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<SEC-DOCUMENT>0001362310-09-005555.txt : 20090420
<SEC-HEADER>0001362310-09-005555.hdr.sgml : 20090420
<ACCEPTANCE-DATETIME>20090420150639
ACCESSION NUMBER:		0001362310-09-005555
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20090604
FILED AS OF DATE:		20090420
DATE AS OF CHANGE:		20090420
EFFECTIVENESS DATE:		20090420

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MILESTONE SCIENTIFIC INC/NJ
		CENTRAL INDEX KEY:			0000855683
		STANDARD INDUSTRIAL CLASSIFICATION:	ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES [3842]
		IRS NUMBER:				133545623
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14053
		FILM NUMBER:		09758998

	BUSINESS ADDRESS:	
		STREET 1:		220 S ORANGE AVE
		STREET 2:		LIVINGSTON CORPORATE PARK
		CITY:			LIVINGSTON
		STATE:			NJ
		ZIP:			07039
		BUSINESS PHONE:		2013793171

	MAIL ADDRESS:	
		STREET 1:		44 KEAN ROAD
		STREET 2:		220 SOUTH ORANGE AVE
		CITY:			LIVINGSTON
		STATE:			NJ
		ZIP:			07039

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	U S OPPORTUNITY SEARCH INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>c83954def14a.htm
<DESCRIPTION>SCHEDULE 14A
<TEXT>
<HTML>
<HEAD>
<TITLE>Schedule 14A</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 14pt; margin-top: 6pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>SCHEDULE 14A</B>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 12pt">Proxy Statement Pursuant to Section&nbsp;14(a) of the Securities<BR>
Exchange Act of 1934 (Amendment No. ___)</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Filed by the Registrant <FONT face="wingdings" size="2">&#254;</FONT><BR>
Filed by a Party other than the Registrant <FONT face="wingdings" size="2">&#111;</FONT>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box:

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Preliminary Proxy Statement</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD><B>Confidential, for Use of the Commission Only (as permitted by Rule&nbsp;14a-</B><B>6(e)(2)</B><B>)</B></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#254;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Definitive Proxy Statement</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Definitive Additional Materials</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Soliciting Material Pursuant to &#167;240.14a-12</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 6pt">&nbsp;</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 6pt">
<b>Milestone Scientific Inc.</b></DIV>
<DIV align="center" style="font-size: 10pt"><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
(Name of Registrant as Specified In Its Charter)</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt">&nbsp;</DIV>

<DIV align="center">
</DIV>
<DIV align="center" style="font-size: 10pt"><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Payment of Filing Fee (Check the appropriate box):

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#254;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>No fee required.</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Fee computed on table below per Exchange Act Rules&nbsp;14a-6(i)(1) and 0-11.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(1)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Title of each class of securities to which transaction applies:</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(2)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Aggregate number of securities to which transaction applies:</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(3)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Per unit price or other underlying value of transaction computed pursuant to Exchange Act
Rule&nbsp;0-11 (set forth the amount on which the filing fee is calculated and state how it was
determined):</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(4)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Proposed maximum aggregate value of transaction:</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(5)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Total fee paid:</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Fee paid previously with preliminary materials.</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Check box if any part of the fee is offset as provided by Exchange Act Rule&nbsp;0-11(a)(2)
and identify the filing for which the offsetting fee was paid previously. Identify the
previous filing by registration statement number, or the Form or Schedule and the date of its
filing.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(1)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Amount Previously Paid:</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(2)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Form, Schedule or Registration Statement No.:</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(3)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Filing Party:</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(4)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Date Filed:</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>Milestone Scientific Inc.</B></FONT>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Notice of Annual Meeting of Stockholders<BR>
To be held on June&nbsp;4, 2009</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">To the Stockholders of Milestone Scientific Inc.:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">NOTICE IS HEREBY GIVEN that the Annual Meeting of Stockholders of Milestone Scientific Inc.
(&#147;Milestone&#148; or the &#147;Company&#148;) will be held at Brown, Rudnick, Berlack and Israels, 7 Times Square,
New York, New York on June&nbsp;4, 2009 at 9:00 A.M. Eastern Time for the purpose of considering and
acting upon the following:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">1. Election of five (5)&nbsp;directors;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">2. Ratification of appointment of Holtz Rubenstein Reminick LLP as Milestone&#146;s independent
auditors for the current year; and,
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">3. Any and all matters incident to the foregoing, and such other business as may legally
come before the meeting and any adjournments or postponements thereof.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Board of Directors (the &#147;Board&#148;) has fixed the close of business on April&nbsp;10, 2009 as the
Record Date for determining the stockholders having the right to notice of and to vote at the
meeting (the &#147;Record Date&#148;).
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>By order of the Board of Directors</B></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Leonard Osser</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman of the Board</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Livingston, New Jersey<BR>
April&nbsp;24, 2009
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>IMPORTANT: Every stockholder, whether or not he or she expects to attend the Annual Meeting in
person, is urged to execute the proxy and return it promptly in the enclosed business reply
envelope. Sending in your proxy will not prevent you from voting your stock at the meeting if you
desire to do so, as your proxy is revocable at your option. We would appreciate your giving this
matter your prompt attention.</B>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->2 of 18<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>MILESTONE SCIENTIFIC INC.<BR>
PROXY STATEMENT</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>For Annual Meeting of Stockholders<BR>
To be Held on June&nbsp;4, 2009</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Proxies in the form enclosed with this statement are solicited by the Board of Milestone to be
used at the Annual Meeting of Stockholders and any adjournments thereof, to be held at Brown,
Rudnick, Berlack and Israels, 7 Times Square, New York, New York on June&nbsp;4, 2009 at 9:00 A.M.
Eastern Time, for the purposes set forth in the Notice of Meeting and this Proxy Statement. The
Board knows of no other business which will come before the meeting. This Proxy Statement and the
accompanying proxy will be mailed to stockholders on April&nbsp;27, 2009.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>THE VOTING AND VOTE REQUIRED</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Record Date and Quorum</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Only stockholders of record at the close of business on the Record Date are entitled to notice
of and vote at the Annual Meeting. On the Record Date, there were 13,006,544 outstanding shares of
common stock, par value $.001 per share. At the Annual Meeting, each share of common stock is
entitled to one vote. In the aggregate, 13,006,544 votes may be cast at the Annual Meeting. Shares
represented by each properly executed, unrevoked proxy received in time for the meeting will be
voted as specified.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Voting of Proxies</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The persons acting as proxies pursuant to the enclosed proxy will vote the shares represented
as directed in the signed proxy. Unless otherwise directed in the proxy, the proxyholders will vote
the shares represented by the proxy: (i)&nbsp;for election of the director nominees named in this Proxy
Statement; (ii)&nbsp;for ratification of the appointment of Holtz Rubenstein Reminick LLP as independent
auditors to audit the financial statements of the Company for the fiscal year ending December&nbsp;31,
2009; and (iii)&nbsp;in the proxyholders&#146; discretion, on any other business that may come before the
meeting and any adjournments of the meeting.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">All votes will be tabulated by the inspector of elections appointed for the Annual Meeting,
who will separately tabulate affirmative and negative votes, abstentions and broker non-votes.
Under the Company&#146;s bylaws and Delaware law: (1)&nbsp;shares represented by proxies that reflect
abstentions or &#147;broker non-votes&#148; (i.e., shares held by a broker or nominee that are represented at
the meeting, but with respect to which such broker or nominee is not empowered to vote on a
particular proposal) will be counted as shares that are present and entitled to vote for purposes
of determining the presence of a quorum; (2)&nbsp;there is no cumulative voting, and the director
nominees receiving the highest number of votes, up to the number of directors to be elected, are
elected and, accordingly, abstentions, broker non-votes and withholding of authority to vote will
not affect the election of directors; and (3)&nbsp;proxies that reflect abstentions will be treated as
votes against that proposal and non-votes will be treated as unvoted for purposes of determining
approval of that proposal and will not be counted as votes for or against that proposal.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Voting Requirements</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Directors are elected by a plurality of the votes cast at the meeting. The affirmative vote of
a majority of votes cast for or against the matter by stockholders entitled to vote is required to
ratify the appointment of independent auditors.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Revocability of Proxy</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">A proxy may be revoked by the stockholder giving the proxy at any time before it is voted by
delivering oral or written notice to the Corporate Secretary of Milestone at or prior to the
meeting, and a prior proxy is automatically revoked by a stockholder giving a subsequent proxy or
attending and voting at the meeting. Attendance at the meeting in and of itself does not revoke a
prior proxy.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->3 of 18<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Expenses of Solicitation</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We will pay the expenses of the preparation of proxy materials and the solicitation of proxies
for the Annual Meeting. In addition to the solicitation of proxies by mail, solicitation may be
made by certain directors, officers or employees of Milestone telephonically, electronically or by
other means of communication. We will reimburse brokers and other nominees for costs incurred by
them in mailing proxy materials to beneficial owners in accordance with applicable rules.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>ELECTION OF DIRECTORS (Item&nbsp;1 on the Proxy Card)</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Five (5)&nbsp;directors are to be elected at the Annual Meeting, each for a term of one year and
until the election and qualification of a successor.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">It is intended that votes pursuant to the enclosed proxy will be cast for the election of the
five nominees named below. In the event that any such nominee should become unable or unwilling to
serve as a director, the proxy will be voted for the election of such person, if any, as shall be
designated by the Board. Management has no reason to believe these nominees will not be available
for election.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The following table sets forth the names and ages of each nominee, the principal occupation of
each during the past five years and the period during which each has served as a director of
Milestone. Information as to the stock ownership of each nominee is set forth under &#147;Security
Ownership of Certain Beneficial Owners and Management.&#148; All of the nominees to the Board have been
approved, recommended and nominated for re-election to the Board by Milestone&#146;s Nominating
Committee and by the Board.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="36%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="36%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Director</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Age</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Position</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Since</B></TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leonard A. Osser</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Chairman and Interim Chief   Executive Officer</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1991</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leonard M. Schiller(1)(2)(3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Director</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1997</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jeffrey Fuller(1)(3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Director</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2003</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leslie Bernhard(1)(2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Director</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2003</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pablo Felipe Serna Cardenas(2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Director</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2006</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<DIV align="left"><DIV style="font-size: 10pt; margin-top: 10pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Member of the Audit Committee.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Member of the Compensation Committee.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Member of the Nominating Committee.</DIV></TD>
</TR>

</TABLE>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Leonard Osser, Chairman of the Board and Interim Chief Executive Officer</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Leonard has served as Milestone&#146;s Chairman since 1991. From 1991 through 2007, he also served
as Chief Executive Officer of the Company. From 1980 until the consummation of Milestone&#146;s public
offering in November&nbsp;1995, he was primarily engaged as the principal owner and Chief Executive
Officer of U.S. Asian Consulting Group, Inc., a New Jersey-based provider of consulting services
specializing in distressed or turnaround situations in both the public and private markets.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Leonard M. Schiller, Director</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Leonard M. Schiller has been a director of Milestone since April&nbsp;1997. Mr.&nbsp;Schiller has been a
partner in the Chicago law firm of Schiller, Klein &#038; McElroy, P.C. since 1977. He has also been
President of The Dearborn Group, a residential property management and real estate acquisition
company since 1980.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->4 of 18<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Jeffrey Fuller, Director</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Jeffrey has served as an Independent Director of Milestone since January&nbsp;2003. He has been
President and owner of two municipal water supply systems, Hudson Valley Water Co. and Lake Lenape
Water Co. since 1983, and in addition has been an executive recruiter since 1995. Early in his
career, he was an auditor with Arthur Andersen LLP; a senior internal auditor with the Dreyfus
Corp.; and from 2003 to 2004, an Adjunct Professor at Berkeley College in New York teaching several
courses including Accounting.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Leslie Bernhard, Director</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Leslie has served as an Independent Director of Milestone since May&nbsp;2003. She co-founded
AdStar, Inc. and since 1986 has served as its President, Chief Executive Officer and Director.
AdStar is an application service provider for the newspaper classified advertising industry.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Pablo Felipe Serna Cardenas, Director</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Pablo Felipe Serna Cardenas has been a director of Milestone since June&nbsp;2006. He is the
founder of SPOT Investments, a European-based financial services firm. Previously, from 2001 to
2005, he was a director and Senior Manager at Dynamic Decisions Group Ltd, an equity research and
valuation consulting firm. In that capacity, Mr.&nbsp;Serna Cardenas led the corporate finance team at
Dynamic Decisions in investment banking and project valuation consulting. Prior to joining Dynamic
Decisions, from 1999-2001, Mr.&nbsp;Serna Cardenas served as an associate with Real Options Group. Real
Options Group is an international academic research center consulting to business entities. Before
joining Real Options Group, Mr.&nbsp;Serna Cardenas was the general manager with Estudios, Consultorias
y Asesorias Financieras, a Financial Consulting firm in Columbia.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">All directors of Milestone hold office until the next Annual Meeting of stockholders and until
their successors are duly elected and qualified. Officers are elected to serve, subject to the
discretion of the Board, until their successors are appointed.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->5 of 18<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Committees of the Board of Directors</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Milestone&#146;s Board has established audit, compensation and nominating committees. The
Compensation Committee reviews and recommends to the Board the compensation and benefits of all the
officers of Milestone, reviews general policy matters relating to compensation and benefits of
employees of Milestone, and administers the issuance of stock options to Milestone&#146;s officers,
employees, directors and consultants. All compensation arrangements between Milestone and its
directors, officers and affiliates are reviewed by the Compensation Committee, the majority of
which is made up of independent directors. The Audit Committee meets with management and
Milestone&#146;s independent auditors to determine the adequacy of internal controls and other financial
reporting matters.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Attendance at Committee and Board of Directors Meetings</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Board held a total of seventeen meetings in 2008, including seven Audit Committee meetings
and one Compensation Committee meeting. Each of our directors attended at least 75% of the
aggregate of the total number of meetings of the Board and the total number of meetings of the
committees of the Board on which he or she served, except for Leonard Osser, who attended 67% of
the meetings and Jeffrey Fuller, who attended 71% of the meetings. All six directors, as of June
5, 2008 attended the 2008 Annual Meeting.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Compensation Committee</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Compensation Committee reviews and recommends to the Board the compensation and benefits
of all officers of the Company, reviews general policy matters relating to compensation and
benefits of employees of the Company, and administers the issuance of stock options to the
Company&#146;s officers, employees, directors and consultants. The Compensation Committee is comprised
of Leonard M. Schiller, Leslie Bernhard and Pablo Felipe Serna Cardenas. During the year ended
December&nbsp;31, 2008, the Compensation Committee held one meeting.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Audit Committee</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Audit Committee was established to meet with management and the Company&#146;s independent
accountants to determine the adequacy of internal controls and other financial reporting matters.
The Board adopted a revised written charter for the Audit Committee in July, 2005 (the &#147;Charter&#148;).
The Audit Committee reviewed the Company&#146;s audited financial statements for the year ended
December&nbsp;31, 2008 and met with the management of the Company to discuss such audited financial
statements. The Audit Committee has discussed with the Company&#146;s independent accountants, Holtz
Rubenstein Reminick LLP, the matters required to be discussed pursuant to Statement on Accounting
Standards No.&nbsp;61; has received the written disclosures and the letter from Holtz Rubenstein
Reminick LLP required by the Independence Standards Board Standard No.&nbsp;1; has discussed with Holtz
Rubenstein Reminick LLP its independence from management and the Company; and has given Holtz
Rubenstein Reminick LLP full and free access to the Audit Committee. Based on its review and
discussions, the Audit Committee recommended to the Board that the audited financial statements be
included in the Company&#146;s Annual Report on Form 10-K. The Audit Committee is comprised of Leonard
M. Schiller, Leslie Bernhard and Jeffrey Fuller, all of whom are independent as defined in the
applicable listing standards. The Board has determined that Jeffrey Fuller qualifies as an Audit
Committee Financial Expert and is independent as defined in applicable federal securities laws and
regulations. During the year ended December&nbsp;31, 2008, the Audit Committee held seven meetings.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Nominating Committee</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Company formed a Nominating Committee in May&nbsp;2004. The members of the Nominating Committee
are Leonard M. Schiller and Jeffrey Fuller, each of whom is qualified as &#147;independent&#148; under the
applicable listing standards.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Nominating Committee will consider director candidates recommended by stockholders. In
considering candidates submitted by stockholders, the Nominating Committee will take into
consideration the needs of the Board and the qualifications of the candidate. The Nominating
Committee may also take into consideration the number of shares held by the recommending
stockholder and the length of time that such shares have been held. To have a candidate considered
by the Nominating Committee, a stockholder must submit the recommendation in writing and must
include the following
information: the name of the stockholder and evidence of the person&#146;s ownership of Company
stock, including the number of shares owned and the length of time of ownership; the name of the
candidate, the candidate&#146;s resume or a listing of his or her qualifications to be a director of the
Company; and, the person&#146;s consent to be named as a director if selected by the Nominating
Committee and nominated by the Board.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->6 of 18<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The stockholder recommendation and information described above must be sent to the Company&#146;s
Chief Financial Officer at 220 South Orange Avenue, Livingston Corporate Park, Livingston, NJ 07039
and must be received not less than 120&nbsp;days prior to the anniversary date of the Company&#146;s most
recent annual meeting of stockholders.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Nominating Committee believes that the minimum qualifications for service as a director of
the Company are that a nominee possess an ability, as demonstrated by recognized success in his or
her field, to make meaningful contributions to the Board&#146;s oversight of the business and affairs of
the Company and an impeccable reputation of integrity and competence in his or her personal or
professional activities. The Nominating Committee&#146;s evaluation of potential candidates shall be
consistent with the Board&#146;s criteria for selecting new directors. Such criteria include an
understanding of the Company&#146;s business environment and the possession of such knowledge, skills,
expertise and diversity of experience so as to enhance the Board&#146;s ability to manage and direct the
affairs and business of the Company, including when applicable, to enhance the ability of
committees of the Board to fulfill their duties and/or satisfy any independence requirements
imposed by law, regulation or listing requirements.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Nominating Committee may also receive suggestions from current Board members, company
executive officers or other sources, which may be either unsolicited or in response to requests
from the Nominating Committee for such candidates. The Nominating Committee also, from time to
time, may engage firms that specialize in identifying director candidates.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Once a person has been identified by the Nominating Committee as a potential candidate, the
Nominating Committee may collect and review publicly available information regarding the person to
assess whether the person should be considered further. If the Nominating Committee determines that
the candidate warrants further consideration, the Chairman or another member of the Nominating
Committee may contact the person. Generally, if the person expresses a willingness to be considered
and to serve on the Board, the Nominating Committee may request information from the candidate,
review the person&#146;s accomplishments and qualifications and may conduct one or more interviews with
the candidate. The Nominating Committee may consider all such information in light of information
regarding any other candidates that the Nominating Committee might be evaluating for membership on
the Board. In certain instances, Nominating Committee members may contact one or more references
provided by the candidate or may contact other members of the business community or other persons
that may have greater first-hand knowledge of the candidate&#146;s accomplishments. The Nominating
Committee&#146;s evaluation process does not vary based on whether or not a candidate is recommended by
a stockholder, although, as stated above, the Board may take into consideration the number of
shares held by the recommending stockholder and the length of time that such shares have been held.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Nominating Committee adopted a revised written charter in July&nbsp;2005, which is available to
security holders on Milestone&#146;s website at www.milestonescientific.com.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Stockholder Communication with the Board of Directors</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Board has established a process to receive communications from stockholders. Stockholders
and other interested parties may contact any member (or all members) of the Board, or the
non-management directors as a group, any Board committee or any chair of any such committee by mail
or electronically. To communicate with the Board, any individual director or any group or committee
of directors, correspondence should be addressed to the Board or any such individual directors or
group or committee of directors by either name or title. All such correspondence should be sent
&#147;c/o Corporate Secretary&#148; at 220 South Orange Avenue, Livingston Corporate Park, Livingston, NJ
07039. All communications received as set forth in the preceding paragraph will be opened by the
Corporate Secretary of the Company for the sole purpose of determining whether the contents
represent a message to our directors. Any contents that are not in the nature of advertising,
promotions of a product or service, patently offensive material or matters deemed inappropriate for
the Board will be forwarded promptly to the addressee. In the case of communications to the Board
or
any group or committee of directors, the Company&#146;s Corporate Secretary will make sufficient
copies of the contents to send to each director who is a member of the group or committee to which
the envelope or e-mail is addressed.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->7 of 18<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The following table, together with the accompanying footnotes, sets forth information, as of
March&nbsp;31, 2009, regarding stock ownership of Milestone&#146;s Executive Officers, Directors and all
persons known by Milestone to own beneficially more than 5% of Milestone&#146;s outstanding common
stock.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Except as otherwise indicated, the persons listed below have sole voting and investment power with
respect to all shares of common stock owned by them. All information with respect to beneficial
ownership has been furnished to us by the respective stockholder.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="66%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Shares of Common Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percentage</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Names of Beneficial Owner (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Beneficially Owned (2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>of Ownership</B></TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000"><B>Executive Officers and Directors</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leonard Osser</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1,353,413      </TD>
    <TD nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.47</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Joseph D&#146;Agostino</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">89,231      </TD>
    <TD nowrap>(4)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leonard Schiller</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">113,228      </TD>
    <TD nowrap>(5)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pablo Felipe Serna Cardenas</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">50,000      </TD>
    <TD nowrap>(6)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jeffrey Fuller</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">90,000      </TD>
    <TD nowrap>(7)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leslie Bernhard</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">80,000      </TD>
    <TD nowrap>(8)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">*</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">All directors &#038; executive officers as group (6 persons)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,775,872</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.74</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">K. Tucker Andersen</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1,525,023      </TD>
    <TD nowrap>(9)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">11.80</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<DIV align="left"><DIV style="font-size: 10pt; margin-top: 10pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Less than 1%.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">The addresses of the persons named in this table are as follows: Leonard A. Osser and
Joseph D&#146;Agostino are all at 220 South Orange Avenue, Livingston Corporate Park,
Livingston, NJ 07039; Leonard M. Schiller, Schiller, Klein &#038; McElroy, P.C., 33 North
Dearborn Street, Suite&nbsp;1030, Chicago, Illinois 60602; Pablo Felipe Serna Cardenas, Via
Camillo Golgi 2 Opera, Italy 20090; Jeffrey Fuller, Eagle Chase, Woodbury, NY 11797; Leslie
Bernhard, AdStar, Inc., 4553 Glencoe Avenue, Suite&nbsp;325, Marina del Rey, California 90292;
K. Tucker Anderson, c/o Cumberland Associates LLC, 1114 Avenue of the Americas, New York,
New York 10036.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">A person is deemed to be a beneficial owner of securities that can be acquired by such
person within 60&nbsp;days from March&nbsp;16, 2009 and 2008, as applicable, upon the exercise of
options and warrants or conversion of convertible securities. Each beneficial owner&#146;s
percentage ownership is determined by assuming that options, warrants and convertible
securities that are held by such person (but not held by any other person) and that are
exercisable or convertible within 60&nbsp;days from the filing of this report have been
exercised or converted. Except as otherwise indicated, and subject to applicable community
property and similar laws, each of the persons named has sole voting and investment power
with respect to the shares shown as beneficially owned. All percentages are determined
based on the number of all shares, including those underlying options exercisable within 60
days from the filing of this report held by the named individual, divided by 12,925,694 and
11,697,837 outstanding shares on March&nbsp;16, 2009 and March&nbsp;31, 2008, respectively, plus
those shares underlying options exercisable within 60&nbsp;days from the filing of this report
held by the named individual or the group.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">March&nbsp;31, 2009 includes 1,353,413 shares owned directly or controlled by Mr.&nbsp;Osser. Mr.
Osser became Interim Chief Executive Officer effective March&nbsp;30, 2009, following the
resignation of Mr.&nbsp;Martin.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">March&nbsp;31, 2009 includes 60,000 stock options at $0.40 per share, issued on March&nbsp;31,
2009 and 29,231 shares held by Mr.&nbsp;D&#146;Agostino.</DIV></TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->8 of 18<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">March&nbsp;31, 2009 includes 100,000 stock options, the 80,000 options listed in March&nbsp;31,
2008, an additional 20,000 shares at $0.74 issued in June&nbsp;2008 and 13,228 shares held by
Mr.&nbsp;Schiller. March&nbsp;31, 2008, includes 80,000 shares subject to stock options, one half of
each grant was exercisable immediately and the remaining one half exercisable one year
after the grant date as follows: 20,000 shares at $3.27 per share, 20,000 shares at $1.40
per share, 20,000 shares at $0.83 per share and 20,000 shares at $1.68. Also included is
13,228 shares held by Mr.&nbsp;Schiller.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">March&nbsp;31, 2009 includes 50,000 stock options, the 30,000 options listed in March&nbsp;31,
2008 and an additional 20,000 shares at $0.74 issued in June&nbsp;2008. March&nbsp;31, 2008 includes
30,000 shares subject to stock options, one half of each grant was exercisable immediately
and the remaining one half exercisable one year after the grant date as follows: 10,000
shares at $0.83 per share and 20,000 shares at $1.68.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">March&nbsp;13, 2009 includes 90,000 stock options, 20,000 shares at $0.74 issued in June
2008, 20,000 shares at $3.27 per share, 20,000 shares at $1.40 per share, 10,000 shares at
$0.83 and 20,000 shares at $1.68 per share. March&nbsp;31, 2008 includes 76,667 shares subject
to stock options, one half of each grant was exercisable immediately and the remaining one
half exercisable one year after the grant date as follows: 6,667 shares at $1.50 per share,
20,000 shares at $3.27 per share, 20,000 shares at $1.40 per share, 10,000 shares at $0.83
per share and 20,000 shares at $1.68.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">March&nbsp;31, 2009 includes 80,000 stock options, 20,000 shares at $3.27, 20,000 shares at
$1.40, 20,000 shares at $1.68 and 20,000 shares at $0.74. March&nbsp;31, 2008 includes 66,667
shares subject to stock options, one half of each grant was exercisable immediately and the
remaining one half exercisable one year after the grant date as follows: 6,667 shares at
$1.50 per share, 20,000 shares at $3.27 per share, 20,000 shares at $1.40 per share and
20,000 shares at $1.68.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(9)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">March&nbsp;31, 2009 includes 175,000 stock options, 130,000 at $5.00 and 45,000 at $0.32.
March&nbsp;31, 2008 included 183,946 shares subject to warrants all of which are exercisable
within 60&nbsp;days of the date hereof at $4.89 these warrants expired in February&nbsp;2009. The
2008 amount includes 100,000 shares subject to warrants at $5.00 per share.</DIV></TD>
</TR>

</TABLE>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>EXECUTIVE OFFICERS</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The following table sets forth the names, ages and principal positions of the executive
officers of the Company and two non-officer key employees as of March&nbsp;30, 2009. Information
regarding Mr.&nbsp;Osser is presented above.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="34%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Age</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Title</B></TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>EXECUTIVE OFFICERS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leonard A. Osser</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Chairman and Interim Chief Executive Officer</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Joseph D&#146;Agostino</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Chief Financial Officer</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>KEY EMPLOYEES</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Robert A. Presutti</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">56</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Vice President of Sales and Marketing</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Eugene Casagrande, D.D.S.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Director of Professional Relations</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mark Hochman, D.D.S.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Director of Clinical Affairs</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Joseph D&#146;Agostino, Chief Financial Officer</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Joining Milestone in January&nbsp;2008 as Acting CFO, Joseph D&#146;Agostino brings to Milestone a
wealth of finance and accounting experience earned over 25&nbsp;years serving both publicly and
privately held companies. Following a nine month performance assessment by the Board of Directors,
Mr.&nbsp;D&#146;Agostino was officially named Milestone&#146;s Chief Financial Officer in October&nbsp;2008. A
results-oriented and decisive leader, he has specific proven expertise in treasury and cash
management, strategic planning, information technology, internal controls, Sarbanes-Oxley
compliance, operations and financial and tax accounting. Immediately prior to joining Milestone,
Mr.&nbsp;D&#146;Agostino served as Senior Vice President and Treasurer of Summit Global Logistics, a publicly
traded, full service international freight forwarder and customs broker with operations in the
United States and China. Previous executive posts also included Executive Vice President and CFO
of Haynes Security, Inc., a leading electronic and manned security solutions company serving
government agencies and commercial enterprises; Executive Vice President of Finance and
Administration for Casio, Inc., the U.S. subsidiary of Casio Computer Co., Ltd., a leading
manufacturer of consumer electronics with subsidiaries throughout the world; and Manager of
Accounting and Auditing for Main Hurdman&#146;s National Office in New York City (merged into KPMG). Mr.
D&#146;Agostino is a Certified Public Accountant and holds memberships in the American Institute of
CPA&#146;s, New Jersey Society of CPA&#146;s, Financial Executive Institute, Consumer Electronics Industry
Association and
Homeland Security Industry Association. He is a graduate of William Paterson University where he
earned a Bachelor of Arts degree in Science.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->9 of 18<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Robert (Bob) A. Presutti, Vice President of Sales and Marketing</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Bob Presutti brings Milestone nearly 30&nbsp;years of professional sales and marketing experience,
primarily within the medical and dental industries, with emphasis on new product introductions. As
Director of Professional Sales at Optiva/Philips Healthcare, Inc., he helped to establish <I>Sonicare</I>
as the #1 most recommended and dispensed electric toothbrush among dental professionals, and drove
product sales from $5&nbsp;million to over $28&nbsp;million in a five year period. Immediately prior to
joining Milestone, Mr.&nbsp;Presutti served as Director of Professional Sales at Grinrx Corporation, a
start-up dental company in Washington. In May of 2005, he was recruited by the CEO of Brite Smile,
Inc. to serve as Executive Vice President of Sales. In this role, he led the rebuilding of the
dental product company&#146;s sales organization and relaunched its in-office whitening procedure in the
professional dental channel. While at Thermoscan, Inc. and Medtronic, Nortech Division, Mr.
Presutti held various sales management and market development positions of increasing
responsibility. Mr.&nbsp;Presutti holds a Bachelor of Arts degree in Business Administration from
Monmouth University.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Dr.&nbsp;Eugene Casagrande, Director of International &#038; Professional Relations</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Since 1998, Dr.&nbsp;Casagrande has served as Director of Professional Relations, charged with
pursuing a broad range of clinical and industry-related strategic business opportunities for the
Company. He has also lectured both nationally and internationally at over 35 dental schools and in
over 22 countries on Computer-Controlled Local Anesthesia Delivery. Dr.&nbsp;Casagrande is past
president of the California State Board of Dentistry and the Los Angeles Dental Society and is a
Fellow of the American and International Colleges of Dentists and has served on the faculty of the
University of Southern California, School of Dentistry.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Mark Hochman, D.D.S., Director of Clinical Affairs</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Dr.&nbsp;Hochman has served as Director of Clinical Affairs and Director of Research and
Development since 1999. He has a Doctorate of Dental Surgery with advanced training in the
specialties of Periodontics and Orthodontics from New York University of Dentistry and has been
practicing dentistry since 1984. He holds a faculty appointment as a clinical associate professor
at NYU School of Dental Surgery. Recognized as a world authority on Advanced Drug Delivery
Systems, Dr.&nbsp;Hochman has published numerous articles in this area, and shares in the responsibility
for inventing much of the technology currently available from Milestone.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>COMPENSATION OF DIRECTORS AND OFFICERS AND RELATED MATTERS</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Executive Compensation</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The following Summary Compensation Table sets forth all compensation earned, in all
capacities, during the fiscal year ended December&nbsp;31, 2008 by (i)&nbsp;Milestone&#146;s, Chief Executive
Officer and (ii)&nbsp;the two most highly compensated executive officers, other than the Chief Executive
Officer who were serving as executive officers at the end of the 2008 fiscal year and whose salary
as determined by Regulation&nbsp;S-K, Item&nbsp;402, exceeded $100,000 (the individuals falling within
categories (i)&nbsp;and (ii)&nbsp;are collectively referred to as the &#147;Named Executive Officers&#148;).
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>SUMMARY OF COMPENSATION TABLE</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Other</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Option</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name and Principal Position</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Salary</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Bonuses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Compensation</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Awards (2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leonard A. Osser</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">200,000      </TD>
    <TD nowrap>(1)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,408</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">218,408</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Chairman</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">300,000      </TD>
    <TD nowrap>(1)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">16,660         </TD>
    <TD nowrap>(1)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">316,660</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Joe W. Martin (3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">300,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">70,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,696</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">80,000      </TD>
    <TD nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">453,696</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Former Chief Executive Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">184,483</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">80,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">909</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">265,392</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Joseph D&#146;Agostino</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">165,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,737</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">195,737</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Chief Financial Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->10 of 18<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Includes $100,000 and $150,000 in deferred compensation in 2008 and 2007, respectively,
in accordance with his employment agreement to be paid in common stock and not paid until
the termination of the agreement in 2012 (under new employment agreement) or thereafter, if
further extended. Other compensation represents payments made for health insurance
coverage.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">The amounts in this column reflect the expense recognized for financial statement
reporting purposes for the fiscal year ended December&nbsp;31, 2008, in accordance with SFAS
123(R), &#147;Share-based Payments.&#148; for outstanding stock options granted as part of the stock
option plan. For details used in the assumption calculating the fair value of the option
reward, see Note B to the Financial Statements for the year ended December&nbsp;31, 2008, which
is located on pages F-7 through F-11 of the Annual Report on Form 10-K. Compensation cost
is generally recognized over the vesting period of the award. The number of shares
underlying this option award totaled 80,000 shares. See the table below entitled
&#147;Outstanding Equity Awards at December&nbsp;31, 2008 and 2007.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Resigned as Chief Executive Officer and Director effective March&nbsp;27, 2009.</DIV></TD>
</TR>

</TABLE>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Employment Contracts</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In December&nbsp;2003, Milestone entered into an employment agreement with Mr.&nbsp;Osser for a
five-year term commencing January&nbsp;1, 2004. This agreement was terminated effective December&nbsp;31,
2007. Milestone entered into a new agreement with Mr.&nbsp;Osser effective January&nbsp;1, 2008. The new
agreement is for five years ending on December&nbsp;31, 2012. As part of the new agreement the Chairman
has relinquished the title and position of CEO to concentrate on assisting the new CEO of the
Company in (i)&nbsp;management and oversight of vendors in China and other key vendors, (ii)&nbsp;arranging
for, and consummating financing transactions and (iii)&nbsp;conducting investor relations. Under the new
agreement, the Chairman will receive a base compensation of $200,000 per year payable, one half in
cash and one half in common stock valued at the closing price of the common stock on January&nbsp;31 of
each year with respect to the then current year. While the number of shares to be issued will be
determined each year, the stock will not be issued until the end of the term of the agreement.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In accordance with his employment contract, 83,333 shares of common stock were recorded as of
January&nbsp;31, 2008, to be paid out at the end of the contract. At December&nbsp;31, 2008 the full
settlement amount under the current and previous employment contracts is $700,000, 504,639 shares
of common stock of deferred compensation and, accordingly, such amount has been classified in
stockholder&#146;s equity, with the common shares classified as to be issued.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In accordance with the employment contract, an additional 45,455 shares of common stock were
recorded as of March&nbsp;31, 2009, to be paid out at the end of the contract. As of March&nbsp;31, 2009, the
full settlement amount under the current and previous employment contract is $725,000 and 550,094
share of common stock.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Mr.&nbsp;Osser became Interim Chief Executive Officer of the Company, effective March 31, 2009 and
accepted the previous Chief Executive Officer&#146;s contract as noted below.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Milestone entered into an agreement with Joe W. Martin, CEO effective May&nbsp;2, 2007, for the
period ending on December&nbsp;31, 2012. Under this agreement the CEO received a base compensation of
$300,000 per year and could earn annual bonuses up to an aggregate of $400,000, payable one half in
cash and one half in common stock, contingent upon Milestone achieving annual determined results,
plus options for twice the number of shares earned. The agreement was terminated upon Mr.&nbsp;Martin&#146;s
resignation as of March&nbsp;27, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Objective of Our Executive Compensation Program</B></U>

</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The primary objective of our executive compensation program is to attract and retain
qualified, energetic managers who are enthusiastic about our mission and culture. A further
objective of our compensation program is to provide incentives and reward each manager for their
contribution. In addition, we strive to promote an ownership mentality among key leadership and the
Board of Directors.
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->11 of 18<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Our Compensation Committee reviews and approves, or in some cases recommends for the approval
of the full Board of Directors, the annual compensation procedures for our Named Executive
Officers.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Our compensation program is designed to reward teamwork, as well as each manager&#146;s individual
contribution. In measuring the Named Executive Officers&#146; contribution, the Compensation Committee
considers numerous factors including our growth, strategic business relationships and financial
performance. Regarding most compensation matters, including executive and director compensation,
our management provides recommendations to the Compensation Committee; however, the Compensation
Committee does not delegate any of its functions to others in setting compensation. We do not
currently engage any consultant to advise on executive and/or director compensation matters.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Stock price performance has not been a factor in determining annual compensation because the
price of Milestone&#146;s common stock is subject to a variety of factors outside of our control. We do
not have an exact formula for allocating between cash and non-cash compensation.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Annual executive officer compensation consists of a base salary component and periodic stock
option grants. It is the Compensation Committee&#146;s intention to set total executive cash
compensation sufficiently high enough to attract and retain a strong motivated leadership team, but
not so high that it creates a negative perception with our other stakeholders. Each of our
executive officers receives stock option grants under our stock option plan. The number of stock
options granted to each executive officer is made on a discretionary rather than a formula basis by
the Compensation Committee. Each executive&#146;s current and prior compensation is considered in
setting future compensation. In addition, we review the compensation practices of 28
other companies. To some extent, our compensation plan is based on the market and the companies we
compete against for executive management. The elements of our plan (e.g., base salary, bonus and
stock options) are similar to the elements used by many companies. The exact base pay, stock option
grant, and bonus amounts are chosen in an attempt to balance our competing objectives of fairness
to all stakeholders and attracting/retaining executive managers.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Outstanding Equity Awards at December&nbsp;31, 2008</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Compensation of Directors</B>

</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Milestone paid no cash or stock based compensation to its directors in 2008 or 2007. On
June&nbsp;5, 2008, Milestone awarded to each of its independent directors options expiring on June&nbsp;4,
2013 for the purchase of 20,000 shares of its common stock, half of which are exercisable
immediately and the remaining half exercisable on June&nbsp;5, 2009 at $0.74 per share with respect to
the year ending with Milestone&#146;s 2007 annual meeting. On June&nbsp;5, 2007, Milestone awarded to each of
its independent directors options expiring June&nbsp;4, 2012 for the purchase of 20,000 shares of its
common stock, half of which are exercisable immediately and the remaining half of which are
exercisable on June&nbsp;4, 2008 at $1.68 per share with respect to the year ending with Milestone&#146;s
2006 annual meeting.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The following table provides compensation information for the years ended December&nbsp;31, 2008
and 2007, respectively, for each of the independent directors. We do not pay any directors&#146; fees.
Directors are reimbursed for the costs relating to attending board and committee meetings.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="56%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Name</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Option Awards (1)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Option Awards (1)</TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leonard M. Schiller</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">14,800      </TD>
    <TD nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">22,200      </TD>
    <TD nowrap>(3)</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jeffrey Fuller</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">14,800      </TD>
    <TD nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">22,200      </TD>
    <TD nowrap>(3)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leslie Bernhard</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">14,800      </TD>
    <TD nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">22,200      </TD>
    <TD nowrap>(3)</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pablo Felipe Serna Cardenas</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">14,800      </TD>
    <TD nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">22,200      </TD>
    <TD nowrap>(3)</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Amounts are calculated using the provisions of Statement of Financial Accounting
Standards (SFAS)&nbsp;No.&nbsp;123R, Share-based Payments.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">On June&nbsp;5, 2008, each of Milestone&#146;s independent directors was awarded options
exercisable for 20,000 shares of common stock at $0.74 per share.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">On June&nbsp;5, 2007, each of Milestone&#146;s independent directors was awarded options
exercisable for 20,000 shares of common stock at $1.68 per share.</DIV></TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->12 of 18<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Outstanding Equity Awards at December&nbsp;31, 2008</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The following table includes certain information with respect to the value of all unexercised
options previously awarded to our Named Executive Officers. There were no outstanding stock awards
at December&nbsp;31, 2008.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">2008 Options Awards</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Number of Securities</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Underlying Unexercised</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Option Exercise</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Option Expiration</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Name</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Options Exercisable</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Price ($)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Date</TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leonard Osser</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Joe W. Martin</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">80,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4/25/2013</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Stock Plan</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In 2006 we adopted an equity compensation plan for the issuance of up to 300,000 shares of our
common stock in lieu of cash compensation for services performed by employees, officers, directors
and consultants (the &#147;2006 Stock Plan&#148;). The purpose of the 2006 Stock Plan is to conserve cash
while allowing us to adequately compensate existing employees, officers, directors and consultants,
or new employees, officers, directors and consultants, whose performance will contribute to our
long-term success and growth. We believe that the availability of these shares will also strengthen
our ability to attract and retain employees, officers, directors and consultants of high
competence, increase the identity of interests of such people with those of our stockholders and
help maintain loyalty to us through recognition and the opportunity for stock ownership. All shares
granted under this plan will be at fair market value, or at a premium to that value, on the date of
grant.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">During 2008, no shares were issued under this plan.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In December&nbsp;2007, the Board of Directors authorized the Company to issue up to $2&nbsp;million of
its Company stock to vendors or employees, and to grant them piggy back registration rights in the
usual form, at a value of not less than 90%
of the market value on the date of the agreement for the vendor or employee to accept said shares.
Such future shares are not included in the above noted shares reserved for future issuance.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In 2008, the Company issued the following shares under this Plan; 156,448 shares valued at of
$262,746 for Vendor Services, 356,063 shares valued at $316,099 for Consulting Services, 135,602
shares valued at $98,419 for Employee Compensation and 83,333 shares valued at $100,000 for
Officer&#146;s Deferred Compensation. The Company also issued 260,000 shares valued at $93,600 for
Settlement of the Hodosh Lawsuit.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">At December&nbsp;31, 2008, there was $1,129,136 available to be issued under this plan.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Vendor Shares were issued in reliance upon the exemption from the registration
requirements of the Act, as provided in Section&nbsp;4(2) and 4(6) thereof, as a transaction by an
issuer not involving a public offering. Milestone reasonably believed that each vendor had such
knowledge and experience in financial and business matters to be capable of evaluating the merits
and risks of the investment, each vendor represented an intention to acquire the securities for
investment only and not with a view to distribution thereof and appropriate legends were affixed to
the stock certificates. No commissions were paid in connection with such issuances.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->13 of 18<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Section&nbsp;16(a) Beneficial Ownership Reporting Compliance</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;16(a) of the Exchange Act requires Milestone&#146;s officers and directors, and persons who
own more than ten percent (10%) of a registered class of Milestone&#146;s equity securities to file
reports of ownership and changes in ownership with the Securities and Exchange Commission (&#147;SEC&#148;).
Officers, directors and greater than ten percent (10%) shareholders are required by SEC regulations
to furnish Milestone with copies of all Section 16(a) forms they file.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">To the best of Milestone&#146;s knowledge, based solely on review of the copies of such forms
furnished to Milestone, or written representations that no other forms were required, Milestone
believes that all Section 16(a) filing requirements applicable to its officers, directors and
greater than ten percent (10%)shareholders were complied with during 2008.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Certain Relationships and Related Transactions</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Since the beginning of our fiscal year ended December&nbsp;31, 2008, we did not have any related
party transactions pursuant to Item&nbsp;404 of Regulation&nbsp;S-K of the Exchange Act. We have adopted a
policy that, in the future, the Audit Committee must review all transactions with any officer,
director or 5% stockholder.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>AUDIT COMMITTEE REPORT</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Audit Committee is comprised of three non-management directors, Leonard M. Schiller,
Leslie Bernhard and Jeffrey Fuller, and operates pursuant to its Charter. During the 2008 fiscal
year, the Audit Committee held seven meetings with the independent auditors. The Audit Committee&#146;s
purpose is to assist the Board in its oversight of (i)&nbsp;the integrity of our financial statements,
(ii)&nbsp;our compliance with legal and regulatory requirements, (iii)&nbsp;our independent auditors&#146;
qualifications and independence, and (iv)&nbsp;the performance of our internal audit function and
independent auditors to decide whether to appoint, retain or terminate our independent auditors,
and to pre-approve all audit, audit-related and other services, if any, to be provided by the
independent auditors; and to prepare this Report. The Board has determined that each member of the
Audit Committee is &#147;independent&#148; within the meaning of the rules of the Securities and Exchange
Commission (&#147;SEC&#148;). The Board has also determined that each member is financially literate and at
least one member of the Audit Committee has accounting or related financial management expertise,
as such qualifications are defined under the rules of the SEC, and that Mr.&nbsp;Jeffrey Fuller is an
&#147;audit committee financial expert&#148; within the meaning of the rules of the SEC.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Management is responsible for the preparation, presentation and integrity of our financial
statements, accounting and financial reporting principles and the establishment and effectiveness
of internal controls and procedures designed to assure compliance with accounting standards and
applicable laws and regulations. The independent auditors are responsible for performing an
independent audit of the financial statements in accordance with generally accepted
auditing standards. The independent auditors have free access to the Audit Committee to
discuss any matters they deem appropriate.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In performing its oversight role, the Audit Committee has considered and discussed the audited
financial statements with management and the independent auditors. The Audit Committee has also
discussed with the independent auditors the matters required to be discussed by the Statement on
Auditing Standards No.&nbsp;61, Communication with Audit Committees, as currently in effect. The Audit
Committee has received the written disclosures and the letter from the independent auditors
required by Independence Standards Board Standard No.&nbsp;1, Independence Discussions with Audit
Committees, as currently in effect, and has discussed with the auditors the auditors&#146; independence.
All non-audit services performed by the independent auditors must be specifically pre-approved by
the Audit Committee or a member thereof.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">During 2008 fiscal year, the Audit Committee performed all of its duties and responsibilities
under the Charter. In addition, based on the reports and discussions described in this Report, the
Audit Committee recommended to the Board that the audited financial statements of Milestone for the
2008 fiscal year be included in its Annual Report on Form 10-K for such fiscal year.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->14 of 18<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Submitted by the Audit Committee</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">Leonard M. Schiller<BR>
Leslie Bernhard<BR>
Jeffrey Fuller
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Recommendation of the Board of Directors</B>
</DIV>



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>The Board of Directors recommends that the stockholders vote FOR the election of directors.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>RATIFICATION OF APPOINTMENT OF INDEPENDENT AUDITOR (Item&nbsp;2 on the Proxy Card)</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Milestone is seeking stockholder ratification of the appointment of Holtz Rubenstein Reminick
LLP as its independent public accountants for 2009. The report of Holtz Rubenstein Reminick LLP
with respect to Milestone&#146;s financial statements appears in Milestone&#146;s Annual Reports for the
fiscal year ended December&nbsp;31, 2008.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In the event the stockholders fail to ratify the appointment of Holtz Rubenstein Reminick LLP,
the Audit Committee may reconsider its selection. Even if the selection is ratified, the Audit
Committee in its discretion may direct the appointment of a different independent auditing firm at
any time during the year if the Audit Committee believes that such a change would be in our best
interests and in the best interests of our stockholders. A representative of Holtz Rubenstein
Reminick LLP will attend the 2009 Annual Meeting and will have an opportunity to make a statement
if he desires to do so and will be available to respond to appropriate questions from stockholders.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Audit Committee Matters and Fees Paid to Independent Auditors</B>
</DIV>



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%"><B><I>Audit Fees</I></B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Milestone incurred audit and financial statement review fees totaling $137,975 from Holtz
Rubenstein Reminick LLP, the principal accountant for 2008.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%"><B><I>Audit-Related Fees</I></B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">There were no audit related fees from our principal accountant Holtz Rubenstein Reminick LLP
in 2008.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%"><B><I>Tax Fees</I></B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">There were no fees for services related to tax compliance, tax advice and tax planning billed
by our principal accountants in 2008.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%"><B><I>All Other Fees</I></B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">There were no other fees billed during 2008 by Milestone&#146;s principal accountant.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%"><B><I>Audit Committee Administration of the Engagement</I></B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The engagement with Holtz Rubenstein Reminick LLP, the principal accountants, was approved in
advance by the Board of Directors and the Audit Committee. There were no non-audit or non-audit
related services were approved by the audit committee in 2008.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->15 of 18<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Audit Committee Pre-Approved Policies and Procedures</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Audit Committee will pre-approve audit services and non-audit services to be provided by
the Company&#146;s independent auditors before the accountant is engaged to render these services. The
Audit Committee may consult with
management in the decision-making process, but may not delegate this authority to management.
The Audit Committee may delegate its authority to pre-approve services to one or more committee
members, provided that the designees present the pre-approvals to the full committee at the next
committee meeting.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Recommendation of the Board of Directors</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>The Board of Directors recommends that the stockholders vote FOR the ratification of the
appointment of the independent auditor.</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>OTHER BUSINESS</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">As of the date of this Proxy Statement, we know of no other business that will be presented
for consideration at the 2009 Annual Meeting other than the items referred to above. If any other
matter is properly brought before the 2009 Annual Meeting for action by stockholders, the persons
designated as proxies will vote all shares in accordance with the recommendation of the Board or,
in the absence of such a recommendation, in accordance with their best judgment.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->16 of 18<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>ADDITIONAL INFORMATION</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Householding</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The SEC&#146;s rules permit companies and intermediaries such as brokers to satisfy delivery
requirements for proxy statements and annual reports with respect to two or more stockholders
sharing the same address by delivering a single proxy statement and annual report addressed to
those stockholders. This process, which is commonly referred to as &#147;householding,&#148; potentially
provides extra convenience for stockholders and cost savings for companies. Some brokers household
proxy materials and annual reports, delivering a single proxy statement and annual report to
multiple stockholders sharing an address, although each stockholder will receive a separate proxy
card. Once you have received notice from your broker that they will be householding materials to
your address, householding will continue until you are notified otherwise or until you revoke your
consent. If at any time you no longer wish to participate in householding and would prefer to
receive a separate proxy statement and annual report, please notify your broker. If you would like
to receive a separate copy of this year&#146;s Proxy Statement or Annual Report, please address your
request for delivery of the Proxy Statement and/or Annual Report to Joseph D&#146;Agostino, Chief
Financial Officer, Milestone Scientific Inc., 220 South Orange Avenue, Livingston Corporate Park,
Livingston, New Jersey 07039.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Requirements, Including Deadlines, for Submission of Proxy Proposals, Nomination of Directors and
Other Business of Stockholders</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Stockholders interested in presenting a proposal for consideration at the Annual Meeting of
stockholders in 2009 must follow the procedures found in Rule&nbsp;14a-8 under the Exchange Act. To be
eligible for inclusion in the Company&#146;s 2010 proxy materials, all qualified proposals must be
received by our Corporate Secretary no later than April&nbsp;10, 2010. A stockholder who wishes to make
a proposal at the next Annual Meeting without including the proposal in our proxy statement must
notify us by April&nbsp;10, 2010. If a stockholder fails to give notice by this date, then the persons
named as proxies in the proxies solicited by us for the next Annual Meeting will have discretionary
authority to vote on the proposal. Stockholder proposals should be addressed to our Chief Financial
Officer, Milestone Scientific Inc., 220 South Orange Avenue, Livingston Corporate Park, Livingston,
New Jersey 07039.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">EVERY STOCKHOLDER, WHETHER OR NOT HE OR SHE EXPECTS TO ATTEND THE ANNUAL MEETING IN PERSON, IS
URGED TO EXECUTE THE PROXY AND RETURN IT PROMPTLY IN THE ENCLOSED BUSINESS REPLY ENVELOPE.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Electronic Availability of Proxy Statement and Annual Report</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">As permitted by Securities and Exchange Commission rules, we are making this proxy statement
and our annual report available to stockholders electronically via the Internet on the Company&#146;s
website at <u>https://materials.proxyvote.com/59935P</u>. On April&nbsp;27, 2009, will begin mailing to our
stockholders a notice containing instructions on how to access this proxy statement and our annual
report and how to vote online. If you received this notice, you will not receive a printed copy of
the proxy materials unless you requested it by following the instructions for requesting such
materials contained on the notice or set forth in the following paragraph.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">If you received a paper copy of this proxy statement by mail and you wish to receive a notice
of availability of next year&#146;s proxy statement either in paper form or electronically via e-mail,
you can elect to receive a paper notice of availability by mail or an e-mail message that will
provide a link to these documents on our website. By opting to receive the notice of availability
and accessing your proxy materials online, you will save the Company the cost of producing and
mailing documents to you reduce the amount of mail you receive and help preserve environmental
resources. Registered stockholders may elect to receive electronic proxy and annual report access
or a paper notice of availability for future annual meetings by registering online at
<U>www.proxyvote.com</U>. If you received electronic or paper notice of availability of these
proxy materials and wish to receive paper delivery of a full set of future proxy materials, you may
do so at the same location. Beneficial or &#147;street name&#148; stockholders who wish to elect one of these
options may also do so at <u>www.proxyvote.com</u>. Please enter your 12 digit control number located on
the proxy card or notice.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->17 of 18<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>We will provide without charge to each person being solicited by this Proxy Statement, on the
written request of any such person, a copy of our Annual Report on </B><B>Form 10-K</B><B> for the year ended
December&nbsp;31, 2008 including the financial statements and financial statement schedules included
therein. </B>All such requests should be directed to Joseph D&#146;Agostino, Chief Financial Officer,
Milestone Scientific Inc., 220 South Orange Avenue, Livingston Corporate Park, Livingston, New
Jersey 07039.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>By order of the Board of Directors</B></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Leonard Osser</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman of the Board</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Livingston, New Jersey<BR>
April&nbsp;24, 2009

</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->18 of 18<!-- /Folio -->
</DIV>



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