Retractable Technologies, Inc. Announces Record 2006 Revenues of $25.3 Million on 32.6% Unit Sales Increase

LITTLE ELM, Texas–April 10, 2007–Retractable Technologies, Inc. (AMEX:RVP), a leading maker of safety needle devices, today reported record total revenues of $25.3 million for the year ended December 31, 2006, an increase of 4.5% over 2005. Unit sales rose 32.6%. These gains were due largely to higher sales volumes in the international and alternate care markets, which includes nursing homes. Total sales in 2006 also included $4.4 million in reimbursed discounts compared with $3.1 million in the previous year. This reimbursement program, which ended in 2006, stemmed from the Company’s 2003 legal settlement with a large hospital group purchasing organization (GPO).

Despite these improvements, the loss applicable to common shareholders for 2006 widened to $5.3 million, compared with $2.7 million in 2005. This resulted from significantly higher operating expenses, including sales and marketing expenses as well as general and administrative costs. Sales and marketing expenses, including compensation costs and travel and entertainment, rose as the Company continued to build its national sales force. General and administrative costs increased mainly because of higher legal costs, compensation expense, consulting costs, and taxes other than income taxes. As a result of these developments, the gross profit margin declined to 29.8% in 2006 from 36.3% the year before.

The provision for income tax benefits of $1.3 million consists primarily of federal taxes subject to carry back provisions. State income taxes are also subject to the various states’ carry back rules.

Further details are available on Form 10-K filed on April 2, 2007 with the Securities and Exchange Commission.

Retractable Technologies, Inc. manufactures and markets VanishPoint® automated retraction safety syringes and blood collection devices, which virtually eliminate health care worker exposure to accidental needlestick injuries. These revolutionary devices use a patented friction ring mechanism that causes the contaminated needle to retract automatically from the patient into the barrel of the device, a feature that is designed to prevent reuse. VanishPoint® safety needle devices are distributed by various specialty and general line distributors. For more information on Retractable, visit our Web site at www.vanishpoint.com.

Forward-looking statements in this press release are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 and reflect the Company’s current views with respect to future events. The Company believes that the expectations reflected in such forward-looking statements are accurate. However, the Company cannot assure you that such expectations will materialize. The Company’s actual future performance could differ materially from such statements.

Factors that could cause or contribute to such differences include, but are not limited t the Company’s ability to maintain liquidity; maintenance of patent protection; the impact of current and potential litigation; the impact of dramatic increases in demand; the Company’s ability to maintain and quickly increase its production capacity in the event of a dramatic increase in demand; the Company’s ability to access the market; the Company’s ability to decrease production costs; the Company’s ability to continue to finance research and development as well as operations and expansion of production; the increased interest of other larger market players, specifically Becton Dickinson and Company, Inc., in providing safety needle devices to their customers; and other risks and uncertainties that are detailed from time to time in the Company’s periodic reports filed with the Securities and Exchange Commission.

RETRACTABLE TECHNOLOGIES, INC.
BALANCE SHEETS

                                                   December 31,
                                             -------------------------
                                                2006         2005
                                             ------------ ------------
ASSETS
Current assets:
     Cash and cash equivalents               $46,814,689  $52,513,935
     Accounts receivable                       1,956,756    3,404,908
     Inventories, net                          6,385,780    3,297,726
     Income taxes receivable                   2,355,732      561,062
     Current deferred tax asset                        -    1,245,508
     Other current assets                        267,707      462,150
                                             ------------ ------------
        Total current assets                  57,780,664   61,485,289

Property, plant, and equipment, net           12,212,140   11,925,976
Intangible assets, net                           279,846      316,926
Other assets                                     522,294       27,334
                                             ------------ ------------
     Total assets                            $70,794,944  $73,755,525
                                             ============ ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
   Accounts payable                           $4,247,630   $2,345,613
   Current portion of long-term debt             261,905      295,417
   Accrued compensation                          472,573      388,726
   Marketing fees payable                      1,419,760    1,419,760
   Accrued royalties to shareholder                2,755      540,888
   Other accrued liabilities                     440,253      467,812
    Current deferred tax liability                45,697            -
                                             ------------ ------------
      Total current liabilities                6,890,573    5,458,216

Long-term debt, net of current maturities      4,137,231    4,350,625
Long-term deferred tax liability                  56,828      711,443
                                             ------------ ------------
     Total liabilities                        11,084,632   10,520,284
                                             ------------ ------------

Stockholders' equity:
   Preferred Stock $1 par value:
        Series I, Class B                        164,000      171,000
        Series II, Class B                       224,700      255,200
        Series III, Class B                      135,245      135,245
        Series IV, Class B                       553,500      556,000
        Series V, Class B                      1,363,721    1,381,221
Common Stock                                           -            -
 Additional paid-in capital                   54,709,108   54,307,053
 Retained earnings                             2,560,038    6,429,522
                                             ------------ ------------
       Total stockholders' equity             59,710,312   63,235,241
                                             ------------ ------------
       Total liabilities and stockholders'
        equity                               $70,794,944  $73,755,525
                                             ============ ============
RETRACTABLE TECHNOLOGIES, INC.
STATEMENTS OF OPERATIONS
                                       Years Ended December 31,
                                --------------------------------------

                                   2006         2005         2004
                                ------------ ------------ ------------
Sales, net                      $20,897,207  $21,156,666  $21,135,943
Reimbursed discounts              4,427,312    3,078,350      385,757
                                ------------ ------------ ------------
   Total sales                   25,324,519   24,235,016   21,521,700
                                ------------ ------------ ------------
Cost of Sales
   Costs of manufactured product 15,684,450   13,713,675   14,564,404
   Royalty expense to
    shareholder                   2,093,822    1,715,024    1,846,195
                                ------------ ------------ ------------
           Total cost of sales   17,778,272   15,428,699   16,410,599
                                ------------ ------------ ------------
   Gross profit                   7,546,247    8,806,317    5,111,101

Operating expenses:
   Sales and marketing            5,545,500    4,148,688    3,648,454
   Research and development         958,798      934,209      626,941
   General and administrative     7,756,647    6,600,133    8,834,527
                                ------------ ------------ ------------
      Total operating expenses   14,260,945   11,683,030   13,109,922
                                ------------ ------------ ------------
      Loss from operations       (6,714,698)  (2,876,713)  (7,998,821)

Interest income                   1,976,406    1,372,715      475,121
Interest expense, net              (411,154)    (339,688)    (243,922)
Litigation settlements, net               -            -   74,635,362
                                ------------ ------------ ------------
Net income (loss) before income
 taxes                           (5,149,446)  (1,843,686)  66,867,740
Provision (benefit) for income
 taxes                           (1,279,962)    (605,363)  12,176,345
                                ------------ ------------ ------------
   Net income (loss)             (3,869,484)  (1,238,323)  54,691,395
   Preferred Stock dividend
    requirements                 (1,451,321)  (1,502,887)  (1,993,516)
                                ------------ ------------ ------------
Earnings (loss) applicable to
 common shareholders             (5,320,805) ($2,741,210) $52,697,879
                                ============ ============ ============

Earnings (loss) per share -basic     ($0.23)      ($0.12)       $2.33
                                ============ ============ ============

Earnings (loss) per share
 -diluted                            ($0.23)      ($0.12)       $2.08
                                ============ ============ ============

Weighted average common shares
 outstanding                     23,591,999   23,332,277   22,600,166
                                ============ ============ ============


Contact:

Retractable Technologies, Inc., Little Elm
Investor Contact:
Douglas W. Cowan, 888-806-2626 or 972-294-1010
Vice President and Chief Financial Officer
rtifinancial@vanishpoint.com
or
Media Contact:
Phillip L. Zweig, 212-490-0811 or 214-912-7415 (cell)
Communications Director
plzweig@aol.com