Sharps Compliance (SMED) 8-K Regulation FD Disclosure

800.772.5657 / www.sharpsinc.com

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Sharps Compliance Corp.

NASDAQ: SMED

Barrington Research

Growth Conference

September 7, 2011

Diana P. Diaz

Vice President and

Chief Financial Officer

David Tusa

Chief Executive Officer

and President

800.772.5657 / www.sharpsinc.com

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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, includinggeneral 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.

800.772.5657 / www.sharpsinc.com

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Sharps Compliance

NASDAQ: SMED

Market capitalization$61.35 million

Recent price$4.09

52-week range$6.19 - $2.66

Avg. daily trading volume (3 mos.)70,205

Market data as of August 30, 2011, ownership as of most recent filing

Fiscal Year-EndJune 30th

Total shares outstanding15.0 million

Ownership:

• Institutional18%

• Insider16%

Sharps Compliance is a leading, fully integrated provider of
cost-effective management solutions for medical waste,
used healthcare materials, and unused dispensed
medications utilizing the USPS or UPS.

Our strategy is to capitalize on our leadership position and continue
to penetrate the estimated $2.8 billion market opportunity.

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Sharps Recovery System™

♦Proposed or enacted legislation covers 43% of the U.S.
population (18 states plus D.C.)

Sharps Disposal Legislation for Self-Injectors

Medical Professional
Sharps Recovery System™

Sharps Recovery
System™

$1 Billion Unregulated Market Opportunity

♦Estimated 3 billion used syringes annually
disposed of outside of the hospital setting(1)

♦Would require 30 to 50 million mail-backs per year

Medical Waste Disposal

$800 Million Regulated Market Opportunity

♦Includes professional market, retail pharmacy flu
shot market, and assisted living / long-term care

(1)Source: Centers for Disease Control and Prevention

Complete Needle™
Collection and
Disposal System

States with sharps legislation or regulations in place

States with specific guidelines or pending legislation

States with no legislation butencourage proper disposal

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TakeAway Environmental Return System™

♦Proposed or enacted legislation covers 65% of the U.S.
population (29 states plus D.C.)

Unused Medication Disposal Legislation

$1 Billion Market Opportunity

♦40% of dispensed medications from 4 billion
prescriptions go unused annually

♦Estimated 200 million pounds of medications
go unused each year(1)

Unused Medication Disposal

(1) Associated Press Investigative Report

States which introduced legislation

States with legislation in place

800.772.5657 / www.sharpsinc.com

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Vertically Integrated Solutions Provider

SharpsTracer™

MedTracer™

Fully integrated including manufacturing, assembly, distribution,
treatment, online tracking and customer reporting

Two manufacturing, assembly,
and distribution facilities:
Texas and Georgia

Regulatory compliant tracking and
documentation system: provides
proof of receipt and treatment

ü Secured treatment facility with an incinerator and autoclave

ü Licensed law enforcement official onsite for the witnessed
destruction of unused and over-the-counter medications

ü PELLA-DRX™

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Key Markets: Retail Pharmacies

ü Unused medication
envelope solution now
has a shelf presence in
some of the nation’s
largest drug chains

ü Drives foot traffic and
customer interaction

ü Introduced to retail market
in September 2010

üTotal Market Opportunity:
$40 million
(TakeAway envelope only)

Sharps Recovery

System™

TakeAway

Environmental

Return System™

ü Support the proper
disposal of syringes
used to administer
flu shots and other
immunizations

ü Growing percentage of
flu shots administered
in the retail setting

ü Changing healthcare
delivery system

ü Flu Shot Market
Opportunity: $50 million

Complete Needle™
Collection and
Disposal System

üFocused on the traditional
under-served home injector

ü Two offerings in one:-Containment to protect
individual and family

-Optional disposal feature
to protect community,
solid waste workers,
and environment

üConvenience within retail
channel

ü Introduced to retail market
in August 2011

Expansion from business-to-business to business-to-consumer

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Key Markets: Pharmaceutical Manufacturers

Pharmaceutical manufacturers
of self-injectible medications
are focused on:

ü Product differentiation

ü Improved interaction with patients

ü Creating a touch point for patient
follow-up and improved therapy
outcomes

Sharps awarded patient
support programs from two
top 20 pharmaceutical
manufacturers:

ü Combined value of over $2 million
annually

ü Program scheduled to launch in
December 2011 quarter and roll
out over following six- to nine-
month period

Recent wins

for Sharps

800.772.5657 / www.sharpsinc.com

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Key Markets: Professional

Sharps Recovery System™

ü Support the proper disposal of medical waste generated in
physician, dental, veterinarian and other service-related practices

ü Regulated industry

ü Estimated 800,000 professional offices across the U.S.

ü Total Market Opportunity: $600 million

Launched inside sales initiative in January 2010

Driving
Awareness

Recurring
Revenue
Opportunities

Educating
the
Market

Launched new website and corresponding
promotional activity in mid July 2011

800.772.5657 / www.sharpsinc.com

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Key Markets: Core Government

VA’s pharmacy services division serves over 5.5 million veterans each year

♦Launched February 2010 in four state region

♦Provided medical waste and unused medication disposal solutions

♦Program expanded to eight geographic regions due to positive response

♦Pilot winding down as VA evaluates a broad roll-out program to make
solutions available across all regions

♦Opportunity for strong recurring revenue stream

♦Estimated market opportunity: $35 million

U.S. Department of Veterans Affairs

Innovative Pilot
Program

Sharps Recovery System™

TakeAway Environmental Return
System™

&

800.772.5657 / www.sharpsinc.com

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Key Markets: Government Contracts

♦Rapid-deployment solution in the event of an emergency

♦Increasingly recognized part of emergency preparedness program

♦Full service outsourced solution

♦Initial $40 million government program
- Product build-out phase completed
- Completed first option year at $1.6 million
- Subsequent three years at $3.0 million per year

Sharps Proprietary Medical Waste Management System

Opportunity to
expand to cover
more people and
to cover unused
medications

Sharps Recovery System™

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Channels to Market

Retail

Hospitality

Assisted living

Commercial / Industrial

Pharmaceutical
Manufacturers

Government

Managed Care
Organizations

Dentists

Doctors

Veterinarians

Home
Healthcare

Pharmacies

Increased Brand Awareness

800.772.5657 / www.sharpsinc.com

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Financial Highlights

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Solid Business Model

Recurring
Revenue

Early Market
Penetration

First Mover
Advantage

Unique

Operating
Leverage

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Billings by Markets Segment

FY 2008 Billings
$13.2 million

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Core Revenue

($ in millions)

$39.2

$19.4

$20.3

Gross Margin

Operating Margin

Net Income

Full Fiscal Year Results

* Excludes special charge of $512 thousand and, for net income, an unusual tax benefit of $1.8 million.

** Excludes Q1 FY 2011 special charge of $570 thousand and Q4 FY 2011 unusual expenses of $398 thousand

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Core Revenue

Gross Margin

Operating Margin

Net Income

Quarterly Performance

($ in millions)

$4.3

$4.8

$4.2

* Excludes Q1 FY2011 special charge of $570 thousand** Excludes Q4 FY 2011 unusual expenses of $398 thousand

$4.6

$5.0

$4.5

$4.2

$5.2

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(As of and for the period ending June 30, 2011)

Strong Balance Sheet

No debt
as of
6/30/11

Cash and
Cash
Equivalents

$18.3M

Shareholder
Equity
GrowthQ4 09 vs. Q4 11

170%

Line of
Credit

$5.0M

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Waste Conversion Process™

üNo landfills required

üCreates a useful raw material

üSafe - 99.999% sterilized, and completely safe to handle

üEnvironmentally responsible - reduces carbon footprint

üFacilitates corporate environmental initiatives

üSignificantdifferentiator for the Company

Patent-pending process, transforms medical waste into a new, clean,
raw material ideally suited for energy intensive industries like cement,
lime, steel and power plants

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Investment Highlights

800.772.5657 / www.sharpsinc.com

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Supplemental Information

800.772.5657 / www.sharpsinc.com

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Definitions

• Sharps Recovery System™ (formerly Sharps Disposal by Mail System®)

A cost-effective and comprehensive solution for the containment, transportation, treatment and tracking of medical waste
and used healthcare materials such as hypodermic needles, lancets, and other used healthcare materials. The solution
offering is ideal for individuals who self-inject or medical facilities generating small quantities of medical waste.

• TakeAway Environmental Return System™

• Complete Needle™ Collection & Disposal System

A comprehensive solution focused on the traditional under-served home self-injector required to regularly use needles or
syringes for their health and well-being, such as people with diabetes. The Complete Needle™ Collection and Disposal
System is actually two offerings in one.First, the product provides the individual self-injector with a reasonably priced
containment solution designed to protect self-injectors and their family members. Second, the product includes an
optional disposal feature utilizing the USPS designed to protect the individual’s community, solid waste workers and the
environment. Our solution offers significant convenience as it utilizes the same delivery channel, the retail pharmacy, that
the self-injector typically uses to obtain medications, for example insulin, and needles or syringes. Our solution is also
designed to enhance the interactions between the pharmacist and the individual thereby creating counseling
opportunities and possibly better treatment outcomes.

800.772.5657 / www.sharpsinc.com

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Definitions

Sharps®MWMS™ -Sharps Medical Waste Management System™

A comprehensive solution which includes an array of services and products necessary to effectively collect, store,
transport, treat, document and audit medical waste and dispensed unused medications generated in a large scale or
catastrophic situation.The system, which is designed for rapid deployment in emergency situations, features the Sharps
Recovery System™ and TakeAway Environmental Return System™ products combined with warehousing, inventory
management, training, data and other services necessary to provide a comprehensive portable solution.
Sharps®MWMS™ is designed to be an integral part of governmental and commercial emergency preparedness
programs for large scale or catastrophic situations such as natural disasters, pandemics, terrorist events or other national
emergencies.