Document:

Exhibit 10.1

                      PURCHASE AND LINE OF CREDIT AGREEMENT

      PURCHASE AGREEMENT (this "Agreement") is made as of July 31, 2000 between
MILESTONE SCIENTIFIC INC., a Delaware corporation, with its principal offices at
220 South Orange Avenue, Livingston, New Jersey 07039 (the "Company"), and K.
Tucker Andersen having an address c/o Cumberland Associates LLC, 1114 Avenue of
the Americas, New York, New York 10036 (the "Purchaser").

      WHEREAS, the Company desires to sell to Purchaser and Purchaser desires to
purchase from the Company (a) $300,000 face amount of its 8% Secured Notes, (the
"Secured Notes"), (b) $200,000 face amount of its 8% Convertible Secured Notes
(the "Convertible Notes" and the Secured Notes are hereinafter collectively
called the "Notes") and (c) warrants to purchase 70,000 shares of Common Stock
(the "Warrants"), substantially in the form annexed hereto as Exhibits A, B, and
C respectively; and

      WHEREAS, the purchaser desires to provide the Company with a $500,000 line
of credit.

      NOW, THEREFORE, in consideration of the premises and the covenants herein
contained, the parties hereto agree as follows:

      1. Purchase and Sale of Notes and Warrants.

            (a) Subject to the terms and conditions hereinafter set forth,
Purchaser hereby subscribes for and agrees to purchase from the Company the
Notes and the Warrants.

            (b) The purchase price for the Notes and Warrants shall be $500,000
(the "Purchase Price"). The Purchase Price is payable by check made payable to
the Company or by wire transfer of funds, contemporaneously with the execution
and delivery of this Agreement. The Notes and Warrants being purchased by
Purchaser will be delivered by the Company on the Closing Date (as defined
below).

      2. Terms of the Notes and Warrants. Except as otherwise set forth in this
Agreement, the terms of the Secured Notes, the Convertible Notes and the
Warrants shall be as set forth in the Secured Notes, the Convertible Notes and
the Warrants, respectively.

      3. Closing. The closing of the transactions contemplated hereby
("Closing") shall take place on a date (the "Closing Date") within three (3)
business days following the satisfaction of the conditions set forth herein and
at such times as shall be determined by the Company at the offices of Morse,
Zelnick, Rose & Lander, LLP, 450 Park Avenue, New York, New York 10022.

      4. Representations and Warranties of the Company. The Company hereby
represents and warrants to Purchaser, which representations and warranties shall
be true and correct as of the date hereof and as of the Closing Date, as
follows:

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            4.1 Organization; Standing and Power. The Company and its
      subsidiaries (a) are corporations duly organized, existing and in good
      standing under the laws of the state of their incorporation, (b) have all
      requisite corporate power and authority to own its properties and to carry
      on their businesses as now conducted and as proposed hereafter to be
      conducted, (c) are duly qualified to do business as foreign corporations
      in each and every jurisdiction where such qualification is necessary
      except where the failure to so qualify would not have a material adverse
      effect on the financial condition, business, operations, assets or
      prospects of the Company and its subsidiaries as a whole and (d) the
      Company has all requisite corporate power and authority to execute and
      deliver, and perform all of its obligations under this Agreement.

            4.2 Capitalization. The total authorized capital stock of the
      Company consists of 25,000,000 shares of Common Stock and no shares of
      preferred stock. As of June 30, 2000, the Company has outstanding
      10,652,898 shares of Common Stock. In addition, there are 1,000,000 shares
      of Common Stock reserved for issuance under the Company's 1997 Stock
      Option Plan of which 850,000 shares are issuable pursuant to the exercise
      of outstanding stock options ranging in exercise price from $1.00 to
      $23.00 per share. The Company also has outstanding other compensatory
      options for 136,000 shares with exercise prices ranging from $5.125 to
      $23.00 per share and warrants and options in connection with financing
      transactions for 226,190 shares at exercise prices ranging from $1.75 to
      $7.00 per share of Common Stock.

            4.3 Authorization. The execution, delivery and performance by the
      Company of its obligations under this Agreement has been duly authorized
      by all requisite corporate action and will not, either prior to or as a
      result of the consummation of the transactions contemplated by this
      Agreement: (a) violate any law, any order of any court or other agency of
      government, any provision of the Certificate of Incorporation or Bylaws of
      the Company or any contract, indenture, agreement or other instrument to
      which the Company is a party, or by which the Company or any of its assets
      or properties are bound, or (b) be in conflict with, result in a breach
      of, or constitute (after the giving of notice or lapse of time or both) a
      default under, or result in the creation or imposition of any lien of any
      nature whatsoever upon any of the property or assets of any Company
      pursuant to, or result in the acceleration of, any such contract,
      indenture, agreement or other instrument. The Company is not required to
      obtain any government approval, consent or authorization from, or to file
      any declaration or statement with, any governmental instrumentality or
      agency in connection with or as a condition to the execution, delivery or
      performance of any of this Agreement other than the filings which have
      heretofore been made. This Agreement is valid, binding and enforceable
      against the Company in accordance with its terms.

            4.4 Non-contravention. To the best of its knowledge, the Company is
      not in violation or breach of or in default with respect to, complying
      with any material provision of any contract, agreement, instrument, lease,
      license, arrangement or understanding to which it is a party, and each
      such contract, agreement, instrument, lease, license,

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      arrangement and understanding is in full force and effect and is the
      legal, valid and binding obligation of the Company enforceable as to the
      Company in accordance with its terms (subject to applicable bankruptcy,
      insolvency and other laws affecting the enforceability of creditors'
      rights generally and to general equitable principals). Neither the
      execution and the delivery of this Agreement, nor the consummation of the
      transactions contemplated hereby, will (a) violate any constitution,
      statute, regulation, rule, injunction, judgment, order, decree, ruling,
      charge, or other restriction of any government, governmental agency, or
      court to which the Company is subject or (b) conflict with, result in a
      breach of, constitute a default under, result in the acceleration of,
      create in any party the right to accelerate, terminate, modify, or cancel,
      or require any notice under any agreement, contract, lease, license,
      instrument, or other arrangement to which the Company is a party or by
      which the Company is bound or to which any of the Company's assets are
      subject.

            4.5 Litigation. There is no action, suit or proceeding at law or in
      equity or by or before any governmental instrumentality or other agency
      now pending or, to the knowledge of the Company, threatened in writing
      against the Company, or any of its assets, which, if adversely determined,
      might reasonably be expected to have a material adverse effect on the
      Company's business, operations and financial condition.

            4.6 SEC Filings. The information set forth in the Form 10-KSB for
      the year ended December 31, 1999 and Form 10-QSB for the three month
      period ended March 31, 2000 (collectively, the "SEC Filings") as filed by
      the Company with the Securities and Exchange Commission (the "SEC") is
      true, correct and complete in all material respects as of the respective
      date of each such filing and does not omit to state any material fact
      necessary in order to make the statements therein not misleading. The
      financial statements of the Company as set forth in the SEC Filings have
      been prepared in accordance with GAAP applied on a consistent basis
      throughout the periods covered thereby and fairly present in all material
      respects the financial condition and results of operations of the Company
      as of their respective dates. Since September 30, 1999, there has not been
      any material adverse change in the business, financial condition or
      results of operations of the Company except that the Company has continued
      to operate at a loss. Except for the liabilities set forth in the
      financial statements included in the SEC Filings and liabilities which
      have arisen after March 31, 2000 in the ordinary course of business, the
      Company has no material liability.

            4.7 Due Authorization. The issuance of the Notes has been duly
      authorized by all necessary corporate action and when issued will be the
      legal and binding obligations of the Company enforceable in accordance
      with their terms. The shares of Common Stock issuable upon exercise of the
      Warrants or in respect of interest payable on the Notes have been duly
      authorized and reserved for issuance and, when issued in accordance with
      the terms of the Warrants or issued in respect of interest payable on the
      Notes, as applicable, will be fully paid and non-assessable, free and
      clear of any restrictions on transfer (other than any restrictions under
      the Securities Act of 1933, as amended (the "Securities Act") and state
      securities laws), taxes, security interests,

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      options, warrants, purchase rights, contracts, commitments, equities,
      claims, and demands.

            4.8 Securities Law Exemption. Assuming the accuracy of Purchaser's
      representations and warranties set forth herein, the sale of the Notes and
      Warrants pursuant to this Agreement has been made in accordance with the
      provisions and requirements of Regulation D ("Regulation D") or ss.4(6)
      under the Securities Act and any applicable state law.

            4.9 Use of Proceeds. The proceeds from the sale of the Notes and
      Warrants will be used for working capital.

            4.10 Compliance with Laws. The Company is in compliance in all
      material respects with all occupational safety, health, wage and hour,
      employment discrimination, environmental, flammability, labeling, usury
      and other applicable laws which are material to its businesses, and the
      Company is not aware of any state of facts, events, conditions or
      occurrences which may now or hereafter constitute or result in a violation
      of any of such applicable laws, or which may give rise to the assertion of
      any such violation, the effect of which could have a material adverse
      effect on the Company's business, operations and financial condition.

            4.11 Licenses and Permits. The Company has obtained all federal,
      state and local licenses and permits required to be maintained in
      connection with and material to its operations, and all such licenses and
      permits obtained are valid and in full force and effect.

            4.12 Existing Registration Rights. Except for the Registration
      Rights Agreement referred to in Section 7 hereof and (i) the registration
      rights given to the holders of the Company's 3% Senior Convertible Notes,
      (ii) the registration rights given to the holders of the Company's 10%
      Senior Secured Notes and (iii) the registration rights granted to Dr. and
      Mr. Spinello for 88,000 shares the Company is not a party to any agreement
      under which it is obligated to register any of its securities under the
      Securities Act.

            4.13 Patents, Trademarks, Copyrights, Etc. The Company owns or
      validly licenses all patents, patent rights, patent applications,
      licenses, shop rights, trademarks, trademark applications, tradenames,
      copyrights and other proprietary information (collectively "Rights") used
      in the conduct of its business as currently being conducted. To the actual
      knowledge of the Company, the conduct of its business as currently being
      conducted does not conflict with valid rights of others in any way, nor
      has any material use been made of the Rights, except by the Company or by
      other entities duly licensed to use the same.

            4.14 No Other Representations. The Company shall not be deemed to
      have made any representations, warranties, covenants, agreements or
      indemnifications

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      pertaining to the subject matter of this Agreement, whether express or
      implied, except to the extent that such representations, warranties,
      covenants, agreements or indemnifications are made in this Agreement or
      the Schedules hereto or in any certificate or other agreement, document or
      instrument delivered pursuant to the provisions of this Agreement.

      5. Representations and Warranties of the Purchasers. The Purchaser hereby
represents and warrants to the Company, which representations and warranties
shall be true and correct as of the date hereof and the Closing Date, as
follows:

            5.1 Authorization of Agreement. The execution, delivery and
      performance of this Agreement has been duly authorized by all necessary
      action on the part of Purchaser, does not violate any laws or regulations
      applicable to Purchaser and is the valid binding and enforceable
      obligation of Purchaser in accordance with its terms.

            5.2 Non-contravention. Neither the execution and the delivery of
      this Agreement, nor the consummation of the transactions contemplated
      hereby, will (a) violate any constitution, statute, regulation, rule,
      injunction, judgment, order, decree, ruling, charge, or other restriction
      of any government, governmental agency, or court to which Purchaser is
      subject or (b) conflict with, result in a breach of, constitute a default
      under, result in the acceleration of, create in any party the right to
      accelerate, terminate, modify, or cancel, or require any notice under any
      agreement, contract, lease, license, instrument, or other arrangement to
      which Purchaser is a party or by which Purchaser is bound or to which any
      of Purchaser's assets are subject.

            5.3 Accredited Investor. Purchaser is an "accredited investor" as
      that term is defined in Rule 501(a) of the Securities Act, and the rules
      promulgated thereunder.

            5.4 Investment. Purchaser acknowledges that this offering of Notes
      and Warrants has not been reviewed by the United States Securities and
      Exchange Commission ("SEC") and that the sale of the Notes and Warrants
      pursuant hereto is intended to be a nonpublic offering pursuant to
      Sections 4(2), 4(6) or 3(b) of the Securities Act. Purchaser represents
      that the Notes or Warrants are being purchased for his own account, for
      investment and not for distribution or resale to others. Purchaser agrees
      that Purchaser will not sell or otherwise transfer the Notes, Warrants or
      the shares of the Common Stock issuable upon exercise of the Warrants
      unless such securities, as the case may be, are registered under the
      Securities Act or unless an exemption from such registration is available.
      Purchaser understands that neither the Notes, Warrants nor the shares of
      Common Stock issuable upon exercise of the Warrants have been registered
      under the Securities Act and they are or will be issued pursuant to a
      specific exemption from the registration provisions of the Securities Act
      which depends upon, among other things, the bona fide nature of the
      investment intent as expressed herein.

            5.5 Access to Data. Purchaser has been given copies of the SEC
      Filings and has had an opportunity to review same. Purchaser has had an
      opportunity to discuss the

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      SEC Filings and the Company's business, management and financial affairs
      with the Company's management and the opportunity to review the Company's
      facilities, each to Purchaser's satisfaction. Purchaser understands that
      such discussions, as well as any written information issued or provided by
      the Company, were intended to describe the aspects of the Company's
      business and prospects which the Company believes to be material but were
      not necessarily a thorough or exhaustive description thereof.

            5.6 Speculative Nature of Investment. Purchaser acknowledges that
      the purchase of the Notes and Warrants involves a high degree of risk and
      that (i) an investment in the Company is highly speculative and only
      investors who can afford the loss of their entire investment should
      consider investing in the Company and purchasing Notes and Warrants; (ii)
      Purchaser may not be able to liquidate his investment; (iii)
      transferability of the Notes, Warrants and the shares of Common Stock
      issuable upon exercise of the Warrants is extremely limited; and (iv)
      Purchaser could sustain the loss of his entire investment.

            5.7 Experience. Purchaser acknowledges that he has prior investment
      experience, including investment in non-listed and non-registered
      securities, or has employed the services of an investment advisor,
      attorney or accountant to review all of the documents furnished or made
      available by the Company and to evaluate the merits and risks of such an
      investment on Purchaser's behalf.

            5.8 Lack of Liquidity. Purchaser understands that there is no public
      market for the Notes or Warrants.

            5.9 Legends. Purchaser consents to the placement of a legend on the
      Notes, Warrants, and shares of Common Stock issued on exercise of the
      Warrants, provided they are not then covered by an effective Registration
      Statement, all as set forth in Section 6 of this Agreement.

            5.10 Address. Purchaser hereby represents that the address of
      Purchaser furnished by him in this Agreement is Purchaser's principal
      residence.

            5.11 Registered Representative. Purchaser acknowledges that if he is
      a Registered Representative of a National Association of Securities
      Dealers, Inc. ("NASD") member firm, he must give such firm the notice
      required by the NASD Conduct Rules, or any applicable successor rules of
      the NASD receipt of which must be acknowledged by such firm on the
      signature page hereof.

            5.12 No Other Representations. Purchaser hereby represents that,
      except as set forth herein, no representations or warranties have been
      made to the Purchaser by the Company or any agent, employee or affiliate
      of the Company and in entering into this transaction, Purchaser is not
      relying on any information, other than that contained herein, that
      contained in the SEC Filings and the results of independent investigation
      by the Purchaser. The Purchaser shall not be deemed to have made any
      representations,

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      warranties, covenants, agreements or indemnifications pertaining to the
      subject matter of this Agreement, whether express or implied, except to
      the extent that such representations, warranties, covenants, agreements or
      indemnifications are made in this Agreement or the Schedules hereto or in
      any certificate or other agreement, document or instrument delivered
      pursuant to the provisions of this Agreement.

            5.13 No Broker. There is no firm, corporation, agency or other
      entity or person that is entitled to a finder's fee or any type of
      commission in relation to or in connection with the transactions
      contemplated by this Agreement as a result of any agreement or
      understanding with Purchaser or any of its directors, officers, employees
      or agents.

            6. Legends. The Notes and Warrants shall be endorsed with the
      following legend:

      THIS SECURITY HAS BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND MAY NOT
      BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNTIL (I) A REGISTRATION
      STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT") SHALL
      HAVE BECOME EFFECTIVE WITH RESPECT THERETO OR (II) RECEIPT BY THE COMPANY
      OF AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY TO THE
      EFFECT THAT REGISTRATION UNDER THE ACT IS NOT REQUIRED IN CONNECTION WITH
      SUCH PROPOSED TRANSFER NOR IS IN VIOLATION OF ANY APPLICABLE STATE
      SECURITIES LAWS. THIS LEGEND SHALL BE ENDORSED UPON ANY NOTE ISSUED IN
      EXCHANGE FOR THIS NOTE.

      THIS SECURITY IS SUBJECT TO THE TERMS OF A PURCHASE AGREEMENT, DATED AS OF
      JULY ____, 2000, A COPY OF WHICH IS ON FILE AT THE EXECUTIVE OFFICES OF
      MILESTONE SCIENTIFIC INC.

      7. Registration Rights. The Company and the Purchaser will enter into a
registration rights agreement, substantially in the form annexed hereto as
Exhibit D.

      7A. Line of Credit. The Purchaser hereby agrees to provide to the Company
up to an additional $500,000 principal amount of loans upon the following terms
and conditions:

            (a) Upon 7 days prior written notice from the Company to the
Purchaser specifying the amount requested by the Company (which amount must be
for at least $100,000 of or any multiple thereof) the Purchaser shall loan to
the Company the amount set forth in such request (the "Draw Down Amount").

            (b) Upon receipt of the Draw Down Amount and in consideration
thereof, the Company shall deliver to the Purchaser the following:

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                  (i) A note (a "Draw Down Note") in the form annexed hereto as
Exhibit E, which note shall (A) be dated the date of receipt by the Company of
the Draw Down Amount (the "Note Date"), (B) be in the principal amount of the
Draw Down Amount and (C) require interest be payable commencing on the first day
of the month subsequent to the Note Date.

                  (ii) A warrant (the "Draw Down Warrant") in the form annexed
hereto as Exhibit C except that the warrant (A) shall be for the purchase of
that number of shares of Common Stock as is equal to 20,000 for each $100,000
principal amount of the Draw Down Note, (B) shall be exercisable commencing on
the Note Date to and including the 5th anniversary of the Note Date, (C) shall
be at a per share purchase price equal to the closing price of a share of Common
Stock on the trading day immediately preceding the Note Date and (D) the date in
section 6 thereof shall be the 155th date after the Note Date.

                  (iii) A registration rights agreement in the form annexed
hereto as Exhibit D except that such registration rights agreement shall (A) be
dated the Note Date, (B) shall refer to the Draw Down Note and the Draw Down
Warrant and, (C) in Section 2 thereof shall provide that the registration
statement should be filed no later than the 90th day after the Note Date and
that the interest rate on the Draw Down Note shall be increased if the
registration statement has not been declared effective on the 155th day after
the Note Date.

            (c) In no event shall the Purchaser be required to loan more than
$500,000 to the Company pursuant to the provisions of this Section 7A

      8. Confidentiality. Purchaser covenants and agrees that none of Purchaser,
his agents and representatives will use for their own benefit, convey or
disclose to any third party any information provided by the Company concerning
its current or proposed business, operations and financial conditions, other
than information which is already publicly available, was already known to
Purchaser or is obtained from a source other than the Company and to the extent
required by law.

      9. Affirmative Covenants. The Company covenants and agrees with the
Purchaser that, from the date hereof and until the Notes have been paid in full,
it shall:

                  9.1 Corporate. Do or cause to be done all things necessary to
            at all times (a) other than mergers solely among the Company and any
            of its subsidiaries, preserve, renew and keep in full force and
            effect its corporate existence, patents, trademarks, rights,
            licenses, permits and franchises, (b) comply with this Agreement,
            (c) maintain and preserve all of its material property used or
            useful in the conduct of their respective businesses, and (d) comply
            with all applicable laws material to its businesses, including the
            reporting requirements of the Securities Exchange Act of 1934,
            whether now in effect or hereafter enacted, promulgated or issued.

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                  9.2 Notice of Proceedings. Give prompt written notice to the
            Purchaser of any proceeding instituted against the Company in any
            federal or state court or before any commission or other regulatory
            body, whether federal, state or local, which, if adversely
            determined, could have a material adverse effect upon their
            business, operations, properties, assets or condition, financial or
            otherwise when taken as a whole.

                  9.3 Books and Records; Inspection. Maintain true and accurate
            books and records respecting all of their business operations, and
            permit agents or representatives of the Purchasers to inspect, at
            any time during normal business hours, upon reasonable notice, and
            without undue material disruption of their business operations, all
            of such books and records and to visit the properties and operations
            of the Company and consult with the employees and officers of the
            Company.

                  9.4 Notice of Default or Material Adverse Change. Promptly
            advise the Purchaser of any event which could have a material
            adverse effect on the Company's business, operation, property,
            assets or condition, financial or otherwise, or the existence or
            occurrence of any Event of Default (as defined in the Notes), any
            breach of this Section 9 or any default of the Company under any
            agreement or instrument to which it is a party.

                  9.5 Notice of Filings with SEC. Promptly advise the Purchaser
            of any filing of a registration statement under the Securities Act
            with the SEC covering any of the Company's securities.

                  9.6 Delivery of Financial Statements and other Reports. The
            Company will deliver to each holder of Notes promptly upon
            transmission thereof, copies of all financial statements,
            information circulars, proxy statements and reports as the Company
            shall send to its stockholders and copies of all registration
            statements, prospectuses and all reports which it shall file with
            the Securities and Exchange Commission or with any securities
            exchange on which any of its securities is listed or with NASDAQ and
            copies of all press releases and other statements made available to
            the public concerning material developments in the business of the
            Company.

                  9.7 Stock to be Reserved. The Company covenants that all
            shares of Common Stock that may be issued upon exercise of the
            Warrants or in respect of interest payable on the Notes will, upon
            issuance, be validly issued, fully paid and nonassessable and free
            from all taxes, liens and charges with respect to the issuance
            thereof. The Company covenants that during the period in which the
            Warrants are outstanding it will at all times have authorized and
            reserved a sufficient number of shares of Common Stock to permit the
            exercise of the Warrants.

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      10. Conditions Precedent to the Obligations of the Company. The
obligations of the Company pursuant to this Agreement are subject to the
satisfaction at the Closing of each of the following conditions; provided,
however, that the Company may, in its sole discretion, waive any of such
conditions and proceed with the transactions contemplated hereby.

            10.1 Accuracy of Representations and Warranties. The representations
      and warranties of the Purchaser contained in this Agreement or in any
      document or certificate delivered in connection with the transactions
      contemplated hereby shall be true and correct in all material respects on
      and as of the Closing Date, as if made on and as of the Closing Date.

            10.2 Performance of Agreements. Each Purchaser shall have duly
      executed and delivered this Agreement to the Company and shall have
      performed and complied in all material respects with all covenants,
      obligations and agreements to be performed or complied with by any of them
      on or before the Closing Date pursuant to this Agreement.

      11. Conditions Precedent to the Obligations of the Purchaser. The
obligations of the Purchaser under this Agreement is subject to the satisfaction
at the Closing of each of the following conditions; provided, however, that the
Purchaser may, in Purchaser's sole discretion, waive any of such conditions and
proceed with the transactions contemplated hereby.

            11.1 Accuracy of Representations and Warranties. The representations
      and warranties of the Company contained in this Agreement or in any
      document or certificate delivered in connection with the transactions
      contemplated hereby shall be true and correct in all material respects on
      and as of the Closing Date, as if made on and as of the Closing Date.

            11.2 Performance of Agreements. The Company shall have duly executed
      and delivered this Agreement and the Registration Rights Agreement and
      shall have performed and complied in all material respects with all
      covenants, obligations and agreements to be performed or complied with by
      it on or before the Closing Date pursuant to this Agreement.

            11.3 Litigation, Material Changes, Defaults, etc. No claim, action,
      suit, proceeding, arbitration or hearing or notice of hearing shall be
      pending (and no action or investigation by any governmental authority
      shall be threatened) which seeks to enjoin, prevent or adversely affect
      the consummation of the transactions contemplated by this Agreement. There
      shall not have been any changes in the business of the Company which have
      or could reasonably be expected to have a material adverse effect on the
      business, operations, properties, assets or condition, financial or
      otherwise, of the Company. There shall exist no defaults under the
      provisions of any instrument evidencing indebtedness of the Company.

            11.4 Purchase Permitted by Applicable Laws. The purchase of and
      payment for the Notes and Warrants shall not be prohibited by any
      applicable law or governmental

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      regulation (including without limitation Regulations G, T and X of the
      Board of Governors of the Federal Reserve System) and shall not subject
      the holders of the Notes and Warrants to any tax, penalty or liability
      under any applicable law or governmental regulation.

      12. General Provisions.

            12.1 Survival of Representations, Warranties, Covenants, and
      Agreements. The representations, warranties, covenants and agreements
      contained in this Agreement shall survive the execution of this Agreement.

            12.2 Notices. All notices, requests, demands and other
      communications which are required to be or may be given under this
      Agreement to any party to any of the other parties shall be in writing and
      shall be deemed to have been duly given when (a) delivered in person, (b)
      the day following dispatch by an overnight courier service (such as
      Federal Express or UPS, etc.) or (c) five (5) days after dispatch by
      certified or registered first class mail, postage prepaid, return receipt
      requested, to the party to whom the same is so given or made. Any notice
      or other communication given hereunder shall be addressed to the Company,
      at its principal offices as set forth above and to the Purchaser at his
      address indicated on the signature page hereto.

            12.3 Counterparts. This Agreement may be executed in two or more
      counterparts, each of which shall be deemed an original and all of which
      together shall constitute one and the same instrument.

            12.4 Headings. All headings are inserted for convenience of
      reference only and shall not affect the meaning or interpretation of any
      such provisions or of this Agreement, taken as an entirety.

            12.5 Severability. If and to the extent that any court of competent
      jurisdiction holds any provision (or any part thereof) of this Agreement
      to be invalid or unenforceable, such holding shall in no way affect the
      validity of the remainder of this Agreement.

            12.6 Changes, Waivers, Etc. Neither this Agreement nor any provision
      hereof may be changed, waived, discharged or terminated orally, but rather
      may only be changed by a statement in writing signed by the party against
      which enforcement of the change, waiver, discharge or termination is
      sought. It is agreed that a waiver by either party of a breach of any
      provision of this Agreement shall not operate, or be construed, as a
      waiver of any subsequent breach by that same party.

            12.7 Governing Law. This Agreement shall be governed by and
      construed in accordance with the laws of the State of New York. The
      parties hereby agree that any dispute which may arise between them arising
      out of or in connection with this Agreement shall be adjudicated before a
      court located in New York City and they hereby

                                       11
<PAGE>

      submit to the exclusive jurisdiction of the courts of the State of New
      York located in New York, New York and of the federal courts in the
      Southern District of New York with respect to any action or legal
      proceeding commenced by any party, and irrevocably waive any objection
      they now or hereafter may have respecting the venue of any such action or
      proceeding brought in such a court or respecting the fact that such court
      is an inconvenient forum, relating to or arising out of this Agreement or
      any acts or omissions relating to the sale of the securities hereunder,
      and consent to the service of process in any such action or legal
      proceeding by means of registered or certified mail, return receipt
      requested, in care of the address set forth below or such other address as
      the undersigned shall furnish in writing to the other.

            12.8 Binding Effects. This Agreement shall be binding upon and inure
      to the benefit of the parties hereto and their respective successors,
      legal representatives and assigns.

            12.9 Entire Agreement. This Agreement sets forth the entire
      agreement and understanding between the parties as to the subject matter
      thereof and incorporates and supersedes all prior discussions, agreements
      and understandings of any and every nature among them.

            12.10 Further Assurances. The parties agree to execute and deliver
      all such further documents, agreements and instruments and take such other
      and further action as may be necessary or appropriate to carry out the
      purposes and intent of this Agreement.

            12.11. Expenses. Each party hereto shall pay all of its own fees and
      expenses in connection with the transactions contemplated hereby.

      IN WITNESS WHEREOF, the parties have executed this Agreement as of the day
and year first above written.

                                           MILESTONE SCIENTIFIC INC.

                                           By: /s/ Leonard Osser
                                               -------------------------------
                                                   Leonard Osser, Chairman and
                                                   Chief Executive Officer

                                               /s/ K. TUCKER ANDERSEN
                                               -------------------------------
                                                   K. TUCKER ANDERSEN

                                       12Exhibit 10.2

                               PURCHASE AGREEMENT

      PURCHASE AGREEMENT (the "Agreement") made as of August 25, 2000 between
MILESTONE SCIENTIFIC INC., a Delaware corporation, with its principal offices at
220 South Orange Avenue, Livingston, New Jersey 07039 (the "Company"), and each
of the Purchasers identified on Exhibit A (collectively the "Purchasers" and
individually a "Purchaser").

      WHEREAS, the Company desires to sell to Purchasers and Purchasers desire
to purchase from the Company an aggregate of $1,000,000 face amount of its 20%
Secured Notes (collectively the "Notes"), substantially in the form annexed as
Exhibit B;

      NOW, THEREFORE, in consideration of the premises and the covenants herein
contained, the parties hereto agree as follows:

      1. Purchase and Sale of Notes.

            (a) Subject to the terms and conditions hereinafter set forth, each
of the Purchasers hereby subscribes for and agrees to purchase from the Company
the face amount of the Notes set forth opposite the Purchaser's name on Exhibit
A.

            (b) The aggregate purchase price for the Notes shall be $1,000,000
and each Note shall be purchased at the face amount thereof. Each of the
Purchasers shall be obligated to pay the amount of the face value of the Notes
set forth opposite his name on Exhibit A. The purchase price for each Note is
payable by good bank or certified check or by wire transfer of funds to the
Company, contemporaneously with the execution and delivery of this Agreement.
The Notes will be delivered by the Company on the Closing Date (as defined
below).

      2. Terms of the Notes. Except as otherwise set forth in this Agreement,
the terms of the Notes shall be as set forth in the Notes.

      3. Closing. The closing of each of the several Note purchases contemplated
hereby (each a "Closing") shall each take place on a date (the "Closing Date")
within three (3) business days following the satisfaction of the conditions set
forth herein for the purchase of that Note and at such times as shall be
determined by the Company at the offices of Morse, Zelnick, Rose & Lander, LLP,
450 Park Avenue, New York, New York 10022.

      4. Representations and Warranties of the Company. The Company hereby
represents and warrants to each Purchaser, which representations and warranties
shall be true and correct as of the date hereof and as of each Closing Date, as
follows:

            4.1 Organization; Standing and Power. The Company and its
      subsidiaries (a) are corporations duly organized, existing and in good
      standing under the laws of the state of their incorporation, (b) have all
      requisite corporate power and authority to own their properties and to
      carry on their businesses as now conducted and as proposed hereafter to be
      conducted, (c) are duly qualified to do business as foreign corporations
      in each and every jurisdiction where such qualification is necessary
      except where the failure to so qualify would not have a material adverse
      effect on the financial condition, business, operations, assets or
      prospects of the

<PAGE>

      Company and its subsidiaries as a whole and (d) the Company has all
      requisite corporate power and authority to execute and deliver, and
      perform all of its obligations under this Agreement.

            4.2 Capitalization. The total authorized capital stock of the
      Company consists of 25,000,000 shares of Common Stock and no shares of
      preferred stock. As of June 30, 2000, the Company has outstanding
      10,652,898 shares of Common Stock. In addition, there are 1,000,000 shares
      of Common Stock reserved for issuance under the Company's 1997 Stock
      Option Plan of which 850,000 shares are issuable pursuant to the exercise
      of outstanding stock options ranging in exercise price from $1.00 to
      $23.00 per share. The Company also has outstanding other compensatory
      options for 136,000 shares with exercise prices ranging from $5.125 to
      $23.00 per share and warrants and options in connection with financing
      transactions for 226,190 shares at exercise prices ranging from $1.75 to
      $7.00 per share of Common Stock.

            4.3 Authorization. The execution, delivery and performance by the
      Company of its obligations under this Agreement has been duly authorized
      by all requisite corporate action and will not, either prior to or as a
      result of the consummation of the transactions contemplated by this
      Agreement or the Notes: (a) violate any law, any order of any court or
      other agency of government, any provision of the Certificate of
      Incorporation or Bylaws of the Company or any contract, indenture,
      agreement or other instrument to which the Company is a party, or by which
      the Company or any of its assets or properties are bound, or (b) be in
      conflict with, result in a breach of, or constitute (after the giving of
      notice or lapse of time or both) a default under, or result in the
      creation or imposition of any lien of any nature whatsoever upon any of
      the property or assets of any Company pursuant to, or result in the
      acceleration of, any such contract, indenture, agreement or other
      instrument. The Company is not required to obtain any government approval,
      consent or authorization from, or to file any declaration or statement
      with, any governmental instrumentality or agency in connection with or as
      a condition to the execution, delivery or performance of any of this
      Agreement or the Notes other than the filings which have heretofore been
      made. This Agreement and each of the Notes is valid, binding and
      enforceable against the Company in accordance with its terms.

            4.4 Non-contravention. To the best of its knowledge, the Company is
      not in violation or breach of or in default with respect to, complying
      with any material provision of any contract, agreement, instrument, lease,
      license, arrangement or understanding to which it is a party, and each
      such contract, agreement, instrument, lease, license, arrangement and
      understanding is in full force and effect and is the legal, valid and
      binding obligation of the Company enforceable as to the Company in
      accordance with its terms (subject to applicable bankruptcy, insolvency
      and other laws affecting the enforceability of creditors' rights generally
      and to general equitable principals). Neither the execution and the
      delivery of this Agreement, the issuance of the Notes, nor the
      consummation of the transactions contemplated hereby or thereby, will (a)
      violate any constitution, statute, regulation, rule, injunction, judgment,
      order, decree, ruling, charge, or other restriction of any government,
      governmental agency, or court to which the Company is subject or (b)
      conflict with, result in a breach of, constitute a default under, result
      in the acceleration of, create in any party the right to accelerate,
      terminate, modify, or cancel, or require any notice under any agreement,
      contract, lease, license, instrument, or other arrangement to which the
      Company is a party or by which the Company is bound or to which any of the
      Company's assets are subject.

                                       2
<PAGE>

            4.5 Litigation. There is no action, suit or proceeding at law or in
      equity or by or before any governmental instrumentality or other agency
      now pending or, to the knowledge of the Company, threatened in writing
      against the Company, or any of its assets, which, if adversely determined,
      might reasonably be expected to have a material adverse effect on the
      Company's business, operations and financial condition.

            4.6 SEC Filings. The information set forth in the Form 10-KSB for
      the year ended December 31, 1999 and Form 10-QSB for the six month period
      ended June 30, 2000 (collectively, the "SEC Filings") as filed by the
      Company with the Securities and Exchange Commission (the "SEC") is true,
      correct and complete in all material respects as of the respective date of
      each such filing and does not omit to state any material fact necessary in
      order to make the statements therein not misleading. The financial
      statements of the Company as set forth in the SEC Filings have been
      prepared in accordance with GAAP applied on a consistent basis throughout
      the periods covered thereby and fairly present in all material respects
      the financial condition and results of operations of the Company as of
      their respective dates. Since June 30, 2000, there has not been any
      material adverse change in the business, financial condition or results of
      operations of the Company except that the Company has continued to operate
      at a loss. Except for the liabilities set forth in the financial
      statements included in the SEC Filings, or otherwise disclosed in the SEC
      Filings and liabilities which have arisen after June 30, 2000 in the
      ordinary course of business, the Company has no material liability.

            4.7 Due Authorization. The issuance of the Notes has been duly
      authorized by all necessary corporate action and each Note when issued
      will be the legal and binding obligation of the Company enforceable in
      accordance with its terms.

            4.8 Securities Law Exemption. Assuming the accuracy of Purchasers'
      representations and warranties set forth herein, the sale of the Notes
      pursuant to this Agreement has been made in accordance with the provisions
      and requirements of ss.4(2), Regulation D or ss.4(6) under the Securities
      Act of 1933, as amended (the "Securities Act") and any applicable state
      law.

            4.9 Use of Proceeds. The proceeds from the sale of the Notes will be
      used for working capital, including the payment of all amounts currently
      due and owing to the Company's auditors.

            4.10 Compliance with Laws. The Company is in compliance in all
      material respects with all occupational safety, health, wage and hour,
      employment discrimination, environmental, flammability, labeling, usury
      and other applicable laws which are material to its businesses, and the
      Company is not aware of any state of facts, events, conditions or
      occurrences which may now or hereafter constitute or result in a violation
      of any of such applicable laws, or which may give rise to the assertion of
      any such violation, the effect of which could have a material adverse
      effect on the Company's business, operations and financial condition.

            4.11 Licenses and Permits. The Company has obtained all federal,
      state and local licenses and permits required to be maintained in
      connection with and material to its operations, and all such licenses and
      permits obtained are valid and in full force and effect.

                                       3
<PAGE>

            4.12 Patents, Trademarks, Copyrights, Etc. The Company owns or
      validly licenses all patents, patent rights, patent applications,
      licenses, shop rights, trademarks, trademark applications, tradenames,
      copyrights and other proprietary information (collectively "Rights") used
      in the conduct of its business as currently being conducted. To the actual
      knowledge of the Company, the conduct of its business as currently being
      conducted does not conflict with valid rights of others in any way, nor
      has any material use been made of the Rights, except by the Company or by
      other entities duly licensed to use the same.

            4.13 No Other Representations. The Company shall not be deemed to
      have made any representations, warranties, covenants, agreements or
      indemnifications pertaining to the subject matter of this Agreement,
      whether express or implied, except to the extent that such
      representations, warranties, covenants, agreements or indemnifications are
      made in this Agreement or the Schedules hereto or in any certificate or
      other agreement, document or instrument delivered pursuant to the
      provisions of this Agreement.

      5. Representations and Warranties of the Purchasers. Each of the
      Purchasers hereby severally represents and warrants to the Company as to
      that Purchaser, which representations and warranties shall be true and
      correct as of the date hereof and the Closing Date, as follows:

            5.1 Authorization of Agreement. The execution, delivery and
      performance of this Agreement has been duly authorized by all necessary
      action on the part of the Purchaser, does not violate any laws or
      regulations applicable to Purchaser and is the valid binding and
      enforceable obligation of Purchaser in accordance with its terms.

            5.2 Non-contravention. Neither the execution and the delivery of
      this Agreement, nor the consummation of the transactions contemplated
      hereby, will (a) violate any constitution, statute, regulation, rule,
      injunction, judgment, order, decree, ruling, charge, or other restriction
      of any government, governmental agency, or court to which the Purchaser is
      subject or (b) conflict with, result in a breach of, constitute a default
      under, result in the acceleration of, create in any party the right to
      accelerate, terminate, modify, or cancel, or require any notice under any
      agreement, contract, lease, license, instrument, or other arrangement to
      which Purchaser is a party or by which Purchaser is bound or to which any
      of Purchaser's assets are subject.

            5.3 Accredited Investor. Purchaser is an "accredited investor" as
      that term is defined in Rule 501(a) of the Securities Act, and the rules
      promulgated thereunder.

            5.4 Investment. Purchaser acknowledges that the offering of this
      Notes has not been reviewed by the United States Securities and Exchange
      Commission ("SEC") and that the sale of the Notes pursuant hereto is
      intended to be a nonpublic offering pursuant to ss.4(2), Regulation D or
      ss.4(6) of the Securities Act. Purchaser represents that the Note is being
      purchased for its own account, for investment and not for distribution or
      resale to others. Purchaser agrees that Purchaser will not sell or
      otherwise transfer the Notes unless it is registered under the Securities
      Act or unless an exemption from such registration is available. Purchaser
      understand that the Notes has not been registered under the Securities Act
      and it or will be issued pursuant to a specific exemption from the
      registration provisions of the Securities Act which depends upon, among
      other things, the bona fide nature of the investment intent as expressed
      herein.

            5.5 Access to Data. Purchaser has been given copies of the SEC
      Filings and has had an opportunity to review same. Purchaser has had an
      opportunity to discuss the SEC Filings and

                                       4
<PAGE>

      the Company's business, management and financial affairs with the
      Company's management and the opportunity to review the Company's
      facilities, each to Purchaser's satisfaction. Purchaser understands that
      such discussions, as well as any written information issued or provided by
      the Company, were intended to describe the aspects of the Company's
      business and prospects which the Company believes to be material but were
      not necessarily a thorough or exhaustive description thereof.

            5.6 Speculative Nature of Investment. Purchaser acknowledges that
      the purchase of the Notes involves a high degree of risk and that (i) an
      investment in the Company is highly speculative and only investors who can
      afford the loss of their entire investment should consider investing in
      the Company and purchasing Notes; (ii) Purchaser may not be able to
      liquidate its investment; (iii) transferability of the Notes is extremely
      limited; and (iv) Purchaser could sustain the loss of its entire
      investment.

            5.7 Experience. Purchaser acknowledges that it has prior investment
      experience, including investment in non-listed and non-registered
      securities, or has employed the services of an investment advisor,
      attorney or accountant to review all of the documents furnished or made
      available by the Company and to evaluate the merits and risks of such an
      investment on Purchaser's behalf.

            5.8 Lack of Liquidity. Purchaser understands that there is no public
      market for the Notes.

            5.9 Legends. Purchaser consents to the placement of a legend on the
      Notes, provided it is not then covered by an effective Registration
      Statement, all as set forth in Section 6 of this Agreement.

            5.10 Address. Purchaser hereby represents that its address,
      appearing on Exhibit A, is, if an individual, his principal residence or
      if a business entity, its principal place of business.

            5.11 Registered Representative. Purchaser acknowledges that if he is
      a Registered Representative of a National Association of Securities
      Dealers, Inc. ("NASD") member firm, he must give such firm the notice
      required by the NASD Conduct Rules, or any applicable successor rules of
      the NASD receipt of which must be acknowledged by such firm on the
      signature page hereof.

            5.12 No Other Representations. Purchaser hereby represent that,
      except as set forth herein, no representations or warranties have been
      made to the Purchaser by the Company or any agent, employee or affiliate
      of the Company and in entering into this transaction, Purchaser are not
      relying on any information, other than that contained herein, that
      contained in the SEC Filings and the results of independent investigation
      by the Purchaser. The Purchaser shall not be deemed to have made any
      representations, warranties, covenants, agreements or indemnifications
      pertaining to the subject matter of this Agreement, whether express or
      implied, except to the extent that such representations, warranties,
      covenants, agreements or indemnifications are made in this Agreement or
      the Exhibits hereto or in any certificate or other agreement, document or
      instrument delivered pursuant to the provisions of this Agreement.

            5.13 No Broker. There is no firm, corporation, agency or other
      entity or person that is entitled to a finder's fee or any type of
      commission in relation to or in connection with the

                                       5
<PAGE>

      transactions contemplated by this Agreement as a result of any agreement
      or understanding with the Purchaser or any of their employees or agents.

            5.14 Limitation of Market Activity. Upon receipt of the foregoing
      notice as to the issuance of shares in payment of principle and interest,
      the holder of this Note shall cease all market activity, directly or
      indirectly, in shares of the Company's common stock and shall not resume
      such activity until the expiration of the 15 trading day pricing period
      provided for in the preceding sentence.

            6. Legends. The Notes shall be endorsed with the following legend:

      THIS SECURITY HAS BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND MAY NOT
      BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNTIL (I) A REGISTRATION
      STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT") SHALL
      HAVE BECOME EFFECTIVE WITH RESPECT THERETO OR (II) RECEIPT BY THE COMPANY
      OF AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY TO THE
      EFFECT THAT REGISTRATION UNDER THE ACT IS NOT REQUIRED IN CONNECTION WITH
      SUCH PROPOSED TRANSFER NOR IS IN VIOLATION OF ANY APPLICABLE STATE
      SECURITIES LAWS. THIS LEGEND SHALL BE ENDORSED UPON ANY NOTE ISSUED IN
      EXCHANGE FOR THIS NOTE.

      THIS SECURITY IS SUBJECT TO THE TERMS OF A PURCHASE AGREEMENT, DATED AS OF
      AUGUST 25, 2000, A COPY OF WHICH IS ON FILE AT THE EXECUTIVE OFFICES OF
      MILESTONE SCIENTIFIC INC.

      7. Confidentiality. Purchaser covenants and agrees that Purchaser, its
agents and representatives will use for its own benefit, convey or disclose to
any third party any information provided by the Company concerning its current
or proposed business, operations and financial conditions, other than
information which is already publicly available, was already known to the
Purchaser or is obtained from a source other than the Company and to the extent
required by law.

      8. Affirmative Covenants. The Company covenants and agrees with the
Purchaser that, from the date hereof and until the Notes have been paid in full,
it shall:

                  9.1 Corporate. Do or cause to be done all things necessary to
            at all times (a) other than mergers solely among the Company and any
            of its subsidiaries, preserve, renew and keep in full force and
            effect its corporate existence, patents, trademarks, rights,
            licenses, permits and franchises, (b) comply with this Agreement,
            (c) maintain and preserve all of its material property used or
            useful in the conduct of their respective businesses, and (d) comply
            with all applicable laws material to its businesses, including the
            reporting requirements of the Securities Exchange Act of 1934,
            whether now in effect or hereafter enacted, promulgated or issued.

                  9.2 Notice of Proceedings. Give prompt written notice to each
            of the Purchasers of any proceeding instituted against the Company
            in any federal or state court or before any commission or other
            regulatory body, whether federal, state or local, which, if
            adversely determined, could have a material adverse effect upon
            their business, operations, properties, assets or condition,
            financial or otherwise when taken as a whole.

                                       6
<PAGE>

                  9.3 Books and Records; Inspection. Maintain true and accurate
            books and records respecting all of their business operations, and
            permit agents or representatives of the Purchasers to inspect, at
            any time during normal business hours, upon reasonable notice, and
            without undue material disruption of their business operations, all
            of such books and records and to visit the properties and operations
            of the Company and consult with the employees and officers of the
            Company.

                  9.4 Notice of Default or Material Adverse Change. Promptly
            advise the Purchasers of any event which could have a material
            adverse effect on the Company's business, operation, property,
            assets or condition, financial or otherwise, or the existence or
            occurrence of any Event of Default (as defined in the Notes), any
            breach of this Section 9 or any default of the Company under any
            agreement or instrument to which it is a party.

                  9.5 Shares Which May Be Issued. The Company covenants that all
            shares issued in payment of principal or interest on the Notes will,
            upon issuance, be validly issued, fully paid and nonassessable and
            free from all taxes, liens and charges with respect to the issuance
            thereof.

      10. Conditions Precedent to the Obligations of the Company. The
obligations of the Company pursuant to this Agreement are subject to the
satisfaction at the Closing of each of the following conditions; provided,
however, that the Company may, in its sole discretion, waive any of such
conditions and proceed with the transactions contemplated hereby.

            10.1 Accuracy of Representations and Warranties. The representations
      and warranties of the Purchasers contained in this Agreement or in any
      document or certificate delivered in connection with the transactions
      contemplated hereby shall be true and correct in all material respects on
      and as of the Closing Date, as if made on and as of the Closing Date.

            10.2 Performance of Agreements. The Purchasers shall have duly
      executed and delivered this Agreement to the Company and shall have
      performed and complied in all material respects with all covenants,
      obligations and agreements to be performed or complied with by any of them
      on or before the Closing Date pursuant to this Agreement.

      11. Conditions Precedent to the Obligations of the Purchasers. The
obligations of each of the Purchasers under this Agreement are subject to the
satisfaction at the Closing of each of the following conditions; provided,
however, that the Purchasers may, in their sole discretion, waive any of such
conditions and proceed with the transactions contemplated hereby.

            11.1 Accuracy of Representations and Warranties. The representations
      and warranties of the Company contained in this Agreement or in any
      document or certificate delivered in connection with the transactions
      contemplated hereby shall be true and correct in all material respects on
      and as of the Closing Date, as if made on and as of the Closing Date.

            11.2 Performance of Agreements. The Company shall have duly executed
      and delivered this Agreement and the Registration Rights Agreement and
      shall have performed and complied in all material respects with all
      covenants, obligations and agreements to be performed or complied with by
      it on or before the Closing Date pursuant to this Agreement.

                                       7
<PAGE>

            11.3 Litigation, Material Changes, Defaults, etc. No claim, action,
      suit, proceeding, arbitration or hearing or notice of hearing shall be
      pending (and no action or investigation by any governmental authority
      shall be threatened) which seeks to enjoin, prevent or adversely affect
      the consummation of the transactions contemplated by this Agreement. There
      shall not have been any changes in the business of the Company which have
      or could reasonably be expected to have a material adverse effect on the
      business, operations, properties, assets or condition, financial or
      otherwise, of the Company. There shall exist no defaults under the
      provisions of any instrument evidencing indebtedness of the Company.

            11.4 Purchase Permitted by Applicable Laws. The purchase of and
      payment for the Notes shall not be prohibited by any applicable law or
      governmental regulation (including without limitation Regulations G, T and
      X of the Board of Governors of the Federal Reserve System) and shall not
      subject the holders of the Notes to any tax, penalty or liability under
      any applicable law or governmental regulation.

      12. General Provisions.

            12.1 Survival of Representations, Warranties, Covenants, and
      Agreements. The representations, warranties, covenants and agreements
      contained in this Agreement shall survive the execution of this Agreement.

            12.2 Notices. All notices, requests, demands and other
      communications which are required to be or may be given under this
      Agreement to any party to any of the other parties shall be in writing and
      shall be deemed to have been duly given when (a) delivered in person, (b)
      the day following dispatch by an overnight courier service (such as
      Federal Express or UPS, etc.) or (c) five (5) days after dispatch by
      certified or registered first class mail, postage prepaid, return receipt
      requested, to the party to whom the same is so given or made. Any notice
      or other communication given hereunder shall be addressed to the Company,
      at its principal offices as set forth above and to the Purchasers at the
      addresses indicated on Exhibit A hereto.

            12.3 Counterparts. This Agreement may be executed in two or more
      counterparts, each of which shall be deemed an original and all of which
      together shall constitute one and the same instrument.

            12.4 Headings. All headings are inserted for convenience of
      reference only and shall not affect the meaning or interpretation of any
      such provisions or of this Agreement, taken as an entirety.

            12.5 Severability. If and to the extent that any court of competent
      jurisdiction holds any provision (or any part thereof) of this Agreement
      to be invalid or unenforceable, such holding shall in no way affect the
      validity of the remainder of this Agreement.

            12.6 Changes, Waivers, Etc. Neither this Agreement nor any provision
      hereof may be changed, waived, discharged or terminated orally, but rather
      may only be changed by a statement in writing signed by the party against
      which enforcement of the change, waiver, discharge or termination is
      sought. It is agreed that a waiver by either party of a breach of any
      provision of this Agreement shall not operate, or be construed, as a
      waiver of any subsequent breach by that same party.

                                       8
<PAGE>

            12.7 Governing Law. This Agreement shall be governed by and
      construed in accordance with the laws of the State of New York. The
      parties hereby agree that any dispute which may arise between them arising
      out of or in connection with this Agreement shall be adjudicated before a
      court located in New York City and they hereby submit to the exclusive
      jurisdiction of the courts of the State of New York located in New York,
      New York and of the federal courts in the Southern District of New York
      with respect to any action or legal proceeding commenced by any party, and
      irrevocably waive any objection they now or hereafter may have respecting
      the venue of any such action or proceeding brought in such a court or
      respecting the fact that such court is an inconvenient forum, relating to
      or arising out of this Agreement or any acts or omissions relating to the
      sale of the securities hereunder, and consent to the service of process in
      any such action or legal proceeding by means of registered or certified
      mail, return receipt requested, in care of the address set forth below or
      such other address as the undersigned shall furnish in writing to the
      other.

            12.8 Binding Effects. This Agreement shall be binding upon and inure
      to the benefit of the parties hereto and their respective successors,
      legal representatives and assigns.

            12.9 Entire Agreement. This Agreement sets forth the entire
      agreement and understanding between the parties as to the subject matter
      thereof and incorporates and supersedes all prior discussions, agreements
      and understandings of any and every nature among them.

            12.10 Further Assurances. The parties agree to execute and deliver
      all such further documents, agreements and instruments and take such other
      and further action as may be necessary or appropriate to carry out the
      purposes and intent of this Agreement.

                                       9
<PAGE>

            12.11 Expenses. Each party hereto shall pay all of its own fees and
      expenses in connection with the transactions contemplated hereby.

      IN WITNESS WHEREOF, the parties have executed this Agreement as of the day
and year first above written.

                                         MILESTONE SCIENTIFIC INC.

                                         By: /s/ Mitchell Kuhn
                                             -------------------------------
                                                 Mitchell Kuhn, President

                                         CUMBERLAND BENCHMARKED PARTNERS, L.P.

                                         By: CUMBERLAND ASSOCIATES

                                         By: /s/ Bruce Wilcox
                                             -------------------------------
                                                 Bruce Wilcox,
                                                 Chairman, Management Committee

                                         LONGVIEW PARTNERS A, L.P.

                                         By: CUMBERLAND ASSOCIATES

                                         By: /s/ Bruce Wilcox
                                             -------------------------------
                                                 Bruce Wilcox,
                                                 Chairman, Management Committee

                                       10

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