Sharps Compliance Corp. Announces Passage of California Legislation; California Senate Bill 1305 Requires Proper Disposal of Home-Generated Sharps

Business Wire, July 17, 2006

HOUSTON -- Sharps Compliance Corp. and subsidiaries (OTCBB:SCOM) ("Sharps" or the "Company"), leading providers of cost-effective medical waste disposal solutions for industry and consumers, today announced the passage of California Senate Bill 1305, an amendment to The Medical Waste Management Act. The new law requires the proper disposal of home-generated sharps waste (syringes, needles, lancets, etc.) and acknowledges mail-back programs as one of the most convenient alternatives for the collection and destruction of home-generated sharps.

Effective September 1, 2008, SB 1305 addresses the need to meet the changing demands of healthcare provided in alternative sights that currently allows hundreds of millions of home-generated sharps waste to be disposed in solid waste and recycling containers. The new law is designed to ensure appropriate disposal of sharps waste necessary to protect the general public and workers from potential exposure to contagious diseases and health and safety risks.

Commenting on the announcement, Dr. Burton J. Kunik, Chairman and Chief Executive Officer of the Company stated, "We applaud bill sponsor California Senator Figueroa for successfully addressing the proper disposal of sharps in an effort to protect California residents and communities. We also recognize Governor Schwarzenegger for his continued commitment to the cause by not only enacting Senate Bill 1305 but also signing Senate Bill 1362, The Safe Needle Disposal Act of 2004."

Kunik added, "We believe this to be a break-through event for the Company as the legislative process now mandates the proper disposal of used syringes, needles and lancets outside of the traditional healthcare setting in California. We believe that the California legislation could prove to be the model for legislation throughout the country.

This legislation has the potential to not only positively impact our residential community business but also sales opportunities in all markets we serve as the country recognizes that the proper disposal of sharps waste outside of the healthcare setting is on the legislative radar screen."

Headquartered in Houston, Texas, Sharps is a leading developer of superior solutions for improving safety, efficiency and cost related to the proper disposal of medical waste by industry and consumers. Sharps primary markets include healthcare, agriculture, hospitality, professional, industrial, commercial and retail. The Company's products and services represent cutting edge solutions for a variety of industries dealing with the complexity of managing regulatory compliance, environmental sensitivity, employee and customer safety, corporate risk and operating costs related to medical waste disposal. Sharps is a leading proponent and participant in the development of public awareness and solutions for the safe disposal of needles, syringes and other sharps in the community setting.

Sharps Compliance Corp. is the exclusive supplier of Sharps Disposal by Mail systems to the Consumer Health Care division of Becton, Dickinson and Company. The Company also maintains an exclusive sales and marketing arrangement with Waste Management, Inc. whereby Sharps provides safe disposal systems and related services for Waste Management's residential and commercial customers.

Sharps Compliance Corp.'s common stock trades on the OTC Bulletin Board under the symbol SCOM.

The information made available in this press release contains certain forward-looking statements which reflect Sharps Compliance Corp.'s current view of future events and financial performance. Wherever used, the words "estimate", "expect", "plan", "anticipate", "believe", "may" and similar expressions identify forward-looking statements. Any such forward-looking statements are subject to risks and uncertainties and the company's future results of operations could differ materially from historical results or current expectations. Some of these risks include, without limitation, the company's ability to educate its customers, development of public awareness programs to educate the identified consumer, managing regulatory compliance and/or other factors that may be described in the company's annual report on Form 10-KSB, quarterly reports on Form 10-QSB and/or other filings with the Securities and Exchange Commission. Future economic and industry trends that could potentially impact revenues and profitability are difficult to predict. The company assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results express or implied therein will not be realized.