<SEC-DOCUMENT>0000950123-11-042788.txt : 20110502
<SEC-HEADER>0000950123-11-042788.hdr.sgml : 20110502
<ACCEPTANCE-DATETIME>20110502135910
ACCESSION NUMBER:		0000950123-11-042788
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20110616
FILED AS OF DATE:		20110502
DATE AS OF CHANGE:		20110502
EFFECTIVENESS DATE:		20110502

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:		11799723

	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>c16276def14a.htm
<DESCRIPTION>DEFINITIVE PROXY STATEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>Definitive Proxy Statement</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#C16276toc">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">


<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.&nbsp;____)</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>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<!-- TOC -->
<A name="C16276toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#C16276000">PROXY STATEMENT</A></TD></TR>
<TR><TD colspan="9"><A HREF="#C16276001">PROPOSAL 1</A></TD></TR>
<TR><TD colspan="9"><A HREF="#C16276002">SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</A></TD></TR>
<TR><TD colspan="9"><A HREF="#C16276003">EXECUTIVE OFFICERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#C16276004">COMPENSATION OF DIRECTORS AND OFFICERS AND RELATED MATTERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#C16276005">AUDIT COMMITTEE REPORT</A></TD></TR>
<TR><TD colspan="9"><A HREF="#C16276006">PROPOSAL 2</A></TD></TR>
<TR><TD colspan="9"><A HREF="#C16276007">PROPOSAL 3</A></TD></TR>
<TR><TD colspan="9"><A HREF="#C16276008">OTHER BUSINESS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#C16276009">ADDITIONAL INFORMATION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#C16276010">APPENDIX A</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16276toc">Table of Contents</A></H5><P>







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


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Notice of Annual Meeting of Stockholders<BR>
To be held on June&nbsp;16, 2011</B>
</DIV>


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

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">NOTICE IS HEREBY GIVEN that the Annual Meeting of Stockholders of Milestone Scientific Inc.
(&#147;Milestone&#148; or the &#147;Company&#148;) will be held at Brown, Rudnick, Berlack and Israels, 7 Times Square,
New York, New York on June&nbsp;16, 2011 at 9:00 AM 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 fiscal year ending December&nbsp;31, 2011; and,
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">3. Approval of the 2011 Stock Option Plan providing for the issuance of up to 2,000,000
shares of Milestone&#146;s common stock; and
</DIV>


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

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Board of Directors (the &#147;Board&#148;) has fixed the close of business on April&nbsp;20, 2011 as the
Record Date for determining the stockholders having the right to notice of and to vote at the
meeting (the &#147;Record Date&#148;).
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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>
    <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</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">Chairman of the Board</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Livingston, New Jersey<BR>
May&nbsp;5, 2011
</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>

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


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Important Notice Regarding Internet Availability of Proxy Materials for the Annual Meeting of Shareholders<BR>
to be held on June&nbsp;16, 2011:</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>The Proxy Statement and Annual Report are available at </B><U><I>https://materials.proxyvote.com/59935P</I></U><B>.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">* * * * * * *
</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"><A HREF="#C16276toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">



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

<!-- link1 "PROXY STATEMENT" -->
<DIV align="left"><A NAME="C16276000"></A></DIV>
<DIV align="center" style="font-size: 10pt"><B>PROXY STATEMENT</B></DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>For Annual Meeting of Stockholders<BR>
To be Held on June&nbsp;16, 2011</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 Directors (the
&#147;Board&#148;) 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 June&nbsp;16, 2011 at 9:00 AM 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 or about May&nbsp;6, 2011.
</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 April&nbsp;20, 2011 (the &#147;Record Date&#148;) are
entitled to notice of and vote at the Annual Meeting. On the Record Date, there were 15,041,172
outstanding shares of common stock, par value $.001 per share (&#147;Common Stock&#148;). At the Annual
Meeting, each share of Common Stock is entitled to one vote. In the aggregate, 15,041,172 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, 2011; and (iii)&nbsp;for approval of the 2011 Stock Option Plan providing for the issuance
of up to 2&nbsp;million shares of Common Stock (the &#147;2011 Plan&#148;); and (iv)&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 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 Annual Meeting. Advisory
approval of the appointment of Holtz Rubenstein Reminick LLP as Milestone&#146;s independent auditors
for the fiscal year ending December&nbsp;31, 2011 and the 2011 Plan, assuming a quorum is present, are
approved by the affirmative vote of a majority of the votes cast for each of the matters by
stockholders entitled to vote.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio --> 1 of 17<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16276toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<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>

<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>
<!-- link1 "PROPOSAL 1" -->
<DIV align="left"><A NAME="C16276001"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>PROPOSAL 1<BR>
ELECTION OF DIRECTORS<BR>
(ITEM 1 ON THE PROXY CARD)</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Board currently consists of four directors: Leslie Bernhard, Leonard A Osser, Pablo Felipe
Serna Cardenas and Leonard M. Schiller. Directors are elected for a term of one year and until the
next Annual Meeting of Stockholders and until their successors are duly elected and qualified. The
Board has nominated the four present directors for re-election to the Board at the Annual Meeting.
</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
to serve as a director if re-elected.
</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="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The names, ages and titles of our directors and nominees, 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="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&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="3" style="border-bottom: 1px solid #000000">AGE</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">POSITION</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">DIRECTOR SINCE</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Leslie Bernhard (2)(3)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">67</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman of the Board and Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2003</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Leonard A. Osser
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">63</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Executive Officer and Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1991</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Pablo Felipe Serna Cardenas (1)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">35</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2006</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Leonard M. Schiller(1)(2)(3)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">69</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1997</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

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




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

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

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


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

<P align="center" style="font-size: 10pt"><!-- Folio --> 2 of 17<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16276toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<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"><B>The Board recommends that the stockholders vote FOR the election of directors.</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The principal occupations and brief summaries of the backgrounds, as of the Record Date, of
the directors and nominees are as follows:
</DIV>

<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 served on the Board of Directors of
Universal Power Group (AMEX:UPG) of Dallas, Texas and have done so since 2006. Ms.&nbsp;Bernhard&#146;s
professional experience and background with AdStar and with us, as one of our directors since 2003,
have given her the expertise needed to serve as Chairman of the Board and as a director.
</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 knowledge of our business and background with us
since 1980 provides the Board with valuable leadership skills and insight into our business.
</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>

<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>Board Leadership Structure</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Board believes that the segregation of the roles of Board Chairman and the Chief Executive
Officer ensures better overall governance of the Company and provides meaningful checks and
balances regarding its overall performance. This structure allows our Chief Executive Officer to
focus on developing and implementing the Company&#146;s business plans and supervising the Company&#146;s
day-to-day business operations, and allows our Chairman to lead the Board in its oversight and
advisory notes. Because of the many responsibilities of the Board and the significant time and
effort required by each of the Chairman and the Chief Executive Officer to perform their respective
duties, the Company believes and having
separate persons in these roles enhances the ability of each to discharge those duties
effectively and enhances the Company&#146;s prospects for success. The Board also believes that having
separate positions provides a clear delineation of responsibilities for each position and fosters
greater accountability of management. For the foregoing reasons, the Board had determined that its
leadership structure is appropriate and in the best interest of the Shareholders.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio --> 3 of 17<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16276toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>The Board&#146;s Oversight of Risk Management</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Board recognizes that companies face a variety of risks, including credit risk, liquidity
risk, strategic risk, and operational risk. The Board believes an effective risk management system
will (1)&nbsp;timely identify the material risks that we face, (2)&nbsp;communicate necessary information
with respect to material risks to senior executives and, as appropriate, to the Board of relevant
Board committee (3)&nbsp;implement appropriate and responsive risk management strategies consistent with
the Company&#146;s risk profile, and (4)&nbsp;integrate risk management into Company decision-making. The
Board encourages and management promotes a corporate culture that incorporates risk management into
the Company&#146;s corporate strategy and day-to-day business operations. The Board also continually
works, with the input of management and executive officers, to assess and analyze the most likely
areas of future risk for the Company.
</DIV>

<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 2010, the Board held a total of five meetings; the Audit Committee held a total of five
meetings, the Compensation Committee held a total of three meetings; and the Nominating Committee
did not meet. Each of our directors attended at least 80% 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 our annual meeting of stockholders in 2010.
</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 Leslie Bernhard and Leonard M. Schiller. A copy of the Compensation Committee 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</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 (v)&nbsp;the preparation of our Annual Report on Form 10-K for
the fiscal year ended December&nbsp;31, 2010. The Audit Committee is comprised of Pablo Cardenas and
Leonard M. Schiller, 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&nbsp;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
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>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio --> 4 of 17<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16276toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<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>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The stockholder recommendation and information described above must be sent to the Company&#146;s
Chief Financial Officer at 220 South Orange Avenue, NJ 07039 and must be received not less than 120
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 <U>www.milestonescientific.com</U>.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio --> 5 of 17<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16276toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<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, Messrs.&nbsp;Cardenas and Schiller are the members of the Audit
Committee and are independent for such purpose. Mr.&nbsp;Schiller is also a member of the Compensation
and Nominating Committees and is 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, 2010, disclosed in &#147;Director Compensation&#148;
below, 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>

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


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Board has established a process to receive communications from stockholders. Stockholders
and other interested parties may contact any member (or all members) of the Board, or the
non-management directors as a group, any Board committee or any chair of any such committee by mail
or electronically. To communicate with the Board, any individual director or any group or committee
of directors, correspondence should be addressed to the Board or any such individual directors or
group or committee of directors by either name or title. All such correspondence should be sent
&#147;c/o Corporate Secretary&#148; at 220 South Orange Avenue, Livingston, NJ 07039. All communications
received as set forth in the preceding paragraph will be opened by the Corporate Secretary of the
Company for the sole purpose of determining whether the contents represent a message to our
directors. Any contents that are not in the nature of advertising, promotions of a product or
service, patently offensive material or matters deemed inappropriate for the Board will be
forwarded promptly to the addressee. In the case of communications to the Board or any group or
committee of directors, the Company&#146;s Corporate Secretary will make sufficient copies of the
contents to send to each director who is a member of the group or committee to which the envelope
or e-mail is addressed.
</DIV>
<!-- link1 "SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT" -->
<DIV align="left"><A NAME="C16276002"></A></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 the Named Executive Officers (defined below),
Directors, Officers and Directors as a group, 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" style="font-size: 10pt; margin-top: 10pt"><B><U>April 20, 2011</U></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="72%">&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"><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 Benefical 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">1,924,604 </TD>
    <TD nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.80</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">242,650 </TD>
    <TD nowrap>(4)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.61</TD>
    <TD nowrap>%</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">109,766 </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">86,538 </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">76,538 </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">All directors &#038; executive officers as group (5 persons)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,440,096</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">16.23</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 220 South Orange Avenue in, New Jersey 07039; 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, Cra 10 No.
97A-13 of 705 Torre A, Bogota, Columbia; Leslie Bernhard, c/o AdStar, Inc., 1 Paceo Vista, Can
Clemente, CA 92673; K. Tucker Anderson, c/o Above All Advisors LLC, 369 Lexington Avenue of
the Americas, New York, New York 10036.</DIV></TD>
</TR>

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

<P align="center" style="font-size: 10pt"><!-- Folio --> 6 of 17<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16276toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">




<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">(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 the Record Date, as applicable, upon the exercise of options and
warrants or conversion of convertible securities. Each beneficial owner&#146;s percentage
ownership is determined by assuming that options, warrants and convertible securities that
are held by such person (but not held by any other person) and that are exercisable or
convertible within 60&nbsp;days from the filing of this report have been exercised or converted.
Except as otherwise indicated, and subject to applicable community property and similar laws,
each of the persons named has sole voting and investment power with respect to the shares
shown as beneficially owned. All percentages are determined based on the number of all
shares, including those underlying options exercisable within 60&nbsp;days from the Record Date
held by the named individual, divided by 15,030,458 outstanding shares of Common Stock on the
Record Date, plus those shares underlying options exercisable within 60&nbsp;days from the Record
Date held by the named individual or the group.</DIV></TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Includes 571,190 shares of Common Stock issuable upon 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 65,823 shares of Common Stock issuable upon the termination of his employment and
147,596 shares subject to options including: (i)&nbsp;60,000 shares at a per share exercise price
of $0.40; (ii)&nbsp;33,166 shares at a per share exercise price of $1.15; (iii)&nbsp;21,097 shares at a
per share exercise price of $1.58; and (iv)&nbsp;33,333 shares at a per share exercise price of
$1.00.</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">Includes 85,000 shares subject to options including: (i)&nbsp;25,000 shares at a per share
exercise price of $0.55; (ii)&nbsp;20,000 shares at a per share exercise price of $0.83; (iii)
20,000 shares at a per share exercise price of $1.68; and (iv)&nbsp;20,000 shares at a per share
exercise price of $0.74.</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">Includes 75,000 shares subject to options including: (i)&nbsp;25,000 shares at a per share
exercise price of $0.55; (ii)&nbsp;10,000 shares at a per share exercise price of $0.83; (iii)
20,000 shares at a per share exercise price of $1.68; and (iv)&nbsp;20,000 shares at a per share
exercise price of $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">Includes 65,000 shares subject to options including: (i)&nbsp;20,000 shares at a per share
exercise price of $1.68; and (ii)&nbsp;20,000 shares at a per share exercise price of $0.55.</DIV></TD>
</TR>

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

<P align="center" style="font-size: 10pt"><!-- Folio --> 7 of 17<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16276toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">





<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Securities Authorized for Issuance Under Equity Compensation Plans</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Equity Compensation Plan Information</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The following table summarizes the (i)&nbsp;options granted under the Milestone 2004 Stock Option
Plans, and (ii)&nbsp;options and warrants granted outside the Milestone 2004 Stock Option Plan, as of
December&nbsp;31, 2010. The shares covered by outstanding options and warrants are subject to adjustment
for changes in capitalization, stock splits, stock dividends and similar events. No other equity
compensation has been issued.
</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="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>&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">Number of securities (1)</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 (1) to</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Weighted-average exercise</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">remaining available for</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">be issued upon exercise of</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">price of outstanding</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">future issuance under</TD>
    <TD>&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">outstanding options and warrants</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">options and warrants</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">equity compensation plan</TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<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>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity compensation plan approved by
stockholders (1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Grants under our 2004 Stock Option Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">322,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">428,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity compensation plan not approved by
stockholders (2)</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 colspan="2" align="right">Not applicable</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Aggregate individual option and warrants grants</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,216,502</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&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="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,538,502</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&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>
<!-- 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">In July&nbsp;2004 the Board of Directors approved the adoption of the 2004 Stock Option Plan. The
2004 Stock Option Plan provides for the grant of options to purchase up to 500,000 shares of
Milestone&#146;s common stock. Options may be granted to employees, officers, directors and
consultants of Milestone for the purchase of common stock of Milestone at a price not less
than the fair market value of the common stock on the date of the grant. In general, options
become exercisable over a three-year period from the grant date and expire five years after
the date of grant. No options were exercised in 2010.</DIV></TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">In March&nbsp;2008, the Board of Directors authorized an additional 250,000 options to this plan.</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 aggregate individual option grants outside the Stock Option Plans referred to in the
table above include options issued as payment for services rendered to us by outside
consultants and providers of certain services. The aggregate individual warrant grants
referred to in the table above include warrants granted to investors in Milestone as part of
private placements and credit line arrangements.</DIV></TD>
</TR>

</TABLE>


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


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


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">As of December&nbsp;31, 2010 there are no shares remaining under this plan.
</DIV>

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

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In 2010, the Company issued the following shares under this Plan; 50,000 shares valued at of
$50,000 for Officer Compensation, 76,661 shares valued at $104,000 for consulting services, 23,388
shares valued at $33,354 for employee compensation, 34,614 shares valued at $45,000 issued to
Directors as compensation.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">At December&nbsp;31, 2010 and 2009 there was $11,316 and $143,610, respectively, available to be
issued under this plan.
</DIV>

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

<P align="center" style="font-size: 10pt"><!-- Folio --> 8 of 17<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16276toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">


<!-- link1 "EXECUTIVE OFFICERS" -->
<DIV align="left"><A NAME="C16276003"></A></DIV>

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


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The following table sets forth the names, ages and principal positions of the executive
officers of the Company and two non-officer key employees as of 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="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="55%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" 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 valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>EXECUTIVE OFFICERS</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</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">Leslie Bernhard
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">67</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman of the Board and Director</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Leonard A. Osser
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">63</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Executive Officer and Director</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Joseph D&#146;Agostino
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">59</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Financial Officer</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>KEY EMPLOYEES</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</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">Eugene Casagrande, D.D.S.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">67</TD>
    <TD nowrap valign="top">&nbsp;</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 valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mark Hochman, D.D.S.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">53</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director of Clinical Affairs</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The principal occupation and business experience for at least the last five years for each
executive officer is set forth below (except for Mr.&nbsp;Osser and Ms.&nbsp;Bernhard, whose business
experience is discussed above).
</DIV>

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


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

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


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

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


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

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">There are no family relationships among any of our directors or executive officers.
</DIV>

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

<P align="center" style="font-size: 10pt"><!-- Folio --> 9 of 17<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16276toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">


<!-- link1 "COMPENSATION OF DIRECTORS AND OFFICERS AND RELATED MATTERS" -->
<DIV align="left"><A NAME="C16276004"></A></DIV>

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


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


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The following Summary Compensation Table sets forth all compensation earned, in all
capacities, during the fiscal year ended December&nbsp;31, 2010 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 2010 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">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Other</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Option</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>NAME AND PRINCIPAL POSITION</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>YEAR</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Salary</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Bonuses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Compensation</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Awards (2)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leonard A. Osser <BR>
Chief Executive Officer-effective 9-1-2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2010</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">100,000 </TD>
    <TD nowrap>(1)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">50,880 </TD>
    <TD nowrap>(1)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">450,880</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Chairman of the Board</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">300,000 </TD>
    <TD nowrap>(1)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">100,000 </TD>
    <TD nowrap>(1)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">46,280 </TD>
    <TD nowrap>(1)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">49,788 </TD>
    <TD nowrap>(1)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">496,068</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">Joseph D&#146;Agostino</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2010</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">50,000 </TD>
    <TD nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">9,000 </TD>
    <TD nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">168,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">398,600</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Chief Financial Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">171,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">25,000 </TD>
    <TD nowrap>(3)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,737</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">335,312</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


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




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Other compensation represents payments made for personal use of corporate apartment, health
insurance coverage and car allowance. The information for 2009 excludes a previously reported
performance bonus of $300,000 of cash and $248,946 of stock based compensation that were
reversed in 2010 because the performance milestones were not met.</DIV></TD>
</TR>

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

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">The amounts in this column reflect the fair value of the options at date of grant computed in
accordance with the Financial Accounting Standards Board Accounting Standards Codified Topic
718. 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, 2010 and 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, 2010.</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">Includes $50,000 and $25,000 in deferred compensation in 2010 and 2009 respectively, is in
accordance with agreement to be paid in Common Stock and not paid until the termination of his
employment with the Company. Other compensation in 2010 includes a car allowance.</DIV></TD>
</TR>

</TABLE>



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

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In March&nbsp;2009, the Chairman assumed the position of Milestone&#146;s Acting Chief Executive
Officer. In September&nbsp;2009 The Chairman 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.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16276toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<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 (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>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In accordance with the employment contract 571,190 shares of Common Stock are to be paid out
at the end of the contract in settlement of $758,333 at December&nbsp;31, 2010 and 676,190 shares to be
paid out at the end of the contract in settlement of $925,000 at December&nbsp;31, 2009 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"><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.
</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, 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 executive chief 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 --> 11 of 17<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16276toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Outstanding Equity Awards at December&nbsp;31, 2010</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 the Named Executive Officers. There were no stock awards granted in
2010.
</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">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">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,193</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12/17/2014</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Joseph D&#146;Agostino</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">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">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,350</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">09/01/2014</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,666</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,334</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12/17/2014</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,097</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,549</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12/17/2014</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66,667</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12/20/2015</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <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">100,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12/20/2015</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&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">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147,746</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">249,900</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 style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&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>
<!-- 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 company shares as compensation to its independent directors in 2010 as stated
below in the compensation table. On May&nbsp;26, 2010 Milestone approved annual compensation to its
directors in the amount of $30,000, one half payable in Common Stock shares and one half in cash.
As of December&nbsp;31, 2010, Common Stock valued at $15,000 were issued to each independent director.
The directors received payments of $9,000 each in 2011, as of the Record Date.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The following table provides compensation information for the year ended December&nbsp;31, 2010 for
each of the directors. 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="86%">&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">2010</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">Stock 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 align="left">$</TD>
    <TD align="right">15,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leslie Bernhard</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,000</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 align="left">$</TD>
    <TD align="right">15,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

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




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Represents the aggregate grant-date fair value of the awards computed in accordance with
the FASB ASC Topic 718. 11,538 Shares, valued at $1.30 per share as of May&nbsp;26, 2010, were
issued to each director.</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 Section 16(a) of the Securities Exchange Act of 1934 requires our officers and
directors, and person who own more than ten percent of a registered class of our equity securities,
to file reports of ownership and changes in ownership with the SEC. Officers, directors and greater
than ten-percent stockholders are required by SEC regulation to furnish us with copies of all
Section 16(a) forms they file. Based solely on review of the copies of such forms furnish to us, or
written representations that no Forms 5 were required, we believe that all Section 16(a) filing
requirements applicable to our officers and director were complied with during the fiscal year
ended December&nbsp;31, 2010 except that Joseph D&#146;Agostino did not timely file one Form&nbsp;4 to report the
receipt of an option grant.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio --> 12 of 17<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16276toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>Certain Relationships and Related Party 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 K. Tucker Andersen, a
stockholder, beneficially owning approximately 18% of the company&#146;s outstanding stock. This
borrowing was amended to $1,300,000 as of September&nbsp;30, 2008 under the same terms and conditions as
the original. Borrowings under this line 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 this 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 this 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. At September&nbsp;30, 2008 this line of Credit amount was completely drawn down. In December
2009, the Company converted the $1.3&nbsp;million principal amount of the borrowing under the line of
Credit into 822,785 shares of Common Stock at a price of $1.58 per share. Additionally, the
interest due on the principal is payable over a two year period (quarterly payments of $23,000).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Company borrowed an additional $450,000 from the same stockholder in 2008. The borrowing
was originally on short term loan with a maturity date of January&nbsp;19, 2009. In December&nbsp;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&nbsp;404 of
Regulation&nbsp;S-K of the Exchange Act. Milestone has adopted a policy that, in the future, the Audit
Committee must review all transactions with any officer, director or 5% stockholder. The amount
outstanding to the stockholder was $450,000 for both years ending December&nbsp;31, 2010 and 2009.
Interest expense accrued on this debt was $95,135 and $154,027 for the years ended December&nbsp;31,
2010 and 2009, respectively.
</DIV>
<!-- link1 "AUDIT COMMITTEE REPORT" -->
<DIV align="left"><A NAME="C16276005"></A></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,
2010, 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 Form 10-K for the fiscal year ended December&nbsp;31, 2010.
</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">Pablo Felipe Serna Cardenes<BR>
Leonard Schiller
</DIV>

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

<P align="center" style="font-size: 10pt"><!-- Folio --> 13 of 17<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16276toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">


<!-- link1 "PROPOSAL 2" -->
<DIV align="left"><A NAME="C16276006"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>PROPOSAL 2<BR>
ADVISORY APPROVAL OF THE APPOINTMENT OF INDEPENDENT AUDITORS<BR>
(ITEM 2 ON THE PROXY CARD)</B>
</DIV>


<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, 2010. 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 2011
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>Recommendation of the Board of Directors</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>The Board of Directors recommends that the stockholders vote FOR advisory approval of the
appointment of the independent auditor.</B>
</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: 0%"><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 $110,738 and $148,119
for 2010 and 2009, respectively, from Holtz Rubenstein Reminick LLP, the principal accountant for
2010 and 2009.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><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 to the principal accountant Holtz Rubenstein Reminick LLP in
2010 and 2009.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><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 the principal accountant in 2010 and 2009.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><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 2010 and 2009 by Milestone&#146;s principal accountants.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><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 and the Audit Committee. There were no non-audit or non-audit related services
were approved by the Audit Committee in 2010.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio --> 14 of 17<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16276toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<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>
<!-- link1 "PROPOSAL 3" -->
<DIV align="left"><A NAME="C16276007"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>PROPOSAL 3<BR>
APPROVAL OF THE 2011 STOCK OPTION PLAN PROVIDING FOR THE ISSUANCE OF UP TO 2<BR>
MILLION SHARES OF MILESTONE&#146;S COMMON STOCK<BR>
(ITEM 3 ON THE PROXY CARD)</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Milestone&#146;s Board adopted the 2011 Stock Option Plan (the &#147;2011 Plan&#148;), subject to stockholder
approval, which provides for the grant to our employees, directors and consultants of incentive and
non-qualified stock options to purchase up to 2,000,000 shares of Common Stock.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The purpose of the 2011 Plan is to provide incentives to employees, directors and consultants
whose performance will contribute to our long-term success and growth, to strengthen the Company&#146;s
ability to attract and retain employees, directors and consultants of high competence, to increase
the identity of interests of such people with those of its stockholders and to help build loyalty
to Milestone through recognition and the opportunity for stock ownership. The Compensation
Committee of the Board will administer the 2011 Plan.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The following description of the 2011 Plan is a summary and is qualified in its entirety by
reference to the 2011 Plan, a copy of which is annexed hereto as Appendix&nbsp;A to this Proxy
Statement.
</DIV>

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


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Under the 2011 Plan, incentive stock options may be granted only to employees and
non-qualified stock options may be granted to employees, directors and consultants. The 2011 Plan
and will expire 10&nbsp;years from the date of stockholder approval.
</DIV>

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


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The 2011 Plan permits the granting of both incentive stock options and nonqualified stock
options. Generally, the option price of both incentive stock options and non-qualified stock
options must be at least equal to 100% of the fair market value of the shares on the date of grant.
The maximum term of each option is ten years. For any participant who owns shares possessing more
than 10% of the voting rights of Milestone&#146;s outstanding shares of Common Stock, the exercise price
of any incentive stock option must be at least equal to 110% of the fair market value of the shares
subject to such option on the date of grant and the term of the option may not be longer than five
years. Options become exercisable at such time or times as the Compensation Committee may determine
at the time it grants options.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Federal Income Tax Consequences</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We believe that under current law the following U.S. Federal income tax consequences generally
would arise with respect to awards under the 2011 Plan.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Non-qualified Stock Options. The grant of non-qualified stock options will have no immediate
tax consequences to the Company or the grantee. The exercise of a non-qualified stock option will
require an employee to include in his gross income the amount by which the fair market value of the
acquired shares on the exercise date (or the date on which any substantial risk of forfeiture
lapses) exceeds the option price. Upon a subsequent sale or taxable exchange of the shares acquired
upon exercise of a non-qualified stock option, an employee will recognize long or short-term
capital gain or loss equal to the difference between the amount realized on the sale and the tax
basis of such shares. Milestone will be entitled
(provided applicable withholding requirements are met) to a deduction for Federal income tax
purposes at the same time and in the same amount as the employee is in receipt of income in
connection with the exercise of a non-qualified stock option.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Incentive Stock Options. The grant of an incentive stock option will have no immediate tax
consequences to Milestone or its employee. If the employee exercises an incentive stock option and
does not dispose of the acquired shares within two years after the grant of the incentive stock
option nor within one year after the date of the transfer of such shares to him (a &#147;disqualifying
disposition&#148;), he will realize no compensation income and any gain or loss that he realizes on a
subsequent disposition of such shares will be treated as a long-term capital gain or loss. For
purposes of calculating the employee&#146;s alternative minimum taxable income, however, the option will
be taxed as if it were a non-qualified stock option.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio --> 15 of 17<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16276toc">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>New Plan Benefits Under the 2011 Plan</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Future awards under the 2011 Plan will be granted in the discretion of the Compensation
Committee. The type, number, recipients, and other terms of such future awards cannot be
determined at this time. Information regarding our recent practices with respect to annual
incentive awards and stock-based compensation under existing plans is presented in the &#147;Executive
Compensation&#148; and &#147;Outstanding Equity Awards at December&nbsp;31, 2010&#148; elsewhere in this Proxy
Statement and in our financial statements for the fiscal year ended December&nbsp;31, 2010 included in
the Annual Report which accompanies this Proxy Statement.
</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 approval of the 2011
Plan.</B>
</DIV>
<!-- link1 "OTHER BUSINESS" -->
<DIV align="left"><A NAME="C16276008"></A></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 Annual Meeting other than the items referred to above. If any other
matter is properly brought before the 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>
<!-- link1 "ADDITIONAL INFORMATION" -->
<DIV align="left"><A NAME="C16276009"></A></DIV>

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


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


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

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

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Stockholders interested in presenting a proposal for consideration at the Annual Meeting of
stockholders in 2012 must follow the procedures found in Rule&nbsp;14a-8 under the Exchange Act. To be
eligible for inclusion in the Company&#146;s 2012 proxy materials, all qualified proposals must be
received by our Corporate Secretary no later than January&nbsp;4, 2012. 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, 2012. If a stockholder fails to give notice by this date, then the persons
named as proxies in the proxies solicited by us for the next Annual Meeting will have discretionary
authority to vote on the proposal. Stockholder proposals should be addressed to our Chief Financial
Officer, Milestone Scientific Inc., 220 South Orange Avenue in Livingston, New Jersey 07039
</DIV>

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

<P align="center" style="font-size: 10pt"><!-- Folio --> 16 of 17<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16276toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<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 May&nbsp;6, 2011, 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>

<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, 2010 including the financial statements and financial statement schedules included
therein. </B>All such requests should be directed to Joseph D&#146;Agostino, Chief Financial Officer,
Milestone Scientific Inc., 220 South Orange Avenue, Livingston, New Jersey 07039.
</DIV>

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


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U>Important Notice Regarding Internet Availability of Proxy Materials for the Annual Meeting of Shareholders </U><BR>
<U>to be held on June&nbsp;16, 2011:</U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U>The Proxy Statement and Annual Report are available at <I>https://materials.proxyvote.com/59935P</I>.</U>
</DIV>


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

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&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>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</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>
    <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</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">Chairman of the Board</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Livingston, New Jersey<BR>
May&nbsp;5, 2011

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

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16276toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">
<!-- link1 "APPENDIX A" -->
<DIV align="left"><A NAME="C16276010"></A></DIV>

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


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>MILESTONE SCIENTIFIC INC.<BR>
2011 STOCK OPTION PLAN</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">1.&nbsp;Purpose; Types of Awards; Construction.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The purpose of the Milestone Scientific Inc. 2011 Stock Option Plan (the &#147;Plan&#148;) is to align the
interests of officers, other key employees, consultants and nonemployee directors of Milestone
Scientific Inc. (the &#147;Company&#148;) and its affiliates with those of the stockholders of the Company,
to afford an incentive to such officers, employees, consultants and directors to continue as such,
to increase their efforts on behalf of the Company and to promote the success of the Company&#146;s
business. To further such purposes, the Committee may grant options to purchase shares of the
Common Stock. The provisions of the Plan are intended to satisfy the requirements of Section 16(b)
of the Exchange Act and of Section 162(m) of the Code, and shall be interpreted in a manner
consistent with the requirements thereof, as now or hereafter construed, interpreted and applied by
regulations, rulings and cases.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">2.&nbsp;Definitions.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">As used in this Plan, the following words and phrases shall have the meanings indicated below:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(a)&nbsp;&#147;Agreement&#148; shall mean a written agreement entered into between the Company and an Optionee in
connection with an award under the Plan.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(b)&nbsp;&#147;Board&#148; shall mean the Board of Directors of the Company.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(c)&nbsp;&#147;Cause,&#148; when used in connection with the termination of an Optionee&#146;s employment by the
Company or the cessation of an Optionee&#146;s service as a consultant or a member of the Board, shall
mean (i)&nbsp;the conviction of the Optionee for the commission of a felony, or (ii)&nbsp;the willful and
continued failure by the Optionee substantially to perform his duties and obligations to the
Company or a Subsidiary (other than any such failure resulting from his incapacity due to physical
or mental illness), or (iii)&nbsp;the willful engaging by the Optionee in misconduct that is
demonstrably injurious to the Company or a Subsidiary. For purposes of this Section&nbsp;2(c), no act,
or failure to act, on an Optionee&#146;s part shall be considered &#147;willful&#148; unless done, or omitted to
be done, by the Optionee in bad faith and without reasonable belief that his action or omission was
in the best interest of the Company. The Committee shall determine whether a termination of
employment is for Cause for purposes of the Plan.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(d)&nbsp;&#147;Change in Control&#148; shall mean the occurrence of the event set forth in any of the following
paragraphs:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(i)&nbsp;any Person (as defined below) is or becomes the beneficial owner (as defined in Rule&nbsp;13d-3
under the Exchange Act), directly or indirectly, of securities of the Company (not including in the
securities beneficially owned by such Person any securities acquired directly from the Company or
its subsidiaries) representing 50% or more of the combined voting power of the Company&#146;s then
outstanding securities; or
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(ii)&nbsp;the following individuals cease for any reason to constitute a majority of the number of
directors then serving: individuals who, on the date hereof, constitute the Board and any new
director (other than a director whose initial assumption of office is in connection with an actual
or threatened election contest, including but not limited to a consent solicitation, relating to
the election of directors of the Company) whose appointment or election by the Board or nomination
for election by the Company&#146;s stockholders was approved or recommended by a vote of at least
two-thirds (2/3) of the directors then still in office who either were directors on the date hereof
or whose appointment, election or nomination for election was previously so approved or
recommended; or
</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"><A HREF="#C16276toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(iii)&nbsp;there is consummated a merger or consolidation of the Company or a direct or indirect
subsidiary thereof with any other corporation, other than (A)&nbsp;a merger or consolidation which would
result in the voting securities of the Company outstanding immediately prior to such merger or
consolidation continuing to represent (either by remaining outstanding or by being converted into
voting securities of the surviving entity or any parent thereof), in combination with the ownership
of any trustee or other fiduciary holding securities under an employee benefit plan of the Company,
at least 50% of the combined voting power of the securities of the Company or such surviving entity
or any parent thereof outstanding immediately after such merger or consolidation, or (B)&nbsp;a merger
or consolidation effected to implement a recapitalization of the Company (or similar transaction)
in which no Person is or becomes the beneficial owner, directly or indirectly, of securities of the
Company (not including in the securities beneficially owned by such Person any securities acquired
directly from the Company or its subsidiaries) representing 50% or more of the combined voting
power of the Company&#146;s then outstanding securities; or
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(iv)&nbsp;the stockholders of the Company approve a plan of complete liquidation or dissolution of the
Company or there is consummated an agreement for the sale or disposition by the Company of all or
substantially all of the Company&#146;s assets, other than a sale or disposition by the Company of all
or substantially all of the Company&#146;s assets to an entity, at least 50% of the combined voting
power of the voting securities of which are owned by Persons in substantially the same proportions
as their ownership of the Company immediately prior to such sale.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">For purposes of this Section&nbsp;2(d), &#147;Person&#148; shall have the meaning given in Section&nbsp;3(a)(9) of the
Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall
not include (i)&nbsp;the Company or any of its subsidiaries, (ii)&nbsp;a trustee or other fiduciary holding
securities under an employee benefit plan of the Company or any of its subsidiaries, (iii)&nbsp;an
underwriter temporarily holding securities pursuant to an offering of such securities, or (iv)&nbsp;a
corporation owned, directly or indirectly, by the stockholders of the Company in substantially the
same proportions as their ownership of stock of the Company.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(e)&nbsp;&#147;Code&#148; shall mean the Internal Revenue Code of 1986, as amended from time to time.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(f)&nbsp;&#147;Committee&#148; shall mean a committee established by the Board to administer the Plan.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(g)&nbsp;&#147;Common Stock&#148; shall mean shares of common stock, $.001 par value, of the Company.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(h)&nbsp;&#147;Company&#148; shall mean Milestone Scientific Inc., a corporation organized under the laws of the
State of Delaware, or any successor corporation.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(i)&nbsp;&#147;Disability&#148; shall mean an Optionee&#146;s inability to perform his duties with the Company or on
the Board by reason of any medically determinable physical or mental impairment, as determined by a
physician selected by the Optionee and acceptable to the Company.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(j)&nbsp;&#147;Exchange Act&#148; shall mean the Securities Exchange Act of 1934, as amended from time to time,
and as now or hereafter construed, interpreted and applied by regulations, rulings and cases.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(k)&nbsp;&#147;Fair Market Value&#148; per share as of a particular date shall mean (i)&nbsp;if the shares of Common
Stock are then listed on a national securities exchange, the closing sales price per share of
Common Stock on the national securities exchange on which the Common Stock is principally traded
for the last preceding date on which there was a sale of such Common Stock on such exchange, or
(ii)&nbsp;if the shares of Common Stock are then traded in an over-the-counter market, the closing bid
price for the shares of Common Stock in such over-the-counter market for the last preceding date on
which there was a sale of such Common Stock in such market, or (iii)&nbsp;if the shares of Common Stock
are not then listed on a national securities exchange or traded in an over-the-counter market, such
value as the Committee, in its sole discretion, shall determine.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(l)&nbsp;&#147;Incentive Stock Option&#148; shall mean any option intended to be and designated as an incentive
stock option within the meaning of Section&nbsp;422 of the Code.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(m)&nbsp;&#147;Nonemployee Director&#148; shall mean a member of the Board who is not an employee of the Company.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(n)&nbsp;&#147;Nonqualified Option&#148; shall mean an Option that is not an Incentive Stock Option.
</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"><A HREF="#C16276toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(o)&nbsp;&#147;Option&#148; shall mean the right, granted hereunder, to purchase shares of Common Stock. Options
granted by the Committee pursuant to the Plan may constitute either Incentive Stock Options or
Nonqualified Stock Options.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(p)&nbsp;&#147;Optionee&#148; shall mean a person who receives a grant of an Option.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(q)&nbsp;&#147;Option Price&#148; shall mean the exercise price of the shares of Common Stock covered by an
Option.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(r)&nbsp;&#147;Parent&#148; shall mean any company (other than the Company) in an unbroken chain of companies
ending with the Company if, at the time of granting an Option, each of the companies other than the
Company owns stock possessing fifty percent (50%) or more of the total combined voting power of all
classes of stock in one of the other companies in such chain.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(s)&nbsp;&#147;Plan&#148; shall mean this Milestone Scientific Inc. 2011 Stock Option Plan.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(t)&nbsp;&#147;Rule&nbsp;16b-3&#148; shall mean Rule&nbsp;16b-3, as from time to time in effect, promulgated by the
Securities and Exchange Commission under Section&nbsp;16 of the Exchange Act, including any successor to
such Rule.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(u)&nbsp;&#147;Subsidiary&#148; shall mean any company (other than the Company) in an unbroken chain of companies
beginning with the Company if, at the time of granting an Option, each of the companies other than
the last company in the unbroken chain owns stock possessing fifty percent (50%) or more of the
total combined voting power of all classes of stock in one of the other companies in such chain.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(v)&nbsp;&#147;Ten Percent Stockholder&#148; shall mean an Optionee who, at the time an Incentive Stock Option is
granted, owns (or is deemed to own pursuant to the attribution rules of Section 424(d) of the Code)
stock possessing more than ten percent (10%) of the total combined voting power of all classes of
stock of the Company or any Parent or Subsidiary.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">3.&nbsp;Administration.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Plan, except as may otherwise be determined by the Board, shall be administered by the
Committee, the members of which shall be &#147;nonemployee directors&#148; under Rule&nbsp;16b-3 and &#147;outside
directors&#148; under Section 162(m) of the Code.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Committee shall have the authority in its discretion, subject to and not inconsistent with the
express provisions of the Plan, to administer the Plan and to exercise all the powers and
authorities either specifically granted to it under the Plan or necessary or advisable in the
administration of the Plan, including, without limitation, the authority to grant Options; to
determine which Options shall constitute Incentive Stock Options and which Options shall constitute
Nonqualified Stock Options; to determine the purchase price of the shares of Common Stock covered
by each Option; to determine the persons to whom, and the time or times at which awards shall be
granted; to determine the number of shares to be covered by each award; to interpret the Plan; to
prescribe, amend and rescind rules and regulations relating to the Plan; to determine the terms and
provisions of the Agreements (which need not be identical) and to cancel or suspend awards, as
necessary; and to make all other determinations deemed necessary or advisable for the
administration of the Plan.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Committee may not delegate its authority to grant Options. The Committee may employ one or more
persons to render advice with respect to any responsibility the Committee may have under the Plan.
The Board shall have sole authority, unless expressly delegated to the Committee, to grant Options
to Nonemployee Directors. All decisions, determination and interpretations of the Committee shall
be final and binding on all Optionees of any awards under this Plan.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Board shall have the authority to fill all vacancies, however caused, in the Committee. The
Board may from time to time appoint additional members to the Committee, and may at any time remove
one or more Committee members. One member of the Committee shall be selected by the Board as
chairman. The Committee shall hold its meetings at such times and places as it shall deem
advisable. All determinations of the Committee shall be made by a majority of its members either
present in person or participating by conference telephone at a meeting or by written consent. The
Committee may appoint a secretary and make such rules and regulations for the conduct of its
business as it shall deem advisable, and shall keep minutes of its meetings.
</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"><A HREF="#C16276toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">No member of the Board or Committee shall be liable for any action taken or determination made in
good faith with respect to the Plan or any award granted hereunder.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">4.&nbsp;Eligibility.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Awards may be granted to officers and other key employees of and consultants to the Company, and
its Subsidiaries, including officers and directors who are employees, and to Nonemployee Directors.
In determining the persons to whom awards shall be granted and the number of shares to be covered
by each award, the Committee shall take into account the duties of the respective persons, their
present and potential contributions to the success of the Company and such other factors as the
Committee shall deem relevant in connection with accomplishing the purpose of the Plan.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">5.&nbsp;Stock.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The maximum number of shares of Common Stock reserved for the grant of awards under the Plan shall
be 2,000,000, subject to adjustment as provided in Section&nbsp;9 hereof. Such shares may, in whole or
in part, be authorized but unissued shares or shares that shall have been or may be reacquired by
the Company.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">If any outstanding award under the Plan should for any reason expire, be canceled or be forfeited
without having been exercised in full, the shares of Common Stock allocable to the unexercised,
canceled or terminated portion of such award shall (unless the Plan shall have been terminated)
become available for subsequent grants of awards under the Plan.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">6.&nbsp;Terms and Conditions of Options.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Each Option granted pursuant to the Plan shall be evidenced by an Agreement, in such form and
containing such terms and conditions as the Committee shall from time to time approve, which
Agreement shall comply with and be subject to the following terms and conditions, unless otherwise
specifically provided in such Option Agreement:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(a)&nbsp;Number of Shares. Each Option Agreement shall state the number of shares of Common Stock to
which the Option relates.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(b)&nbsp;Type of Option. Each Option Agreement shall specifically state that the Option constitutes an
Incentive Stock Option or a Nonqualified Stock Option.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(c)&nbsp;Option Price. Each Option Agreement shall state the Option Price, which shall not be less than
one hundred percent (100%) of the Fair Market Value of the shares of Common Stock covered by the
Option on the date of grant unless, with respect to Nonqualified Stock Options, otherwise
determined by the Committee. The Option Price shall be subject to adjustment as provided in Section
9 hereof. The date as of which the Committee adopts a resolution expressly granting an Option shall
be considered the day on which such Option is granted, unless such resolution specifies a different
date.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(d)&nbsp;Medium and Time of Payment. The Option Price multiplied by the number of shares of Common Stock
exercised by the Optionee shall be paid in full at the time of exercise in cash.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(e)&nbsp;Exercise Schedule and Period of Options. Each Option Agreement shall provide the exercise
schedule for the Option as determined by the Committee; provided, however, that, the Committee
shall have the authority to accelerate the exercisability of any outstanding Option at such time
and under such circumstances as it, in its sole discretion, deems appropriate. The exercise period
shall be ten (10)&nbsp;years from the date of the grant of the Option unless otherwise determined by the
Committee; provided, however, that, in the case of an Incentive Stock Option, such exercise period
shall not exceed ten (10)&nbsp;years from the date of grant of such Option. The exercise period shall be
subject to earlier termination as provided in Sections 6(f) and 6(g) hereof. An Option may be
exercised, as to any or all full shares of Common Stock as to which the Option has become
exercisable, by written notice delivered in person or by mail to the Secretary of the Company,
specifying the number of shares of Common Stock with respect to which the Option is being
exercised.
</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"><A HREF="#C16276toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(f)&nbsp;Termination. Except as provided in this Section 6(f) and in Section 6(g) hereof, an Option may
not be exercised unless (i)&nbsp;with respect to an Optionee who is an employee of the Company, the
Optionee is then in the employ of the Company or a Subsidiary (or a company or a Parent or
Subsidiary company of such company issuing or assuming the Option in a
transaction to which Section 424(a) of the Code applies), and unless the Optionee has remained
continuously so employed since the date of grant of the Option and (ii)&nbsp;with respect to an Optionee
who is a Nonemployee Director, the Optionee is then serving as a member of the Board or as a member
of a board of directors of a company or a Parent or Subsidiary company of such company issuing or
assuming the Option. In the event that the employment of an Optionee shall terminate or the service
of an Optionee as a member of the Board shall cease (other than by reason of death, Disability, or
Cause), all Options of such Optionee that are exercisable at the time of such termination may,
unless earlier terminated in accordance with their terms, be exercised within ninety (90)&nbsp;days
after the date of such termination or service (or such different period as the Committee shall
prescribe).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(g)&nbsp;Death or Disability of Optionee. If an Optionee shall die while employed by the Company or a
Subsidiary or serving as a member of the Board, or within ninety (90)&nbsp;days after the date of
termination of such Optionee&#146;s employment or cessation of such Optionee&#146;s service (or within such
different period as the Committee may have provided pursuant to Section 6(f) hereof), or if the
Optionee&#146;s employment shall terminate or service shall cease by reason of Disability, all Options
theretofore granted to such Optionee (to the extent otherwise exercisable) may, unless earlier
terminated in accordance with their terms, be exercised by the Optionee or by his beneficiary, at
any time within one year after the death or Disability of the Optionee (or such different period as
the Committee shall prescribe). In the event that an Option granted hereunder shall be exercised by
the legal representatives of a deceased or former Optionee, written notice of such exercise shall
be accompanied by a certified copy of letters testamentary or equivalent proof of the right of such
legal representative to exercise such Option. Unless otherwise determined by the Committee, Options
not otherwise exercisable on the date of termination of employment shall be forfeited as of such
date.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(h)&nbsp;Other Provisions. The Option Agreements evidencing awards under the Plan shall contain such
other terms and conditions not inconsistent with the Plan as the Committee may determine, including
penalties for the commission of competitive acts.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">7.&nbsp;Nonqualified Stock Options.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Options granted pursuant to this Section&nbsp;7 are intended to constitute Nonqualified Stock Options
and shall be subject only to the general terms and conditions specified in Section&nbsp;6 hereof.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">8.&nbsp;Incentive Stock Options.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Options granted pursuant to this Section&nbsp;8 are intended to constitute Incentive Stock Options and
shall be subject to the following special terms and conditions, in addition to the general terms
and conditions specified in Section&nbsp;6 hereof. An Incentive Stock Option may not be granted to a
Nonemployee Director or a consultant to the Company.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(a)&nbsp;Value of Shares. The aggregate Fair Market Value (determined as of the date the Incentive Stock
Option is granted) of the shares of Common Stock with respect to which Incentive Stock Options
granted under this Plan and all other option plans of any subsidiary become exercisable for the
first time by each Optionee during any calendar year shall not exceed $100,000.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(b)&nbsp;Ten Percent Stockholder. In the case of an Incentive Stock Option granted to a Ten Percent
Stockholder, (i)&nbsp;the Option Price shall not be less than one hundred ten percent (110%) of the Fair
Market Value of the shares of Common Stock on the date of grant of such Incentive Stock Option, and
(ii)&nbsp;the exercise period shall not exceed five (5)&nbsp;years from the date of grant of such Incentive
Stock Option.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">9.&nbsp;Effect of Certain Changes.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(a)&nbsp;In the event of any extraordinary dividend, stock dividend, recapitalization, merger,
consolidation, stock split, warrant or rights issuance, or combination or exchange of such shares,
or other similar transactions, each of the number of shares of Common Stock available for awards,
the number of such shares covered by outstanding awards, and the price per share
of Options, as appropriate, shall be equitably adjusted by the Committee to reflect such event and
preserve the value of such awards.
</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"><A HREF="#C16276toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(b)&nbsp;Upon the occurrence of a Change in Control, each Option granted under the Plan and then
outstanding but not yet exercisable shall thereupon become fully exercisable.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">10.&nbsp;Surrender and Exchange of Awards.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Committee may permit the voluntary surrender of all or a portion of any Option granted under
the Plan or any option granted under any other plan, program or arrangement of the Company or any
Subsidiary (&#147;Surrendered Option&#148;), to be conditioned upon the granting to the Optionee of a new
Option for the same number of shares of Common Stock as the Surrendered Option, or may require such
voluntary surrender as a condition precedent to a grant of a new Option to such Optionee. Subject
to the provisions of the Plan, such new Option may be an Incentive Stock Option or a Nonqualified
Stock Option, and shall be exercisable at the price, during such period and on such other terms and
conditions as are specified by the Committee at the time the new Option is granted.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">11.&nbsp;Period During Which Awards May Be Granted.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Awards may be granted pursuant to the Plan from time to time within a period of ten (10)&nbsp;years from
the date the Plan is adopted by the Board, or the date the Plan is approved by the Stockholders of
the Company, whichever is earlier, unless the Board shall terminate the Plan at an earlier date.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">12.&nbsp;Nontransferability of Awards.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Except as otherwise determined by the Committee, awards granted under the Plan shall not be
transferable otherwise than by will or by the laws of descent and distribution, and awards may be
exercised or otherwise realized, during the lifetime of the Optionee, only by the Optionee or by
his guardian or legal representative.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">13.&nbsp;Approval of Stockholders.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Plan shall take effect upon its adoption by the Board and shall terminate on the tenth
anniversary of such date, but the Plan (and any grants of awards made prior to the Stockholder
approval mentioned herein) shall be subject to the approval of Company&#146;s Stockholders, which
approval must occur within twelve months of the date the Plan is adopted by the Board.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">14.&nbsp;Agreement by Optionee Regarding Withholding Taxes.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">If the Committee shall so require, as a condition of exercise of a Nonqualified Stock Option (a
&#147;Tax Event&#148;), each Optionee who is not a Nonemployee Director shall agree that no later than the
date of the Tax Event, such Optionee will pay to the Company or make arrangements satisfactory to
the Committee regarding payment of any federal, state or local taxes of any kind required by law to
be withheld upon the Tax Event. Alternatively, the Committee may provide that such an Optionee may
elect, to the extent permitted or required by law, to have the Company deduct federal, state and
local taxes of any kind required by law to be withheld upon the Tax Event from any payment of any
kind due the Optionee. The withholding obligation may be satisfied by the withholding or delivery
of Common Stock. Any decision made by the Committee under this Section&nbsp;15 shall be made in its sole
discretion.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">15.&nbsp;Amendment and Termination of the Plan.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Board at any time and from time to time may suspend, terminate, modify or amend the Plan;
provided, however, that, unless otherwise determined by the Board, an amendment that requires
stockholder approval in order for the Plan to continue to comply with Rule&nbsp;16b-3, Section 162(m) of
the Code or any other law, regulation or stock exchange requirement shall not be effective unless
approved by the requisite vote of stockholders. Except as provided in
Section 9(a) hereof, no suspension, termination, modification or amendment of the Plan may
adversely affect any award previously granted, unless the written consent of the Optionee is
obtained.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">16.&nbsp;Rights as a Stockholder.
</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"><A HREF="#C16276toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">An Optionee or a transferee of an award shall have no rights as a Stockholder with respect to any
shares covered by the award until the date of the issuance of a stock certificate to him for such
shares. No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash,
securities or other property) or distribution of other rights for which the record date is prior to
the date such stock certificate is issued, except as provided in Section 9(a) hereof.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">17.&nbsp;No Rights to Employment or Service as a Director or Consultant.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Nothing in the Plan or in any award granted or Agreement entered into pursuant hereto shall confer
upon any Optionee the right to continue in the employ of the Company or any Subsidiary or as a
member of the Board or a consultant to the Company or any Subsidiary or to be entitled to any
remuneration or benefits not set forth in the Plan or such Agreement or to interfere with or limit
in any way the right of the Company or any such Subsidiary to terminate such Optionee&#146;s employment
or service. Awards granted under the Plan shall not be affected by any change in duties or position
of an employee Optionee as long as such Optionee continues to be employed by the Company or any
Subsidiary.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">18.&nbsp;Beneficiary.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">An Optionee may file with the Committee a written designation of a beneficiary on such form as may
be prescribed by the Committee and may, from time to time, amend or revoke such designation. If no
designated beneficiary survives the Optionee, the executor or administrator of the Optionee&#146;s
estate shall be deemed to be the Optionee&#146;s beneficiary.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">19.&nbsp;Governing Law.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Plan and all determinations made and actions taken pursuant hereto shall be governed by the
laws of the State of Delaware.
</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"><A HREF="#C16276toc">Table of Contents</A></H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.50in">

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


<DIV align="Center" style="font-size: 17pt; margin-top: 10pt">
<font style="font-family: 'Times New Roman',Times,serif">
<B>***</B> <B>Exercise Your </B><B><I>Right </I></B><B>to Vote</B> <B>***</B></font>
</DIV>
<DIV align="center" style="font-size: 12pt; margin-top: 3pt">
<B>Important Notice Regarding the Availability of Proxy
Materials for
the <br>Shareholder Meeting to Be Held on June&nbsp;16, 2011<br><br><br></B></DIV>

<P>
<DIV style="position: relative; float: left; width: 48%">

<DIV align="Center" style="font-size: 12pt; margin-top: 25pt"><B><I>MILESTONE SCIENTIFIC INC.</I></B>
</DIV>

</DIV>
<DIV style="position: relative; float: left; margin-left: 3%; width: 48%">
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 7px;">

<DIV align="center" style="font-size: 11pt; margin-top: 6pt"><U><B>Meeting Information</B></U>
</DIV>


<DIV align="left" style="font-size: 9pt; margin-top: 3pt"><B>
Meeting Type: </B>Annual Meeting<BR>
<B>For holders as of: </B>April&nbsp;20, 2011<BR>
<B>Date: </B>June&nbsp;16, 2011 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B>Time: </B>9:00 AM EDT

</DIV>
<DIV align="center">
<TABLE style="font-size: 9pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom"  style="font-size: 1pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="95%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Location:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
The Offices of Brown,<br> Rudnick, Burlack, Israels<br> 7 Times Square<br> New York, NY 10036</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>

<DIV align="justify" style="font-size: 9pt; margin-top: 10pt">You are receiving this communication because you
hold shares in the above named company.

</DIV>


<DIV align="justify" style="font-size: 9pt; margin-top: 6pt">This is not a ballot. You cannot use this notice
to vote these shares. This communication presents
only an overview of the more complete proxy
materials that are available to you on the
Internet. You may view the proxy materials online
at <I>www.proxyvote.com </I>or easily request a paper copy
(see reverse side).

</DIV>


<DIV align="justify" style="font-size: 9pt; margin-top: 6pt">We encourage you to access and review all of the
important information contained in the proxy
materials before voting.

</DIV>


<DIV style="width: 100%; border: 1px solid black; padding: 6px; margin-top: 6pt">

<DIV align="justify" style="font-size: 11pt; margin-top: 3pt"><B>See the reverse side of this notice to obtain
proxy materials and voting instructions.</B>
</DIV>

</DIV>

</DIV>

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

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16276toc">Table of Contents</A></H5><P>




<DIV style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.50in">



<DIV align="center" style="font-size: 17pt; margin-top: 10pt">
<font style="font-family: 'Times New Roman',Times,serif"><B>&#151; Before You Vote &#151;</B></font>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-bottom: 6pt">How to Access the Proxy Materials</DIV>


<DIV style="width: 100%; border: 1px solid black; padding: 1px; margin-right: 0%">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom" style="font-size: 1pt">

    <TD width="100%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:2%"><B>Proxy Materials Available to VIEW or RECEIVE:</B></DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:2%">1. Annual Report&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Notice &#038; Proxy Statement<Br>
<B>How to View Online:</B><Br>
Have the information that is printed in the box marked by the arrow <FONT face="Wingdings">&#232;</FONT> <FONT
style="border: 1px solid #000000; padding: 1px">XXXX XXXX XXXX</FONT>
(located on the following page) and visit: <I>www.proxyvote.com.</I><Br>
<B>How to Request and Receive a PAPER or E-MAIL Copy:</B><Br>
If you want to receive a paper or e-mail copy of these documents, you must request one. There is NO
charge for requesting a copy. Please choose one of the following methods to make your request:<Br></DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="70%">
<!-- Begin Table Head -->
<TR valign="bottom" style="font-size: 1pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="92%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">1) <I>BY INTERNET</I>:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">www.proxyvote.com</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="white-space: nowrap">2) <I>BY
TELEPHONE</I>:</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1-800-579-1639</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3) <I>BY E-MAIL*</I>:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">sendmaterial@proxyvote.com</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 2%; margin-right: 2%">*&nbsp;If requesting
materials by e-mail, please send a blank e-mail with the information that is
printed in the box marked by the arrow <FONT face="Wingdings">&#232;</FONT> <FONT style="border: 1px solid #000000; padding: 1px">XXXX XXXX XXXX</FONT>
(located on the following page) in
the subject line.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 2%; margin-right: 2%">Requests,
instructions and other inquiries sent to this e-mail address will NOT be forwarded to
your investment advisor. Please make the request as instructed above on or before June&nbsp;02, 2011 to
facilitate timely delivery.<br><br style="margin-top: 1pt">
</DIV>

</DIV>


<DIV align="center" style="font-size: 17pt; margin-top: 10pt"><font style="font-family: 'Times New Roman',Times,serif"><B>&#151; How To Vote &#151;</B></font>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 3pt">Please Choose One of the Following Voting Methods
</DIV>




<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="2" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom" style="font-size: 10pt">
    <TD width="100%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
 <TR>
  <TD style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">
<DIV align="justify" style="margin-left: 2%; margin-right: 2%; margin-top: 2%"><B>Vote In Person: </B>If you choose to vote
these shares in person at the meeting, you must request
a &#147;<I>legal proxy.</I>&#148; To do so, please follow the instructions at <I>www.proxyvote.com </I>or request a
paper
copy of the materials, which will contain the appropriate instructions. Many shareholder meetings
have attendance requirements including, but not limited to, the possession of an attendance ticket
issued by the entity holding the meeting. Please check the meeting materials for any special
requirements for meeting attendance.</DIV>
</TD>
 </TR>
 <TR style="font-size: 1pt">
  <TD style="border-top: 0px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
 </TR>
 <TR>
  <TD style="border-top: 0px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">
<DIV align="justify" style="margin-left: 2%; margin-right: 2%; margin-top: 0%">
<B>Vote By Internet: </B>To vote now by
Internet, go to <I>www.proxyvote.com. </I>Have the information that is
printed in the box marked by the arrow <FONT face="Wingdings">&#232;</FONT>
<FONT style="border: 1px solid #000000; padding: 1px">XXXX XXXX XXXX</FONT> available and follow the
instructions.</DIV>
</TD>
 </TR>
 <TR style="font-size: 1pt">
  <TD style="border-top: 0px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
 </TR>
 <TR>
  <TD style="border-bottom: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">
<DIV align="justify" style="margin-left: 2%; margin-right: 2%; margin-bottom: 2%"><B>Vote By Mail: </B>You can vote by mail
by requesting a paper copy of the materials, which will include
a voting instruction form.</DIV>
</TD>
 </TR>
</TABLE>


</DIV>
</DIV>




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

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16276toc">Table of Contents</A></H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.50in">


<P>
<DIV style="width: 100%; border: 2px solid black; padding: 1px; margin-right: 65%">



<DIV align="center" style="font-size: 8pt; margin-top: 0pt"><B>Voting items</B>
</DIV>

</DIV>



<DIV align="left" style="font-size: 8pt; margin-top: 1pt"><B>The Board of Directors recommends that you<BR>
vote FOR the following:</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="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>1.</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Election of Directors</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</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"><B>Nominees</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">01</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">LEONARD OSSER</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">02</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">LEONARD SCHILLER</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">03</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">LESLIE BERNHARD</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">04</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">PABLO F S CARDENAS</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 8pt; margin-top: 20pt"><B>The Board of Directors recommends you vote FOR the following proposal(s):</B>
</DIV>


<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt">
<TR valign="top" style="font-size: 8pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Advisory approval of the appointment of Holtz Rubenstein Reminick LLP.</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt">
<TR valign="top" style="font-size: 8pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Approval of the 2011 Stock Option Plan providing for the issuance of up to
2,000,000 shares of Milestone&#146;s common stock.</DIV></TD>
</TR>

</TABLE>
</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="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD align="left" colspan="3" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>NOTE:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In their discretion, the proxies are authorized to vote upon such other business as may
properly come before the meeting or any adjournment thereof.</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="left" colspan="3" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

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

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16276toc">Table of Contents</A></H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.50in">

<P>
<DIV style="width: 100%; border: 2px solid black; padding: 1px; margin-right: 65%; margin-top: 60pt">



<DIV align="center" style="font-size: 8pt; margin-top: 0pt"><B>Voting Instructions</B>
</DIV>

</DIV>



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

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




<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16276toc">Table of Contents</A></H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif; margin-left: .25in; width: 7.50in">
<DIV style="MARGIN-TOP: 10pt; FONT-SIZE: 10pt; MARGIN-LEFT: 0%" align=CENTER>APPENDIX C</div>
<P></P>
<DIV style="FLOAT: left; WIDTH: 48%; POSITION: relative">
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 6pt; MARGIN-LEFT: 8%"
align=left><BR><B><I></I></B><BR><B><I></I></B><BR><B><I></I></B><BR><B><I></I></B></DIV>




<DIV align=center>
<TABLE style="FONT-SIZE: 7pt" cellSpacing=0 cellPadding=0 width="100%" border=0><!-- Begin Table Head -->
  <TR vAlign=bottom>
    <TD width="6%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD></TR><!-- End Table Head --><!-- Begin Table Body -->
  <TR vAlign=bottom><!-- Blank Space -->
    <TD vAlign=top>
      <DIV style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px">&nbsp;</DIV></TD>
    <TD></TD>
    <TD vAlign=bottom align=left><b><i>MILESTONE SCIENTIFIC INC.</i></b></TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left>&nbsp;</TD></TR>

  <TR vAlign=bottom>
    <TD vAlign=top>
      <DIV style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD vAlign=bottom align=left><b><i>220 SOUTH ORANGE AVENUE</i></b></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>

  <TR vAlign=bottom>
    <TD vAlign=top>
      <DIV style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD vAlign=bottom align=left><b><i>LIVINGSTON, NJ 07039</i></b></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top>
      <DIV style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD vAlign=bottom align=left><b><i>ATTN: LAURA KAUNITZ</i></b></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>


<!-- End Table Body --></TABLE></DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt; MARGIN-LEFT: 9%" align=left></DIV></DIV>
<DIV style="FLOAT: right; WIDTH: 48%; POSITION: relative">
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 7pt" align=left><B>VOTE BY INTERNET -
www.proxyvote.com</B></DIV>
<DIV style="FONT-SIZE: 7pt" align=left>Use the Internet to transmit your voting
instructions and for electronic delivery of information up until 11:59&nbsp;P.M.
Eastern Time the day before the cut-off date or meeting date. Have your proxy
card in hand when you access the web site and follow the instructions to obtain
your records and to create an electronic voting instruction form.</DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 7pt" align=left><B>Electronic Delivery
of Future PROXY MATERIALS</B></DIV>
<DIV style="FONT-SIZE: 7pt" align=left>If you would like to reduce the costs
incurred by our company in mailing proxy materials, you can consent to receiving
all future proxy statements, proxy cards and annual reports electronically via
e-mail or the Internet. To sign up for electronic delivery, please follow the
instructions above to vote using the Internet and, when prompted, indicate that
you agree to receive or access proxy materials electronically in future
years.</DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 7pt" align=left><B>VOTE BY PHONE -
1-800-690-6903</B></DIV>
<DIV style="FONT-SIZE: 7pt" align=left>Use any touch-tone telephone to transmit
your voting instructions up until 11:59&nbsp;P.M. Eastern Time the day before
the cut-off date or meeting date. Have your proxy card in hand when you call and
then follow the instructions.</DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 7pt" align=left><B>VOTE BY
MAIL</B></DIV>
<DIV style="FONT-SIZE: 7pt" align=left>Mark, sign and date your proxy card and
return it in the postage-paid envelope we have provided or return it to Vote
Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717.</DIV></DIV><BR
clear=all><BR>
<P>
<DIV style="FLOAT: left; WIDTH: 50%; POSITION: relative">
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 9pt; MARGIN-LEFT: 6%"
align=left><BR><BR><BR><B>&nbsp;</B></DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 9pt; MARGIN-LEFT: 6%"
align=left><BR>&nbsp;<BR>&nbsp;<BR>&nbsp;<BR>&nbsp;<BR>&nbsp;<BR>&nbsp;<BR>&nbsp;<BR>&nbsp;</DIV></DIV>
<DIV style="FLOAT: right; WIDTH: 46%; POSITION: relative">

<DIV align=center>
<TABLE style="FONT-SIZE: 9pt" cellSpacing=0 cellPadding=0 width="100%" border=0><!-- Begin Table Head -->

  <TR vAlign=bottom>
    <TD width="10%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="39%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD></TR><!-- End Table Head --><!-- Begin Table Body -->
  <TR vAlign=bottom><!-- Blank Space -->
    <TD vAlign=top>
      <DIV style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap align=right>&nbsp;</TD>
    <TD vAlign=top align=right>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top>
      <DIV style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"></DIV></TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap align=right>&nbsp;</TD>
    <TD vAlign=top align=right></TD>
    <TD vAlign=top noWrap>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top>
      <DIV style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap align=right>&nbsp;</TD>
    <TD vAlign=top noWrap>&nbsp;</TD></TR><!-- End Table Body -->
</TABLE></DIV>

<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 9pt" align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</DIV></DIV>
<BR clear=all><BR>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 7pt" align=left>TO VOTE, MARK BLOCKS
BELOW IN BLUE OR BLACK INK AS
FOLLOWS:</DIV>
<DIV align=center>
<TABLE style="FONT-SIZE: 7pt" cellSpacing=0 cellPadding=0 width="100%" border=0><!-- Begin Table Head -->

  <TR vAlign=bottom>
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD></TR><!-- End Table Head --><!-- Begin Table Body -->
  <TR vAlign=bottom>
    <TD vAlign=top align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=bottom align=right>KEEP THIS PORTION FOR YOUR RECORDS</TD></TR>
  <TR style="FONT-SIZE: 1px">
    <TD style="BORDER-TOP: #000000 1px dashed" vAlign=top align=left
    colSpan=3>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=bottom align=right>DETACH AND RETURN THIS PORTION ONLY</TD></TR><!-- End Table Body --></TABLE></DIV>
<DIV style="FONT-SIZE: 8pt" align=center><B>THIS PROXY CARD IS VALID ONLY WHEN
SIGNED AND DATED.</B></DIV>



<br style="font size: 3pt">

<DIV style="BORDER-RIGHT: black 3px solid; PADDING-RIGHT: 11px; BORDER-TOP: black 3px solid; PADDING-LEFT: 11px; PADDING-BOTTOM: 0px; BORDER-LEFT: black 3px solid; WIDTH: 100%; PADDING-TOP: 11px; BORDER-BOTTOM: black 3px solid">





<DIV align=center>
<TABLE style="FONT-SIZE: 8pt" cellSpacing=0 cellPadding=0 width="100%" border=0><!-- Begin Table Head -->

  <TR style="FONT-SIZE: 0pt" vAlign=bottom>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="27%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD></TR><!-- End Table Head --><!-- Begin Table Body -->
  <TR vAlign=bottom>
    <TD vAlign=top colSpan=9>
      <DIV style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="FONT-SIZE: 8pt" vAlign=top align=center><B>For</B><BR><B>All</B></TD>
    <TD>&nbsp;</TD>
    <TD style="FONT-SIZE: 8pt" vAlign=top align=center><B>Withhold</B><BR><B>All</B></TD>
    <TD>&nbsp;</TD>
    <TD style="FONT-SIZE: 8pt" vAlign=top noWrap align=center><B>For
      All</B><BR><B>Except</B></TD>
    <TD>&nbsp;</TD>
    <TD style="FONT-SIZE: 8pt; BORDER-BOTTOM: #000000 1px solid" vAlign=top rowSpan=3>
      <DIV align=justify>To withhold authority to vote for any individual
      nominee(s), mark &#147;For All Except&#148; and write the number(s) of the
      nominee(s) on the line below.</DIV></TD>
    <TD style="FONT-SIZE: 25pt" vAlign=top noWrap align=center><FONT style="FONT-SIZE: 10pt">&nbsp;</FONT></TD>
    <TD vAlign=top align=left>
      <DIV style="BORDER-RIGHT: #000000 3px solid; BORDER-TOP: #000000 3px solid; FONT-SIZE: 18pt">&nbsp;</DIV></TD></TR>
  <TR style="FONT-SIZE: 8pt" vAlign=bottom>
    <TD vAlign=top colSpan=9>
      <DIV style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px" align=justify><B>The Board
      of Directors recommends you <BR>vote FOR the following:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="FONT-SIZE: 8pt" vAlign=top align=center>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="FONT-SIZE: 8pt" vAlign=top align=center>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="FONT-SIZE: 8pt" vAlign=top align=center>&nbsp;</TD>
    <TD vAlign=top align=left>&nbsp;</TD>
    <TD vAlign=top align=left>&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 0px solid; BORDER-TOP: #000000 0px solid"
    vAlign=top align=left>&nbsp;</TD></TR>
  <TR style="FONT-SIZE: 8pt" vAlign=bottom>
    <TD>&nbsp;</TD>
    <TD vAlign=bottom colSpan=8>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="FONT-SIZE: 10pt" vAlign=bottom align=center><FONT
      face=Wingdings>o</FONT></TD>
    <TD>&nbsp;</TD>
    <TD style="FONT-SIZE: 10pt" vAlign=bottom align=center><FONT
      face=Wingdings>o</FONT></TD>
    <TD>&nbsp;</TD>
    <TD style="FONT-SIZE: 10pt" vAlign=bottom align=center><FONT
      face=Wingdings>o</FONT></TD>
    <TD>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 0px solid" vAlign=top
    align=left>&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 0px solid; BORDER-TOP: #000000 0px solid"
    vAlign=top align=left>&nbsp;</TD></TR>
  <TR style="FONT-SIZE: 8pt" vAlign=top>
    <TD><b>1.</b></TD>
    <TD vAlign=top>
      <DIV style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px" align=left>&nbsp;</DIV></TD>
    <TD align=left colSpan=6>Election of Directors<BR><b>Nominees</b></TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=center>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=center>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=center>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left>&nbsp;</TD>
    <TD vAlign=top align=left>&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 0px solid; BORDER-TOP: #000000 0px solid"
    vAlign=top
align=left>&nbsp;</TD></TR><!-- End Table Body --></TABLE></DIV>
<DIV align=center>
<TABLE style="FONT-SIZE: 7pt" cellSpacing=0 cellPadding=0 width="100%" border=0><!-- Begin Table Head -->

  <TR vAlign=bottom>
    <TD width="17%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="34%">&nbsp;</TD></TR><!-- End Table Head --><!-- Begin Table Body -->
  <TR vAlign=bottom>
    <TD vAlign=top>
      <DIV style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px">01&nbsp;&nbsp;&nbsp;LEONARD OSSER</DIV></TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left>02&nbsp;&nbsp;&nbsp;LEONARD SCHILLER</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left>03&nbsp;&nbsp;&nbsp;LESLIE BERNHARD</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left>04&nbsp;&nbsp;&nbsp;PABLO F S CARDENAS</TD></TR><!-- End Table Body --></TABLE></DIV>
<DIV align=center>
<TABLE style="FONT-SIZE: 8pt" cellSpacing=0 cellPadding=0 width="100%" border=0><!-- Begin Table Head -->

  <TR vAlign=bottom>
    <TD width="1%">&nbsp;</TD>
    <TD width="79%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD></TR>
  <TR style="FONT-SIZE: 8pt" vAlign=bottom>
    <TD>&nbsp;</TD>
    <TD noWrap align=left colSpan=2><B>The Board of Directors recommends you
      vote FOR proposals 2. and 3.</B></TD>
    <TD>&nbsp;</TD>
    <TD noWrap align=center><B>For</B></TD>
    <TD>&nbsp;</TD>
    <TD noWrap align=center><B>Against</B></TD>
    <TD>&nbsp;</TD>
    <TD noWrap align=center><B>Abstain</B></TD></TR>
  <TR>
    <TD colSpan=10>&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 vAlign=top align=justify>
      <DIV
      style="MARGIN-LEFT: 21px; TEXT-INDENT: -21px"><b>2.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advisory approval of the appointment of Holtz Rubenstein Reminick LLP.</DIV></TD>
    <TD vAlign=top align=justify>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=center><FONT face=Wingdings>o</FONT></TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=center><FONT face=Wingdings>o</FONT></TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=center><FONT face=Wingdings>o</FONT></TD></TR>
  <TR>
    <TD colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top>
      <DIV style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px">&nbsp;</DIV></TD>
    <TD vAlign=top align=justify>
      <DIV
      style="MARGIN-LEFT: 21px; TEXT-INDENT: -21px"><b>3.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approval of the 2011 Stock Option Plan providing for the issuance of up to 2,000,000 shares of Milestone&#146;s common stock.</DIV></TD>
    <TD vAlign=top align=justify>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=center><FONT face=Wingdings>o</FONT></TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=center><FONT face=Wingdings>o</FONT></TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=center><FONT face=Wingdings>o</FONT></TD></TR>

  <TR style="FONT-SIZE: 10pt">
    <TD colSpan=10>&nbsp;</TD></TR>
  <TR style="FONT-SIZE: 8pt">
    <TD>&nbsp;</TD>
    <TD colSpan=2><B>NOTE:</B> In their discretion, the proxies are authorized to vote upon such other business as may properly come before the meeting or
any adjournment thereof.</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR><!-- End Table Body --></TABLE></DIV>
<DIV style="MARGIN-TOP: 50pt; FONT-SIZE: 7pt" align=left>&nbsp;</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="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">For address change/comments, mark here.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><FONT
      face=Wingdings>o</FONT></TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(see reverse for instructions)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top"><B>Yes</B>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top"><B>No</B>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</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 nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px">Please indicate if you plan to attend this meeting
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><FONT
      face=Wingdings>o</FONT></TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top"><FONT
      face=Wingdings>o</FONT></TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



<P></P>
<DIV style="FLOAT: left; WIDTH: 50%; POSITION: relative">
<DIV style="MARGIN-TOP: 10pt; FONT-SIZE: 8pt" align=left>Please sign
exactly as your name(s) appear(s) hereon. When signing as attorney, executor,
administrator, or other fiduciary, please give full title as such. Joint owners
should each sign personally. All holders must sign. If a corporation or
partnership, please sign in full corporate or partnership name, by authorized
officer.</DIV></DIV>
<DIV style="FLOAT: right; WIDTH: 40%; POSITION: relative">
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 7pt; MARGIN-LEFT: 6%"
align=left><BR>&nbsp;<BR>&nbsp;<BR>&nbsp;<BR>&nbsp;<BR>&nbsp;<BR>&nbsp;<BR>&nbsp;<BR>&nbsp;</DIV></DIV><BR clear=all><BR>
<DIV align=center>
<TABLE style="FONT-SIZE: 7pt" cellSpacing=0 cellPadding=0 width="100%" border=0><!-- Begin Table Head -->

  <TR style="FONT-SIZE: 1pt" vAlign=bottom>
    <TD width="1%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD><!-- VRule -->
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD><!-- VRule -->
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD><!-- VRule -->
    <TD width="1%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD><!-- VRule -->
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD><!-- VRule -->
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD></TR><!-- End Table Head --><!-- Begin Table Body -->
  <TR style="FONT-SIZE: 1px">
    <TD style="BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    width="1%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp;</TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=center>&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 1px solid">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid"
    align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp;</TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=right>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 1px solid" width="1%">&nbsp;</TD>
    <TD vAlign=top>
      <DIV style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px">&nbsp;</DIV></TD>
    <TD style="BORDER-RIGHT: #000000 1px solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left>&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 1px solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=center>&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 1px solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left>&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 1px solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left>&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 1px solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top
      align=right></TD></TR>
  <TR style="FONT-SIZE: 1px">
    <TD style="BORDER-TOP: #000000 1px solid" width="1%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" vAlign=top align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=center>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" vAlign=top align=left>&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=right>&nbsp;</TD></TR>
  <TR vAlign=bottom>
<td colspan="2">
      Signature [PLEASE SIGN
      WITHIN BOX]</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left colSpan=3>Date</TD>
    <TD>&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD vAlign=top align=center></TD>
<td colspan="2"> Signature (Joint
Owners)</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left colSpan=3>Date</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top
align=right>&nbsp;</TD></TR>
<!-- End Table Body --></TABLE></DIV></DIV></DIV>
<DIV style="FLOAT: right; WIDTH: 1%; POSITION: relative">
<DIV style="MARGIN-TOP: 18pt; FONT-SIZE: 10pt" align=center></DIV></DIV><BR clear=all><BR>
<P style="FONT-SIZE: 10pt" align=center><!-- Folio --><!-- /Folio --></P>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#C16276toc">Table of Contents</A></H5><P>


<DIV style="MARGIN-LEFT: 0.25in; WIDTH: 7.5in; FONT-FAMILY: Helvetica,Arial,sans-serif">
<DIV style="MARGIN-TOP: 200pt; FONT-SIZE: 10pt" align=left><B>Important Notice
Regarding the Availability of Proxy Materials for the Annual Meeting: </B>The Annual Report, Notice &amp; Proxy Statement is/are available at
<U>www.proxyvote.com</U>. </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left>
<DIV style="FONT-SIZE: 1px; BORDER-BOTTOM: #000000 1px dashed">&nbsp;</DIV></DIV>
<P></P>
<DIV
style="BORDER-RIGHT: black 3px solid; PADDING-RIGHT: 30px; BORDER-TOP: black 3px solid; PADDING-LEFT: 30px; PADDING-BOTTOM: 30px; BORDER-LEFT: black 3px solid; WIDTH: 100%; PADDING-TOP: 30px; BORDER-BOTTOM: black 3px solid">
<DIV style="MARGIN-TOP: -15pt; FONT-SIZE: 10pt" align=center><B>MILESTONE SCIENTIFIC INC.<BR>THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD<BR>
OF DIRECTORS<BR>FOR THE ANNUAL MEETING ON JUNE 16, 2011</B> </DIV>
<DIV style="MARGIN-TOP: 10pt; FONT-SIZE: 10pt; MARGIN-LEFT: 0%" align=left>
The undersigned hereby appoints Leonard Osser and Joseph D&#146;Agostino, and each of them,
with full power of substitution, the attorneys and proxies of the undersigned to attend the
Annual Meeting of Stockholders of Milestone Scientific Inc. (the &#147;Company&#148;) to be held on
June 16, 2011, at 9:00 a.m., EDT, at Brown, Rudnick, Berlack and Israels, 7 Times Square,
New York, NY and at any adjournment thereof, hereby revoking any proxies heretofore given,
to vote all shares of common stock of the Company held or owned by the undersigned as
indicated on the proposals as more fully set forth in the Proxy Statement, and in their
discretion upon such other matters as may come before the meeting. </DIV>

<p>
<DIV align="justify" style="font-size: 10pt; margin-top: 50pt"><B>Address
change / comments:</B>
</DIV>


<DIV style="width: 100%; border: 1px solid black; padding: 11px;">



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

</DIV>



<DIV style="MARGIN-TOP: 0pt; FONT-SIZE: 8pt" align=center>(If you noted any Address Changes and/or Comments above, please mark corresponding box on the reverse side.)</div>
<DIV style="MARGIN-TOP: 10pt; FONT-SIZE: 10pt" align=center><B>Continued and to
be signed on reverse side</B> </DIV></DIV>
<P style="FONT-SIZE: 10pt" align=center>
<P style="FONT-SIZE: 10pt" align=center><!-- Folio -->&nbsp;<!-- /Folio --> </P></DIV>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
