Misonix (MSON) 8-K Results of Operations and Financial Condition

For Immediate Release

Misonix Contact:	Investor Relations Contact:
Richard Zaremba	Cameron Associates, Inc.
631-694-9555	212-245-4577
invest@misonix.com	Kevin@cameronassoc.com

MISONIX REPORTS REVENUES FOR THE TWELVE MONTHS ENDED JUNE 30, 2008 OF $45.6 MILLION, UP 7.6% COMPARED TO THE TWELVE MONTHS ENDED JUNE 30, 2007

FARMINGDALE, N.Y., September 24, 2008 --Misonix, Inc. (NASDAQ: MSON), a developer of minimally invasive ultrasonic medical device technology, which in Europe is used for the ablation of tumors and worldwide for other acute health conditions, today reported financial results for the fourth quarter and fiscal year ended June 30, 2008. Michael A. McManus, Jr., President and Chief Executive Officer, and Richard Zaremba, Senior VP and Chief Financial Officer, will host a conference call at 4:30 p.m. Eastern on Wednesday, September 24, 2008 to discuss the Company's fourth quarter 2008 financial results.

The Company also reported the following financial and operational achievements:

§   Positive cash flow provided by operations increased $1.8 million to $680,000 for the year ended June 30, 2008 as compared to cash utilization of $1.1 million for the year ended as of June 30, 2007.

§   Backlog up 51% to $10,908,000 from the prior fiscal year end.

§   Closed the transaction for the sale of its equity position in Focus Surgery, Inc. (“FSI”) to USHIFU, LLC, on July 2, 2008. Misonix received $837,000 plus approximately $679,000 representing one half of the debt outstanding from FSI. The remaining portion of the debt plus interest will be paid at the end of December 2009.

§   Entered into a new three-year exclusive distribution and service agreement, including minimum purchase requirements with privately-held SIAD Healthcare S.p.A. of Assago (Milan), Italy, for the distribution of the Sonastar™ Ultrasonic Surgical Aspiration System, the BoneScalpel™ Ultrasonic Bone Cutting System, and the SonicOne® Ultrasonic Wound Care System in Italy.

§   Announced the formation of a new team of contract sales agents that will sell Misonix labeled products, on a commission only basis, directly to hospitals and clinics throughout the US. The SonicOne Wound Management System is the first product to be sold by this new sales team.

§   Introduction and sales of our Sonastar Ultrasonic Surgical Aspiration System and our BoneScalpel Ultrasonic Bone Cutting System through MD International, Inc., a Miami, Florida-based distributor of high technology medical devices that has operating units or sales offices in Argentina, Brazil, Chile, Colombia, Mexico, Panama, and Puerto Rico.

Revenues for the fourth quarter were $11.7 million, compared to $11.6 million for the three months ended June 30, 2007. The increase in revenues was due to a $177,000 increase in sales of laboratory and scientific products to $5.3 million, partially offset by a $39,000 reduction in sales of medical device products. The decrease in revenues of medical device products of $39,000 was primarily due to reduced sales of the AutoSonix® product to Covidien. The increase in sales of laboratory and scientific products of $177,000 was primarily due to an increase in sales of the Labcaire ISIS product and the new digital S-4000 Sonicator.

Net loss for the three months ended June 30, 2008 was $2.4 million, or $.34 per diluted share, compared to a net loss of $302,000, or $0.04 per diluted share, for the three months ended June 30, 2007. In the fourth quarter of fiscal year 2008, the Company recorded a non-cash, one-time charge of $1.6 million relating to the establishment of a valuation allowance against tax benefits taken against the Company’s losses in the past three years. Excluding this one-time charge, the Company would have reported a net loss of $804,000, or $0.11 per diluted share, for the fourth quarter of fiscal year 2008 as compared to the $0.04 per diluted share for fiscal 2007.

Revenues for the twelve months were $45.6 million, up 7.6%, compared to revenues of $42.4 million for the twelve months ended June 30, 2007. The increase in revenues was due to a $733,000 increase in medical device products sales to $24.3 million and a $2.5 million increase in laboratory and scientific products sales to $21.3 million.

Net loss for the fiscal year ending June 30, 2008 was $2.9 million, or $0.41 per diluted share, compared to a net loss of $1.3 million, or $0.19 per diluted share, for the same period in fiscal 2007. Excluding the one-time charge described above, the Company would have reported a net loss of $1.3 million, or $0.19 per diluted share, for the twelve months ending June 30, 2008 as compared to $0.19 per diluted share for fiscal 07.

The Company reported a backlog of unfilled orders as of June 30, 2008 of $10.9 million compared to $7.2 million as of June 30, 2007. Medical device products backlog was $4.9 million and laboratory and scientific products backlog was $6.0 million.

Commenting on Misonix’s financial and operating results, Michael A. McManus, Jr., President and Chief Executive Officer, said, “We are pleased to report that revenues for the fourth fiscal quarter and twelve months have increased from the same periods of fiscal 2007.

During the fourth quarter we were impacted by a number of extraordinary expenses, primarily a one-time, non-cash tax expense of $1.6 million to establish a valuation allowance against the tax benefit recorded from our losses over the past three years. As the Company becomes profitable, we will still be able to utilize these loss carry forwards for a period of up to 20 years. Additionally, we incurred higher G&A expenses in the fourth quarter which were primarily attributable to compliance with Sarbanes Oxley 404, currency exchange fluctuation, depreciation, and employee related fees and expenses.

I am pleased to announce that we have started shipping our new BoneScalpel bone cutting device to Aesculap, our domestic distributor, who is targeting the large neuro/spine market. We are also expanding our domestic marketing for SonicOne by adding regional, contract sales agents. SonicOne is our ultrasonic wound debridement system which we believe represents breakthrough advancement for more effective cleansing and debriding of chronically non-healing wounds, such as those contracted by diabetic patients.

Among our other important initiatives, we continue to develop our sales platform for our line of products using High Intensity Focused Ultrasound, (“HIFU”). These activities include the distribution of the Sonablate®500, (“SB500”), for HIFU treatment of prostate cancer in Europe on a fee-per-use basis. Although this program is running at about the same level as this period last year, we anticipate the addition of new distribution agreements combined with an intensified sales campaign will expand SB500 utilization in Europe.

We are on track with clinical evaluations using our Sonatherm™ product for HIFU ablation of kidney tumor. We believe our HIFU technology is cutting edge and is being recognized as a unique, minimally invasive procedure with many applications. Misonix is one of the few companies with a multiple product platform of potential new HIFU applications. We have worldwide rights to develop and sell products using HIFU technology into the kidney, liver and breast tissue markets. We are very proud of the fact that we are the first company to receive a 510(k) from the Food and Drug Administration for a minimally invasive laparoscopic product using HIFU technology for the treatment of kidney tissue.

Our laboratory and scientific business continues to grow and we have seen a steady improvement in its performance. This business segment greatly assists in funding the development of new ultrasonic medical device products which we believe will be the dominant growth drivers for our medical device business.

Our subsidiary, Sonora Medical, continues to grow both the top and bottom line by increasing its share of the repair and replacement of ultrasonic probes and through the development of new and unique ultrasonic testing products. Sonora filed several new patent applications last year as part of its continuing build of an intellectual property portfolio.

We believe that continued growth across all of our business units, successful introduction of the SonicOne and the BoneScalpel together with the development of new sales channels for all of our medical device products in the U.S., Europe and South America, will deliver significant growth to Misonix in fiscal year 2009.”

Conference Call

Misonix management will host a conference call and webcast to discuss the Company’s fourth quarter fiscal year 2008 financial results today, at 4:30 p.m. Eastern.

The conference call will be broadcast live via the Investor Relations section of the Company’s Web site at www.misonix.com.  Alternatively, participants may join the conference call by dialing (866) 203-3436 (domestic) or (617) 213-8849 (international) and entering access code 33966447, a few minutes before the start of the call.

For those unable to attend the live results broadcasts, a recording of the live-call will be available approximately 2 hours after the event through October 1, 2008. The dial-in number to listen to the recording is (888) 286 8010 or (617) 801 6888. The replay access code is 60471834. The call will also be archived on the Company's website for at least 90 days.

About Misonix:

Misonix, Inc. (NASDAQ: MSON) designs, develops, manufactures and markets therapeutic ultrasonic medical devices and laboratory equipment. Misonix’s therapeutic ultrasonic platform is the basis for several innovative medical technologies. Addressing a combined market estimated to be in excess of $3 billion annually; Misonix’s proprietary ultrasonic medical devices are used for wound debridement, cosmetic surgery, neurosurgery, laparoscopic surgery, and other surgical and medical applications. Additional information is available on the Company’s Web site at www.misonix.com.

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With the exception of historical information contained in this press release, content herein may contain “forward looking statements” that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Investors are cautioned that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include general economic conditions, delays and risks associated with the performance of contracts, risks associated with international sales and currency fluctuations, uncertainties as a result of research and development, acceptable results from clinical studies, including publication of results and patient/procedure data with varying levels of statistical relevancy, risks involved in introducing and marketing new products, potential acquisitions, consumer and industry acceptance, litigation and/or court proceedings, including the timing and monetary requirements of such activities, the timing of finding strategic partners and implementing such relationships, regulatory risks including approval of pending and/or contemplated 510(k) filings, the ability to achieve and maintain profitability in the Company’s business lines, and other factors discussed in the Company's Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company disclaims any obligation to update its forward-looking relationships.

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MISONIX, INC. And Subsidiaries

Consolidated Balance Sheets

Derived from Audited Financial Statements

	June 30, 2008			June 30, 2007
Assets
Current Assets:
Cash	$	1,873,863		$	2,900,358
Accounts receivable, less allowance
for doubtful accounts of $376,998 and $313,981, respectively		7,986,802			7,679,466
Inventories, net		12,651,564			11,903,294
Deferred income taxes		1,562,279			1,028,988
Prepaid expenses and other current assets		904,737			1,936,243
Total current assets		24,979,245			25,448,349
Property, plant and equipment, net		4,398,867			4,728,367
Deferred income taxes		1,280,217			2,827,009
Goodwill		5,784,542			5,008,549
Other assets		807,203			733,470
Total assets	$	37,250,074		$	38,745,744
Liabilities and stockholders' equity
Current liabilities:
Revolving credit facilities	$	4,470,389		$	4,030,780
Notes payable		246,888			295,308
Accounts payable		5,497,541			4,872,941
Accrued expenses and other current liabilities		4,760,115			3,957,643
Current maturities of capital lease obligations		307,325			294,257
Current portion of deferred gain from sale and leaseback of building		159,195			160,000
Foreign income taxes payable		696,791			672,330
Total current liabilities		16,138,244			14,283,259
Capital lease obligations		225,909			177,059
Deferred gain from sale and leaseback of building		1,273,772			1,438,966
Deferred income taxes		250,514			300,206
Deferred income		371,452			494,261
Deferred lease liability		348,502			380,068
Total liabilities		18,608,393			17,073,819
Commitments and contingencies
Minority interest		199,237			265,284
Stockholders' equity:
Capital stock, $0.01 par value - shares authorized 10,000,000; 7,079,169
issued, and 7,001,369 outstanding, respectively		70,792			70,792
Additional paid-in capital		25,052,539			24,871,444
Accumulated deficit		(6,630,170	)		(3,507,788	)
Accumulated other comprehensive income		361,707			384,617
Treasury stock, 77,800 shares		(412,424	)		(412,424	)
Total stockholders' equity		18,442,444			21,406,641
Total liabilities and stockholders' equity	$	37,250,074		$	38,745,744

MISONIX, INC. And Subsidiaries

Consolidated Statements of Operations

							Derived from audited
	Unaudited						financial statements
	Three Months Ended						Twelve Months Ended
	June 30,						June 30,
	2008			2007			2008			2007
Net sales	$	11,704,390		$	11,566,017		$	45,639,706		$	42,431,905
Cost of goods sold		7,075,403			7,037,244			26,297,904			24,724,514
Gross profit		4,628,987			4,528,773			19,341,802			17,707,391
Selling expenses		2,146,587			2,071,368			7,726,909			7,596,154
General and administrative expenses		2,922,327			2,095,369			10,518,550			9,417,038
Research and development expenses		652,386			729,362			3,022,069			3,113,264
Total operating expenses		5,721,300			4,896,099			21,267,528			20,126,456
Loss from operations		(1,092,313	)		(367,326	)		(1,925,726	)		(2,419,065	)
Total other (expense) income		(32,366	)		7,477			105,584			363,819
Loss before minority interest and
income taxes		(1,124,679	)		(359,849	)		(1,820,142	)		(2,055,246	)
Minority interest in net (loss) income of consolidated subsidiaries		(1,404	)		(28,115	)		46,176			(40,934	)
Loss before income taxes		(1,123,275	)		(331,734	)		(1,866,318	)		(2,014,312	)
Income tax provision (benefit)		1,227,055			(30,115	)		1,021,493			(664,795	)
Net loss		($2,350,330	)		($301,619	)		($2,887,811	)		($1,349,517	)
Net loss per share-basic		($0.34	)		($0.04	)		($0.41	)		($0.19	)
Net loss per share-diluted		($0.34	)		($0.04	)		($0.41	)		($0.19	)
Weighted average common shares-basic		7,001,369			7,001,369			7,001,369			6,942,633
Weighted average common shares-diluted		7,001,369			7,001,369			7,001,369			6,942,633