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MISONIX, INC.
(NASDAQ: MSON)

CORPORATE PRESENTATION
January 2013

ADVANCING ULTRASONIC SURGERY
Forward Looking Statements

With	
   the	
   excep�on	
   of	
   historical	
   informa�on	
   contained	
   in	
   this	
   presenta�on,	
   content	
   herein	
   may	
  
contain	
  "forward	
  looking	
  statements"	
  that	
  are	
  made	
  pursuant	
  to	
  the	
  Safe	
  Harbor	
  Provisions	
  of	
  the	
  
Private	
   Securi�es	
   Li�ga�on	
   Reform	
   Act	
   of	
   1995.	
   These	
   statements	
   are	
   based	
   on	
   management's	
  
current	
   expecta�ons	
   and	
   are	
   subject	
   to	
   uncertainty	
   and	
   changes	
   in	
   circumstances.	
   Investors	
   are	
  
cau�oned	
   that	
   forward-­‐looking	
   statements	
   involve	
   risks	
   and	
   uncertain�es	
   that	
   could	
   cause	
   actual	
  
results	
   to	
   differ	
   materially	
   from	
   the	
   statements	
   made.	
   These	
   factors	
   include	
   general	
   economic	
  
condi�ons,	
   delays	
   and	
   risks	
   associated	
   with	
   the	
   performance	
   of	
   contracts,	
   risks	
   associated	
   with	
  
interna�onal	
  sales	
  and	
  currency	
  fluctua�ons,	
  uncertain�es	
  as	
  a	
  result	
  of	
  research	
  and	
  development,	
  
acceptable	
  results	
  from	
  clinical	
  studies,	
  including	
  publica�on	
  of	
  results	
  and	
  pa�ent/procedure	
  data	
  
with	
  varying	
  levels	
  of	
  sta�s�cal	
  relevancy,	
  risks	
  involved	
  in	
  introducing	
  and	
  marke�ng	
  new	
  products,	
  
poten�al	
   acquisi�ons,	
   consumer	
   and	
   industry	
   acceptance,	
   li�ga�on	
   and/or	
   court	
   proceedings,	
  
including	
   the	
   �ming	
   and	
   monetary	
   requirements	
   of	
   such	
   ac�vi�es,	
   the	
   �ming	
   of	
   finding	
   strategic	
  
partners	
  and	
  implemen�ng	
  such	
  rela�onships,	
  regulatory	
  risks	
  including	
  approval	
  of	
  pending	
  and/or	
  
contemplated	
   510(k)	
   filings,	
   the	
   ability	
   to	
   achieve	
   and	
   maintain	
   profitability	
   in	
   the	
   Company's	
  
business	
   lines,	
   and	
   other	
   factors	
   discussed	
   in	
   the	
   Company's	
   Annual	
   Report	
   on	
   Form	
   10-­‐K,	
  
subsequent	
   Quarterly	
   Reports	
   on	
   Form	
   10-­‐Q	
   and	
   Current	
   Reports	
   on	
   Form	
   8-­‐K.	
   The	
   Company	
  
disclaims	
  any	
  obliga�on	
  to	
  update	
  its	
  forward-­‐looking	
  rela�onships.	
  


                                 R



                                                                                                                                                    2
Company Overview
    Misonix, Inc. (Nasdaq: MSON) develops ultrasonic                                                                              Revenues	
  	
  
                                                                             $50	
  
                                                                                                            $45.5	
  
    surgical devices for use in a wide variety of
    procedures                                                               $45	
  
                                                                                          $42.4	
  
                                                                                                                                     $39.8	
  
                                                                             $40	
  
    Focused medical device company; divested non-
                                                                             $35	
  
    core businesses in 2008 - 2012




                                                         $	
  millions	
  
                                                                             $30	
  
    Operates in a recurring razor / razorblade model
                                                                             $25	
  
     –  39.2% of revenues recurring – FY 2012
                                                                             $20	
  
                                                                                                                                                                               $14.4	
  
                                                                                                                                                         $13.4	
  
     –  40.0% of revenues recurring – 1st Quarter FY
                                                                             $15	
  
         2013
                                                                             $10	
  
                                                                                                                                                                                  $15.7	
  
                                                                                                                                                               $12.4	
  
    Misonix’s products are protected by strong patent
                                                                                                           $9.7	
                            $10.7	
  
                                                                               $5	
  
                                                                                          $8.1	
                             $8.7	
  
                                                                                                                                                                                                    $4.6	
  
    portfolio
                                                                               $0	
  
                                                                                        FY	
  2007	
     FY	
  2008	
      FY	
  2009	
     FY	
  2010	
      FY	
  2011	
       FY	
  2012	
     Q1	
  2013	
  

                                                                                                                          Total	
  Medical	
  Revenue	
  
     –  Over 40 patents
                                                                                                                          Total	
  Other	
  Revenue	
  
    Large worldwide revenue generating installed base;
    consistently growing
    Products aimed at large and rapidly growing aging
    demographic




                       R



                                                                                                                                                                                                        3
Company Highlights

     Substantial Recurring Revenue Component
      –  40.0 % of revenues recurring – First Quarter 2013
      –  39.2% of revenues recurring – FY 2012
      –  48% of revenues recurring – FY 2011
     Strong Balance Sheet
      –  $6.7 million cash (approximately 20% of current market value)
      –  ZERO long-term debt
     Revenue Growth – FY 2013 - First Quarter
      –  42% growth –First Quarter 2013 vs. 2012
      –  BoneScalpel TM – 220% growth - First Quarter 2013 vs. 2012
      –  SonaStar® – 21% growth - First Quarter 2013 vs. 2012
      –  SonicOne™ - 97% growth - First Quarter 2013 vs. 2012
     Improving Gross Margins
      –  59.7% GM – First Quarter 2013
      –  59.0% GM – FY 2012
      –  58.0% GM – FY 2011

                        R



                                                                         4
Addressable Market
                             Market Segment         Surgical                Competition        Market size
                                                    Specialties                                Worldwide
Hard Tissue




              BoneScalpel™   Spine                  Orthopedics             High-speed Burr       $ 300 M *
                                                    Neuro

                             Small bone             Maxillofacial           Micro saw             $ 300 M *
                                                    Reconstructive
                                                    ENT
                                                    Hand, Foot & Ankle

              Total                                                                               $ 600 M *


                             Market Segment         Surgical                Competition        Market size
                                                    Specialties                                worldwide
Soft Tissue




              SonicOne®      Surgical Debridement   Plastic                 Waterjet             $ 300 M **
                                                    Reconstructive          Scalpel, Curette
                                                    General
                                                    Vascular

                             Ambulatory             Podiatric               Ultrasonic           $ 100 M **
                             Debridement            General                 Debridement
                                                    Vascular                Scalpel, Curette

                             Total                                                               $ 400 M **



                             Market                 Surgical                Competition        Market size
Soft Tissue




                             Segment                Specialties                                worldwide

              SonaStar®      Tumor                  Neurosurgical           Ultrasonic           $ 100 M **
                             Resection              General                 Aspirators
                                                                            Waterjet

              Total                                                                              $ 100 M **
                                       R

                                                                         * Millennium Research Group 2010     5
                                                                                       ** Misonix Estimates
Sales & Distribution
Domestic – Hybrid Sales Organization
    2 Direct Neuro/Spinel Sales Territories
    28 Contract Neuro/Spinel Sales Agencies with over 100 salespeople
  9 Contract Wound Sales Agencies with over 40 salespeople
    Supported by Misonix Sales directors (2) and regional Business
    Development Managers (10)


International – Specialty Distributor Organization
  45 Specialty Distributors with over 200 salespeople
  Supported by Misonix Sales Directors (2) and Application
  Specialists (3)


Private Label –
    Aesculap is non-exclusive in the U.S. only for spine and cranial
    applications of BoneScalpel
                       R



                                                                        6
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Product Overviews
BoneScalpel™: Overview
                                                                                                                       BoneScalpel	
  TM	
  Revenues	
  	
  
    Ultrasonic Bone Cutting System
                                                                                         $5.5	
  
           Precision cuts with minimal loss of bone
                                                                                                                                                                                    $4.8	
  
        
                                                                                         $4.5	
  
           Spares soft tissue structures like delicate nerves*
           Improved patient safety*
           Relatively bloodless field – US’s hemostatic affect*                          $3.5	
  
                                                                                                                                                      $3.3	
  

        




                                                                    $	
  millions	
  
           Encourages new surgical techniques*
                                                                                         $2.5	
  
                                                                                                                                                                     $2.5	
  

           Faster overall procedure time*                                                                                                                                                           $2.1	
  


                                                                                         $1.5	
                                        $1.1	
  
    Addressable Market
                                                                                         $0.5	
  
           $300 million current worldwide market for spine.                                                            $0.2	
  
                                                                                                        $0.0	
  

                                                                                                      FY	
  2007	
   FY	
  2008	
   FY	
  2009	
   FY	
  2010	
   FY	
  2011	
   FY	
  2012	
   Q1	
  2013	
  
           $300 million maxillofacial, reconstructive and other
           small bone procedures                                                        -­‐$0.5	
  




    Hospital Price Points (ASP = Average Sales Price)
           $35,000 ASP per capital system sale with $400 ASP for
           consumables per use
           $500 ASP for consumables with consignment
           placement and minimum monthly purchases

    Competition
           Medtronic, Anspach, Stryker, Aesculap, Synthes,
           Stryker, MicroAire – Power Drills & Saws
                                                                   * Clinical Study completed at CHC Hospital, Liege, Belgium
                                 R
                                                                     ** 2009 data from Hospital Discharge Survey & H-CUPnet
                                                                                                                                                                                                                 8
Drive Unit Placement: BoneScalpel™
                                   # of Units Sold/Placed                                                Management Initiatives
   60	
                                                                             57


   50	
  
                                                                                             Target teaching hospitals to ensure future users,
                                                                            43
                                                                                             including the use of ‘hands on’ workshops, cadaver
   40	
  
                                                           33                                labs and other clinical education programs
   30	
  
                                            29                      30


   20	
                                                         Fiscal	
  2012	
  
                             19     18              18
                      13                                                                     Expand global network of clinical thought leaders
   10	
                                                         	
  
     0	
  
                                                                                             Expand export network of specialty distributors
                     Sep10 Dec10   Mar11   Jun11   Sep11 Dec11 Mar12 Jun12 Sep12



                                                                                             Expand quantity and improve quality of domestic
                                   # of Consumable Sold                                      sales agents and direct representatives
10,000	
  

 9,000	
  
                                                                                   8,777

 8,000	
                                                                   7,188
 7,000	
  
                                                                   6,810                     Utilize personal referrals from present users
 6,000	
                                                                                     worldwide
 5,000	
  
                                           4,789
                                                   4,374   4,114
 4,000	
  

 3,000	
  
                                                                                             Expand number of using surgeons in each hospital
                                                                Fiscal	
  2012	
  
 2,000	
  

 1,000	
               498   670    860
                                                                	
  
             0	
                                                                             Penetrate spine and maxillofacial markets by
                      Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12
                                                                                             expanding into additional surgical procedures

                                                     R



                                                                                                                                                  9
SonicOne®: Overview
                                                                                                                         SonicOne®Revenues	
  	
  
    Tissue Selective Wound Debridement for diabetic foot
                                                                                                 $1.4	
  
    ulcers, venous ulcers, pressure ulcers, burns, trauma
                                                                                                                                                       $1.3
    wounds and infected bone
           Ultrasound effectively debrides and cleanses soft                                     $1.2	
  
                                                                                                                                               $1.1
           tissue, eschar, infected bone
                                                                                                 $1.0	
  
           Ultrasound has been shown to shorten healing times1




                                                                             $	
  millions	
  
                                                                                                 $0.8	
  
           Reduces number of debridements required1                                                                          $0.7    $0.7

           Ultrasound is effective in disrupting, inactivating and                               $0.6	
  
                                                                                                                                                               $0.5
           removing bacterial organisms2
                                                                                                 $0.4	
  
                                                                                                                     $0.3
                                                                                                             $0.2
    Addressable Market                                                                           $0.2	
  


        
                                                                                                 $0.0	
  
           $400 million worldwide
                                                                                                            FY 2007 FY 2008 FY 2009 FY 2010   FY 2011 FY 2012 Q1 2013


    Hospital Price Points (ASP = Average Sales Price)
           $35,000 ASP per capital system sale with $400 ASP for
           consumables per use, or, $1,995 per month rental,
           minimum 1 year + consumables
           $500 ASP for consumables with consignment
           placement & minimum monthly purchases
    Competition
           Soering, Arobella, Smith & Nephew                              1Clinical
                                                                                  Study completed at Calvary Hospital, Bronx, NY
                                 R
                                                              2   Study conducted by Brook Army Medical Center, San Antonio, TX
                                                                                                                                                                      10
Drive Unit Placement: SonicOne®
                                    # of Units Sold/Placed                                                         Management Initiatives
 12	
                                                                                      11

 10	
  
                    10                                                              10
                                                                                                       Establish market leadership in Ultrasonic Wound
                                                                                                       Debridement by penetrating the inpatient surgical
   8	
                                                  7         7                                    market segment
   6	
  
                                     6
                            5                                                                                Large, full service hospitals
   4	
  
                                              4
                                                                   Fiscal 2012                               Burn hospitals
   2	
  
                                                                            2
                                                                                                             Long term acute care (LTAC) hospitals
   0	
                                                                                                       Government hospitals
                   Sep10 Dec10      Mar11    Jun11    Sep11     Dec11     Mar12    Jun12 Sep12


                                                                                                       Leverage full range of customer acquisition models
                                    # of Consumable Sold                                                     Capital purchase, rentals, and fee per use
3,500	
  


3,000	
  
                            2,922                                                          2,836
                                                                                   2,798
                                                                 2,672

2,500	
  
                                                       2,417               2,450
                                                                                                       Strengthen clinical proof and its communication
2,000	
                              1,710                                                                   Leverage global network of key opinion leaders
                                                                                                             and the referral base they can provide
1,500	
  
                    1,400                     1,341


                                                                   	
  
1,000	
  
                                                                   Fiscal 2012
  500	
  
                                                                                                       Target diabetic foot ulcers; 11 million per year
                                                                                                       worldwide
           0	
  
                   Sep10 Dec10       Mar11   Jun11    Sep11     Dec11     Mar12    Jun12 Sep12

                                                                                                       Leverage sales of synergistic products to own the
                                                            R                                          wound healing treatment protocol
                                                                                                                                                            11
SonaStar®: Overview
                                                                                                                  SonaStar®Revenues	
  	
  
    Tissue Selective Tumor Removal
           Fragmentation, emulsification and aspiration                                $7.0	
  

           of targeted tumors or tissue
                                                                                       $6.0	
  
                                                                                                                                           $5.9

           Precise bone sculpting for anatomical access
                                                                                       $5.0	
  
           Neuro and General Surgeries                                                                                             $4.1
                                                                                       $4.0	
  




                                                                   $	
  millions	
  
                                                                                                           $3.5

    Addressable Market                                                                 $3.0	
  
                                                                                                   $2.3              $2.4
                                                                                                                            $2.1
           $120 million worldwide, including:                                          $2.0	
                                                      $1.6
                   5,000 brain tumor surgeries per year
                                                                                       $1.0	
  
                   7,000 liver resection surgeries per year
                                                                                       $0.0	
  

                                                                                                  FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Q1 2013
    Hospital Price Points (ASP = Average Sales Price)
           $85,000 ASP per capital system sale with $500 ASP for
           consumables per use, or, $4,500 per month rental,
           minimum 3 months + consumables

     Competition
         Integra Life Sciences, Stryker, Soering


                                 R



                                                                                                                                                          12
Drive Unit Placement: SonaStar®
   35	
  
                                   # of Units Sold                                                Management Initiatives
   30	
  
                                                                       30
                                                                                          Expand network of export specialty distributors
   25	
  
                                                                               21
   20	
                                        18      18
                                                               16
   15	
  
                                       14                                                 Expand quantity and improve quality of
   10	
  
                9      8       9                            Fiscal	
  2012	
              domestic sales agents and direct
     5	
  
                                                                                          representatives
     0	
  
               Sep10 Dec10   Mar11    Jun11   Sep11 Dec11 Mar 12 Jun12 Sep12
                                                                                          Emphasize high margin consumables business

                             # of Consumables Sold
4,500	
                                                       4,182
                                                                                          Target teaching hospitals to ensure future users
4,000	
  
                                      3,869
                                                                              3,646
3,500	
  
                                                      3,340           3,381
                                              3,219
3,000	
  

2,500	
                       2,190                                                       Tap into large liver surgery market for aspirators
2,000	
  

1,500	
  
               1,290                                        Fiscal	
  2012	
  
1,000	
                                                     	
  
                       877
                                                                                          Leverage full range of customer acquisition
  500	
  
                                                                                          models
       0	
  
               Sep10 Dec10 Mar11      Jun11 Sep11 Dec11 Mar12 Jun12 Sep12
                                                                                                 capital purchase, leasing, rentals, and fee
                                                                                                 per use
                                                 R



                                                                                                                                            13
Additional Products
                                                                                                        Addi�onal	
  Medical	
  Products	
  
    AutoSonix                                                                                                   Revenues	
  	
  
           Ultrasonic shears for laparoscopic cutting &                              $6.0	
      $5.6    $5.7


                                                                                     $5.0	
  
           coagulation                                                                                                             $4.7
                                                                                                                 $4.5    $4.5
           Licensed to Covidien, exclusively, worldwide
                                                                                     $4.0	
                                                $3.7
        




                                                                 $	
  millions	
  
           Manufactured pursuant to Misonix patents
                                                                                     $3.0	
  
           Market size is approaching $ 1.0 billion worldwide,

                                                                                     $2.0	
  
           Covidien’s market share is approximately 5%

                                                                                     $1.0	
  
    LySonix
                                                                                                                                                   $0.4
           Ultrasound-assisted liposuction
                                                                                     $0.0	
  
           Distributed by J&J exclusively in the U.S.A., non-                                   FY 2007 FY 2008 FY 2009 FY 2010   FY 2011 FY 2012 Q1 2013

           exclusive elsewhere
           Manufactured pursuant to Misonix patents
           Market size is 1.6 million liposuction procedures
           worldwide, dominated by U.S., China and Brazil




                                 R



                                                                                                                                                          14
Strategic Direction

1.    Drive unit placements of BoneScalpel,
      SonicOne and SonaStar via capital sales,
      rentals, and “no cap” placements that feature
      high margin consumables and minimum
      purchase requirements

2.    Focus on high margin consumables for all
      product platforms

3.    Enhance efficiencies through more effective
      sales and marketing efforts

4.    Leverage the benefit of growing worldwide
      distribution

5.    Continue to add distribution agreements for
      other high margin products synergistic to our
      base businesses in wound care, neurosurgery
      and spine surgery
                      R



                                                      15
R




Financials
Total Revenues*
                                               *As a pure play medical device company
                                           Revenues                                                                                   Quarterly Revenues
                    $18                                                                                         $6.0

                                              $15.7                                                                                                                       $5.3
                    $16
                                                                                                                $5.0
                                                                                                                                                                                 $4.6
                    $14
                            $12.4
                    $12                                                                                         $4.0                          $3.8
                                                                                                                                                            $3.6   $3.6




                                                                                            $	
  millions	
  
$	
  millions	
  




                    $10                                                                                                                              $3.2
                                                                                                                                       $3.1
                                                                                                                $3.0           $2.8
                                                                                                                        $2.7
                     $8                                                                                                                                       Fiscal	
  2012	
  
                     $6                                                                                         $2.0
                                                                              $4.6

                    $4
                                                                                                                $1.0
                     $2

                                                                    	
  
                     $0                                      	
                                                 $0.0
                          FY	
  2011	
      FY	
  2012	
                   Q1	
  2013	
                                Sep10Dec10Mar11 Jun11Sep11Dec11Mar12Jun12Sep12


                                                R



                                                                                                                                                                                        17
Gross Margins*
                             *As a pure play medical device company
                       Gross Margins                                                     Quarterly Gross Margins
70%                                                                       66%


                                                           59.7%                                                        63.9%
                           58.8%                                          64%           63.4%
60%    57.3%


                                                                          62%
50%

                                                                                                                                                59.7%
                                                                          60%
40%                                                                                                                             58.7%

                                                                                                                                        57.7%
                                                                          58%

30%                                                                                                     56.2%
                                                                          56%
                                                                                                55.1%
                                                                                54.7%                           54.8%
20%
                                                                          54%
                                                                                                                           Fiscal	
  2012	
  
10%
                                                                          52%

                                                  	
  
0%                                         	
                             50%
      FY	
  2011	
        FY	
  2012	
                   Q1	
  2013	
           Sep10Dec10Mar11 Jun11Sep11Dec11Mar12Jun12Sep12


                              R



                                                                                                                                                        18
R&D vs. S&M

                                           R&D	
  vs.	
  Sales	
  and	
  Marke�ng	
  
                     $1.6	
  
                                                                                                                                 $1.5


                     $1.4	
  
                                                                                                                      $1.4

                                                                        $1.3


                     $1.2	
  
                                                                                                           $1.2
                                                                                   $1.2         $1.2

                                                             $1.1
                                                  $1.1

                     $1.0	
  
                                    $1.0
 $	
  millions	
  




                     $0.8	
  
                                                                                            Fiscal 2012
                     $0.6	
  
                                $0.46

                     $0.4	
  
                                            $0.42        $0.41      $0.42                                                    $0.40
                                                                               $0.39
                                                                                                       $0.33      $0.35
                                                                                           $0.30


                     $0.2	
  


                     $0.0	
  
                                 Sep10          Dec10     Mar11      Jun11      Sep11       Dec11       Mar12      Jun12      Sep12



                                                                               R&D        S&M
                                            R



                                                                                                                                        19
Enhance Efficiencies: Operating Expense
                                                                                                           Management Initiatives
                                                                                                   Focus on surgical market segments, which
                                               Operating Expense                                   feature high margin consumables and
                    $3.50	
                                                                        satisfactory reimbursement
                                                                                                   Develop and introduce additional disposable
                    $3.00	
                                                      $2.9   $2.9
                                                                                                   line extensions that address new surgical
                                                     $2.7   $2.7
                                              $2.5
                                                                   $2.6   $2.6                     applications
                    $2.50	
     $2.4   $2.4
                                                                                                   Endeavor to consistently control and/or reduce
                                                                                                   manufacturing costs, thus improving margins
                    $2.00	
  
$	
  millions	
  




                                                                                                   Patent technology whenever possible
                                                                                               	
  
                    $1.50	
                                          Fiscal 2012
                                                                                               Management	
  Ac�ons	
  
                                                                                                       Reduced headcount
                    $1.00	
  
                                                                                                            Increased effectiveness via
                                                                                                            multi-tasking
                    $0.50	
  

                                                                                                       Lowered operating costs by reducing
                    $0.00	
  
                                                                                                       size of facility and number of
                                Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12                  personnel

                                                                                                       Streamline operations for efficient
                                                              R                                        production and support functions
                                                                                                                                                    20
EPS (from continuing operations)*
                              *As a pure play medical device company
                             EPS                                                                          Quarterly EPS
$0.35                                                                      $0.14



$0.25
                                                                           $0.09


$0.15
                                                                           $0.04                                                       $0.03             $0.03

                                                                                                                                                                 $0.01
$0.05
                                                            $0.01
                                                                           ($0.01)                                                         Fiscal 2012
($0.05)
                                                                                                                                               ($0.03)

                            ($0.09)                                        ($0.06)
                                                                                                         ($0.06)
($0.15)
                                                                                               ($0.08)
                                                                                                                   ($0.09)
                                                                           ($0.11)
($0.25)
                                                                                     ($0.12)                                 ($0.12)

           ($0.30)                                 	
  
($0.35)                                     	
                             ($0.16)
                                                                                     Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12
          FY	
  2011	
     FY	
  2012	
                   Q1	
  2013	
  

                               R



                                                                                                                                                                    21
Selected Balance Sheet
•  Cash	
  and	
  investments:	
  $6.7M	
            Misonix	
  (Nasdaq:	
  MSON)	
  	
  
    •  $0.95	
  per	
  share	
  
                                                     Stock	
  Price:	
  $4.53*	
  
•  Net	
  Working	
  Capital:	
  $12.0M	
  
    •  $1.71	
  per	
  share	
  	
                   Market	
  Cap.:	
  $31.7	
  M*	
  
•  Total	
  Shareholder	
  Equity:	
  $15.7M	
         	
  
    •  $2.24	
  per	
  share	
  
                                                       	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
•  ZERO	
  Long-­‐term	
  debt	
  
                                                       	
  
•  Shares	
  Outstanding:	
  7.0M	
                    	
  
                                                       	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  *as	
  of	
  November	
  5,	
  2012	
  
•  Total	
  NOLs:	
  $7.5	
  Million	
  
    •  Expire	
  2026–	
  2031	
  

                          R



                                                                                                                                                                     22
Key Takeaways
    Implemen�ng	
  high	
  margin	
  consumables-­‐based	
  
    recurring	
  revenue	
  business	
  model	
  

    60%+	
  Gross	
  Margins	
  a�ainable	
  

    Strong	
  leverage	
  built	
  into	
  opera�ng	
  model	
  
        Products	
  are	
  fully	
  developed	
  and	
  marketable	
  
        Focus	
  on	
  opera�ng	
  expenses	
  and	
  efficiencies	
  
        R&D	
  and	
  S&M	
  investments	
  posi�on	
  company	
  
         for	
  improved	
  opera�onal	
  and	
  financial	
  results	
  

    Strong	
  patent	
  por�olio	
  

    Strong	
  balance	
  sheet	
  
        Solid	
  cash	
  posi�on	
  
        ZERO	
  long-­‐term	
  debt	
  	
  
        20%	
  of	
  market	
  cap	
  is	
  cash	
  
                                 R



                                                                           23
Management Team
Michael A. McManus, Jr.       CEO since late 1998.
                              Former President and CEO of New York Bancorp, Inc. before which he held
 President, CEO
                              senior positions with Jamcor Pharmaceutical, Pfizer and Revlon.
                              Prior Assistant to President Ronald Reagan.
Richard Zaremba               With company since early 1999.
                              Former VP and CFO of Comverse Information Systems, a manufacturer of
 Senior VP, CFO
                              digital voice recording systems.
 Treasurer, Secretary
                              Prior VP and CFO Miltrope Group, Inc.
Michael C. Ryan               Joined in 2007.
                              Former Senior VP and General Manager for Nomos Radiation Oncology.
 Senior VP, Sales & Mkt’g.
                              Prior Executive VP Business Development for Inter V, Inc. -- a medical device
                              company marketing specialty products for interventional radiology and
                              cardiology.
Dan Voic                      Approximately 15 years of senior scientific experience at Misonix.
                              Expertise and training in all phases of ultrasound technology.
 VP, R&D and Engineering

Ronald Manna                  Present position since 2002.
                              Former VP of R&D and Engineering, VP of Operations and Director of
 VP, Regulatory Affairs and
                              Engineering of the Company.
 Quality
Frank Napoli                  Joined in 2004.
                              Former VP of Manufacturing for Spellman High Voltage Electronics Corp.
 VP, Operations
                              Prior Director of Manufacturing for Telephonics Corporation.


                        R



                                                                                                              24
R




        Thank You
CORPORATE PRESENTATION
January 2013

ADVANCING ULTRASONIC SURGERY

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MicroCapClub Invitational: Misonix (MSON)

  • 1. R MISONIX, INC. (NASDAQ: MSON) CORPORATE PRESENTATION January 2013 ADVANCING ULTRASONIC SURGERY
  • 2. Forward Looking Statements With   the   excep�on   of   historical   informa�on   contained   in   this   presenta�on,   content   herein   may   contain  "forward  looking  statements"  that  are  made  pursuant  to  the  Safe  Harbor  Provisions  of  the   Private   Securi�es   Li�ga�on   Reform   Act   of   1995.   These   statements   are   based   on   management's   current   expecta�ons   and   are   subject   to   uncertainty   and   changes   in   circumstances.   Investors   are   cau�oned   that   forward-­‐looking   statements   involve   risks   and   uncertain�es   that   could   cause   actual   results   to   differ   materially   from   the   statements   made.   These   factors   include   general   economic   condi�ons,   delays   and   risks   associated   with   the   performance   of   contracts,   risks   associated   with   interna�onal  sales  and  currency  fluctua�ons,  uncertain�es  as  a  result  of  research  and  development,   acceptable  results  from  clinical  studies,  including  publica�on  of  results  and  pa�ent/procedure  data   with  varying  levels  of  sta�s�cal  relevancy,  risks  involved  in  introducing  and  marke�ng  new  products,   poten�al   acquisi�ons,   consumer   and   industry   acceptance,   li�ga�on   and/or   court   proceedings,   including   the   �ming   and   monetary   requirements   of   such   ac�vi�es,   the   �ming   of   finding   strategic   partners  and  implemen�ng  such  rela�onships,  regulatory  risks  including  approval  of  pending  and/or   contemplated   510(k)   filings,   the   ability   to   achieve   and   maintain   profitability   in   the   Company's   business   lines,   and   other   factors   discussed   in   the   Company's   Annual   Report   on   Form   10-­‐K,   subsequent   Quarterly   Reports   on   Form   10-­‐Q   and   Current   Reports   on   Form   8-­‐K.   The   Company   disclaims  any  obliga�on  to  update  its  forward-­‐looking  rela�onships.   R 2
  • 3. Company Overview   Misonix, Inc. (Nasdaq: MSON) develops ultrasonic Revenues     $50   $45.5   surgical devices for use in a wide variety of procedures $45   $42.4   $39.8   $40     Focused medical device company; divested non- $35   core businesses in 2008 - 2012 $  millions   $30     Operates in a recurring razor / razorblade model $25   –  39.2% of revenues recurring – FY 2012 $20   $14.4   $13.4   –  40.0% of revenues recurring – 1st Quarter FY $15   2013 $10   $15.7   $12.4     Misonix’s products are protected by strong patent $9.7   $10.7   $5   $8.1   $8.7   $4.6   portfolio $0   FY  2007   FY  2008   FY  2009   FY  2010   FY  2011   FY  2012   Q1  2013   Total  Medical  Revenue   –  Over 40 patents Total  Other  Revenue     Large worldwide revenue generating installed base; consistently growing   Products aimed at large and rapidly growing aging demographic R 3
  • 4. Company Highlights   Substantial Recurring Revenue Component –  40.0 % of revenues recurring – First Quarter 2013 –  39.2% of revenues recurring – FY 2012 –  48% of revenues recurring – FY 2011   Strong Balance Sheet –  $6.7 million cash (approximately 20% of current market value) –  ZERO long-term debt   Revenue Growth – FY 2013 - First Quarter –  42% growth –First Quarter 2013 vs. 2012 –  BoneScalpel TM – 220% growth - First Quarter 2013 vs. 2012 –  SonaStar® – 21% growth - First Quarter 2013 vs. 2012 –  SonicOne™ - 97% growth - First Quarter 2013 vs. 2012   Improving Gross Margins –  59.7% GM – First Quarter 2013 –  59.0% GM – FY 2012 –  58.0% GM – FY 2011 R 4
  • 5. Addressable Market Market Segment Surgical Competition Market size Specialties Worldwide Hard Tissue BoneScalpel™ Spine Orthopedics High-speed Burr $ 300 M * Neuro Small bone Maxillofacial Micro saw $ 300 M * Reconstructive ENT Hand, Foot & Ankle Total $ 600 M * Market Segment Surgical Competition Market size Specialties worldwide Soft Tissue SonicOne® Surgical Debridement Plastic Waterjet $ 300 M ** Reconstructive Scalpel, Curette General Vascular Ambulatory Podiatric Ultrasonic $ 100 M ** Debridement General Debridement Vascular Scalpel, Curette Total $ 400 M ** Market Surgical Competition Market size Soft Tissue Segment Specialties worldwide SonaStar® Tumor Neurosurgical Ultrasonic $ 100 M ** Resection General Aspirators Waterjet Total $ 100 M ** R * Millennium Research Group 2010 5 ** Misonix Estimates
  • 6. Sales & Distribution Domestic – Hybrid Sales Organization   2 Direct Neuro/Spinel Sales Territories   28 Contract Neuro/Spinel Sales Agencies with over 100 salespeople   9 Contract Wound Sales Agencies with over 40 salespeople   Supported by Misonix Sales directors (2) and regional Business Development Managers (10) International – Specialty Distributor Organization   45 Specialty Distributors with over 200 salespeople   Supported by Misonix Sales Directors (2) and Application Specialists (3) Private Label –   Aesculap is non-exclusive in the U.S. only for spine and cranial applications of BoneScalpel R 6
  • 8. BoneScalpel™: Overview BoneScalpel  TM  Revenues       Ultrasonic Bone Cutting System $5.5     Precision cuts with minimal loss of bone $4.8     $4.5   Spares soft tissue structures like delicate nerves*   Improved patient safety*   Relatively bloodless field – US’s hemostatic affect* $3.5   $3.3     $  millions   Encourages new surgical techniques* $2.5   $2.5     Faster overall procedure time* $2.1   $1.5   $1.1     Addressable Market $0.5     $300 million current worldwide market for spine. $0.2   $0.0   FY  2007   FY  2008   FY  2009   FY  2010   FY  2011   FY  2012   Q1  2013     $300 million maxillofacial, reconstructive and other small bone procedures -­‐$0.5     Hospital Price Points (ASP = Average Sales Price)   $35,000 ASP per capital system sale with $400 ASP for consumables per use   $500 ASP for consumables with consignment placement and minimum monthly purchases   Competition   Medtronic, Anspach, Stryker, Aesculap, Synthes, Stryker, MicroAire – Power Drills & Saws * Clinical Study completed at CHC Hospital, Liege, Belgium R ** 2009 data from Hospital Discharge Survey & H-CUPnet 8
  • 9. Drive Unit Placement: BoneScalpel™ # of Units Sold/Placed Management Initiatives 60   57 50     Target teaching hospitals to ensure future users, 43 including the use of ‘hands on’ workshops, cadaver 40   33 labs and other clinical education programs 30   29 30 20   Fiscal  2012   19 18 18 13   Expand global network of clinical thought leaders 10     0     Expand export network of specialty distributors Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12   Expand quantity and improve quality of domestic # of Consumable Sold sales agents and direct representatives 10,000   9,000   8,777 8,000   7,188 7,000   6,810   Utilize personal referrals from present users 6,000   worldwide 5,000   4,789 4,374 4,114 4,000   3,000     Expand number of using surgeons in each hospital Fiscal  2012   2,000   1,000   498 670 860   0     Penetrate spine and maxillofacial markets by Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 expanding into additional surgical procedures R 9
  • 10. SonicOne®: Overview SonicOne®Revenues       Tissue Selective Wound Debridement for diabetic foot $1.4   ulcers, venous ulcers, pressure ulcers, burns, trauma $1.3 wounds and infected bone   Ultrasound effectively debrides and cleanses soft $1.2   $1.1 tissue, eschar, infected bone $1.0     Ultrasound has been shown to shorten healing times1 $  millions   $0.8     Reduces number of debridements required1 $0.7 $0.7   Ultrasound is effective in disrupting, inactivating and $0.6   $0.5 removing bacterial organisms2 $0.4   $0.3 $0.2   Addressable Market $0.2     $0.0   $400 million worldwide FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Q1 2013   Hospital Price Points (ASP = Average Sales Price)   $35,000 ASP per capital system sale with $400 ASP for consumables per use, or, $1,995 per month rental, minimum 1 year + consumables   $500 ASP for consumables with consignment placement & minimum monthly purchases   Competition   Soering, Arobella, Smith & Nephew 1Clinical Study completed at Calvary Hospital, Bronx, NY R 2 Study conducted by Brook Army Medical Center, San Antonio, TX 10
  • 11. Drive Unit Placement: SonicOne® # of Units Sold/Placed Management Initiatives 12   11 10   10 10   Establish market leadership in Ultrasonic Wound Debridement by penetrating the inpatient surgical 8   7 7 market segment 6   6 5   Large, full service hospitals 4   4 Fiscal 2012   Burn hospitals 2   2   Long term acute care (LTAC) hospitals 0     Government hospitals Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12   Leverage full range of customer acquisition models # of Consumable Sold   Capital purchase, rentals, and fee per use 3,500   3,000   2,922 2,836 2,798 2,672 2,500   2,417 2,450   Strengthen clinical proof and its communication 2,000   1,710   Leverage global network of key opinion leaders and the referral base they can provide 1,500   1,400 1,341   1,000   Fiscal 2012 500     Target diabetic foot ulcers; 11 million per year worldwide 0   Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12   Leverage sales of synergistic products to own the R wound healing treatment protocol 11
  • 12. SonaStar®: Overview SonaStar®Revenues       Tissue Selective Tumor Removal   Fragmentation, emulsification and aspiration $7.0   of targeted tumors or tissue $6.0   $5.9   Precise bone sculpting for anatomical access $5.0     Neuro and General Surgeries $4.1 $4.0   $  millions   $3.5   Addressable Market $3.0   $2.3 $2.4 $2.1   $120 million worldwide, including: $2.0   $1.6   5,000 brain tumor surgeries per year $1.0     7,000 liver resection surgeries per year $0.0   FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Q1 2013   Hospital Price Points (ASP = Average Sales Price)   $85,000 ASP per capital system sale with $500 ASP for consumables per use, or, $4,500 per month rental, minimum 3 months + consumables   Competition   Integra Life Sciences, Stryker, Soering R 12
  • 13. Drive Unit Placement: SonaStar® 35   # of Units Sold Management Initiatives 30   30   Expand network of export specialty distributors 25   21 20   18 18 16 15   14   Expand quantity and improve quality of 10   9 8 9 Fiscal  2012   domestic sales agents and direct 5   representatives 0   Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar 12 Jun12 Sep12   Emphasize high margin consumables business # of Consumables Sold 4,500   4,182   Target teaching hospitals to ensure future users 4,000   3,869 3,646 3,500   3,340 3,381 3,219 3,000   2,500   2,190   Tap into large liver surgery market for aspirators 2,000   1,500   1,290 Fiscal  2012   1,000     877   Leverage full range of customer acquisition 500   models 0   Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12   capital purchase, leasing, rentals, and fee per use R 13
  • 14. Additional Products Addi�onal  Medical  Products     AutoSonix Revenues       Ultrasonic shears for laparoscopic cutting & $6.0   $5.6 $5.7 $5.0   coagulation $4.7 $4.5 $4.5   Licensed to Covidien, exclusively, worldwide $4.0   $3.7   $  millions   Manufactured pursuant to Misonix patents $3.0     Market size is approaching $ 1.0 billion worldwide, $2.0   Covidien’s market share is approximately 5% $1.0     LySonix $0.4   Ultrasound-assisted liposuction $0.0     Distributed by J&J exclusively in the U.S.A., non- FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Q1 2013 exclusive elsewhere   Manufactured pursuant to Misonix patents   Market size is 1.6 million liposuction procedures worldwide, dominated by U.S., China and Brazil R 14
  • 15. Strategic Direction 1.  Drive unit placements of BoneScalpel, SonicOne and SonaStar via capital sales, rentals, and “no cap” placements that feature high margin consumables and minimum purchase requirements 2.  Focus on high margin consumables for all product platforms 3.  Enhance efficiencies through more effective sales and marketing efforts 4.  Leverage the benefit of growing worldwide distribution 5.  Continue to add distribution agreements for other high margin products synergistic to our base businesses in wound care, neurosurgery and spine surgery R 15
  • 17. Total Revenues* *As a pure play medical device company Revenues Quarterly Revenues $18 $6.0 $15.7 $5.3 $16 $5.0 $4.6 $14 $12.4 $12 $4.0 $3.8 $3.6 $3.6 $  millions   $  millions   $10 $3.2 $3.1 $3.0 $2.8 $2.7 $8 Fiscal  2012   $6 $2.0 $4.6 $4 $1.0 $2   $0   $0.0 FY  2011   FY  2012   Q1  2013   Sep10Dec10Mar11 Jun11Sep11Dec11Mar12Jun12Sep12 R 17
  • 18. Gross Margins* *As a pure play medical device company Gross Margins Quarterly Gross Margins 70% 66% 59.7% 63.9% 58.8% 64% 63.4% 60% 57.3% 62% 50% 59.7% 60% 40% 58.7% 57.7% 58% 30% 56.2% 56% 55.1% 54.7% 54.8% 20% 54% Fiscal  2012   10% 52%   0%   50% FY  2011   FY  2012   Q1  2013   Sep10Dec10Mar11 Jun11Sep11Dec11Mar12Jun12Sep12 R 18
  • 19. R&D vs. S&M R&D  vs.  Sales  and  Marke�ng   $1.6   $1.5 $1.4   $1.4 $1.3 $1.2   $1.2 $1.2 $1.2 $1.1 $1.1 $1.0   $1.0 $  millions   $0.8   Fiscal 2012 $0.6   $0.46 $0.4   $0.42 $0.41 $0.42 $0.40 $0.39 $0.33 $0.35 $0.30 $0.2   $0.0   Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 R&D S&M R 19
  • 20. Enhance Efficiencies: Operating Expense Management Initiatives   Focus on surgical market segments, which Operating Expense feature high margin consumables and $3.50   satisfactory reimbursement   Develop and introduce additional disposable $3.00   $2.9 $2.9 line extensions that address new surgical $2.7 $2.7 $2.5 $2.6 $2.6 applications $2.50   $2.4 $2.4   Endeavor to consistently control and/or reduce manufacturing costs, thus improving margins $2.00   $  millions     Patent technology whenever possible   $1.50   Fiscal 2012 Management  Ac�ons     Reduced headcount $1.00     Increased effectiveness via multi-tasking $0.50     Lowered operating costs by reducing $0.00   size of facility and number of Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 personnel   Streamline operations for efficient R production and support functions 20
  • 21. EPS (from continuing operations)* *As a pure play medical device company EPS Quarterly EPS $0.35 $0.14 $0.25 $0.09 $0.15 $0.04 $0.03 $0.03 $0.01 $0.05 $0.01 ($0.01) Fiscal 2012 ($0.05) ($0.03) ($0.09) ($0.06) ($0.06) ($0.15) ($0.08) ($0.09) ($0.11) ($0.25) ($0.12) ($0.12) ($0.30)   ($0.35)   ($0.16) Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 FY  2011   FY  2012   Q1  2013   R 21
  • 22. Selected Balance Sheet •  Cash  and  investments:  $6.7M     Misonix  (Nasdaq:  MSON)     •  $0.95  per  share     Stock  Price:  $4.53*   •  Net  Working  Capital:  $12.0M   •  $1.71  per  share       Market  Cap.:  $31.7  M*   •  Total  Shareholder  Equity:  $15.7M     •  $2.24  per  share                       •  ZERO  Long-­‐term  debt     •  Shares  Outstanding:  7.0M                                      *as  of  November  5,  2012   •  Total  NOLs:  $7.5  Million   •  Expire  2026–  2031   R 22
  • 23. Key Takeaways   Implemen�ng  high  margin  consumables-­‐based   recurring  revenue  business  model     60%+  Gross  Margins  a�ainable     Strong  leverage  built  into  opera�ng  model     Products  are  fully  developed  and  marketable     Focus  on  opera�ng  expenses  and  efficiencies     R&D  and  S&M  investments  posi�on  company   for  improved  opera�onal  and  financial  results     Strong  patent  por�olio     Strong  balance  sheet     Solid  cash  posi�on     ZERO  long-­‐term  debt       20%  of  market  cap  is  cash   R 23
  • 24. Management Team Michael A. McManus, Jr. CEO since late 1998. Former President and CEO of New York Bancorp, Inc. before which he held President, CEO senior positions with Jamcor Pharmaceutical, Pfizer and Revlon. Prior Assistant to President Ronald Reagan. Richard Zaremba With company since early 1999. Former VP and CFO of Comverse Information Systems, a manufacturer of Senior VP, CFO digital voice recording systems. Treasurer, Secretary Prior VP and CFO Miltrope Group, Inc. Michael C. Ryan Joined in 2007. Former Senior VP and General Manager for Nomos Radiation Oncology. Senior VP, Sales & Mkt’g. Prior Executive VP Business Development for Inter V, Inc. -- a medical device company marketing specialty products for interventional radiology and cardiology. Dan Voic Approximately 15 years of senior scientific experience at Misonix. Expertise and training in all phases of ultrasound technology. VP, R&D and Engineering Ronald Manna Present position since 2002. Former VP of R&D and Engineering, VP of Operations and Director of VP, Regulatory Affairs and Engineering of the Company. Quality Frank Napoli Joined in 2004. Former VP of Manufacturing for Spellman High Voltage Electronics Corp. VP, Operations Prior Director of Manufacturing for Telephonics Corporation. R 24
  • 25. R Thank You CORPORATE PRESENTATION January 2013 ADVANCING ULTRASONIC SURGERY