AFP Imaging Reports Breakeven First Quarter Results for Fiscal Year Ending June 30, 2000.

ELMSFORD, N.Y.--(BUSINESS WIRE)--November 11, 1999--

AFP Imaging Corporation (NASDAQ: AFPC) today reported the results for the first quarter of Fiscal Year 2000. Net sales were $6,400,193 as compared to $7,331,109 for the first quarter Fiscal 1999. The Company reported a breakeven in net income for the first quarter of $1,995 or ($--) per share compared to a net loss of ($173,444) or ($.02) per basic share last year in the comparable quarter. Operating Income for the first quarter was $115,045 compared to a loss of ($1,975) a year ago. This is the first operating profit and net income in the past two years. The Company has made significant improvements by reducing infrastructure expenses and re-aligning operations to match the current sales level. In addition, total corporate debt has been reduced to $6.1 million which is its lowest level since December 1997 when it stood at $7.5 million. This is a net result of restructurings and debt repayments over the past two years.

The Company continues to focus on building its sales distribution efforts and recently participated in two major dental shows, the American Dental Association (ADA) and the FDI World Dental Congress in Mexico. Both shows attract worldwide recognition, and the Company's products were well represented. Later this month, the Company will demonstrate its products at the Radiological Society of North America (RSNA) in Chicago and the Greater New York Dental Meeting.

AFP Imaging is a medical equipment supplier whose imaging products are widely applied in dental and medical diagnostics. The Company's new products and imaging technology is providing the gateway for future growth. AFP's products are used by medical, dental and industrial professionals. Dental products include x-ray units, digital x-ray sensors, film processors, chemistry, video cameras and panoramic units. The Company's products are sold worldwide under various brand names which include AFP, DENT-X and SENS-A-RAY 2000(TM). -0-

                            Three Months Ended
                              September 30,
                            1999         1998

Net Sales                 $6,400,193  $7,331,109
                          ----------  ----------

Operating Income (Loss)     $115,045    ($1,975)

(Loss) Before Taxes         ($1,165)  ($161,444)

Provision (Benefit)
  for Taxes                  ($3,160)    $12,000

Net Income (Loss)             $1,995  ($173,444)

Net Income (loss) per share
     Basic                      $---      ($.02)
     Fully Diluted              $---      ($.02)

Weighted average shares
 outstanding
     Basic                 9,271,054   9,767,949
     Fully Diluted         9,275,346   9,767,949

The remarks contained in this press release and presented elsewhere by management from time to time contain forward-looking statements which involve risks and uncertainties. The Company's actual results may differ significantly from the results discussed in this press release or in other forward -looking statements presented by management. Among the factors that could cause actual results to differ materially include failure of revenue on new products to develop as estimated, regulatory delays, loss of existing customers, general downward trends in the Company's industry and other risk factors detailed from time to time in the Company's reports filed with the SEC.