Sharps Compliance (SMED) 8-K Regulation FD Disclosure

1

David P. Tusa

Chief Executive Officer

and President

Diana P. Diaz

Vice President and

Chief Financial Officer

NASDAQ: SMED

JANUARY2012

Investor Presentation

800.772.5657 / www.sharpsinc.com

2

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$54.4 million

Recent price$3.61

52-week range$5.79 - $2.66

Avg. daily trading volume 40,434
(3 mos.)

Market data as of January 20, 2012, ownership as of most recent filing

Fiscal Year-EndJune 30th

Total shares outstanding15.1 million

Ownership:

• Institutional17%

• Insider16%

Sharps Compliance is the country’sleading
environmental services provider of innovative,
cost-effective mail-back solutions for
medical waste and unused medications.

800.772.5657 / www.sharpsinc.com

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Capitalizing on Major National Challenges

800.772.5657 / www.sharpsinc.com

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ØEstimated 7.8 billion used syringes annually disposed
of outside of the hospital setting(1) requires over
80 million mail-backs per year

ØTripled since 2001(1)

Ø13.5 million self-injectors(1)

ØCreates danger for self-injectors, families,
and communities

$2 Billion Unregulated Market Opportunity

(1)Source: Human Capital Management Services Group

Growing Volume of Medical Waste…

…Requires an Innovative Solution

800.772.5657 / www.sharpsinc.com

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States with sharps legislation or regulations in place

States with specific guidelines or pending legislation

States with no legislation butencourage proper disposal

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

Sharps Disposal Legislation for Self-Injectors

Increasing Legislation

800.772.5657 / www.sharpsinc.com

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(1)Source: Associated Press Investigative Report

Water Supply Contamination…

$1 Billion Unregulated Market Opportunity

…Requires an Innovative Solution

800.772.5657 / www.sharpsinc.com

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Legislative Mandates

States which introduced legislation

States with legislation in place

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

Unused Medication Disposal Legislation

800.772.5657 / www.sharpsinc.com

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(1)Source: Centers for Disease Control and Prevention

Rising Costs for Heathcare Providers

ØHealthcare providers looking for ways to reduce costs

ØDecentralization of healthcare delivery

$800 Million Regulated Market Opportunity

Addressing the Professional Market and

the Changing Health Care Delivery System

800.772.5657 / www.sharpsinc.com

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Growth Strategy

ØLeverage our leadership position

ØDevelop innovative solutions to address
national challenges

ØTarget four key markets

to penetrate the $3.8 billion market opportunity

800.772.5657 / www.sharpsinc.com

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Targeted Market Approach

Direct Sales

Telemarketing / Inside Sales

E-commerce

Distributors

800.772.5657 / www.sharpsinc.com

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$40 Million Market Opportunityfor TakeAway envelopes

Sharps Recovery System™

needles and syringes

TakeAway Environmental Return
System™

unused disposed medication

$50 Million Flu Shot Market
Opportunity

Major Customer Relationships

Direct Sales

Distributors

800.772.5657 / www.sharpsinc.com

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Direct Sales

Unique Promotional Program

ØConsumer focused

ØSubsidized by sponsors

ØPull through drivers: Consumer Behavior
- self injector awareness

$25 to $40 Million Market Opportunity for
Complete Needle™

With 10% to 15% of self-injectors using Complete Needle™

800.772.5657 / www.sharpsinc.com

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Sharps Recovery System™

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

ØRegulated industry:requires proper
disposal

ØEstimated 800,000 professional offices
across the U.S.

Market With the Lowest Cost Solution

$600 Million Market Opportunity

Telemarketing / Inside Sales

E-commerce

Distributors

800.772.5657 / www.sharpsinc.com

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What they need

ØProduct differentiation

ØImproved interaction with patients

ØTouch points with patients

ØImproved therapy outcomes

What we offer

ØLaunched three new programs from
Sept 2011thru December 2012

ØCombined value of more than
$3 million annually

Creating Solutions

ØOur solutions provide the tools
to satisfy the needs of the
pharmaceutical manufacturers

Direct Sales

800.772.5657 / www.sharpsinc.com

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Direct Sales

Sharps Recovery System™ &

TakeAway Environmental Return System™

U.S. Department of Veterans Affairs

Driving New Behaviors

Around Medical Waste and Unused Medications

ØInnovative pilot program

ØVA evaluating broad roll-out program to
make solutions available across all
regions and 5.5 million veterans

$0.2

$0.3

$0.6

$2.8

$6.3

$23.8

$3.4

$6.0

$23.2

$2.1

$2.8

$0.6

$20 to 30 Million Estimated
Market Opportunity

Core Government Billings

(in millions)

800.772.5657 / www.sharpsinc.com

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Innovative Solutions…

SharpsTracer™

MedTracer™

… for the Professional Market

… for the Pharmaceutical Market

… for regulatory compliant tracking
and proof of receipt and treatment

… for the Retail Pharmacy Market

See supplemental slides for descriptions of solution offerings

800.772.5657 / www.sharpsinc.com

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Fully-Integrated Solutions Provider

Vertical Integration:

manufacturing

assembly

distribution

treatment

online tracking

customer reporting

regulatory expertise

Barriers to Entry

Unique solutions

Large addressable market

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Financial
Highlights

800.772.5657 / www.sharpsinc.com

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Growth and Diversity

FY 2008 Billings
$13.2 million

800.772.5657 / www.sharpsinc.com

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($ in millions)

Building Core Revenue

Fiscal Years

$39.2

$20.3

Quarterly Trends

$4.6

$5.0

$4.5

$5.7

Core Business (recurring revenue markets)U.S. Government Contract

$19.4

$21.5

$6.2

800.772.5657 / www.sharpsinc.com

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Gross Margin

EBITDA*

* See supplemental slides for EBITDA reconciliation and other important disclaimers regarding EBITDA.

($ in millions)

Strong Operating Leverage

Gross Margin

EBITDA*

Fiscal Years

Quarterly Trends

800.772.5657 / www.sharpsinc.com

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Net Income

* Excludes special charge of $512 thousand and 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.

*** Excludes Q4 FY 2011 unusual expenses of $398 thousand.

($ in millions)

Investing in Growth

Net Income

Fiscal Years

Quarterly Trends

800.772.5657 / www.sharpsinc.com

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(As of and for the period ending December 31, 2011)

Strong Balance Sheet: Financial Flexibility

Cash and
Cash
Equivalents

$18.3M

Shareholder
Equity
Growth6/30/09 vs. 6/30/11

170%

Line of
Credit

$5.0M

No debt
as of
12/31/11

800.772.5657 / www.sharpsinc.com

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Capturing Opportunities - Creating Growth

Ø $3.8 billion market opportunity

Ø First mover advantage

Ø Winning major customers in key markets

Ø Increasing state and federal regulatory drivers

Ø Vertically integrated full-service operations

Ø Highly scalable business model with operating leverage

Sharps is on track to deliver.

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Q & A

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Supplemental

Information

800.772.5657 / www.sharpsinc.com

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EBITDA Reconciliation

($ in thousands)

The Company defines earnings before interest, taxes, depreciation and amortization (“EBITDA”) as net income (loss), plus income tax (benefit)
expense, interest (income) expense, and depreciation and amortization.  Other companies may define EBITDA differently.EBITDA is presented
because it is a financial measure that is frequently requested by third parties.However, EBITDA is not considered under generally accepted
accounting principles as a primary measure of an entity’s financial results, and accordingly, EBITDA should not be considered an alternative to
operating income (loss), net income (loss), or cash flows as determined under generally accepted accounting principles and as reported by the
Company.

	Three Months Ended
	12/31/2011	9/30/2011	6/30/2011	3/31/2011	12/31/2010
Net Income (loss)	$28	$(325)	$(712)	$(659)	$(807)
Income tax (benefit) expense	15	(176)	(281)	(445)	(378)
Interest (income) expense	(10)	(10)	(13)	(14)	(15)
Depreciation and amortization	278	270	252	252	249
EBITDA	$311	$(241)	$(754)	$(866)	$(951)

	Year Ended
	6/30/2011	6/30/2010	6/30/2009	6/30/2008
Net Income (loss)	$(2,975)	$9,356	$4,197	$82
Income tax (benefit) expense	(1,516)	5,079	(700)	3
Interest (income) expense	(55)	(37)	(27)	(85)
Depreciation and amortization	1,003	796	418	266
EBITDA	$(3,543)	$15,194	$3,888	$266

800.772.5657 / www.sharpsinc.com

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ØSharps 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.

ØTakeAway Environmental Return System™

         Designed for individual consumers, communities and facilities, such as

         pharmacies, assisted living facilities, long-term care facilities, mail-order

         pharmacies and correctional operations, to manage their unused

         dispensed medications (other than controlled substances). This

         solution consists of customized containment, transportation, destruction or

         conversion and tracking services. The Company’s proprietary tracking system,

         MedsTracer™, is designed for tracking unused dispensed medications.

Ø30-Gallon TakeAway Recovery System™

         This versatile and cost-effective method for the proper management of used
         healthcare materials, including sharps containers, eliminates the need for costly,
         inconvenient pick up service. Pre-loaded with six Covidien 5-Quart SharpStar™
         In-Room™ Sharps Containers, the unit can accommodate up to nine containers when
         returning it for disposal via pre-paid UPS freight to our fully-permitted treatment
         facility.

Descriptions

800.772.5657 / www.sharpsinc.com

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Descriptions

ØComplete 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.

ØSharps® 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.

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David P. Tusa

Chief Executive Officer

and President

Diana P. Diaz

Vice President and

Chief Financial Officer

NASDAQ: SMED

JANUARY2012

Investor Presentation