AFP Imaging Reports Fourth Quarter and Fiscal Year End June 30,1999 Results.

ELMSFORD, N.Y.--(BUSINESS WIRE)--Sept. 28, 1999--

AFP Imaging Corporation (NASDAQ: AFPC) today reported the results for its June 30, 1999 fiscal year end. Annual net sales were $29,370,338 as compared to the previous year's net sales of $33,772,707. The Company reported a net loss for the year of $2,206,942 or ($.24) per basic share. In the third and fourth quarters, the Company restructured and reduced a significant subordinate note, and simultaneously wrote-off the associated goodwill. This resulted in a net charge of $750,000 to earnings.

The fourth quarter revenues for this year were $7,541,216 compared to the prior period's revenue of $7,458,751. The net loss for the fourth quarter was reduced to $179,320 or ($.02) per basic share as compared to $624,770 or ($.06) per basic share a year ago. The fourth quarter's revenues were approximately $840,000 higher than the immediate past third quarter, indicating an improvement in the acceptance of the Company's line of products in the dental market.

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          Twelve Months Ended
                            June 30,                     June 30,

                        1999         1998         1999         1998
                        ----         ----         ----         ----

Net Sales            $7,541,216  $7,458,751  $29,370,338  $33,772,707
                     ----------  ----------  -----------  -----------

Income (Loss) before
  Special Charges    ($315,370)  ($611,266) ($1,590,309)      $57,402

Special Charges             ---         ---     $750,000   $3,320,983

(Loss) Before Taxes  ($315,370)  ($611,266) ($2,340,309) ($3,263,581)

Provision (Benefit)
 for Taxes           ($136,050)     $13,504   ($133,367)      $63,984

Net (Loss)           ($179,320)  ($624,770) ($2,206,942) ($3,327,565)

Net (loss) per share
       Basic             ($.02)      ($.06)       ($.24)       ($.34)
       Fully Diluted     ($.02)      ($.06)       ($.24)       ($.34)

Weighted average
 shares
 outstanding
       Basic          9,395,278   9,767,949    9,271,057    9,767,949

                      ------------------------------------------------
       Fully Diluted  9,395,278   9,767,949    9,271,057    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.