable under the circumstances and the results form the
        basis
        for making judgments about the reported values of assets, liabilities, revenues
        and expenses. Actual results may materially differ from these
        estimates.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Estimates
        are considered to be critical if they meet both of the following criteria:
        (1)
        the estimate requires assumptions about material matters that are uncertain
        at
        the time the accounting estimates are made, and (2) other materially different
        estimates could have been reasonably made or material changes in the estimates
        are reasonably likely to occur from period to period. Our critical accounting
        estimates include the following:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Allowance
        for doubtful accounts</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        maintain an allowance for doubtful accounts for estimated losses in the
        collection of accounts receivable. We make estimates regarding the future
        ability of our customers to make required payments based on historical credit
        experience and expected future trends. If actual customer financial conditions
        are less favorable than projected by management, additional accounts receivable
        write-offs may be necessary, which could unfavorably affect future operating
        results.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Inventory
        Reserves</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        maintain reserves for excess and obsolete inventory resulting from the potential
        inability to sell our products at prices in excess of current carrying costs.
        The markets in which we operate are highly competitive, with new products
        and
        surgical procedures introduced on an ongoing basis. Such marketplace changes
        may
        cause our products to become obsolete. We make estimates regarding the future
        recoverability of the costs of these products and record a provision for
        excess
        and obsolete inventories based on historical experience, and expected future
        trends. If actual product life cycles, product demand or acceptance of new
        product introductions are less favorable than projected by management,
        additional inventory write-downs may be required, which could unfavorably
        affect
        future operating results.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
        Taxes</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        operate in multiple tax jurisdictions both inside and outside the United
        States.
        Accordingly, management must determine the appropriate allocation of income
        to
        each of these jurisdictions. Tax audits associated with the allocation of
        this
        income and other complex issues may require an extended period of time to
        resolve and may result in income tax adjustments if changes to the income
        allocation are required between jurisdictions with different tax rates. Because
        tax adjustments in certain jurisdictions can be significant, we record accruals
        representing our best estimate of the probable resolution of these matters.
        To
        the extent additional information becomes available, such accruals are adjusted
        to reflect the revised estimated probable outcome.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
        Matters</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        distribute our products throughout the world. As a result, our financial
        results
        could be significantly affected by factors such as changes in foreign currency
        exchange rates or weak economic conditions in foreign markets. Our operating
        results are primarily exposed to changes in exchange rates among the United
        States dollar and European currencies, in particular the Euro and the British
        pound. When the United States dollar weakens against foreign currencies,
        the
        dollar value of sales denominated in foreign currencies increases. When the
        United States dollar strengthens, the opposite situation occurs. We manufacture
        our products in the United States, China and Bulgaria and incur the costs
        to
        manufacture in US dollars. This worldwide deployment of factories serves
        to
        partially mitigate the impact of the high costs of manufacturing in the US.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
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            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
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      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BOVIE
        MEDICAL CORPORATION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        December 2004, the Financial Accounting Standards Board (FASB) issued a revision
        to Statement No. 123, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Share-Based
        Payment</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em><u>.
        </u></em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>This
        revision supersedes Accounting Principles Board (APB) Opinion N</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">o.
        25,
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Accounting
        for Stock Issued to Employees</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
        and its
        related implementation guidance. This revision requires companies to recognize
        the cost of stock options based on the grant-date fair value pursuant to
        their
        employee stock option plans over the period during which the recipient is
        required to provide services in exchange for the options, typically the vesting
        period. Pursuant to the requirements of the Statement, and amendments we
        plan to
        adopt the provisions of the standard during the fiscal year 2006. (See Note
        1.
        Significant Accounting Policies)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        3. CONTROLS AND PROCEDURES</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)
        Evaluation of disclosure controls and procedures</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">An
        evaluation of the effectiveness of the design and operation of the Company&#8217;s
        disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
        and 15d-15(e) as of June 30, 2005 was carried out under the supervision and
        with
        the participation of the Company&#8217;s management, including the President and Chief
        Executive Officer and the Chief Financial Officer (&#8220;the Certifying Officers&#8221;).
        Based on that evaluation, the Certifying Officers concluded that the Company&#8217;s
        disclosure controls and procedures are effective to bring to the attention
        of
        the Company management the relevant information necessary to permit an
        assessment of the need to disclose material developments and risks pertaining
        to
        the Company&#8217;s business in its periodic filings with the Securities and Exchange
        Commission.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Disclosure
        controls and procedures are designed to ensure that information required
        to be
        disclosed in our reports filed or submitted under the Securities Exchange
        Act is
        recorded, processed, summarized and reported within the time periods specified
        in the SEC&#8217;s rules and forms. Disclosure controls and procedures include,
        without limitation, controls and procedures designed to ensure that information
        required to be disclosed in our reports filed or submitted under the Securities
        Exchange Act is accumulated and communicated to management, including our
        President and Chief Financial Officer, as appropriate, to allow timely decisions
        and timely reporting regarding required disclosure.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)
        Changes in internal controls</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
        was
        no change to the Company&#8217;s internal control over financial reporting during the
        quarter ended June 30, 2005 that materially affected, or is reasonably likely
        to
        materially affect, the Company&#8217;s internal control over financial
        reporting.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PART
        II. OTHER INFORMATION </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        1. LEGAL PROCEEDINGS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
        were no legal proceedings during the quarterly period ended 06/30/05 pending
        that could have a material effect on our financial position.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        2. UNREGISTERED SALES OF EQUITY SECURITIES AND OF PROCEEDS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">None
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        3. DEFAULTS ON SENIOR SECURITIES HOLDERS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">None</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        4. SUBMISSION OF MATTERS TO VOTE BY SECURITY HOLDERS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">None</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
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        <div id="PN" style="PAGE-BREAK-AFTER: always">
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          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
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        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        5. OTHER INFORMATION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)
        On
        August 12, 2005 Charles Peabody, CFO, resigned due to a disagreement with
        management concerning the accounting treatment of a $55,000 contractual
        receivable.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        6. EXHIBITS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
        <table cellpadding="0" cellspacing="0" width="90%">

            <tr>
              <td align="justify" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">31.1</font></div>
              </td>
              <td align="justify" valign="top" width="80%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certifications
                  of Andrew Makrides, President and Chief Operating Officer of Registrant
                  pursuant to Rule 13a-14 adopted under the Securities Exchange Act
                  of 1934,
                  as amended, and Section 302 of the Sarbanes-Oxley Act of
                  2002.</font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="10%">&#160;</td>
              <td align="justify" valign="top" width="80%">&#160;</td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">31.2</font></div>
              </td>
              <td align="justify" valign="top" width="80%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certifications
                  of Andrew Makrides and acting Chief Financial Officer of Registrant
                  pursuant to Rule 13a-14 adopted under the Securities Exchange Act
                  of 1934,
                  as amended, and Section 302 of the Sarbanes-Oxley act of
                  2002.</font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="10%">&#160;</td>
              <td align="justify" valign="top" width="80%">&#160;</td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">32.1</font></div>
              </td>
              <td align="justify" valign="top" width="80%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certification
                  pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
                  906 of
                  the Sarbanes-Oxley Act of 2002.</font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="10%">&#160;</td>
              <td align="justify" valign="top" width="80%">&#160;</td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">32.2</font></div>
              </td>
              <td align="justify" valign="top" width="80%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certification
                  pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
                  906 of
                  the Sarbanes-Oxley Act of 2002.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
          </div>
          <div id="PN" style="PAGE-BREAK-AFTER: always">
            <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
            </div>
          </div>
          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BOVIE
        MEDICAL CORPORATION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURES:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bovie
        Medical Corporation. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Registrant)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:
        </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>August
        15, 2005</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>/s/Andrew
        Makrides</u></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
        Executive Officer - Andrew Makrides</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>/s/Andrew
        Makrides</u></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acting
        Chief Financial Officer- Andrew Makrides</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <div>
          <hr style="COLOR: black" align="left" noshade size="2" width="100%">
        </div>
      </div>
    </div>
  </body>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>ex31_1.htm
<DESCRIPTION>EXHIBIT 31.1
<TEXT>
<html>
  <head>
    <title>
      Unassociated Document
</title><!-- Licensed to: EDGARfilings, Ltd.-->
<!-- Document Created using EDGARIZER HTML 3.0.0.39401 -->
<!-- Copyright 2005 EDGARfilings, Ltd., an IEC company.-->
<!-- All rights reserved EDGARfilings.com -->
</head>
  <body bgcolor="#ffffff">
    <div>
      <div>
        <hr style="COLOR: black" align="center" noshade size="2" width="100%">
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CERTIFICATIONS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">I,
        Andrew
        Makrides, the Registrant's Chief Executive Officer, certify that:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.
        I have
        reviewed this quarterly report on Form 10-QSB of Bovie Medical
        Corporation;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.
        The
        registrant&#8217;s other certifying officer(s) and I are responsible for establishing
        and maintaining disclosure controls and procedures (as defined in Exchange
        Act
        Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
        (as
        defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant
        and
        have:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td style="WIDTH: 18pt">&#160;</td>
              <td style="WIDTH: 18pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Designed
                  such disclosure controls and procedures, or caused such disclosure
                  controls and procedures to be designed under our supervision, 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 report is
                  being
                  prepared;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td style="WIDTH: 18pt">&#160;</td>
              <td style="WIDTH: 18pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">b)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Designed
                  such internal control over financial reporting, or caused such
                  internal
                  control over financial reporting to be designed under our supervision,
                  to
                  provide reasonable assurance regarding the liability of financial
                  reporting and the preparation of financial statements for external
                  purposes in accordance with Generally Accepted Accounting
                  Principles.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td style="WIDTH: 18pt">&#160;</td>
              <td style="WIDTH: 18pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">c)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Evaluated
                  the effectiveness of the registrant&#8217;s disclosure controls and procedures
                  and presented in this report our conclusions about the effectiveness
                  of
                  the disclosure controls and procedures, as of the end of the period
                  covered by this report based on such evaluation;
                  and</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td style="WIDTH: 18pt">&#160;</td>
              <td style="WIDTH: 18pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">d)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Disclosed
                  in this report any change in the registrant&#8217;s internal control over
                  financial reporting that occurred during the registrant&#8217;s most recent
                  fiscal quarter (the Registrant's fourth fiscal quarter in the case
                  of an
                  annual report) that has materially affected, or is reasonably likely
                  to
                  materially affect, the registrant&#8217;s internal control over financial
                  reporting; and </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.
        The
        registrant&#8217;s other certifying officers and I have disclosed, based on our most
        recent evaluation of internal control over financial reporting, to the
        registrant&#8217;s auditors and the audit committee of the registrant&#8217;s board of
        directors (or persons performing the equivalent functions):</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td style="WIDTH: 18pt">&#160;</td>
              <td style="WIDTH: 18pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
                  significant deficiencies and material weaknesses in the design
                  or
                  operation of internal control over financial reporting which are
                  reasonably likely to adversely affect the registrant&#8217;s ability to record,
                  process, summarize and report financial information; and
                  </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td style="WIDTH: 18pt">&#160;</td>
              <td style="WIDTH: 18pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">b)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Any
                  fraud, whether or not material, that involves management or other
                  employees who have a significant role in the registrant&#8217;s internal control
                  over financial reporting.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:
        August 15, 2005</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/Andrew
        Makrides</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
        Executive Officer</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <div>
          <hr style="COLOR: black" align="center" noshade size="2" width="100%">
        </div>
      </div>
    </div>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>ex31_2.htm
<DESCRIPTION>EXHIBIT 31.2
<TEXT>
<html>
  <head>
    <title>
      Unassociated Document
</title><!-- Licensed to: EDGARfilings, Ltd.-->
<!-- Document Created using EDGARIZER HTML 3.0.0.39401 -->
<!-- Copyright 2005 EDGARfilings, Ltd., an IEC company.-->
<!-- All rights reserved EDGARfilings.com -->
</head>
  <body bgcolor="#ffffff">
    <div>
      <hr style="COLOR: black" align="center" noshade size="4" width="100%">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CERTIFICATIONS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">I,
        Andrew
        Makrides, the Registrant's Chief Financial Officer, certify that:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.
        I have
        reviewed this quarterly report on Form 10-QSB of Bovie Medical
        Corporation;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.
        The
        registrant&#8217;s other certifying officer(s) and I are responsible for establishing
        and maintaining disclosure controls and procedures (as defined in Exchange
        Act
        Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
        (as
        defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant
        and
        have:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td style="WIDTH: 18pt">&#160;</td>
              <td style="WIDTH: 18pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Designed
                  such disclosure controls and procedures, or caused such disclosure
                  controls and procedures to be designed under our supervision, 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 report is
                  being
                  prepared;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td style="WIDTH: 18pt">&#160;</td>
              <td style="WIDTH: 18pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">b)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Designed
                  such internal control over financial reporting, or caused such
                  internal
                  control over financial reporting to be designed under our supervision,
                  to
                  provide reasonable assurance regarding the liability of financial
                  reporting and the preparation of financial statements for external
                  purposes in accordance with Generally Accepted Accounting
                  Principles.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td style="WIDTH: 18pt">&#160;</td>
              <td style="WIDTH: 18pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">c)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Evaluated
                  the effectiveness of the registrant&#8217;s disclosure controls and procedures
                  and presented in this report our conclusions about the effectiveness
                  of
                  the disclosure controls and procedures, as of the end of the period
                  covered by this report based on such evaluation;
                  and</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td style="WIDTH: 18pt">&#160;</td>
              <td style="WIDTH: 18pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">d)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Disclosed
                  in this report any change in the registrant&#8217;s internal control over
                  financial reporting that occurred during the registrant&#8217;s most recent
                  fiscal quarter (the Registrant's fourth fiscal quarter in the case
                  of an
                  annual report) that has materially affected, or is reasonably likely
                  to
                  materially affect, the registrant&#8217;s internal control over financial
                  reporting; and </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.
        The
        registrant&#8217;s other certifying officers and I have disclosed, based on our most
        recent evaluation of internal control over financial reporting, to the
        registrant&#8217;s auditors and the audit committee of the registrant&#8217;s board of
        directors (or persons performing the equivalent functions):</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td style="WIDTH: 18pt">&#160;</td>
              <td style="WIDTH: 18pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
                  significant deficiencies and material weaknesses in the design
                  or
                  operation of internal control over financial reporting which are
                  reasonably likely to adversely affect the registrant&#8217;s ability to record,
                  process, summarize and report financial information; and
                  </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td style="WIDTH: 18pt">&#160;</td>
              <td style="WIDTH: 18pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">b)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Any
                  fraud, whether or not material, that involves management or other
                  employees who have a significant role in the registrant&#8217;s internal control
                  over financial reporting.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:
        August 15, 2005</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/Andrew
        Makrides</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acting
        Chief Financial Officer</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
        <div>
          <hr style="COLOR: black" align="center" noshade size="2" width="100%">
        </div>
      </div>
    </div>
  </body>
</html>



</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>4
<FILENAME>ex32_1.htm
<DESCRIPTION>EXHIBIT 32.1
<TEXT>
<html>
  <head>
    <title>
      Unassociated Document
</title><!-- Licensed to: EDGARfilings, Ltd.-->
<!-- Document Created using EDGARIZER HTML 3.0.0.39401 -->
<!-- Copyright 2005 EDGARfilings, Ltd., an IEC company.-->
<!-- All rights reserved EDGARfilings.com -->
</head>
  <body bgcolor="#ffffff">
    <div>
      <div>
        <hr style="COLOR: black" align="center" noshade size="4" width="100%">
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BOVIE
        MEDICAL CORPORATION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EXHIBIT
        32.1</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certification
        Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        connection with the Annual Report of Bovie Medical Corporation (the &#8220;Company&#8221;)
        on Form 10-QSB for the quarter ended June 30, 2005 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 18 USC &#167;1350 as
        adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that (1)
        the
        annual report fully complies with the requirements of section 13(a) or 15(d)
        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></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:
        August 15, 2005</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="75%">&#160;</td>
              <td align="left" valign="bottom" width="25%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
                  Andrew Makrides</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="75%">&#160;</td>
              <td align="left" valign="bottom" width="25%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">President,
                  Chief</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="75%">&#160;</td>
              <td align="left" valign="bottom" width="25%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Executive
                  Officer, Chairman</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="75%">&#160;</td>
              <td align="left" valign="bottom" width="25%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">of
                  the Board and Director </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
        <div>
          <hr style="COLOR: black" align="center" noshade size="2" width="100%">
        </div>
      </div>
    </div>
  </body>
</html>



</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>5
<FILENAME>ex32_2.htm
<DESCRIPTION>EXHIBIT 32.2
<TEXT>
<html>
  <head>
    <title>
      Unassociated Document
</title><!-- Licensed to: EDGARfilings, Ltd.-->
<!-- Document Created using EDGARIZER HTML 3.0.0.39401 -->
<!-- Copyright 2005 EDGARfilings, Ltd., an IEC company.-->
<!-- All rights reserved EDGARfilings.com -->
</head>
  <body bgcolor="#ffffff">
    <div>
      <div>
        <hr style="COLOR: black" align="center" noshade size="4" width="100%">
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BOVIE
        MEDICAL CORPORATION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EXHIBIT
        32.2</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certification
        Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        connection with the Annual Report of Bovie Medical Corporation (the &#8220;Company&#8221;)
        on Form 10-QSB for the quarter ended June 30, 2005 as filed with the Securities
        and Exchange Commission on the date hereof, I, Andrew Makrides, Acting Chief
        Financial Officer, certify, pursuant to 18 USC &#167;1350 as adopted pursuant to
        section 906 of the Sarbanes-Oxley Act of 2002, that (1) the Annual Report
        fully
        complies with the requirements of section 13(a) or 15(d) 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></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:
        August 15, 2005</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="75%">&#160;</td>
              <td align="left" valign="top" width="25%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -5.4pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
                  Andrew Makrides</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="75%">&#160;</td>
              <td align="left" valign="top" width="25%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acting
                  Chief Financial Officer,</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
        <div>
          <hr style="COLOR: black" align="center" noshade size="2" width="100%">
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    </div>
  </body>
</html>



</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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