Sharps Compliance 8K William Blair Emerging Growth Stock Conference | SMED 1 Oct 10

William Blair Emerging Growth Stock Conference

October 5, 2010

Sharps Compliance Corp.

NASDAQ: SMED

David P. Tusa

Chief Executive Officer and President

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

NASDAQ: SMED¹

Market capitalization² $65.3 million

Recent price² $4.38

52-week range² $13.00 - $3.91

Avg. daily trading volume (3 mos.) 63,768

³ Ownership based on June 30, 2010 filings

¹ Listed 5/6/09; formerly OTCBB: SCOM

² As of 9/29/10

Total shares outstanding 14.9 million

Ownership³:

• Institutional 25%

• Insider 30%

Fiscal Year-End June 30th

Sharps Compliance is a fully integrated provider of
cost-effective management solutions for medical waste and
unused dispensed medications generated outside the hospital and
large healthcare facility setting utilizing the USPS or UPS.

Our strategy is to capitalize on our leadership position and continue to
penetrate the estimated $2 billion market opportunity.

Large and Growing
Market Opportunity

$1 Billion 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

Sources:

(1)Centers for Disease Control and Prevention

(2)Associated Press Investigative Report

$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(2)

Medical Waste Disposal

Unused Medication Disposal

Vertically Integrated
Solutions Provider

Treatment

Reporting

Tracking

SharpsTracer™

DrugTracer™

Product Application

Distribution

Order

Mail Back

Products and Services

Medical Professional
Sharps Recovery System™

Sharps Recovery
System™

RxTakeAway™

Serve more than 4,000

customers in all 50 states

Sharps Secure®

Channels to Market

Retail

•Experienced sales force - 8 employees

•Target sales opportunities > $0.5 million

Direct
Sales

•10 employees - could double staff level

over next year

•Educating the small quantity generator

market

Inside
Sales

• Solid lead generation

• Improved marketing

• Online order management

• Build logic and robust eCommerce

capabilities

Website /
eCommerce

Hospitality

Assisted living

Commercial / Industrial

Pharmaceutical
Manufacturers

Government

Managed Care
Organizations

Dentists

Doctors

Veterinarians

Home
Healthcare

Pharmacies

Government Market

Launched February 2010 in four state region

Provides medical waste and unused medication disposal solutions

Program expanded to five other geographic regions due to positive response

U.S. Department of Veterans Affairs

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

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

- Awarded first option year at $1.6 million

- Subsequent three years at $3.0 million per year

Sharps Proprietary Medical Waste Management System

Innovative Pilot
Program

Increasing Regulation

Source: StateScape

States with legislation banning disposal - 9 states

States which introduced legislation - 4 states

States with guidance - 37 states

States with legislation - 6 states plus District of Columbia

States which introduced legislation - 5 states

States which have not introduced legislation - 39 states

Increasingly recognized legislation momentum

■ Iowa and N. Dakota have taken the lead with recent

disposal program

Sharps Disposal Legislation for Self-Injectors

Unused Medication Disposal Legislation

EPA and California Senate issued new guidelines for

proper disposal

Increasing regulation will continue to drive demand for Sharps’ solutions

Waste Conversion Process™

No landfills required

Creates a useful raw material

Safe - 99.999% sterilized, and completely safe to handle

Environmentally responsible - reduces carbon footprint

Facilitates corporate environmental initiatives

Significant differentiator for the Company

Potential additional revenue stream

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

Financial Highlights

Solid Business Model

Recurring
Revenue

Early Market
Penetration

First Mover
Advantage

Strong
Margins

Unique

Operating
Leverage

Revenue Growth

(in millions)

$39.2

$20.3

$6.7

$4.2

Billings by Markets Segment

FY 2008 Billings
$13.2 million

Expanded Gross Margins

In order to facilitate anticipated growth, investments were made to launch the new Atlanta
operations and distribution facility and the new Waste Conversion Process™ in third
quarter FY10

Operating Leverage

* Excludes $512,372 Q4 FY 2009 special charge

Bottom-line Profitability

($0.02)

$0.03

$0.06

$0.01

$0.30

$0.63

$0.05

($0.07)

(As of and for the period ending June 30, 2010)

Strong Balance Sheet

No debt
as of
6/30/10

Cash and
Cash
Equivalents*

$18.1M

Shareholder
Equity
Growth
Q4 08 vs. Q4 10

834%

Line of
Credit

$5.0M

* $2.0 million income tax refund received in July 2010

Investment Highlights

• Estimated $2 billion market opportunity

• First mover advantage

• Increased state and federal regulatory drivers

• Vertically integrated full-service operations

• Highly scalable business model with operating leverage

• Proven experienced management team

William Blair Emerging Growth Stock Conference

October 5, 2010

Sharps Compliance Corp.

NASDAQ: SMED

Definitions

• Sharps Recovery System™ (formerly Sharps Disposal by Mail System®)
A cost-effective and easy-to-use solution to dispose of medical waste such as hypodermic needles, lancets , and other small

quantities of bio hazardous waste. The disposal solution is ideal for individuals who self-inject, or medical facilities generating

small quantities of medical waste.

• Sharps®MWMS™ - Sharps Medical Waste Management System
A comprehensive medical waste solution which includes an array of services and products necessary to effectively collect, store

and dispose of medical waste and dispensed unused medications outside of the hospital or large healthcare facility setting.

The System, which is designed for rapid deployment, features the Sharps Recovery System™ products combined with

warehousing, Inventory management, training, data and other services necessary to provide a comprehensive solution.

The Sharps®MWMS™ is designed to be an integral part of governmental and commercial emergency preparedness programs.

• RxTakeAway™
Designed for individual consumers, retail or mail-order pharmacies, communities and facilities including assisted living, long

term care and correction operations to facilitate the proper disposal of unused dispensed medications. This solution consists of

a variety of sizes of containers (from a special-use envelope to 10- and 20-gallon products) and return packaging with pre-paid

postage to the Company’s treatment facility. The Company recently introduced its proprietary tracking system, DrugTracer™, to

document unused patient medication products. The RxTakeAway™ is also an additional component option for the Sharps®

Medical Waste Management System™

• Sharps Secure®
A containment and disposal method designed specifically for public restrooms. The system is currently used in malls,

restaurants, office buildings and industrial facilities.

Sharps Compliance (SMED) 8-KWilliam Blair Emerging Growth Stock Conference