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<SEC-DOCUMENT>0000950123-10-034901.txt : 20100414
<SEC-HEADER>0000950123-10-034901.hdr.sgml : 20100414
<ACCEPTANCE-DATETIME>20100414173007
ACCESSION NUMBER:		0000950123-10-034901
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20100526
FILED AS OF DATE:		20100414
DATE AS OF CHANGE:		20100414
EFFECTIVENESS DATE:		20100414

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MILESTONE SCIENTIFIC INC.
		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:		10750196

	BUSINESS ADDRESS:	
		STREET 1:		45 KNIGHTSBRIDGE ROAD
		CITY:			PISCATAWAY
		STATE:			NJ
		ZIP:			08854
		BUSINESS PHONE:		(973) 535-2717

	MAIL ADDRESS:	
		STREET 1:		45 KNIGHTSBRIDGE ROAD
		CITY:			PISCATAWAY
		STATE:			NJ
		ZIP:			08854

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MILESTONE SCIENTIFIC INC/NJ
		DATE OF NAME CHANGE:	19970409

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	U S OPPORTUNITY SEARCH INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>c98985def14a.htm
<DESCRIPTION>DEF 14A
<TEXT>
<HTML>
<HEAD>
<TITLE>DEF 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. <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>)</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">
Milestone Scientific Inc.</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 May&nbsp;26, 2010</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 May&nbsp;26, 2010 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: 4%; text-indent: 4%">1. Election of four (4)&nbsp;directors;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">2. Advisory approval 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 March&nbsp;26, 2010 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="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="50%">&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">Leslie Bernhard<BR>
Chairman of the Board</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Piscataway, New Jersey<BR>
April&nbsp;15, 2010
</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 -->&nbsp;<!-- /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 May&nbsp;26, 2010</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
Scientific Inc. (the &#147;Company&#148; of &#147;Milestone&#148;) 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 May&nbsp;26, 2010 at 9:00 A.M. Eastern Time, for the purposes set forth in the Notice
of Meeting and this Proxy Statement (the &#147;Annual Meeting&#148;). 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;16, 2010.
</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 March&nbsp;26, 2010 (the &#147;Record Date&#148;) are
entitled to notice of and vote at the Annual Meeting. On the Record Date, there were 14,811,806
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, 14,811,806 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 advisory approval 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, 2010; 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 for
the Advisory approval of 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 Annual
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">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->1 of 16<!-- /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%">Milestone 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>DIRECTORS</B>
</DIV>



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">The names, ages and titles of our directors, as of the Record Date, are as follows:
</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="58%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&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" style="border-bottom: 1px solid #000000"><B>AGE</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>POSITION</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>DIRECTOR SINCE</B></TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">Leslie Bernhard (2)(3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">66</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Chairman of the Board</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2003</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">Leonard A. Osser</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">62</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Chief Executive Officer</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">1991</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pablo Felipe Serna Cardenas (1)(2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">34</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2006</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 align="center" valign="top">68</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">1997</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jeffrey Fuller(1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">64</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2003</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 Nominating Committee</DIV></TD>
</TR>

</TABLE>


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


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In October&nbsp;2009, Leslie Bernhard assumed the position of Chairman of the Board, filing a
position left vacant by Mr.&nbsp;Osser who assumed the position of Chief Executive Officer. Leslie
Bernhard has served as an Independent Director of Milestone since May&nbsp;2003 and was named Chairman
of the Board in September of 2009. She co-founded AdStar, Inc. and since 1986 has served as its
President, Chief Executive Officer and Executive Director. AdStar is an application service
provider for the newspaper classified advertising industry. She serves on the Board of Directors of
Universal Power Group (NYSE Amex:UPG), a Texas corporation and has done so since 2006. Ms.
Bernhard&#146;s professional experience and background with AdStar and with us have given her the
expertise needed to serve as chairman of the Board.
</DIV>

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


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In March of 2009, Mr.&nbsp;Osser assumed the position of Milestone&#146;s Acting Chief Executive
Officer. Mr.&nbsp;Osser in September&nbsp;2009 resigned as Chairman of the Company and assumed the position
of Chief Executive Officer. He served as the Company&#146;s Chairman from 1991 until September of 2009,
and from 1991 and 2007, was Chief Executive Officer of the Company. From 1980 until the
consummation of Milestone&#146;s public offering in November&nbsp;1995, Mr.&nbsp;Osser 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. Mr.&nbsp;Osser&#146;s experience and background with us since 1991 have
given him the knowledge, skills, expertise and diversity of experience to manage and direct our
affairs and business as one of our directors.
</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%">Mr.&nbsp;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. Mr.&nbsp;Schiller became a Director of the Gravitas Cayman Corporation in February
2010. Gravitas Cayman Corporation is an Investment Fund. Mr.&nbsp;Schiller&#146;s professional
experience and background as an attorney and a partner of a law firm and with us, as one of
our directors since 1997, have given him the expertise needed to serve as one of our directors.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->2 of 16<!-- /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>Pablo Felipe Serna Cardenas, Director</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Mr.&nbsp;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. He has been a director of
Pairstech Fund, a UK hedge Fund since 2008. Mr.&nbsp;Cardenas&#146; professional experience and background as
an entrepreneur and as a financial consultant and with us, as one of our directors since 2006, have
given him the expertise needed to serve as one of directors.
</DIV>

<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%">Mr.&nbsp;Fuller has been a director of Milestone since January&nbsp;2003. Mr.&nbsp;Fuller 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, for a
period of two years, he was an auditor with Arthur Andersen LLP, and thereafter, for four years, a
senior internal auditor with the Dreyfus Corp. Mr.&nbsp;Fuller has been an adjunct professor since
2002-2004 at Berkeley College, NY, teaching several courses including Accounting. Mr.&nbsp;Fuller has
not been involved in any legal proceedings and has not been a director of any other business entity
in the past 10&nbsp;years.
</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%">The Board currently has five members. The Board has nominated four individuals for election
to the Board at the Annual Meeting. Four (4)&nbsp;directors are to be elected at the Annual Meeting,
each for a term of one year and until the next Annual Meeting of stockholders and until their
successors are duly elected and qualified.
</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
four 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="58%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&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 nowrap align="center"><B>DIRECTOR</B></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" style="border-bottom: 1px solid #000000"><B>AGE</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>POSITION</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>SINCE</B></TD>
</TR>
<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">Leslie Bernhard</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">66</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Chairman of the Board</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2003</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">Leonard A. Osser</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">62</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Chief Executive Officer and Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">1991</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 align="center" valign="top">34</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2006</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leonard M. Schiller</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">68</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">1997</TD>
</TR>
<!-- End Table Body --></TABLE>
</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 election of directors.</B>
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->3 of 16<!-- /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; margin-left: 4%">Milestone&#146;s Board has standing audit, compensation and nominating committees.
</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%">In 2009, the Board held a total of ten meetings; the Audit Committee held a total of four
meetings, the Compensation Committee held a total of five meetings; and the Nominating Committee
did not meet. 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. All of our directors attended the 2009 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. A copy of the
Compensation Committee Charter has been posted on our Web site at www.milestonescientific.com.
</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 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 Audit Committee is comprised
of Jeffrey Fuller, Leonard M. Schiller and Pablo Cardenas, both of whom are independent as defined in the listing
standards of the NYSE Amex and Section&nbsp;10A(m)(3) of the Securities Exchange Act of 1934, as amended
(the &#147;Exchange Act&#148;). The Board adopted a revised written charter for the Audit Committee in July,
2005 (the &#147;Charter&#148;). A copy of the Charter has been posted on our Web site at
<U>www.milestonescientific.com</U>.
</DIV>

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


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Board has determined that Mr.&nbsp;Cardenas is an &#147;audit committee financial expert,&#148; as that
term is defined in Item&nbsp;407(d)(5) of Regulation&nbsp;S-K, and &#147;independent&#148; for purposes of the listing
standards of the NYSE Amex and Section&nbsp;10A(m)(3) of the Exchange Act.
</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 Board formed a Nominating Committee in May&nbsp;2004. The members of the Nominating Committee
are Leonard M. Schiller and Leslie Bernhard.
</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 -->4 of 16<!-- /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 45 Knightsbridge Road, Piscataway, NJ 08854 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>Director Independence</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Board has determined that Leonard M. Schiller and Pablo Felipe Serna Cardenas (the
&#147;Independent Directors&#148;) are independent as that term is defined in the listing standards of the
NYSE Amex. As disclosed above, Leonard M. Schiller and Pablo Felipe Serna Cardenas are members of
both of the Audit and Compensation Committees and are independent for such purposes.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In determining director independence, the Board considered the option awards to the
Independent Directors for the year ended December&nbsp;31, 2009, disclosed in &#147;Director Compensation&#148;
above, and determined that such awards were compensation for services rendered to the Board and
therefore did not impact their ability to continue to serve as Independent Directors.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->5 of 16<!-- /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>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 45 Knightsbridge Road,
Piscataway, NJ 08854. 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>

<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
the Record Date, 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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>March 26, 2010</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&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><DIV style="margin-left:15px; text-indent:-15px"><B>Executive Officers and Directors</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 Osser</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2,283,253</TD>
    <TD nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">15.42</TD>
    <TD nowrap>%</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 nowrap align="left">&nbsp;</TD>
    <TD align="right">236,700</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">118,228</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">75,000</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">Leslie Bernhard</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">169,783</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">Jeffrey Fuller</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">95,000</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">2,977,964</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">20.10</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">2,686,230</TD>
    <TD nowrap>(9)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18.14</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tom Cheng</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">752,852</TD>
    <TD nowrap>(10)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">5.08</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 Osser and Joseph
D&#146;Agostino are at 45 Knightsbridge Road in Piscataway, New Jersey 08854; Leonard M. Schiller,
c/o 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; Leslie Bernhard,
c/o AdStar, Inc., 4553 Glencoe Avenue, Suite&nbsp;325, Marina del Rey, California 90292; Jeffrey
Fuller, Eagle Chase, Woodbury, NY 11797K. 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;26, 2010 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&nbsp;days from the filing of this report held by the
named individual, divided by 14,811,806 outstanding shares on March&nbsp;26, 2010, 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>

</TABLE>

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

<P align="center" style="font-size: 10pt"><!-- Folio -->6 of 16<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
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<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">(3)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">March&nbsp;26, 2010 excludes 666,667 Performance Options reserved for a special bonus for
obtaining a three year purchase order for the sale of 12,000 <I>STA Systems </I>and related
handpieces over a four year period. These options were reserved but not granted until
specific performance targets are achieved. The options will be issued upon achievement of the
specific target on a yearly basis. Included in this total is 253,164 shares subject to option
at $1.74, one third immediately exercisable and one third each year after the grant date.
Also included in March&nbsp;10, 2010, 676,676 Shares to Be Issued at the termination of his
employment agreement.</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">Includes 29,231 shares held by Mr.&nbsp;D&#146;Agostino at March&nbsp;26, 2010. Additionally, this
includes 15,823 Shares to Be Issued at the termination of his employment; 191,646 shares
subject to options. 60,000 shares at $0.40, fully vested at October&nbsp;2010, 100,000 options,
one third exercisable one year after the grant date and one third each subsequent years as
follows ; 100,000 shares at $1.15; and 31,646 at $1.58, one half immediately exercisable and
one half each year after the grant date.</DIV></TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">March&nbsp;26, 2010, includes 105,000 stock options; one half of each grant was exercisable
immediately and the remaining one half exercisable one year after the grant date as follows:
25,000 shares at $0.55 issued in June&nbsp;2009; 20,000 share at $1.40 per share; 20,000 shares at
$0.83 per share and 20,000 shares at $1.68 and 20,000 shares at $0.74. 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;26, 2010 includes 75,000 stock options; one half of each grant was exercisable
immediately and the remaining one half exercisable one year after the grant date as follows:
25,000 shares at $0.55 issued in June&nbsp;2009, 10,000 shares at $0.83 per share, 20,000 shares
at $1.68 and 20,000 shares at $0.74.</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;26, 2010 includes 84,783 shares owned by Ms.&nbsp;Bernhard, 85,000 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 $1.40, 20,000 shares at $1.68 and 20,000
shares at $0.74 and 25,000 shares at $0.55.</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;10, 2010 includes 95,000 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 $1.40 per share, 10,000 shares at $0.83 and 20,000 shares at $1.68 per share
and 20,000 at $0.74 and 25,000 shares at $0.55.</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;26, 2010 includes 175,000 stock options, 130,000 at $5.00 and 45,000 at $0.32.</DIV></TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(10)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">March&nbsp;26, 2010 includes 752,852 shares of stock. Mr.&nbsp;Cheng purchased 333,333 shares in August
2009 and 34,783 shares were issued for services provided in October&nbsp;2009.</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 (except for Mr.&nbsp;Osser and Ms.&nbsp;Bernhard, each of whose business experience is discussed
above) of the Company and two non-officer key employees as of the record date.
</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="11%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&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" style="border-bottom: 1px solid #000000"><B>Age</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Title</B></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 align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leslie Bernhard</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">66</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman of the Board</TD>
</TR>
<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 align="center" valign="top">62</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="white-space: nowrap">Chief Executive Officer and Director</FONT></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Joseph D&#146;Agostino</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">58</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Financial Officer</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>KEY EMPLOYEES</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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 align="center" valign="top">66</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">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 align="center" valign="top">52</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director of Clinical Affairs</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


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

<P align="center" style="font-size: 10pt"><!-- Folio -->7 of 16<!-- /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>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>

<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>

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

<P align="center" style="font-size: 10pt"><!-- Folio -->8 of 16<!-- /Folio -->
</DIV>

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<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>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, 2009 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 2009 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: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="46%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt" 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: 8pt" 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">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">300,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">400,000</TD>
    <TD nowrap>(1)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23,691</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">298,734</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,022,425</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Chief Executive Officer-effective 9-1-2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</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 nowrap align="left">$</TD>
    <TD align="right">18,408</TD>
    <TD nowrap>(1)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">218,408</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Joe W. Martin</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Former Chief Executive Officer</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">$</TD>
    <TD align="right">453,696</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Joseph D&#146;Agostino</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">171,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">25,000</TD>
    <TD nowrap>(4)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">135,975</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">332,575</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">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>
<!-- 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">Includes $200,000 and $100,000 in deferred compensation in 2009 and 2008, respectively,
in accordance with his employment agreement to be paid in common stock and not paid until
the termination of the agreement in 2014 (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 reflects the fair value of the options at date of grant. 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, 2009, 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. See the table below entitled &#147;Outstanding
Equity Awards at December&nbsp;31, 2009.</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">Mr.&nbsp;Martin resigned from the Company effective March&nbsp;31, 2009.</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">Includes $25,000 in deferred compensation in 2009, is accordance with agreement to be
paid in common stock and not paid until the termination of his employment with the Company.</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 March&nbsp;2009, Mr.&nbsp;Osser assumed the position of Milestone&#146;s Acting Chief Executive Officer.
In September&nbsp;2009, he stepped down as Chairman to fill the position of Chief Executive Officer. The
Chief Executive Officer entered into a new employment agreement with the Company effective
September&nbsp;1, 2009. This new agreement suspends the previous agreement scheduled to terminate on
December&nbsp;31, 2012. The new agreement is for five years ending on August&nbsp;31, 2014. The contract
shall be extended for successive one-year periods, unless prior to August 1 of any year, either
party notifies the other that he or it chooses not to extend the New Employment Term. As part of
this agreement the Chairman relinquished the title and position of Chairman. Under the new
agreement, the Chief Executive Officer will receive a base compensation of $300,000 per year. In
addition, the CEO, may earn annual bonuses up to an aggregate of $400,000, payable one half in cash
and one half in common stock, contingent upon achieving targets set for each year by the
Compensation Committee of the Board of Directors of the Company.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In addition, if in any year of the term of the agreement the CEO earns a bonus, he shall also
be granted five-year stock options to purchase twice the number of shares earned. Each such option
is to be exercisable at a price per share equal to the fair market value of a share on the date of
grant or 110% of the fair market value if the CEO is a 10% or greater stockholder on the date of
grant. The options shall vest and become exercisable to the extent of one-third of the shares
covered at the end of each of the first three years following the date of grant, but shall only be
exercisable while the CEO is employed by Milestone or within 30&nbsp;days after the termination of his
employment.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->9 of 16<!-- /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%">In accordance with the employment contract, as of September&nbsp;30, 2009 and January&nbsp;1, 2008,
676,676 shares and 504,639 shares of common stock are to be paid out at the end of the contract in
settlement of $925,000 as December&nbsp;31, 2009 and $700,000 as of December&nbsp;31, 2008 of accrued
deferred compensation and, accordingly, such shares have been classified in stockholders&#146; equity
with the common shares classified as to be issued.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Milestone entered into an agreement with Ms.&nbsp;Bernhard, as Chairman, effective October&nbsp;1, 2009.
The term of the contract is for a nine month period ending on June&nbsp;30, 2010. Under this agreement
she will serve as Chairman and receive a base compensation of $190,000 per year for managing our
investor relation program, payable $5,000 per month in cash starting in January&nbsp;2010 and the
remainder in stock issued at the closing price on September&nbsp;1, 2009. 84,783 shares were issued in
September&nbsp;2009.
</DIV>

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


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

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

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The 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 the growth, strategic business relationships and financial
performance. Regarding most compensation matters, including executive and director compensation,
the management provides recommendations to the Compensation Committee; however, the Compensation
Committee does not delegate any of its functions to others in setting compensation. Milestone does
not currently engage any consultant to advice 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 the control.
Milestone does 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 chief executive officer compensation consists of a base salary component and periodic
stock option grants. It is the Compensation Committee&#146;s intention to set totals for the chief
executive officer for 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 the other
stakeholders. The chief executive officer receives stock option grants under the stock option plan.
The number of stock options granted to the executive officer is made on a discretionary rather than
a formula basis by the Compensation Committee. The chief executive officer&#146;s current and prior
compensation is considered in setting future compensation. In addition, Milestone reviews the
compensation practices of 28 other companies. To some extent, the compensation plan is based on the
market and the companies that compete for executive management. The elements of the 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 the competing
objectives of fairness to all stakeholders and attracting/retaining executive managers.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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

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<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, 2009</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, 2009.
</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="44%">&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>
    <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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2009 Options Awards</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2009 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">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">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">Options Unexercisable</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">84,388</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">168,776</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12/17/2014</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Joseph D&#146;Agostino</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">03/31/2014</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</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">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">09/01/2014</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12/28/2014</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,548</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,098</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12/17/2014</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" 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 2009. The following
table provides compensation information for the year ended December&nbsp;31, 2009 for each of the
independent directors. Milestone does not pay any directors&#146; fees. Directors are reimbursed for
the costs relating to attending board and committee meetings.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Director Compensation</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="77%">&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 nowrap align="center" colspan="2">2009</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>
</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">$</TD>
    <TD align="right">13,750</TD>
    <TD nowrap>(2)</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jeffrey Fuller</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">13,750</TD>
    <TD nowrap>(2)</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">$</TD>
    <TD align="right">13,750</TD>
    <TD nowrap>(2)</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pablo Felipe Serna Cardenas</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">13,750</TD>
    <TD nowrap>(2)</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 FASB ASC 718.</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;4, 2009, each of Milestone&#146;s independent directors was awarded options
exercisable for 25,000 shares of common stock at $0.55 per share.</DIV></TD>
</TR>

</TABLE>


<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%) stockholders 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 2009.
</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%">On June&nbsp;28, 2007 the Company secured a $1&nbsp;million line of credit from a stockholder. This
borrowing was amended to $1,300,000 as of September&nbsp;30, 2008 under the same terms and conditions as
the original. Borrowings bear interest at 6% per annum, with one year&#146;s interest at 1% payable in
advance on each draw. Monies may be drawn by Milestone under the line in multiples of $100,000 upon
5&nbsp;days written notice to the stockholder from either Milestone&#146;s Chief Executive Officer or Chief
Financial Officer. Monies under the line in excess of $1,000,000 may be drawn in multiples of
$25,000. Borrowings may be prepaid at any time in multiples of $100,000, without penalty. All
borrowings and interest thereon must be repaid by June&nbsp;30, 2010, and after the expiration date of
the line, may be repaid by Milestone in cash or, at its option, in shares of common stock valued at
the lower of $2.00 per share or 80% of the average closing price of its shares during the 20
trading days ending with December&nbsp;31, 2008. At December&nbsp;31, 2008, the conversion price at 80% of
the average closing price of the Company&#146;s stock
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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</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: 0%">was $0.26 per share. After December&nbsp;31, 2008, and
before June&nbsp;30, 2010,
the lender may convert all or any part of the then outstanding balance and
interest thereon into shares of Common Stock at $4.00 per share. Three year warrants exercisable at
$5.00 per share, in an amount determined by dividing 50% of the amount borrowed by $5.00 will be
issued on each drawdown. There is no facility fee on the line. The warrants have been valued as of
each draw down using the Black-Scholes model and are reflected as a discount against the debt
incurred under this line of credit. At December&nbsp;31, 2008 the remaining balance of debt discount was
$52,530. The full amount of the line of credit and amendment, $1.3&nbsp;million, has been drawn at
September&nbsp;30, 2008. This borrowing was amended to $1,300,000 as of September&nbsp;30, 2008 under the
same terms and conditions as the original borrowing. In December&nbsp;2009, the Company converted the
$1.3&nbsp;million Line of Credit into 822,785 shares of Common Stock at a price of $1.58 per share.
Additionally, the interest due on this note is payable over a two year period (quarterly payments
of $23,000). The Company borrowed an additional $450,000 from the same shareholder in 2008. The
borrowing was originally on short term loan with a maturity date of January&nbsp;19, 2009. In December
2008, this borrowing was refinanced with the shareholder with a due date of June&nbsp;30, 2012. The
borrowing includes a twelve percent interest rate, interest compound quarterly, with interest and
principle due at the maturity. Further, the note provides for the issuance of warrants to the
stockholder that is exercisable for five years at the price of $0.32 per share for 45,000 shares of
stock. The warrants were valued using the Black-Scholes model and are reflected as a discount
against the debt. The Company did not have any other related party transactions pursuant to Item
404 of Regulation&nbsp;S-K of the Exchange Act. Milestone 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&#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.
</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%">The Audit Committee reviewed our audited financial statements for the year ended December&nbsp;31,
2009, and met with management to discuss such audited financial statements. The Audit Committee
has discussed with our independent accountants, Holtz Rubenstein Reminick LLP, the matters required
to be discussed pursuant to Statement on Accounting Standards No.&nbsp;61, as may be modified or
supplemented. The Audit Committee has received the written disclosures and the letter from Holtz
Rubenstein Reminick LLP required by the Independence Standards Board Standard No.&nbsp;1, as may be
modified or supplemented. The Audit Committee has discussed with Holtz Rubenstein Reminick LLP its
independence from Milestone and its management. Holtz Rubenstein Reminick LLP had 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 Milestone Annual
Report on <font style="white-space: nowrap">Form 10-K.</font>
</DIV>

<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">Jeffrey Fuller<BR>
Leonard Schiller<BR>
Pablo Felipe Serna Cardenes
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>ADVISORY APPROVAL OF THE APPOINTMENT OF INDEPENDENT AUDITORS</B><BR>
(Item&nbsp;2 on the Proxy Card)
</DIV>


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

<P align="center" style="font-size: 10pt"><!-- Folio -->12 of 16<!-- /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%">Holtz Rubenstein Reminick LLP has been our independent auditor since September&nbsp;2007. Their
audit report appears in our annual report for the fiscal year ended December&nbsp;31, 2009. A
representative of Holtz Rubenstein Reminick LLP will be at the Annual Meeting and will have an
opportunity to make a statement if he or she desires to do so and will be available to respond to
appropriate questions.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Selection of the independent accountants is not required to be submitted to a vote of our
stockholders for ratification. In addition, the Sarbanes-Oxley Act of 2002 requires the Audit
Committee to be directly responsible for the appointment, compensation and oversight of the audit
work of the independent auditors. The Audit Committee expects to appoint Holtz Rubenstein Reminick
LLP to serve as independent auditors to conduct an audit of Milestone&#146;s accounts for the 2010
fiscal year. However, the Board is submitting this matter to Milestone&#146;s stockholders as a matter
of good corporate practice. If the stockholders fail to vote on an advisory basis in favor of the
selection, the Audit Committee will take that into consideration when deciding whether to retain
Holtz Rubenstein Reminick LLP, and may retain that firm or another without re-submitting the matter
to the stockholders. Even if stockholders vote on an advisory basis in favor of the appointment,
the Audit Committee may, in its discretion, direct the appointment of different independent
auditors at any time during the year if it determines that such a change would be in the best
interests of Milestone and the 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: 4%"><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 $148,119 and $137,975,
respectively from Holtz Rubenstein Reminick LLP, the principal accountant for 2009 and 2008.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><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 2009 and 2008.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><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 2009 and 2008.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><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 2009 and 2008 by Milestone&#146;s principal accountant.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><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 2009.
</DIV>

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

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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>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 advisory approval 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 2010 Annual Meeting other than the items referred to above. If any other
matter is properly brought before the 2010 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;

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</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., 45 Knightsbridge Road, Piscataway, New Jersey 08854.
</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 2010 must follow the procedures found in Rule&nbsp;14a-8 under the Exchange Act. To be
eligible for inclusion in the Company&#146;s 2011 proxy materials, all qualified proposals must be
received by our Corporate Secretary no later than December&nbsp;17, 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 March&nbsp;26, 2011. 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., 45 Knightsbridge Road, Piscataway, New Jersey
08854.
</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;16, 2010, 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;

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<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, 2009 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., 45 Knightsbridge Road, Piscataway, New Jersey 08854.
</DIV>
<DIV align="center">
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    <TD width="48%">&nbsp;</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>By order of the Board of Directors</B></TD>
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Leslie Bernhard</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman of the Board</TD>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Piscataway, New Jersey<BR>
April&nbsp;15, 2010
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<P align="center" style="font-size: 10pt"><!-- Folio -->16 of 16<!-- /Folio -->
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