misonix incorporated nasdaq: mson. 1 company confidential except for the historical information...

MISONIX INCORPORATED

NASDAQ: MSON

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COMPANY CONFIDENTIAL

Except for the historical information contained herein, the matters

discussed in this presentation contain forward-looking statements.

The accuracy of these statements is subject to significant risks and

uncertainties. Actual results could differ materially from those

contained in the forward-looking statements. See the Company’s

SEC filings on Forms 10-K and 10-Q for important information

about the Company and related risks.

Safe Harbor Statement

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Why Misonix?

Would you want to invest in a Company using unique ultrasound technology in these markets?

Prostate Cancer

Breast Cancer

Kidney/Liver Cancers

Liposuction

Neurosurgery

Lithotripsy

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The Misonix Story

Management at Misonix has embarked on a transition strategy that today has positioned the Company for years of growth. This plan includes:

Major medical device company

Leveraging decades of ultrasound research and existing businesses

Allocating assets to build intellectual property portfolio

Assembling a diversified line of medical devices with the potential for high growth and margins

Developing efficient manufacturing processes and distribution capabilities

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Track Record of Execution – 5 Years of Progress

* First full year of management team

“Smart Growth”

FY1999 FY2000* FY2004 FY2005

Total Revenue $25 million $29 million $39 million $46 million

Medical Device Revenue

$9 million $12 million $21 million $25 million

Commercialized Medical Devices

1 5 9 9

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Track Record of Execution – 5 Years of Progress

FY1999 FY2000* FY2004

SGA % of Sales 30% 30% 31.5%

R&D % of Sales 4% 5% 7%

Total Assets $29 million $31.2 million $34.2 million

* First full year of management team

Investing for the Future and To Enhance Shareholder Value

FY2005

32%

8%

$38.1 million

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Value Proposition at the Core of TransitionLeadership in Ultrasound Medical Devices

Unique Proprietary Products

Gre

at D

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Pro

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Lower PriceSensitivity

Un

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Cap

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Allocating Assets – Opportunistic Acquisitions*

Expanding product line, manufacturing and servicing capabilities, tactical benefits and

technological prowess

Year Business Strategic Purpose

1999 Focus Surgery HIFU Technology/Multiple Applications

1999 Hearing Innovations New Technology/Application

2000 Sonora Medical Ultrasound Equipment Servicing

2000 CraMar Technologies Ultrasound Equipment Servicing

2000 Sonic Technologies Measurement and Testing Lab

2001 Fibra Sonics Neurosurgery, Liposuction, Lithotripsy

* Certain transactions were investments for less than 100% ownership

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Current Line of Medical Devices

Unique and Important Products

Product‘ Application ‘

Sonablate 500® Prostate Cancer – worldwide production and sales in Europe

Auto SonixTM Cutting and Coagulation

Lysonix 3000 Surgical Aspirator (Liposuction)

Fibra Sonics Neurosurgery

Sonora Proprietary replacement probes, refurbished

ultrasonic imaging equipment, probe testing

Hisonic Tinnitus and profoundly deaf

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1999 – MSON contractual relationship and investment

18% fully diluted equity position in Focus Surgery, developer of HIFU technology

Right to produce their products for global distribution (manufacturing margin)

Right to sell the Sonablate 500® for prostate cancer in Europe (manufacturing and distribution margins)

100% rights to worldwide license to market and sell HIFU treatments in Kidney, Liver and Breast (manufacturing and distribution margins)

High Intensity Focused Ultrasound (HIFU)and Focus Surgery

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The Sonablate 500®

Non-invasive

Phase I in U.S.

Sales in Europe and Asia

Ability to treat radiated tissue

Focus Surgery Sonablate 500® - utilizing High Intensity Focused Ultrasound (HIFU) for treatment of Prostate Cancer

Focus Surgery - Prostate Cancer

Over 1400 successful procedures Worldwide

Over 300 successful procedures in Europe

24 patients in United States under 40 patient IDE

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Sonablate – Liver, Kidney, Breast and Prostate

Market Size – Annual Incidences

U.S. World

Sonablate Growth Initiatives

Liver 20,000 500,000

Kidney 32,000 118,255

Breast 184,000 1,050,346

Prostate 200,000 543,000

Est. Market

$100 mil.

$100 mil.

$600 mil.

$750 mil.

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Brigham & Womens Hospital – Fibroids of Uterus

EDAP – Prostate cancer

Epicor – Cardio Arterial Fibrillation

Lyponsonic – Body Sculpting

Therus & Boston Scientific – Internal bleeding

China Medical – New Public Offering of Chinese HIFU Company

Misonix is developing products both internally and externally to meet these market needs

Expanding Use of Ultrasound Technology…

…and Expanding Valuations?

Single HIFU product company acquired by St. Jude Medical for $200 mil. in 6/04 after FDA approval

Single product FDA approved in 4Q04; funding to date of $80+ mil.

$75 Million Valuation

$25 Million Investment

Nasdaq: CMED - Market capitalization of $977 mil. with revenues of $26 mil. all of which are from China.

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Diversification to Support Short/Long Term Goals

Ultrasound equipment refurbisher (Sonora) Ultrasonic cutting & coagulating system

(Auto SonixTM) HIFU to treat tumors (SB500®) Neurosurgery (FS-1000) Soft tissue aspirator (Lysonix)

Ultrasonic liquid processor (Sonicator) Ductless fume enclosures (Aura) Endoscope Cleaning Products (Guardian)

Medical Devices

Laboratory & Scientific Products

Immediate Cash Flow Generator

Short-term Tactical Importance

Future Growth

Long-term Goal

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Investments in high growth medical areas funded from cash flow of medical device products in addition to laboratory and scientific products

Make investments consistent with company’s core competency

Manufacturing exclusivity plus the rights to other products in exchange for investment

Generate marketing/manufacturing efficiencies and revenue growth

Apply R&D to develop products for other medical device companies and for ourselves

Growth Strategy

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Investments in R&D Pave Way for Growth

Digital Platform: Reduce Manufacturing Costs, Ability to Add More Features, Speed to Market, Reduce Size of Products

Indication Strategy/Event Timing

Prostate Cancer European Distribution

FDA Approval

Current

2007/2008

Liver & Kidney Cancers Approval in Selected International Markets

510(k) Approval

June 2005

January 2006

Wound Debridement Clinicals Currently Ongoing

US FDA approved 510(k) device / Canada

Launch

Current

July 2005

First half of calendar 2006 (Est.)

Bone Cutting US FDA Approved 510(k) Device

Clinicals to Start for Spine

First patient treated

Commercial launch

Approved

June 2005

January 2006

Est. end of 2006 – Beginning of 2007

Breast Start Prototype Work on Aspiration of Fibroids of the Breast January 2006

Breast Fibroids and Cancer with HIFU

First half of calendar 2006

Uterus – Fibroids Start Prototype Work on Aspiration of Fibroids of Uterus In research phase

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Assuming clinical successes, regulatory approval and commercial production

Indication Market Size Per Year

Bone Cutter – Laminectomy $100 million

Wound Debridement $3.0 billion

Hearing $100 million

Prostate Cancer (US) $300 million

Breast Cancer $600 million

Liver & Kidney Cancer $200 million

Market Opportunity for Future Products

$4.30 billion

Annual Market for Existing Products $ .65 billion

Total Annual Market for Existing/Future Products $4.95 billion

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Distribution Channels

International Reach and Extensive Medical Community Relationships

Distribution Partner Countries Medical Community Relationships

United States (5) Russia

Russia - SB500/Neuroaspirator United Kingdom

United Kingdom – SB500 Austria

Turkey Belgium

Egypt - Neuroaspirator Germany

Italy - SB500/Neuroaspirator

China - Neuroaspirator

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We Believe We Are The BestUltrasonic Medical Device Company

Balancing economic benefits of direct sales force and partnering with market leaders

With more products in the market and in anticipation of others nearing approval, management has increased spending on sales and marketing activities in FY2005 above level of previous year.

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Michael McManus, 62, President and CEO

Health care product development and marketing experience as CEO of Jamcor Pharmaceuticals and positions with Pfizer and Revlon

Substantial experience as CEO of New York Bancorp

Richard Zaremba, 50, CFO

20+ years of financial experience with emphasis in technology companies

Dr. W. Paul Constantine, 34, SVP, Marketing, Sales and New Product Development for Medical Devices division

Extensive experience in medical device marketing

Dan Voic, 43, VP, R&D

Background in medical engineering

Management Team

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Financial Review

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Revenue ($ in millions)

Fiscal Year

Revenue Momentum

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$0.03

$0.15

$0.25

$0.19

2002A 2003A 2004A 2005A*

Earnings ($ Per Share)

Fiscal Year

Delivering Profits

Maintaining Strong Profitability While Investing in Future Growth Opportunities

*Before one-time litigation reserve charge of approximately $0.06.

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EBITDA* ($ in millions)

Actual

EBITDA Positive Trend Continues

Fiscal Year

Healthy Operating Cash Flow From Core Businesses

*Earnings Before Interest, Taxes, Depreciation and Amortization

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As of: December 31, 2005

Cash and Cash Equivalents $2.7 million

Total Assets $35.2 million

Current Liabilities $9.5 million

Long Term Debt $1.1 million

Total Stockholders Equity $23.8 million

Current Ratio 2.5 to 1.0

Balance Sheet

Ability to Fund Internally or Externally for Implementation of Growth Strategy

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Results for Strategies Implemented Since 1999

Increased Medical Devices from 1 Product to 9 Products in 2004

Revenue up 85% since 1999 or an average annual increase of 10+%; Medical device revenue up 184%

Acquired and developed internally numerous new technologies/applications; Increased spending on R&D by 247%

Healthy profitability maintained despite increase in spending for future growth through medical device initiatives

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Focus company to be a pure medical device organization

Continue to focus on delivering sustainable results in the near term

Invest in programs intended to provide more profitable long term growth

Focus on synergistic acquisitions and other strategic alternatives to increase shareholder value

Management Commitment

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Investment Merits

Premiere platform of medical devices using ultrasonic technology – greatest number of unique products on the market

Internally and externally generated growth

Ability to forge alliances with strong third-party distributors and directly market to customers

Barriers to entry include years of ultrasound research and significant investment in HIFU and other technologies

Healthy balance sheet and cash flow from core businesses

Milestone-driven company focused on attaining growth and enhancing shareholder value

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misonix incorporated nasdaq: mson. 1 company confidential except for the historical information...

Documents

mson slide

single hifu product

focus surgery slide

major medical device

deaf slide

ownership slide

patient ide slide

europe manufacturing