Retractable Technologies, Inc. Reports $5.8 Million in First Quarter Revenues as Unit Sales Increase 61.5%

LITTLE ELM, Texas–May 16, 2007–Retractable Technologies, Inc. (AMEX:RVP), a leading maker of safety needle devices, today reported revenues of $5.8 million for the three months ended March 31, 2007, an increase of 4.5% over the same 2006 period. Unit sales rose 61.5%. These gains were due largely to higher international sales volumes, primarily through the Global HIV/AIDS initiative.

The loss applicable to common shareholders in the first quarter widened to $2.6 million from $1.0 million in 2006. This resulted from lower average sales prices, which reduced the profit margin to 21.8% in 2007 from 34.6% in 2006. The Company also incurred higher sales and marketing expenses as well as general and administrative costs. Sales and marketing compensation costs and travel and entertainment expense rose as the Company continued to build its national sales force. General and administrative costs increased principally due to higher legal costs.

Income tax benefits for the first quarter of 2007 are fully reserved. In contrast, the benefit for income taxes of $289,000 in the same period last year consisted 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 in our Form 10-Q filed on May 15, 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

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 the Company’s patent protection; the impact of current 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.

                       CONDENSED BALANCE SHEETS

                                           March 31, 2007 December 31,
                                            (unaudited)      2006
                                           -------------- ------------

Current assets:
    Cash and cash equivalents                $45,302,332  $46,814,689
    Accounts receivable, net                   2,550,762    1,956,756
    Inventories, net                           6,989,837    6,385,780
    Income taxes receivable                    2,357,811    2,355,732
    Other current assets                         336,372      267,707
                                           -------------- ------------
       Total current assets                   57,537,114   57,780,664

Property, plant, and equipment, net           12,041,764   12,212,140
Intangible assets, net                           376,401      279,846
Other assets                                     508,898      522,294
                                           -------------- ------------
       Total assets                          $70,464,177  $70,794,944
                                           ============== ============

Current liabilities:
    Accounts payable                          $5,591,786   $4,247,630
    Current portion of long-term debt            281,075      261,905
    Accrued compensation                         632,041      472,573
    Dividends payable                            979,193           --
    Marketing fees payable                     1,419,760    1,419,760
    Accrued royalties to a shareholder           442,155        2,755
    Other accrued liabilities                    499,587      440,253
    Current deferred tax liability                39,159       45,697
                                           -------------- ------------
       Total current liabilities               9,884,756    6,890,573

Long-term debt, net of current maturities      4,054,542    4,137,231
Long-term deferred tax liability                  51,290       56,828
                                           -------------- ------------
       Total liabilities                      13,990,588   11,084,632
                                           -------------- ------------

Stockholders' equity:
 Preferred stock $1 par value:
    Series I, Class B                            144,000      164,000
    Series II, Class B                           224,700      224,700
    Series III, Class B                          135,245      135,245
    Series IV, Class B                           553,500      553,500
    Series V, Class B                          1,338,721    1,363,721
    Common stock, no par value                        --           --
    Additional paid-in capital                53,793,468   54,709,108
    Retained earnings                            283,955    2,560,038
                                           -------------- ------------
       Total stockholders' equity             56,473,589   59,710,312
                                           -------------- ------------
       Total liabilities and stockholders'
        equity                               $70,464,177  $70,794,944
                                           ============== ============

                                           Three Months  Three Months
                                              Ended          Ended
                                            March 31,     March 31,
                                                2007          2006
                                           ------------- -------------

Sales, net                                   $5,773,823    $3,881,805
Reimbursed discounts                                 --     1,640,925
                                           ------------- -------------
      Total sales                             5,773,823     5,522,730
                                           ------------- -------------
Cost of sales                                 4,514,314     3,611,190
                                           ------------- -------------
Gross profit                                  1,259,509     1,911,540
                                           ------------- -------------

Total operating expenses:                     3,999,995     3,151,972
                                           ------------- -------------
  Loss from operations                       (2,740,486)   (1,240,432)

Interest and other income                       541,197       462,197
Interest expense, net                           (76,794)     (110,707)
                                           ------------- -------------
Net loss before income taxes                 (2,276,083)     (888,942)
Benefit for income taxes                             --      (289,004)
                                           ------------- -------------
  Net loss                                   (2,276,083)     (599,938)
  Preferred stock dividend requirements        (355,051)     (367,078)
                                           ------------- -------------
Loss applicable to common shareholders      $(2,631,134)    $(967,016)
                                           ============= =============

Loss per share - basic and diluted               ($0.11)       ($0.04)
                                           ============= =============

Weighted average common shares outstanding   23,676,664    23,521,551
                                           ============= =============


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