AFP Imaging Announces That Its Board of Directors Has Authorized the Company to Repurchase up to $1 Million of Its Outstanding Common Stock

Business Wire, Dec 12, 2006

ELMSFORD, N.Y. -- AFP Imaging Corporation (OTC BB: AFPC) today announced that its Board of Directors has authorized the Company to repurchase up to $1 million of its outstanding common stock in open market purchases or privately negotiated transactions.

David Vozick, Chairman stated "The authorization will be used from time to time, subject to market conditions, the relative attractiveness of other capital deployment opportunities, and regulatory considerations. The Company believes that its shares are undervalued and that this is in the best interests of all shareholders. The Company will use its discretion when purchasing the shares. Any repurchases are intended to make appropriate adjustments to the Company's capital structure and are for general corporate purposes."

The Company has 12,428,800 shares of common stock outstanding as of December 12, 2006. The share repurchases will be financed by currently available cash.

AFP Imaging manufactures and distributes a broad range of x-ray imaging equipment, which has particular applications in dental, veterinary and medical diagnostics. The Company's new imaging technologies and systems are providing the gateway for future growth. Our latest film-less dental products include three dimensional x-ray units, digital x-ray sensors, and digital panoramic units. The Company's products are sold worldwide under various brand names, which include AFP, DENT-X, and EVA. For additional product and corporate information, please visit our web sites at www.afpimaging.com and www.dent-x.com.

The remarks contained in this press release and presented elsewhere by management from time to time contain forward-looking statements, which involve risks and uncertainties including statements regarding the Company's plans, objectives, expectations and intentions. The Company's actual results may differ significantly from the results discussed in this press release or in other forward-looking statements presented by management. Among the factors that could cause actual results to differ materially include failure of revenue on new products to develop as estimated, regulatory delays, loss of existing customers, the Company's inability to meet increasing demand for its new products, general downward trends in the Company's industry and other risk factors as described in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revision to any such statements to reflect any change in the Company's expectation or change in events, conditions, or circumstances on which such statement is based.