**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-QSB/A**

**Amendment      No. 1**

**(MARK      ONE)                                    **

**QUARTERLY      REPORT UNDER SECTION 13 OR 15(d) OF THE **

** **
**SECURITIES      EXCHANGE ACT OF 1934**

**For      the quarterly period ended June 30, 2006**

**TRANSITION      REPORT UNDER SECTION 13 OR 15(d) OF THE**

**SECURITIES      EXCHANGE ACT OF 1934**

**For      the transition period from ______ to _____**

**Commission      file number: **
**000-51065**

| **MILLSTREAM                II ACQUISITION CORPORATION**                         |
|----------------------------------------------------------------------------------|
| (Exact                Name of Small Business Issuer as Specified in Its Charter) |
| **Delaware**                                                                     | **20-1665695** |
| (State                or other jurisdiction of incorporation or organization)    | (I.R.S.                Employer Identification No.) |
|                                                                             |   |

**435      Devon Park Drive, Bldg. 400, Wayne, PA 19087**

**(610)      975-4909**

----

**Explanatory      Note**

|                                              |   |  **June                30,                2006** |       |
|---------------------------------------------------|--------|-------------------------------------------------------|------------|
|                                              |   | **As****Previously****Reported**                      |       |  **As****Restated** |   |
|                                              |   |                                                  |       |   |   |
| Assets                                            |   | $                                                     | 25,495,186 |   | $ | 25,551,567 |   |
|                                              |   |                                                  |       |   |   |   |   |
| Liabilities                                       |   |                                                  | 632,237    |   |   | 623,737 |   |
|                                              |   |                                                  |       |   |   |   |   |
| Common                stock subject to conversion |   |                                                  | 4,744,826  |   |   | 4,744,826 |   |
|                                              |   |                                                  |       |   |   |   |   |
| Stockholders’                equity         |   |                                                  | 20,118,123 |   |   | 20,183,004 |   |

|                                                           |   | **Quarter                Ended** ** ** **June                30,                2006** |      | **Six                Months Ended** **June                30,                2006** |   |  **Period                from September 24,                2004**** (inception)                to June 30,                2006**  |   |
|----------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------|-----------|------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                           |   | **As****Previously****Reported**                                                                      |      |  **As****Restated**                                                                 |   | **As****Previously****Reported**                                                                                                                 |   |  **As****Restated** |   | **As****Previously****Reported** |   |  **As****Restated** |   |
|                                                           |   |                                                                                                  |      |                                                                                     |   |                                                                                                                                        |   |   |   |   |   |   |   |
| Net                income                                      |   | $                                                                                                     | 76,625    |                                                                                     | $      | 85,081                                                                                                                                           |   | $ | 88,588 |   | $ | 153,469 |   | $ | 147,195 |   | $ | 212,076 |   |
|                                                           |   |                                                                                                  |      |                                                                                     |   |                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average                commonshares                outstanding |   |                                                                                                  | 5,600,000 |                                                                                     |   | 5,600,000                                                                                                                                        |   |   | 5,600,000 |   |   | 5,600,000 |   |   | 5,005,156 |   |   | 5,005,156 |   |
|                                                           |   |                                                                                                  |      |                                                                                     |   |                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                per share                              |   | $                                                                                                     | .01       |                                                                                     | $      | .02                                                                                                                                              |   | $ | .02 |   | $ | .03 |   | $ | .03 |   | $ | .04 |   |

----

**PART      I **
**-**
**      FINANCIAL INFORMATION**

**Item      1. Financial Statements. **

**MILLSTREAM      II ACQUISITION CORPORATION**

**(a      corporation in the development stage)**

**CONDENSED      BALANCE SHEETS**

|                                                                                                                                                                                                                            |   | **Restated****(Unaudited)****June                30,****2006** |       |  **December                31,****2005** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------|------------|-----------------------------------------------|--------|
|                                                                                                                                                                                                                            |   |                                                           |       |                                          |   |
| **ASSETS**                                                                                                                                                                                                                      |   |                                                           |       |                                          |   |
| Current                assets:                                                                                                                                                                                                  |   |                                                           |       |                                          |   |
| Cash                and cash equivalents                                                                                                                                                                                        |   | $                                                              | 270,813    |                                          | $      | 533,658 |   |
| Investments                held in trust                                                                                                                                                                                        |   |                                                           | 24,978,034 |                                          |   | 24,443,182 |   |
| Prepaid                expenses and other current assets                                                                                                                                                                        |   |                                                           | 50,573     |                                          |   | 26,125 |   |
| Deferred                income taxes                                                                                                                                                                                            |   |                                                           | 216,700    |                                          |   | 141,000 |   |
| Total                current assets                                                                                                                                                                                             |   |                                                           | 25,532,520 |                                          |   | 25,143,965 |   |
|                                                                                                                                                                                                                            |   |                                                           |       |                                          |   |   |   |
| Deferred                acquisition costs                                                                                                                                                                                       |   |                                                           | 35,447     |                                          |   | - |   |
|                        Total assets                                                                                                                                                          |   | $                                                              | 25,551,567 |                                          | $      | 25,143,965 |   |
|                                                                                                                                                                                                                            |   |                                                           |       |                                          |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS’ EQUITY**                                                                                                                                                                   |   |                                                           |       |                                          |   |   |   |
| Current                liabilities:                                                                                                                                                                                             |   |                                                           |       |                                          |   |   |   |
| Accounts                payable and accrued expenses                                                                                                                                                                            |   | $                                                              | 176,354    |                                          | $      | 121,388 |   |
| Income                taxes payable                                                                                                                                                                                             |   |                                                           | 199,000    |                                          |   | 106,800 |   |
| Deferred                interest                                                                                                                                                                                                |   |                                                           | 248,383    |                                          |   | 141,416 |   |
| Total                liabilities                                                                                                                                                                                                |   |                                                           | 623,737    |                                          |   | 369,604 |   |
|                                                                                                                                                                                                                            |   |                                                           |       |                                          |   |   |   |
| Commitment                                                                                                                                                                                                                      |   |                                                           |       |                                          |   |   |   |
|                                                                                                                                                                                                                            |   |                                                           |       |                                          |   |   |   |
| Common                stock, subject to possible conversion, 919,540 shares at                    conversion value                                                                                          |   |                                                           | 4,744,826  |                                          |   | 4,744,826 |   |
|                                                                                                                                                                                                                            |   |                                                           |       |                                          |   |   |   |
| Stockholders’                Equity:                                                                                                                                                                                      |   |                                                           |       |                                          |   |   |   |
| Preferred                stock, $.0001 par value, authorized 1,000,000 shares; none issued                                                                                                                                      |   |                                                           | -          |                                          |   | - |   |
| Common                stock, $.0001 par value, authorized 15,000,000 shares; issuedand                outstanding 5,600,000 shares (which includes 919,540 shares subject                to                possible conversion) |   |                                                           | 560        |                                          |   | 560 |   |
| Additional                paid-in capital                                                                                                                                                                                       |   |                                                           | 19,970,368 |                                          |   | 19,970,368 |   |
| Retained                earnings accumulated during development stage                                                                                                                                                           |   |                                                           | 212,076    |                                          |   | 58,607 |   |
| Total                stockholders’ equity                                                                                                                                                                                 |   |                                                           | 20,183,004 |                                          |   | 20,029,535 |   |
|                                                                                                                                                                                                                            |   |                                                           |       |                                          |   |   |   |
| Total                liabilities and stockholders’ equity                                                                                                                                                                 |   | $                                                              | 25,551,567 |                                          | $      | 25,143,965 |   |

----

**MILLSTREAM      II ACQUISITION CORPORATION**

**(a      corporation in the development stage)**

**CONDENSED      STATEMENTS OF OPERATIONS (UNAUDITED)**

|                                                 |   | **Restated****Quarter****Ended****June                  30,****2006**  |     | **Quarter****Ended****June                  30,****2005**  |   | **Restated****Six                  Months****Ended****June                  30, ****2006**  |   | **Six                  Months****Ended****June                  30, ****2005**  |     | **Restated****September                  24, 2004 (Inception)****to                  June 30, 2006 **  |   |
|------------------------------------------------------|--------|-----------------------------------------------------------------------------|----------|-----------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------|----------|------------------------------------------------------------------------------------------------------------------|--------|
|                                                 |   |                                                                        |     |                                                            |   |                                                                                                  |   |                                                                                      |     |                                                                                                             |   |
| General                  and administrative expenses |   | $                                                                           | 101,443  |                                                            | $      | 72,472                                                                                                |   | $                                                                                         | 200,097  |                                                                                                             | $      | 152,297 |   | $ | 691,090 |   |
|                                                 |   |                                                                        |     |                                                            |   |                                                                                                  |   |                                                                                      |     |                                                                                                             |   |   |   |   |   |   |
| Operating                  loss                      |   |                                                                        | (101,443 | )                                                               |   | (72,472                                                                                               | )      |                                                                                      | (200,097 | )                                                                                                                |   | (152,297 | ) |   | (691,090 | ) |
|                                                 |   |                                                                        |     |                                                            |   |                                                                                                  |   |                                                                                      |     |                                                                                                             |   |   |   |   |   |   |
| Other                  income:                       |   |                                                                        |     |                                                            |   |                                                                                                  |   |                                                                                      |     |                                                                                                             |   |   |   |   |   |   |
| Interest                  income                     |   |                                                                        | 2,360    |                                                            |   | 3,238                                                                                                 |   |                                                                                      | 4,931    |                                                                                                             |   | 7,865 |   |   | 18,065 |   |
| Interest                  on trust fund investment   |   |                                                                        | 228,264  |                                                            |   | 127,438                                                                                               |   |                                                                                      | 428,135  |                                                                                                             |   | 234,713 |   |   | 994,151 |   |
| Total                  other income                  |   |                                                                        | 230,624  |                                                            |   | 130,676                                                                                               |   |                                                                                      | 433,066  |                                                                                                             |   | 242,578 |   |   | 1,012,216 |   |
|                                                 |   |                                                                        |     |                                                            |   |                                                                                                  |   |                                                                                      |     |                                                                                                             |   |   |   |   |   |   |
| Income                  before income taxes          |   |                                                                        | 129,181  |                                                            |   | 58,204                                                                                                |   |                                                                                      | 232,969  |                                                                                                             |   | 90,281 |   |   | 321,126 |   |
|                                                 |   |                                                                        |     |                                                            |   |                                                                                                  |   |                                                                                      |     |                                                                                                             |   |   |   |   |   |   |
| Income                  tax provision                |   |                                                                        | (44,100  | )                                                               |   | (26,200                                                                                               | )      |                                                                                      | (79,500  | )                                                                                                                |   | (35,000 | ) |   | (109,050 | ) |
|                                                 |   |                                                                        |     |                                                            |   |                                                                                                  |   |                                                                                      |     |                                                                                                             |   |   |   |   |   |   |
| Net                  income                          |   | $                                                                           | 85,081   |                                                            | $      | 32,004                                                                                                |   | $                                                                                         | 153,469  |                                                                                                             | $      | 55,281 |   | $ | 212,076 |   |
|                                                 |   |                                                                        |     |                                                            |   |                                                                                                  |   |                                                                                      |     |                                                                                                             |   |   |   |   |   |   |

|                                               |   |   |      |   |   |      |   |   |      |   |   |
|----------------------------------------------------|--------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|--------|
| Weighted                  average shares of common |   |   |      |   |   |      |   |   |      |   |   |
| stock                  outstanding                 |   |   |      |   |   |      |   |   |      |   |   |
|                                               |   |   |      |   |   |      |   |   |      |   |   |
| Basic                  and diluted                 |   |   | 5,600,000 |   |   | 5,600,000 |   |   | 5,600,000 |   |   | 5,600,000 |   |   | 5,005,156 |   |
|                                               |   |   |      |   |   |      |   |   |      |   |   |   |   |   |   |   |
| Earnings                  per common share         |   |   |      |   |   |      |   |   |      |   |   |   |   |   |   |   |
|                                               |   |   |      |   |   |      |   |   |      |   |   |   |   |   |   |   |
| Basic                  and diluted                 |   | $      | .02       |   | $      | .01       |   | $      | .03       |   | $      | .01 |   | $ | .04 |   |
|                                               |   |   |      |   |   |      |   |   |      |   |   |  |   |   |   |   |

----

**MILLSTREAM      II ACQUISITION CORPORATION**

**(a      corporation in the development stage)**

**CONDENSED      STATEMENTS OF CASH FLOWS (UNAUDITED)**

|                                                                                        |   | **Restated****Six                Months****Ended****June                30,****2006** |        | **Six                Months****Ended****June                30,****2005** |   | **Restated                September 24, 2004 (Inception)****to                June 30,****2006** |   |
|---------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|-------------|---------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|--------|
| **Cash                flows from operating activities:**                                    |   |                                                                                  |        |                                                                      |   |                                                                                        |   |
| Net                income                                                                   |   | $                                                                                     | 153,469     |                                                                      | $      | 55,281                                                                                           |   | $ | 212,076 |   |
| Adjustments                to reconcile net income to net cash used in operatingactivities: |   |                                                                                  |        |                                                                      |   |                                                                                             |   |   |   |   |
| Interest                income on investments held in trust                                 |   |                                                                                  | (535,102    | )                                                                         |   | (293,354                                                                                         | )      |   | (1,242,534 | ) |
| (Increase)                decrease in prepaid expenses and other current assets             |   |                                                                                  | (24,448     | )                                                                         |   | 34,750                                                                                           |   |   | (50,573 | ) |
| Increase                in deferred income taxes                                            |   |                                                                                  | (75,700     | )                                                                         |   | -                                                                                                |   |   | (216,700 | ) |
| Increase                in accounts payable and accrued expenses                            |   |                                                                                  | 20,588      |                                                                      |   | 65,413                                                                                           |   |   | 141,976 |   |
| Increase                in income taxes payable                                             |   |                                                                                  | 92,200      |                                                                      |   | -                                                                                                |   |   | 199,000 |   |
| Increase                in deferred interest                                                |   |                                                                                  | 106,967     |                                                                      |   | 58,641                                                                                           |   |   | 248,383 |   |
| Net                cash used in operating activities                                        |   |                                                                                  | (262,026    | )                                                                         |   | (79,269                                                                                          | )      |   | (708,372 | ) |
|                                                                                        |   |                                                                                  |        |                                                                      |   |                                                                                             |   |   |   |   |
| **Cash                flows from investing activities:**                                    |   |                                                                                  |        |                                                                      |   |                                                                                             |   |   |   |   |
| Payments                of acquisition costs                                                |   |                                                                                  | (1,069      | )                                                                         |   | -                                                                                                |   |   | (1,069 | ) |
| Purchase                of treasury bills held in trust                                     |   |                                                                                  | (49,596,365 | )                                                                         |   | (24,027,946                                                                                      | )      |   | (145,980,432 | ) |
| Maturity                of treasury bills held in trust                                     |   |                                                                                  | 49,596,000  |                                                                      |   | 24,027,000                                                                                       |   |   | 122,245,000 |   |
| Decrease                (increase) in cash held in trust                                    |   |                                                                                  | 615         |                                                                      |   | 1,196                                                                                            |   |   | (68 | ) |
| Net                cash (used in) provided by investing activities                          |   |                                                                                  | (819        | )                                                                         |   | 250                                                                                              |   |   | (23,736,569 | ) |
|                                                                                        |   |                                                                                  |        |                                                                      |   |                                                                                             |   |   |   |   |
| **Cash                flows from financing activities:**                                    |   |                                                                                  |        |                                                                      |   |                                                                                             |   |   |   |   |
| Proceeds                from sale of shares of common stock to initial stockholders         |   |                                                                                  | -           |                                                                      |   | -                                                                                                |   |   | 25,000 |   |
| Proceeds                from note payable, stockholder                                      |   |                                                                                  | -           |                                                                      |   | -                                                                                                |   |   | 35,000 |   |
| Repayment                of note payable, stockholder                                       |   |                                                                                  | -           |                                                                      |   | -                                                                                                |   |   | (35,000 | ) |
| Proceeds                from public issuance of 4,600,000 units                             |   |                                                                                  | -           |                                                                      |   | -                                                                                                |   |   | 27,600,000 |   |
| Proceeds                from issuance of option                                             |   |                                                                                  | -           |                                                                      |   | -                                                                                                |   |   | 100 |   |
| Payment                of costs of public offering                                          |   |                                                                                  | -           |                                                                      |   | (32,401                                                                                          | )      |   | (2,909,346 | ) |
| Net                cash (used in) provided by financing activities                          |   |                                                                                  | -           |                                                                      |   | (32,401                                                                                          | )      |   | 24,715,754 |   |
|                                                                                        |   |                                                                                  |        |                                                                      |   |                                                                                             |   |   |   |   |
| Net                (decrease) increase in cash and cash equivalents                         |   |                                                                                  | (262,845    | )                                                                         |   | (111,420                                                                                         | )      |   | 270,813 |   |
| Cash                and cash equivalents at beginning of period                             |   |                                                                                  | 533,658     |                                                                      |   | 941,943                                                                                          |   |   | - |   |
| Cash                and cash equivalents at end of period                                   |   | $                                                                                     | 270,813     |                                                                      | $      | 830,523                                                                                          |   | $ | 270,813 |   |

**Supplemental      disclosure of non-cash investing activities:**

| Accrued                acquisition costs | $                34,378 |   | - |   | $                34,378 |   |
|------------------------------------------|-------------------------|--------|---|--------|-------------------------|--------|

----

**MILLSTREAM      II ACQUISITION CORPORATION**

**(a      corporation in the development stage)**

**NOTES      TO UNAUDITED CONDENSED FINANCIAL STATEMENTS**

**1.      Basis of Presentation**

** **
** **

**2.      Organization and Business Operations**

----

**MILLSTREAM      II ACQUISITION CORPORATION**

**(a      corporation in the development stage)**

**NOTES      TO UNAUDITED **
**CONDENSED      FINANCIAL STATEMENTS - (Continued)**

**2.      Organization and Business Operations (continued)**

**3.      Recent Accounting Pronouncement**

**4.      Investments Held in Trust**

----

**MILLSTREAM      II ACQUISITION CORPORATION**

**(a      corporation in the development stage)**

**NOTES      TO UNAUDITED **
**CONDENSED      FINANCIAL STATEMENTS - (Continued)**

**5.      Earnings per Share**

|                                                         |   |  **Restated****Quarter                Ended****June                30, 2006** |      |  **Quarter                Ended****June                30, 2005** |   |  **Restated****Six                Months Ended****June                30,****2006** |   |  **Six                Months****Ended****June                30,****2005** |      | **Restated****September                24, 2004 (Inception) to June 30,****2006** |   |
|--------------------------------------------------------------|--------|------------------------------------------------------------------------------------|-----------|------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------|-----------|-----------------------------------------------------------------------------------|--------|
|                                                         |   |                                                                               |      |                                                                   |   |                                                                                     |   |                                                                            |      |                                                                              |   |
| Numerator:                Net income                         |   | $                                                                                  | 85,081    |                                                                   | $      | 32,004                                                                                   |   | $                                                                               | 153,469   |                                                                              | $      | 55,281 |   | $ | 212,076 |   |
|                                                         |   |                                                                               |      |                                                                   |   |                                                                                     |   |                                                                            |      |                                                                              |   |   |   |   |   |   |
| Denominator:                Average common Sharesoutstanding |   |                                                                               | 5,600,000 |                                                                   |   | 5,600,000                                                                                |   |                                                                            | 5,600,000 |                                                                              |   | 5,600,000 |   |   | 5,005,156 |   |
|                                                         |   |                                                                               |      |                                                                   |   |                                                                                     |   |                                                                            |      |                                                                              |   |   |   |   |   |   |
| Basic                and diluted earnings per share          |   | $                                                                                  | .02       |                                                                   | $      | .01                                                                                      |   | $                                                                               | .03       |                                                                              | $      | .01 |   | $ | .04 |   |
|                                                         |   |                                                                               |      |                                                                   |   |                                                                                     |   |                                                                            |      |                                                                              |   |   |   |   |   |   |

**6.      Stockholders’ Equity**

**The      Offering**

----

**MILLSTREAM      II ACQUISITION CORPORATION**

**(a      corporation in the development stage)**

**NOTES      TO UNAUDITED **
**CONDENSED      FINANCIAL STATEMENTS - (Continued)**

**6.      Stockholders’ Equity (continued)**

**The      Offering (continued)**

**Common      Stock**

**Preferred      Stock **

**Common      Stock Commitments**

**7.**
**Commitment**

----

**MILLSTREAM      II ACQUISITION CORPORATION**

**(a      corporation in the development stage)**

**NOTES      TO UNAUDITED **
**CONDENSED      FINANCIAL STATEMENTS - (Continued)**

**8.      Subsequent Event**

**9.        Restatement**

|                                                |   | **June                  30,                  2006**  |       |
|-----------------------------------------------------|--------|-----------------------------------------------------------|------------|
|                                                |   | **As****Previously****Reported**                          |       |  **As****Restated** |   |
|                                                |   |                                                      |       |   |   |
| Assets                                              |   | $                                                         | 25,495,186 |   | $ | 25,551,567 |   |
|                                                |   |                                                      |       |   |   |   |   |
| Liabilities                                         |   |                                                      | 632,237    |   |   | 623,737 |   |
|                                                |   |                                                      |       |   |   |   |   |
| Common                  stock subject to conversion |   |                                                      | 4,744,826  |   |   | 4,744,826 |   |
|                                                |   |                                                      |       |   |   |   |   |
| Stockholders’                  equity         |   |                                                      | 20,118,123 |   |   | 20,183,004 |   |

|                                                                   |   | **Quarter                    Ended****June                    30, 2006** |      | **Six                    Months Ended****June                    30, 2006** |   | **Period                    from September 24, 2004****(inception)                    to June 30, 2006** |   |
|------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|-----------|-----------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------|--------|
|                                                                   |   | **As****Previously****Reported**                                         |      |  **As****Restated**                                                    |   | **As****Previously****Reported**                                                                         |   |  **As****Restated** |   | **As****Previously****Reported** |   |  **As****Restated** |   |
|                                                                   |   |                                                                     |      |                                                                        |   |                                                                                                     |   |   |   |   |   |   |   |
| Net                    income                                          |   | $                                                                        | 76,625    |                                                                        | $      | 85,081                                                                                                   |   | $ | 88,588 |   | $ | 153,469 |   | $ | 147,195 |   | $ | 212,076 |   |
|                                                                   |   |                                                                     |      |                                                                        |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average                    commonshares                    outstanding |   |                                                                     | 5,600,000 |                                                                        |   | 5,600,000                                                                                                |   |   | 5,600,000 |   |   | 5,600,000 |   |   | 5,005,156 |   |   | 5,005,156 |   |
|                                                                   |   |                                                                     |      |                                                                        |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                    per share                                  |   | $                                                                        | .01       |                                                                        | $      | .02                                                                                                      |   | $ | .02 |   | $ | .03 |   | $ | .03 |   | $ | .04 |   |

----

**Item      2. Plan of Operation.**

***CAUTIONARY      STATEMENT FOR FORWARD-LOOKING STATEMENTS***

*This      Quarterly Report on Form 10-QSB includes forward-looking statements within      the      meaning of Section 27A of the Securities Act of 1933, as amended, and Section      21E of the Securities Exchange Act of 1934, as amended. We have based these      forward-looking statements on our current expectations and projections about      future events. These forward-looking statements are subject to known and unknown      risks, uncertainties and assumptions about us that may cause our actual results,      levels of activity, performance or achievements to be materially different      from      any future results, levels of activity, performance or achievements expressed      or      implied by such forward-looking statements. In some cases, you can identify      forward-looking statements by terminology such as “may,” “should,” “could,”“would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “continue,” or      the negative of such terms or other similar expressions. Factors that might      cause or contribute to such a discrepancy include, but are not limited to,      those      described in our other Securities and Exchange Commission filings, including      our      report on Form 10-KSB as filed on March 30, 2006. The following discussion      should be read in conjunction with our Financial Statements and related Notes      thereto included elsewhere in this report.*

----

*Off-balance      sheet arrangements*

----

**Item      3. Controls and Procedures.**

----

**PART      II **
**-**
**      OTHER INFORMATION**

**Item      2. Unregistered Sales of Equity Securities and Use of      Proceeds.**

**Item      6. Exhibits.**

|  Exhibit                  No. | Description                                                                                                                                                                    |
|------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                               |                                                                                                                                                                           |
| 31                                 | Certification                  of Chairman, Chief Executive Officer and                  President pursuant to Section 302 of the Sarbanes-Oxley Act of                  2002. |
|                               |                                                                                                                                                                           |
| 32                                 | Certification                  of Chairman, Chief Executive Officer and                  President pursuant to Section 906 of the Sarbanes-Oxley Act of                  2002. |

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**SIGNATURES**

|   | MILLSTREAM                II ACQUISITION CORPORATION                                                                                                             |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | By: /s/                Arthur Spector                                                                                                                       |
|   | Arthur                Spector                                                                                                                                    |
|   | Chairman                of the Board, President and Chief Executive Officer(Principal                executive, financial and accounting                officer) |

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