LITTLE ELM, Texas, November 15, 2001— Retractable Technologies, Inc. (AMEX: RVP) (“Retractable”) a leading maker of safety needle devices, today reported record sales for the nine month period ending September 30, 2001. In addition, the company announced that it had received a $5 million capital infusion from Katie Petroleum, Inc.

Net revenues for the nine months ending September 30, 2001 were $12,762,425, an increase of 109% over the $6,109,417 reported in the comparable year-earlier period. For the quarter ended September 30, 2001, net revenues were $4,542,481, an increase of 21% from the $3,753,110 reported in the same period last year.

The sharp growth in sales for the nine months ended September 30, 2001 was accompanied by significant gains in operating efficiency. Gross margins for the nine months increased to 18% of net revenues from 5% a year ago.

During the third quarter of 2001, Retractable closed its plant for one week for maintenance and two and a half weeks to reconfigure aspects of the assembly equipment, which resulted in a more efficient assembly process. However, because of this shutdown, production volume declined during the quarter from previously achieved levels and unit costs increased significantly, resulting in a lower gross margin. With these improvements in assembly efficiency in place, Retractable expects that unit costs will once again continue to decline, resuming the trend of decreasing unit costs.

Although operating expenses (excluding IPO costs) increased $182,207 for the nine months ended September 30, 2001 from the same period last year, operating expenses (excluding IPO costs) as a percentage of net revenues decreased to 57% from 116%.

Retractable incurred expenses of $540,273 in connection with its public offering, which was filed on December 22, 2000 and which was declared effective by the Securities and Exchange Commission on May 3, 2001. On September 20, 2001 Retractable filed a post-effective amendment to withdraw Retractable’s offering of 2,000,000 shares of common stock. Effective with the decision to withdraw this offering, Retractable expensed all deferred IPO costs, resulting in a charge in the third quarter of 2001 of $540,273.

The company is also pleased to announce a $5 million capital infusion through a convertible debt instrument from Katie Petroleum, Inc., which was co-founded in partnership by John A. Jackson and Katherine G. Jackson, his late wife. The proceeds will be used for working capital, construction of a 15,000 square foot warehouse, and purchase of approximately $1.5 million of outstanding debt.

“This agreement comes at an opportune point in Retractable’s history,” said Retractable President and CEO, Thomas J. Shaw. “Mr. Jackson’s investment in Retractable is a strong vote of confidence in the company and its management. We are delighted to have Mr. Jackson as an investor and a supporter of our mission,” Mr. Shaw said. For a detailed discussion of financial performance for the nine months and three months ended September 30, 2001, see Management’s Discussion and Analysis in the Form 10-QSB filed November 14, 2001, 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. VanishPoint® safety needle devices are distributed to the acute care hospital market by Abbott Laboratories (NYSE:ABT – news) and to the alternate care market by various specialty and general line distributors. For more information on Retractable, visit our Web site at

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 occur. 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 to: the impact of dramatic increases in demand, the company’s ability to quickly increase its production capacity in the event of a dramatic increase in demand, the company’s ability to continue to finance research and development as well as operations and expansion of production through equity and debt financing, as well as sales, the increased interest of larger market players in providing safety needle devices 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.

Investor Contact:
Douglas W. Cowan
Chief Financial Officer
(888) 806-2626 or (972) 294-1010

Media Contact:
Phillip L. Zweig
Communications Director
(212) 490-0811