Retractable (RVP) 8-K Retractable Technologies, Inc. Reports 30.1 Percent Increase In Sales In the First Quarter

Exhibit 99

FOR IMMEDIATE RELEASE

RETRACTABLE TECHNOLOGIES, INC. REPORTS 30.1 PERCENT INCREASE IN SALES IN THE FIRST QUARTER

LITTLE ELM, TX—May 17, 2006—Retractable Technologies, Inc. (AMEX:RVP), a leading maker of safety needle devices, today reported $5.5 million in total sales for the three months ended March 31, 2006, a 30.1 percent increase over the same period last year. This increase, which boosted gross profit for the quarter to $1.9 million from $1.5 million in the year-ago period, resulted from higher sales in the U. S. market.

Domestic sales increased 36.7 percent while international sales dropped 10.9 percent; combined unit sales for the domestic and international markets rose 16.9 percent. International sales declined in the first quarter of 2006 due to lower shipments under the Bush Administration’s global HIV/AIDS initiative compared with the same period last year. The timing of shipments, and therefore the Company’s recognition of revenues, under this program vary from quarter to quarter depending in part on logistical requirements in Africa and the Caribbean.

Largely because of a 25.3 percent increase in operating expenses, including higher sales and marketing and research and development costs in the quarter, the Company posted an operating loss of $1.2 million. The increase in sales and marketing expense resulted primarily from the hiring of additional sales personnel, whereas the increase in R&D costs was due mainly to consulting expenditures and costs associated with the development of the new VanishPoint^® safety intravenous (I.V.) catheter. General and administrative costs also rose because of higher compensation, travel and legal expenses.

The Company’s balance sheet remains strong with cash making up $51.6 million, or 70.6 percent, of total assets. Further details are available on the Company’s Form 10-Q/A filed with the Securities and Exchange Commission.

Retractable Technologies, Inc. manufactures and markets VanishPoint^® automated retraction safety syringes and blood collection devices, which virtually eliminate health care worker exposure to accidental needlestick injuries. These revolutionary devices use a patented friction ring mechanism that causes the contaminated needle to retract automatically from the patient into the barrel of the device, a feature that is designed to prevent reuse. VanishPoint^® safety needle devices are distributed by various specialty and general line distributors. For more information on Retractable, visit our Web site at www.vanishpoint.com.

Forward-looking statements in this press release are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 and reflect the Company’s current views with respect to future events. The Company believes that the expectations reflected in such forward-looking statements are accurate. However, the Company cannot assure you that such expectations will materialize.

The Company’s actual future performance could differ materially from such statements. Factors that could cause or contribute to such differences include, but are not limited to: the impact of dramatic increases in demand; the Company’s ability to quickly increase its capacity in the event of a dramatic increase in demand; the Company’s ability to access the market; the Company’s ability to reduce production costs; the Company’s ability to continue to finance research and development as well as operations and expansion of production; the recently increased interest of larger market players, specifically BD, in providing safety needle devices to their customers; and other risks and uncertainties that are detailed from time to time in the Company’s periodic reports filed with the Securities and Exchange Commission.

RETRACTABLE TECHNOLOGIES, INC.

CONDENSED BALANCE SHEETS

	March 31, 2006		December 31, 2005
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	51,561,260	$	52,513,935
Accounts receivable, net		2,821,074		3,404,908
Inventories, net		3,453,737		3,297,726
Income taxes receivable		916,502		561,062
Current deferred tax asset		1,135,327		1,245,508
Other current assets		626,903		462,150
Total current assets		60,514,803		61,485,289
Property, plant, and equipment, net		12,171,697		11,925,976
Intangible assets, net		306,512		316,926
Other assets		26,075		27,334
Total assets	$	73,019,087	$	73,755,525
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	2,381,387	$	2,345,613
Current portion of long-term debt		246,234		295,417
Accrued compensation		530,508		388,726
Marketing fees payable		1,419,760		1,419,760
Accrued royalties to a shareholder		369,228		540,888
Other accrued liabilities		334,729		467,812
Total current liabilities		5,281,846		5,458,216
Long-term debt, net of current maturities		4,300,638		4,350,625
Long-term deferred tax liability		770,717		711,443
Total liabilities		10,353,201		10,520,284
Stockholders’ equity:
Preferred stock $1 par value:
Series I, Class B		171,000		171,000
Series II, Class B		242,700		255,200
Series III, Class B		135,245		135,245
Series IV, Class B		556,000		556,000
Series V, Class B		1,381,221		1,381,221
Common Stock, no par value		—		—
Additional paid-in capital		54,350,136		54,307,053
Retained Earnings		5,829,584		6,429,522
Total stockholders’ equity		62,665,886		63,235,241
Total liabilities and stockholders’ equity	$	73,019,087	$	73,755,525

RETRACTABLE TECHNOLOGIES, INC.

CONDENSED STATEMENTS OF OPERATIONS - (Unaudited)

	Three months ended March 31, 2006			Three months ended March 31, 2005
Sales, net	$	3,881,805		$	4,063,874
Reimbursed discounts		1,640,925			180,300
Total sales		5,522,730			4,244,174
Cost of sales
Cost of manufactured product		3,241,962			2,417,016
Royalty expense to a shareholder		369,228			314,619
Total cost of sales		3,611,190			2,731,635
Gross profit		1,911,540			1,512,539
Operating expenses:
Sales and marketing		1,113,006			940,383
Research and development		315,195			119,094
General and administrative		1,723,771			1,455,782
Total operating expenses		3,151,972			2,515,259
Loss from operations		(1,240,432	)		(1,002,720	)
Interest income		462,197			252,139
Interest expense, net		(110,707	)		(62,413	)
Net loss before income taxes		(888,942	)		(812,994	)
Provision (benefit) for income taxes		(289,004	)		(290,059	)
Net loss		(599,938	)		(522,935	)
Preferred Stock dividend requirements		(367,078	)		(381,345	)
Loss applicable to common shareholders	$	(967,016	)	$	(904,280	)
Loss per share - basic and diluted	$	(0.04	)	$	(0.04	)
Weighted average common shares outstanding		23,521,551			23,203,665

Investor Contact:

Douglas W. Cowan

Vice President and Chief Financial Officer

(888) 806-2626 or (972) 294-1010

rtifinancial@vanishpoint.com

Media Contact:

Phillip L. Zweig

Communications Director

(212) 490-0811 or (214) 912-7415 (cell)

plzweig