<PAGE>



         AGREEMENT, dated as of December 22, 2003 between Milestone Scientific
Inc. (the "Company"), a Delaware corporation with its principal place of
business at Livingston Corporate Park, 220 South Orange Avenue, Livingston, New
Jersey, and Morse, Zelnick, Rose & Lander, LLP, a law firm and a creditor of the
Company having an address at 405Park Avenue, New York, NY 10022 ("MZRL" or the
"Creditor."

                              W I T N E S S E T H:

         WHEREAS, the Company is indebted to MZRL for legal services rendered
during the past 3 years in an amount in excess of $500,000; and

         WHEREAS, MZRL has agreed to accept in satisfaction of $200,000 of the
indebtedness of the Company to it, units valued at their initial offering price
pursuant to the letter of intent dated September 23, 2003 with Paulson
Investment Company, Inc. and the Company for a $6 million public offering (the
"Public Offering").

         NOW, THEREFORE, in consideration of the premises set forth above and
the agreements, covenants, representations and warranties set forth below and
for other good and valuable consideration, the sufficiency of which is hereby
acknowledge, the parties hereto hereby agree as follows:

         1. Satisfaction of Debt.

          (a) On the Satisfaction Date (as defined below), the Company shall
issue to MZRL securities (as more particularly described below in paragraph (c)
of this Section 1) of the Company having a value equal to $200,000.

          (b) The securities of the Company to be issued to MZRL pursuant to
paragraphs (a) of this Section 1 shall be identical in all material respects to
the securities sold by the Company in the Public Offering. For purposes of
calculating the value of such securities, they shall be deemed to have a value
equal to the public offering price as set forth in the final prospectus, filed
under Rule 424(b) promulgated by the SEC under the Securities Act of 1933, as
amended (the "Act") in connection with the Public Offering (the "Final
Prospectus").

          (c) The Satisfaction Date shall be 10 days after the closing of the
Public Offering.

         2. REPRESENTATIONS AND WARRANTIES OF THE CREDITORS. The Creditor
represents and warrants to the Company that:

          (a) INVESTMENT PURPOSE. It is acquiring the securities described in
Section 1 hereof and any and all other securities of the Company underlying or
covered by such securities and any securities issuable upon exercise of any
rights to purchase or to convert such securities or any securities underlying
such securities (collectively, the "Securities") for its own account and not
with a present view towards the public sale or distribution thereof, except
pursuant to sales registered or exempted from registration under the Act;
provided, however, that by making



<PAGE>

the representations herein, subject to any agreement to the contrary
contemplated hereby, he does not agree to hold any of the Securities for any
minimum or other specific term and reserves the right to dispose of the
Securities at any time in accordance with or pursuant to a registration
statement or an exemption under the Act.

          (b) ACCREDITED INVESTOR STATUS. It is an "accredited investor" as that
term is defined in Rule 501(a) of Regulation D (an "Accredited Investor").

          (c) RELIANCE ON EXEMPTIONS. It understands that the Securities are
being issued to it in reliance upon specific exemptions from the registration
requirements of United States federal and state securities laws and that the
Company is relying upon the truth and accuracy of, and its compliance with, the
representations, warranties, agreements, acknowledgments and understandings set
forth herein in order to determine the availability of such exemptions and its
eligibility to acquire the Securities.

          (d) INFORMATION. It, or its advisors, if any, has been furnished with
all materials relating to the business, finances and operations of the Company
and materials relating to the offer and sale of the Securities that he has or
they have requested. It, or its advisors, if any, has been afforded the
opportunity to ask questions of the Company. Neither such inquiries nor any
other due diligence investigation conducted by him or any of its advisors shall
modify, amend or affect its right to rely on the Company's representations and
warranties contained in Section 3 below. It understands that its investment in
the Securities involves a significant degree of risk.

          (e) GOVERNMENTAL REVIEW. It understands that no United States federal
or state agency or any other government or governmental agency has passed upon
or made any recommendation or endorsement of the Securities.

          (f) TRANSFER OR RE-SALE. It understands that (i) except as set forth
in Section 4(b) below, the sale or re-sale of the Securities has not been is not
and will not being registered under the Act or any applicable state securities
laws, and the Securities may not be transferred unless (a) the Securities are
sold pursuant to an effective registration statement under the Act, (b) he has
delivered to the Company an opinion of counsel (which opinion shall be in form,
substance and scope customary for opinions of counsel in comparable
transactions) to the effect that the Securities to be sold or transferred may be
sold or transferred pursuant to an exemption from such registration, (c) the
Securities are sold or transferred to an "affiliate" (as defined in Rule 144
promulgated under the Act (or a successor rule) ("Rule 144")) who agrees to sell
or otherwise transfer the Securities only in accordance with this Section 2(f)
and who is an Accredited Investor, or (d) the Securities are sold pursuant to
Rule 144; (ii) any sale of Securities made in reliance on Rule 144 may be made
only in accordance with the terms of said Rule and further, if said Rule is not
applicable, any re-sale of such Securities under circumstances in which the
seller (or the person through whom the sale is made) may be deemed to be an
underwriter (as that term is defined in the Act) may require compliance with
some other exemption under the Act or the rules and regulations of the SEC
thereunder; and (iii) other than as set forth in Section 4(b) below), neither
the Company nor any other person is under any obligation to register such
Securities under the Act or any state securities laws or to comply with the
terms and conditions of any exemption thereunder.

                                       2
<PAGE>

          (g) LEGENDS. It understands that, until such time as the Securities
have been registered under the Act or otherwise may be sold pursuant to Rule 144
without any restriction as to the number of securities as of a particular date
that can then be immediately sold, the certificates evidencing the Securities
shall bear a restrictive legend in substantially the following form (and a
stop-transfer order may be placed against transfer of the certificates for such
Securities):

          "The securities represented by this certificate have not been
          registered under the Securities Act of 1933, as amended. The
          securities may not be sold, transferred or assigned in the absence of
          an effective registration statement for the securities under said Act,
          or an opinion of counsel, in form, substance and scope customary for
          opinions of counsel in comparable transactions, that registration is
          not required under said Act or unless sold pursuant to Rule 144 under
          said Act."

         The legend set forth above shall be removed and the Company shall
issue a certificate without such legend to the holder of any Security upon which
it is stamped, if, unless otherwise required by applicable state securities
laws, (a) such Security is registered for sale under an effective registration
statement filed under the Act or otherwise may be sold pursuant to Rule 144
without any restriction as to the number of securities as of a particular date
that can then be immediately sold, or (b) such holder provides the Company with
an opinion of counsel, in form, substance and scope customary for opinions of
counsel in comparable transactions, to the effect that a public sale or transfer
of such Security may be made without registration under the Act, including
pursuant to the provisions of Rule 144 and such sale or transfer is effected.
The Creditor agrees to sell all Securities, including those represented by a
certificate(s) from which the legend has been removed, in compliance with
applicable prospectus delivery requirements, if any. This paragraph (g) shall
apply separately with respect to each security included in the definition of
Securities.

          (h) AUTHORIZATION; ENFORCEMENT. This Agreement has been duly executed
and delivered by or on behalf of the Creditor, and constitutes, and upon
execution and delivery by the Creditor will constitute, a valid and binding
agreement of the Creditor enforceable in accordance with its terms.

          (i) RESIDENCY. It is a resident of New York State.

         3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company
represents and warrants to the Creditors that:

          (a) ORGANIZATION AND QUALIFICATION. The Company and each of its
Subsidiaries (as defined below), if any, is a corporation duly organized,
validly existing and in good standing under the laws of the jurisdiction in
which it is incorporated, with full power and authority (corporate and other) to
own, lease, use and operate its properties and to carry on its business as and
where now owned, leased, used, operated and conducted. The Company and each of
its Subsidiaries is duly qualified as a foreign corporation to do business and
is in good standing in every jurisdiction in which its ownership or use of
property or the nature of the


                                       3
<PAGE>

business conducted by it makes such qualification necessary except where the
failure to be so qualified or in good standing would not have a Material Adverse
Effect. "Material Adverse Effect" means any material adverse effect on the
business, operations, assets, financial condition or prospects of the Company or
its Subsidiaries, if any, taken as a whole, or on the transactions contemplated
hereby or by the agreements or instruments to be entered into in connection
herewith. "Subsidiaries" means any corporation or other organization, whether
incorporated or unincorporated, in which the Company owns, directly or
indirectly, any equity or other ownership interest.

          (b) AUTHORIZATION; ENFORCEMENT. (i) The Company has all requisite
corporate power and authority to enter into and perform and to consummate the
transactions contemplated hereby and to issue the Securities, in accordance with
the terms hereof, (ii) the execution and delivery of this Agreement by the
Company and the consummation by it of the transactions contemplated hereby
(including without limitation, the issuance of the Securities) have been duly
authorized by the Company's board of directors (the "Board") and no further
consent or authorization of the Company, the Board, or its stockholders is
required, (iii) this Agreement has been duly executed and delivered by the
Company, and (iv) this Agreement constitutes, and upon its execution and
delivery by the Company, will constitute a legal, valid and binding obligation
of the Company enforceable against the Company in accordance with its terms.

          (c) ISSUANCE OF SHARES. Any shares of the Company's common stock, par
value $ .001 per share (the "Common Stock") issuable upon the exercise of any
rights set forth in any of the Securities are (or shall be as of the
Satisfaction Date) duly authorized and reserved for issuance and, upon issuance
in accordance with the terms of the Securities to which they relate will be
validly issued, fully paid and non-assessable, and free from all taxes, liens,
claims and encumbrances with respect to the issue thereof and shall not be
subject to preemptive rights or other similar rights of stockholders of the
Company and will not impose personal liability upon the holder thereof.

          (d) NO CONFLICTS. The execution, delivery and performance of this
Agreement by the Company and the consummation by the Company of the transactions
contemplated hereby will not (i) conflict with or result in a violation of any
provision of the Certificate of Incorporation or Bylaws of the Company or (ii)
violate or conflict with, or result in a breach of any provision of, or
constitute a default (or an event which with notice or lapse of time or both
could become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture, patent,
patent license or instrument to which the Company or any of its Subsidiaries is
a party, or (iii) result in a violation of any law, rule, regulation, order,
judgment or decree (including federal and state securities laws and regulations
and regulations of any self-regulatory organizations to which the Company or its
securities are subject) applicable to the Company or any of its Subsidiaries or
by which any property or asset of the Company or any of its Subsidiaries is
bound or affected (except for such conflicts, defaults, terminations,
amendments, accelerations, cancellations and violations as would not,
individually or in the aggregate, have a Material Adverse Effect). Neither the
Company nor any of its Subsidiaries is in violation of its Certificate of
Incorporation, Bylaws or other organizational documents and neither the Company
nor any of its Subsidiaries is in default (and no event has occurred which with
notice or lapse of time or both could put the Company or


                                       4
<PAGE>

any of its Subsidiaries in default) under, and neither the Company nor any of
its Subsidiaries has taken any action or failed to take any action that would
give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, indenture or instrument to which the Company or
any of its Subsidiaries is a party or by which any property or assets of the
Company or any of its Subsidiaries is bound or affected, except for possible
defaults as would not, individually or in the aggregate, have a Material Adverse
Effect. The businesses of the Company and its Subsidiaries, if any, are not
being conducted, and shall not be conducted so long as the Creditors owns any of
the Securities, in violation of any law, ordinance or regulation of any
governmental entity where such violation would have a Material Adverse Effect.
Except as specifically contemplated by this Agreement and as required under the
Act and any applicable state securities laws, the Company is not required to
obtain any consent, authorization or order of, or make any filing or
registration with, any court, governmental agency, regulatory agency, self
regulatory organization or stock market or any third party in order for it to
execute, deliver or perform any of its obligations under this Agreement. Except
as disclosed in Schedule 3(f), all consents, authorizations, orders, filings and
registrations which the Company is required to obtain pursuant to the preceding
sentence have been obtained or effected on or prior to the date hereof. The
Company is not in violation of the listing requirements of the American Stock
Exchange.

          (e) ACKNOWLEDGMENT REGARDING SECURITIES. The Company acknowledges and
agrees that each Creditor is acting solely in the capacity of an arm's length
purchaser with respect to this Agreement and the transactions contemplated
hereby. The Company further acknowledges that neither Creditor is acting as a
financial advisor or fiduciary of the Company (or in any similar capacity) with
respect to this Agreement and the transactions contemplated hereby and any
statement made by a Creditor or any of its respective representatives or agents
in connection with this Agreement and the transactions contemplated hereby is
not advice or a recommendation and is merely incidental to its acquisition of
the Securities. The Company further represents to the Creditors that its
decision to enter into this Agreement has been based solely on the independent
evaluation by the Company and its representatives.

         4. COVENANTS.

          (a) FORM D; BLUE SKY LAWS. The Company agrees to file a Form D with
respect to the Securities as required under Regulation D and to provide a copy
thereof to the Creditors promptly after such filing. The Company shall, on or
before the Satisfaction Date, take such action as the Company shall reasonably
determine is necessary to qualify the Securities for sale to the Creditors
pursuant to this Agreement under applicable securities or "blue sky" laws of the
states of the United States (or to obtain an exemption from such qualification),
and shall provide evidence of any such action so taken to the Creditor on or
prior to the Satisfaction Date.

          (b) REGISTRATION RIGHTS. The Company will use its commercially
reasonable best efforts to file with the SEC a registration statement covering
the resale of the Common Stock included in the Securities within 30 days of the
effective date of the Public Offering and to cause such registration statement
to be effective as promptly as possible thereafter. The Creditors hereby
covenant and agree to provide the Company with such information as the Company
shall need about the Creditors and their proposed plan of distribution in order
to file such resale registration statement.


                                       5
<PAGE>

          (c) RESERVATION OF SHARES. The Company shall at all times have
authorized, and reserved for the purpose of issuance, a sufficient number of
shares of Common Stock to provide for the full conversion or exercise of the
outstanding Securities. The Company will promptly take all corporate action
necessary to authorize and reserve a sufficient number of shares, including,
without limitation, calling a special meeting of stockholders to authorize
additional shares to meet the Company's obligations under this Section 4(c), in
the case of an insufficient number of authorized shares, and using its best
efforts to obtain stockholder approval of an increase in such authorized number
of shares.

         5. GOVERNING LAW; MISCELLANEOUS.

          (a) GOVERNING LAW. THIS AGREEMENT SHALL BE ENFORCED, GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD
TO THE PRINCIPLES OF CONFLICT OF LAWS. THE PARTIES HERETO HEREBY SUBMIT TO THE
EXCLUSIVE JURISDICTION OF THE UNITED STATES FEDERAL COURTS LOCATED IN NEW YORK,
NEW YORK WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS AGREEMENT, THE
AGREEMENTS ENTERED INTO IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY. THE PARTIES HERETO IRREVOCABLY WAIVE THE DEFENSE OF AN
INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH SUIT OR PROCEEDING. THEY FURTHER
AGREE THAT SERVICE OF PROCESS UPON A PARTY MAILED BY FIRST CLASS MAIL SHALL BE
DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH
SUIT OR PROCEEDING. NOTHING HEREIN SHALL AFFECT A PARTY'S RIGHT TO SERVE PROCESS
IN ANY OTHER MANNER PERMITTED BY LAW. THE PARTIES AGREE THAT A FINAL
NON-APPEALABLE JUDGMENT IN ANY SUCH SUIT OR PROCEEDING SHALL BE CONCLUSIVE AND
MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON SUCH JUDGMENT OR IN ANY OTHER
LAWFUL MANNER. THE PARTY THAT DOES NOT PREVAIL IN ANY DISPUTE ARISING UNDER THIS
AGREEMENT SHALL BE RESPONSIBLE FOR ALL FEES AND EXPENSES, INCLUDING ATTORNEYS'
FEES, INCURRED BY THE PREVAILING PARTY IN CONNECTION WITH SUCH DISPUTE.

          (b) COUNTERPARTS; SIGNATURES BY FACSIMILE. This Agreement may be
executed in one or more counterparts, each of which shall be deemed an original
but all of which shall constitute one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the
other party. This Agreement, once executed by a party, may be delivered to the
other party hereto by facsimile transmission of a copy of this Agreement bearing
the signature of the party so delivering this Agreement.

          (c) HEADINGS. The headings of this Agreement are for convenience of
reference only and shall not form part of, or affect the interpretation of, this
Agreement.

          (d) SEVERABILITY. In the event that any provision of this Agreement is
invalid or enforceable under any applicable statute or rule of law, then such
provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform


                                       6
<PAGE>

with such statute or rule of law. Any provision hereof which may prove invalid
or unenforceable under any law shall not affect the validity or enforceability
of any other provision hereof.

          (e) ENTIRE AGREEMENT; AMENDMENTS. This Agreement and the instruments
referenced herein contain the entire understanding of the parties with respect
to the matters covered herein and therein and, except as specifically set forth
herein or therein, neither the Company nor the Buyer makes any representation,
warranty, covenant or undertaking with respect to such matters. No provision of
this Agreement may be waived or amended other than by an instrument in writing
signed by the party to be charged with enforcement.

          (f) NOTICES. Any notices required or permitted to be given under the
terms of this Agreement shall be sent by certified or registered mail (return
receipt requested) or delivered personally or by courier (including a recognized
overnight delivery service) or by facsimile and shall be effective five days
after being placed in the mail, if mailed by regular United States mail, or upon
receipt, if delivered personally or by courier (including a recognized overnight
delivery service) or by facsimile, in each case addressed to a party. The
addresses for such communications shall be:

         If to the Company:

                  Milestone Scientific Inc.
                  Livingston Corporate Park
                  220 South Orange Avenue
                  Livingston, New Jersey 07039
                  Attention: Chief Financial Officer
                  Telephone: 973-535-2717
                  Facsimile: 973-535-2829

         If to MZRL:

                  Morse, Zelnick, Rose & Lander, LLP
                  405 Park Avenue, Suite 1401
                  New York, New York 10022
                  Attention: Stephen A. Zelnick, Esq.
                  Telephone: 212-838-8040
                  Facsimile: 212-838-9190

Each party shall provide notice to the other party of any change in address.

          (g) SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and
inure to the benefit of the parties and their successors and assigns. Except as
may otherwise be permitted by Section 2(f) hereof, no party hereto may assign
this Agreement or any rights or obligations hereunder without the prior written
consent of the other parties.

          (h) THIRD PARTY BENEFICIARIES. This Agreement is intended for the
benefit of the parties hereto and their respective permitted successors and
assigns, and is not for the benefit of, nor may any other person enforce any
provision hereof.

                                       7
<PAGE>

          (i) SURVIVAL. The representations and warranties of the Company and
the agreements and covenants set forth herein shall survive until the
Satisfaction Date.

          (j) FURTHER ASSURANCES. Each party shall do and perform, or cause to
be done and performed, all such further acts and things, and shall execute and
deliver all such other agreements, certificates, instruments and documents, as
the other party may reasonably request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

          (k) NO STRICT CONSTRUCTION. The language used in this Agreement will
be deemed to be the language chosen by the parties to express their mutual
intent, and no rules of strict construction will be applied against any party.


          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed as of the date first above written.

                                    MILESTONE SCIENTIFIC INC.


                                    by: Leonard Osser
                                        -------------
                                        Leonard Osser, CEO


                                    MORSE, ZELNICK, ROSE & LANDER




                                    by: Stephen A. Zelnick
                                        ------------------
                                         Stephen A. Zelnick, General Partner