Unassociated Document

Investor Presentation

May 2009

Safe Harbor Statement

These slides contain (and the accompanying oral discussion will contain)
“forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. The words “believe”, “estimate”, “anticipate”,
“project” and “expect” and similar expressions are intended to identify forward-
looking statements. Such statements involve known and unknown risks,
uncertainties and other factors that could cause the actual results of the
Company to differ materially from the results expressed or implied by such
statements, including general economic and business conditions, conditions
affecting the industries served by the Company, conditions affecting the
Company’s customers and suppliers, competitor responses to the Company’s
products and services, the overall market acceptance of such products and
services, the effectiveness of the Company’s strategy and other factors
disclosed in the Company’s periodic reports filed with the Securities and
Exchange Commission. Consequently, such forward looking statements should
be regarded as the Company’s current plans, estimates and beliefs. The
Company does not undertake and specifically declines any obligation to publicly
release the results of any revisions to these forward-looking statements that
may be made to reflect any future events or circumstances after the date of
such statements or to reflect the occurrence of anticipated or unanticipated
events.

Sharps Compliance Corp.

Sharps Compliance Corp. is a fully integrated provider
of cost-effective disposal solutions for medical and
pharmaceutical waste generated outside the hospital
setting utilizing the USPS or UPS.

Our strategy is to capitalize on our leadership position
and continue to penetrate the $1 billion market
opportunity.

Sharps Compliance Corp.

NASDAQ: SMED

• Market capitalization* $68.1 million

• 52-week range* $5.34 - $2.10

• Recent price* $5.28

• Total shares outstanding 12.9 million

• Avg. daily trading volume (3 mos.) 12,414

• Ownership:

• Institutional (estimated) 25%

• Insider 60%

• Fiscal Year-End June 30th

* As of 5/11/09

Target Markets

• Federal, State and Municipal Governments

• Pharmaceutical Manufacturers

• Hospitality

• Retail Clinic

• Commercial / Industrial

• Professional

• Agriculture

Distribution network, strong telesales approach & targeted Internet marketing

Direct Sales: Regional and target market focused

• Home Infusion

Vertically Integrated

Solutions Provider

Treatment Facility

Data to Client

Internet-based tracking system

SharpsTracer™

DrugTracer™

Products in use

Distribution Facility

Customer

Vendor-Managed Inventory Solutions

Sharps Proprietary Medical Waste Management System
(Sharps®MWMS™)

ü Integrates flagship Sharps Disposal By Mail System (“SDBM”) with storage,
inventory management, training, data and other services

ü Designed for rapid deployment and/or patient fulfillment

Market opportunities: Government (Federal, State & Local),
Pharmaceutical Manufacturers

$40 million
contract with
an agency of
the U.S.
Government

6 Patient
Support
Programs in
place with major
pharmaceutical
manufacturers

Products and Services

RxTakeAway™

Medical Professional

Sharps Disposal by
Mail System®

Sharps Secure®

Sharps Disposal by
Mail System®

RxTakeAway™

Convenient and confidential medication disposal solution

Safe, eco-friendly way to protect your family, community and environment

Market opportunities: Individual consumers, retail
                                                                                        pharmacies, alternate care facilities
                                                                                        and community programs

Source: U.S. Health & Human Services 2008

Envelope, 10 and 20 gallon products: Includes return packaging
with pre-paid postage to Sharps treatment facility

In the home

One in five teens report abusing over-
the-counter and prescription drugs.
Their source is primarily friends and
relatives’ medicine cabinets.

In the environment

Unused meds are often dumped into the
garbage or flushed into the waste
stream. According to the EPA, trace
amounts of pharmaceuticals were found
in 80% of the rivers, lakes and streams
they tested and are linked to mutations
in fish, amphibians and water fowl.

Government Regulation

Sharps Disposal Legislation for Self-Injectors

Source: Coalition for Safe Community Needle Disposal

MAP KEY

States with legislation
banning trash disposal of
self-injector’s sharps

States interested in
introducing legislation

States with guidance,
but do not regulate
self-injectors

Financial Highlights

Solid Business Model

Rapid Revenue Growth

Fiscal Year Revenue

(in millions)

6 Year CAGR = 13.8%

(Q3 - TTM)

Revenue more than doubles
in FY 2009 3rd quarter

$8.6

$9.0

$10.6

$12.0

$12.8

$16.4

2004

2005

2006

2007

2008

2009

Stable Gross Margins

Fiscal Year
Gross Margin

Gross margin was 59.2%
in Q3 FY 2009

Company expects gross
margins to exceed 50%
going forward

(Q3 - TTM)

40.7%

38.9%

42.5%

41.9%

39.8%

46.4%

2004

2005

2006

2007

2008

2009

Operating Leverage

Fiscal Year
Operating Margin

* Excludes $138,000 Q3 FY
2007 special charge

(Q3 - TTM)

Operating margin was 33.2%
in Q3 FY 2009

Beginning to recognize the
operating leverage inherent
in business

-0.8%

-1.9%

3.6%

7.2%

0.0%

11.5%

2004

2005

2006

2007*

2008

2009

Bottom-line Profitability

Fiscal Year
Net Income

(in thousands)

Earnings Per Share

($0.01)

($0.02)

$0.02

$0.075

$0.01

$0.09

*Excludes $138 thousand Q3 FY
2007 special charge

**Excludes $1.8 million, or $0.13
per diluted share, income tax
benefit recorded in Q2 FY 2009

(Q3 - TTM)

-$118

$382

$920

$81

$1,258

-$193

2004

2005

2006

2007*

2008

2009**

(As of and for the period ending March 31, 2009)

Strong Balance Sheet

No debt
as of
3/31/09

Working
Capital

$3.6M

Shareholder
Equity
Growth
Q3 07 vs. Q3 09

333%

Line of
Credit

Term sheet with
Bank to increase
to $4.5 million

$2.5M

Strategy and Outlook

Investment Potential

Leader in all markets outside of hospital

Recognized
name brand

Value-added products and services

Consistent high-quality performance

Powerful operating leverage

Developing strong, nationwide customer base

Vertically
Integrated

Investor Presentation

May 2009

Definitions