<html>
  <head>
    <title>
      Form S-8
</title>
<!-- Licensed to: Thelen Reid & Priest-->
<!-- Document Created using EDGARIZER HTML 3.0.3.0 -->
<!-- Copyright 2005 EDGARfilings, Ltd., an IEC company.-->
<!-- All rights reserved EDGARfilings.com -->
</head>
  <body bgcolor="#ffffff">
    <div>&#160;</div>
    <div><font style="DISPLAY: inline; FONT-SIZE: 9pt; FONT-FAMILY: Times New Roman"><a href="#toc">Table
      of Contents</a></font></div>
    <div>&#160;</div>
    <div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>As
        Filed with the Securities and Exchange Commission on March 3,
        2006</strong></font><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Registration
          No. 333-__________</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
        <div>
          <hr style="MARGIN-TOP: -5px; COLOR: #000000" noshade size="4">
          <hr style="MARGIN-TOP: -10px; COLOR: #000000" noshade size="1">
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>U.S.
        SECURITIES AND EXCHANGE COMMISSION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Washington,
        D.C. 20549</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;

        <div>
          <hr style="COLOR: black" align="center" noshade size="1" width="30%">
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FORM
        S-8</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>REGISTRATION
        STATEMENT UNDER THE</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
        ACT OF 1933</strong></font></div>
      <div>&#160;

        <div>
          <hr style="COLOR: black" align="center" noshade size="1" width="30%">
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>CAPRIUS,
        INC.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
        name of registrant as specified in its charter)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div align="left">
        <table border="1" cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td valign="top" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Delaware</strong></font></div>
              </td>
              <td valign="top" width="46%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22-2457487</font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
                  or other jurisdiction of</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">incorporation
                  or organization)</font></div>
              </td>
              <td valign="top" width="46%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS
                  Employer Identification No.)</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">One
        University Plaza, Suite 400</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Hackensack,
        NJ 07601</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
        of Principal Executive Offices) (Zip Code)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>1993
        Stock Option Plan</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2002
        Stock Option Plan</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Full
        title of the plan)</font></div>
      <div align="left">
        <table border="1" cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td valign="top" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Jonathan
                  Joels</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Treasurer
                  and Chief Financial Officer</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Caprius,
                  Inc.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">One
                  University Plaza, Suite 400</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Hackensack,
                  NJ 07601</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(201)
                  342-0900</font></div>
              </td>
              <td valign="top" width="46%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Copy
                  to:</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bruce
                  A. Rich, Esq.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Thelen
                  Reid &amp; Priest LLP</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">875
                  Third Avenue</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">New
                  York, New York 10022</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(212)
                  603-2000</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Name,
        address, telephone number, including area code, of agent for
        service)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CALCULATION
        OF REGISTRATION FEE</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
          <div>
            <hr style="COLOR: black" align="left" noshade size="1" width="100%">
          </div>
        </div>
        <div align="left">
          <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="100%">

              <tr>
                <td valign="bottom" width="37%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Title
                    Of Securities</strong></font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>To
                    Be Registered</strong></font></div>
                </td>
                <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Amount
                    to be</strong></font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>registered</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(1)</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Proposed
                    maximum offering price per share</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                <td colspan="2" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Proposed
                    maximum aggregate offering</strong></font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>price</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                <td colspan="2" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Amount
                    of</strong></font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Registration
                    Fee</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              </tr>
              <tr bgcolor="#e2eef6">
                <td align="left" valign="bottom" width="37%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                    Stock $.01 par value</font></div>
                </td>
                <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">190,200</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(2</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1.60
                    (5</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">304,320</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">35.82</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="37%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                    Stock $.01 par value </font></div>
                </td>
                <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">509,800</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(3</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2.29
                    (6</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,166,750</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">137.33</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              </tr>
              <tr bgcolor="#e2eef6">
                <td align="left" valign="bottom" width="37%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                    Stock $.01 par value </font></div>
                </td>
                <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">34,925</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(4</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4.19
                    (6</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">146,475</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">17.24</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="37%" style="border-bottom: black double;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total</font></div>
                </td>
                <td width="2%" style="border-bottom: black double;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">734,925
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: black double;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: black double;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="14%" style="border-bottom: black double;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,617,545</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: black double;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="14%" style="border-bottom: black double;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">190.39</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              </tr>

          </table>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <div>&#160;</div>
        <div>
          <hr style="COLOR: black" align="left" noshade size="1" width="20%">
        </div>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 18pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
                  to Rule 416(a) under the Securities Act of 1933, as amended (the
                  &#8220;Securities Act&#8221;), this registration statement also covers any additional
                  securities to be offered or issued as a result of a stock split,
                  stock
                  dividend or similar transactions.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 18pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shares
                  issuable upon exercise of options available for grant under 2002
                  Stock
                  Option Plan.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 18pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shares
                  issuable upon exercise of options previously granted under the
                  2002 Stock
                  Option Plan.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 18pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shares
                  issuable upon exercise of options previously granted under the
                  1993 Stock
                  Option Plan.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 18pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Estimated
                  solely for the purpose of calculating the registration fee as determined
                  in accordance with Rule 457(c) and (h) under the Securities Act
                  (based on
                  the closing price per share of the common stock as reported on
                  the OTCBB
                  as of March 1, 2006.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 18pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(6)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
                  to Rule 457(h) under the Securities Act, the proposed maximum offering
                  price per share was calculated based on the weighted average exercise
                  price of the options granted.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proposed
        sales to take place as soon as possible after the effective date of the
        Registration Statement as options granted under the Plan and the Agreements
        are
        exercised.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="center">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#toc">Table
            of Contents</a></font></div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EXPLANATORY
        NOTE</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Caprius,
        Inc. (the &#8220;Company or &#8220;we&#8221;) has prepared this Registration Statement in
        accordance with the requirements of Form S-8 under the Securities Act of
        1933,
        as amended (the &#8220;Securities Act&#8221;), to register an aggregate of 734,925 shares of
        our common stock, par value $0.01 per share, that are reserved for issuance
        upon
        exercise of options granted or to be granted under (1) our 2002 Stock Option
        Plan (the &#8220;2002 Plan&#8221;) and (2) our 1993 Stock Option Plan (the &#8220;1993
        Plan&#8221;).</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
        Registration Statement also includes a prospectus (the &#8220;Reoffer Prospectus&#8221;)
        prepared in accordance with General Instruction C of Form S-8 and in accordance
        with the requirements of Part I of Form S-3. This Reoffer Prospectus may
        be used
        for reofferings and resales of shares of common stock which may be deemed
        to be
&#8220;control securities&#8221; under the Securities Act and the rules and regulations
        promulgated thereunder that have been acquired by the Selling Stockholders
        identified in the Reoffer Prospectus. The number of shares of common stock
        included in the Reoffer Prospectus represents the total number of shares
        of
        common stock that may be acquired by the Selling Stockholders upon exercise
        of
        options previously granted under the 2002 Plan, and does not necessarily
        represent a present intention to sell all such shares of common
        stock.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        second part of this Registration Statement contains information required
        in
        accordance with the requirements of Part II of Form S-8.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="center">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#toc">Table
            of Contents</a></font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PART
        I</strong></font><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INFORMATION
        REQUIRED IN THE SECTION 10(a) PROSPECTUS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        1.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;</font></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Plan
        Information</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
        filed
        as part of this Registration Statement as permitted by the Note to Part&#160;1
        of Form&#160;S-8.&#160; The documents containing the information specified in
        this item have been or will be sent or given to participants in the 2002
        Stock
        Option Plan and the 1993 Plan as specified by Rule&#160;428(b)(1)&#160;under the
        Securities Act. These documents are not being filed with the Securities and
        Exchange Commission (the &#8220;Commission&#8221;), but constitute along with the documents
        incorporated by reference into this Registration Statement, a prospectus
        that
        meets the requirements of Section 10(a) of the Securities Act.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        2.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;</font></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Registrant
        Information and Employee Plan Annual Information</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        will
        furnish without charge to each person to whom the prospectus is delivered,
        upon
        the written or oral request of such person, a copy of any and all of the
        documents incorporated by reference in Item 3 of Part II of this Registration
        Statement, other than exhibits to such documents (unless such exhibits are
        specifically incorporated by reference to the information that is incorporated).
        Those documents are incorporated by reference in the Section 10(a) prospectus.
        Requests should be directed to Caprius, Inc., One University Plaza, Suite
        400,
        Hackensack, NJ 07601, Attention: President. Telephone: (201)
        342-0900.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="center">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#toc">Table
            of Contents</a></font></div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">REOFFER
        PROSPECTUS</font><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CAPRIUS,
        INC.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">334,175
        shares of Common Stock</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
        prospectus is being used for the offering and sale of up to an aggregate
        of
        334,175 shares (the &#8220;Shares&#8221;) of our common stock that may be issued to certain
        of our officers and directors (the &#8220;Selling Stockholders&#8221;) upon their exercise
        of options granted to them under our 2002 Stock Option Plan (the &#8220;2002 Plan&#8221;)
        and the 1993 Stock Option Plan (the &#8220;1993 Plan&#8221;). </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Selling Stockholders, or their permitted transferees, who are listed in the
        section of this prospectus entitled &#8220;Selling Stockholders,&#8221; may offer any or all
        of the Shares owned by them that are covered by this prospectus for resale
        from
        time to time. We will not receive any proceeds from the sale of the Shares;
        however, we will receive the proceeds, if any, from the exercise of the options
        and original issue of the Shares. We will pay all of the expenses associated
        with this prospectus. The Selling Stockholders will pay the other costs,
        such as
        brokerage commissions, if any, associated with the sale of the
        Shares.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Shares that are issuable to the Selling Stockholders may be &#8220;restricted
        securities&#8221; under the Securities Act of 1933, as amended (the &#8220;Securities Act&#8221;),
        before their sale under this prospectus. We have prepared this prospectus
        for
        the sole purpose of registering the Shares under the Securities Act in order
        to
        allow them to offer and sell the Shares to the public, subject to any
        contractual limitations or legal restrictions.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        common stock is currently traded on an over-the-counter bulletin board under
        the
        symbol CAPS.OB. On March 1, 2006, the closing price for our common stock
        was
        $1.60. You are urged to obtain current market quotations for our common stock
        before purchasing any of the Shares being offered for sale pursuant to this
        prospectus.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Investing
        in our common stock involves risks that are described in the &#8220;Risk Factors&#8221;
section beginning on page 8.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NEITHER
        THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION
        HAS
        APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ACCURACY OR
        ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
        OFFENSE.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        date
        of this Prospectus is March 3, 2006.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="center">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#toc">Table
            of Contents</a></font></div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="toc">TABLE
        OF CONTENTS</a></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Page</u></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#the_company">THE
                  COMPANY</a></font></div>
              </td>
              <td align="right" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#cautionary_note">CAUTIONARY
                  NOTE REGARDING FORWARD LOOKING
                  STATEMENTS</a></font></div>
              </td>
              <td align="right" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#risk_factors">RISK
                  FACTORS</a></font></div>
              </td>
              <td align="right" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#use_proceeds">USE
                  OF PROCEEDS</a></font></div>
              </td>
              <td align="right" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#description_securities">DESCRIPTION
                  OF SECURITIES TO BE
                  REGISTERED</a></font></div>
              </td>
              <td align="right" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#selling_stockholders">SELLING
                  STOCKHOLDERS</a></font></div>
              </td>
              <td align="right" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#plan_distribution">PLAN
                  OF DISTRIBUTION</a></font></div>
              </td>
              <td align="right" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#experts">EXPERTS</a></font></div>
              </td>
              <td align="right" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#legal_matters">LEGAL
                  MATTERS</a></font></div>
              </td>
              <td align="right" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#additional_info">ADDITIONAL
                  INFORMATION</a></font></div>
              </td>
              <td align="right" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="#incorporation_reference">INCORPORATION
                  OF CERTAIN DOCUMENTS BY
                  REFERENCE</a></font></div>
              </td>
              <td align="right" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">14</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">You
        should rely only on the information contained in this prospectus. We have
        not
        authorized anyone to provide you with any information that is different from
        the
        information contained in this prospectus. The Selling Stockholders are offering
        to sell, and seeking offers to buy, the Shares only in jurisdictions where
        such
        offers and sales are permitted. The information contained in this prospectus
        is
        accurate only as of the date of the front cover of this Prospectus, regardless
        of the time of the delivery of this prospectus or of any sale of the Shares.
        Our
        business, financial condition, results of operations and prospects may have
        changed since that date.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="center">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">3</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#toc">Table
            of Contents</a></font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="the_company">THE
</a>COMPANY</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>General</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Caprius,
        Inc. was founded in 1983. Through our subsidiary M.C.M. Environmental
        Technologies, Inc., (&#8220;MCM&#8221;), we are engaged in the development, marketing and
        sale of the SteriMed and SteriMed Junior Compact Systems in the U.S. and
        international markets. The SteriMed Systems simultaneously shred and disinfect
        regulated medical waste. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Through
        June 1999, we essentially operated in the business of developing specialized
        medical imaging systems, as well as operating the Strax Institute, a
        comprehensive breast imaging center. In June 1999, we acquired Opus Diagnostics,
        Inc. and began manufacturing and selling medical diagnostic assays constituting
        the Therapeutic Drug Monitoring Business (the &#8220;TDM Business&#8221;). In October 2002,
        we sold the TDM business. The Strax Institute was sold in September 2003.
        In
        December 2002, we acquired 57.33% of the capital stock of MCM, and subsequently
        increased our ownership of MCM to 96.66% as of September 30, 2005. In February
        2006, we closed the sale of shares of our Series D Convertible Preferred
        Stock
        and our 2006 Series A and B Warrants in a private placement for net proceeds
        of
        $2.7 million.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Description
        of MCM Environmental Technologies, Inc. Business</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Background
        of the Regulated Medical Waste Industry in the United
        States</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        1988,
        the Federal Government passed the Medical Waste Tracking Act (&#8220;MWTA&#8221;). This Act
        defined medical waste and the types of medical waste that were to be regulated.
        In addition to defining categories of medical waste, the law mandated that
        generators of Regulated Medical Waste (&#8220;RMW&#8221;) be responsible for and adhere to
        strict guidelines and procedures when disposing of RMW. The mandates included
        a
&#8220;cradle to grave&#8221; responsibility for any RMW produced by a facility, the
        necessity to track the disposal of RMW and defined standards for segregating,
        packaging, labeling and transporting of RMW.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        MWTA
        led to the development of individual state laws regulating how RMW is to
        be
        disposed of. As a result of these laws, it became necessary for medical waste
        generating facilities to institute new procedures and processes for transporting
        medical waste from the facility to an offsite treatment and disposal center,
        or
        obtain their own on-site system for treatment and disposal acceptable to
        the
        regulators. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        other
        major impact on the RMW market was the adoption of the Clean Air Amendments
        of
        1997. This act dramatically reduced or eliminated the type of emissions that
        are
        permitted from the incineration of RMW. Due to this, generators of RMW, which
        were incinerating their waste, were forced into costly upgrades of their
        incinerators or to find other methods of disposal. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Most
        generators of RMW use waste management firms to transport, treat and dispose
        of
        their waste. Due to&#160;legislative and other market factors, the costs for
        this type of service have been increasing at a dramatic pace. At the same
        time,
        many medical waste generators are coming under increasing pressure to reduce
        expenses as a result of the decreasing reimbursement payments from Medicare
        and
        other third party providers. Additionally, the added liability of RMW generators
        as a result of the &#8220;cradle to grave&#8221; manifest requirement has made it more
        attractive to use medical waste management methods that do not require tracking
        systems. The combination of these pressures is forcing medical waste generators
        to seek innovative methods for their waste disposal. We believe these factors
        create a demand for an onsite RMW treatment option. MCM has identified and
        is
        working with specific segments and niches within the RMW market on which
        it
        feels it might capitalize. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Background
        of the Regulated Medical Waste Industry Outside of the United
        States</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        industrialized countries of the European Union and Japan are implementing
        medical waste laws that are or will be similar to U.S. regulations. In 1994,
        the
        European Commission implemented a directive where member states had to adhere
        to
        the provisions of the United Nations Economic Commission for Europe (&#8220;UNECE&#8221;)
        European Agreement on the International Carriage of Dangerous Goods by Road.
        This requires that clinical or medical waste be packed, marked, labeled and
        documented according to defined specifications. Regulations and</font></div>
      <div>&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="center">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">4</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#toc">Table
            of Contents</a></font></div>
        </div>
      </div>
      <div>&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">cost
        factors have prompted European RMW generators to seek alternative medical
        waste
        disposal options. MCM recognizes an excellent opportunity for SteriMed sales
        in
        Europe, and is working with regulators, potential joint venture partners
        and
        distributors.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Throughout
        the less industrialized and third world countries, the disposal of hospital
        waste is coming under increasing scrutiny and regulations. Many countries
        are in
        the process of updating and enforcing regulations regarding the disposal
        of RMW.
        MCM is attempting to establish relationships worldwide directly or through
        distributors, in many of these countries.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
        MCM SteriMed Systems</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        SteriMed Systems are patented, environmentally friendly, on-site disinfecting,
        shredding and disposal systems that can process regulated clinical waste,
        including sharps, dialysis filters, pads, bandages, plastic tubing and even
        glass</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
        in a 15
        minute cycle</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
        The
        units, comparable in size to a washer-dryer, simultaneously shred, grind,
        mix
        and disinfect the waste with the proprietary Ster-Cid&#174; solution. After
        treatment, the material may be discarded as unrecognizable conventional solid
        waste, in accordance with appropriate regulatory requirements. The resultant
        treated waste is as low as 10% of the original volume.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        SteriMed Systems are comprised of two different sized units, and the required
        Ster-Cid&#174; disinfectant solution which can be utilized with both units. The
        larger SteriMed can treat up to 20 gallons (75 liters) of medical waste per
        cycle. The smaller version, SteriMed Junior, can treat 4 gallons (15 liters)
        per
        cycle. As the technology for disinfection is chemical based, within the
        definitions used in the industry, it is considered as an alternative treatment
        technology.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        have
        the worldwide exclusive rights for the manufacture, use and sale of the
        Ster-Cid</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        proprietary disinfectant used in the SteriMed System. The Ster-Cid</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        is
        currently manufactured solely for us by the licensor. In the event that the
        licensor is unable to manufacture the Ster-Cid</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
        we have
        the right to have Ster-Cid&#174; manufactured by an alternative manufacturer.
        Ster-Cid</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        is
        approximately 90% biodegradable. Ster-Cid</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        is
        considered a pesticide by the U.S. EPA and, in compliance with Federal
        Insecticide, Fungicide, Rodenticide Act of 1972 (&#8220;FIFRA&#8221;), and it is registered
        with the U.S. EPA. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        process</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        of
        registering a pesticide under FIFRA involves submission of an application
        package to the U.S. EPA. The EPA&#8217;s review of this application includes
        assessment of the hazards to human health and the environment that may be
        posed
        by the pesticide. This process can take up to a year or more to complete.
        MCM
        had assigned an agent experienced with the FIFRA registration process to
        carry
        out this process for Ster-Cid</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
        This
        process was completed in September 1999 at which time the Ster-Cid</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;
        </sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">was
        assigned a FIFRA Registration number. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
        the SteriMed disinfecting cycle, the concentration of Ster-Cid&#174; is approximately
        0.5% of the total volume of liquids. The Ster-Cid</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        disinfectant has been tested in independent laboratories and has been shown
        to
        meet U.S. EPA guidelines for disinfection. Furthermore, it is accepted by
        the
        Publicly Owned Treatment Works (&#8220;POTW&#8221;) allowing for its discharge into the
        sewer system. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Both
        the
        SteriMed and SteriMed Junior are safe and easy to operate, involving &#189; day of
        training provided by our technical support staff to operators as designated
        by
        the end-user. The operator is trained to handle the daily and weekly
        responsibilities for the routine preparation, maintenance, and minor
        troubleshooting of the SteriMed Systems. Daily maintenance includes filling
        the
        system with the Ster-Cid</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
        removal
        and replacement of the filter bags, and disposing of the filter bag as black
        bag
        waste.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        trained operator places the red bag waste containing RMW into the SteriMed
        receiver chamber and activates the start button. The water and
        Ster-Cid</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;
        </sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">are
        then
        automatically released into the treatment chamber. The shredding, grinding
        and
        mixing of the waste is then initiated to expose all surfaces of the medical
        waste to the chemical solution during </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
        15</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">minute
        processing cycle. At the end of each specified number of cycles, the trained
        operator then puts the residue into a regular black bag, ready for disposal
        as
        regular solid waste.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Both
        SteriMed and the SteriMed Junior are equipped with an integrated monitoring
        system, including a PLC display, which indicates each of the system&#8217;s functions
        to guide the operator through its operations. Access to the PLC program is
        secured, accessible only by MCM&#8217;s technicians to prevent operators from
        overriding the treatment process. Relevant information concerning treatment
        parameters may be electronically forwarded, at the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="center">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">5</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#toc">Table
            of Contents</a></font></div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">end
        of
        each treatment cycle, to a designated printer at any location within the
        facility. In addition, the system is capable, at the option of the facility,
        to
        have the treatment parameters for all cycles in a day forwarded to MCM&#8217;s
        maintenance center.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Regulations
        and Regulatory Compliance for Alternative Medical Waste Treatment Technologies
        in the United States</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        use
        of the Ster-Cid</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        disinfectant in the SteriMed Systems is registered by the U.S. EPA under
        FIFRA.
        The SterCid</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        disinfectant is considered a pesticide, and is registered under FIFRA Number
        71814. FIFRA gives the federal government control over the distribution,
        sale
        and use of pesticides. All pesticides used in the U.S. must be registered
        (licensed) by the U.S. EPA under FIFRA. Registration of pesticides is to
        seek
        assurance that they will be properly labeled, and if used in accordance with
        label specifications, will not cause unreasonable harm to the
        environment.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        MCM
        SteriMed systems are regulated at the state level by the individual states&#8217;
Environmental, Conservation, Natural Resources, or Health Department. Each
        state
        has its own specific approval requirements. Generally, most states require
        an
        application for registration or approval be submitted along with back-up
        information, including but not limited to operating manuals, service manuals,
        and procedures. Additionally, many states require contingency and safety
        plans
        be submitted, and that efficacy testing be performed. MCM has demonstrated
        through efficacy testing that it can inactivate the 4Log10 concentration
        of
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Bacillus
        atrophaeus (</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">formerly</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>
        Bacillus subtilis)</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        spores.
        This meets or exceeds most state regulatory requirements. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        SteriMed Senior has been cleared for </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">marketing
        in 47 states and the SteriMed Junior in 42 states</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
        The
        Ster-Cid</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        disinfectant has been registered in 49 states. We are currently seeking to
        obtain approvals from the remaining states. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Local
        and
        county level authorities generally require that discharge permits be obtained
        from POTW by all facilities that discharge a substantial amount of liquids
        or
        specifically regulated substances to the sewer system. The SteriMed Systems
        process effluent has been characterized and found to be within the lower
        range
        of the general discharge limits set forth by the National Pollutant Discharge
        Elimination System (NPDES) Permitting Program, which are used to establish
        POTW
        discharge limits.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">These
        approvals allow the SteriMed Systems effluent to be discharged to a municipal
        sewer and the treated disinfected solid waste to be disposed of in a municipal
        landfill.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        process used by the SteriMed Systems, unlike many other waste medical disposal
        technologies, is not subject to the Clean Air Act Amendments of 1990 because
        there is no incineration or generation of toxic fumes in the process. It
        is also
        not subject to the Hazardous Materials Transportation Authorization Act of
        1994
        as there is no transportation of hazardous waste involved.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Regulations
        and Regulatory Compliance for Alternative Medical Waste Treatment Technologies
        outside of the United States</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CE
        Mark
        compliancy is a requirement for equipment sold in the European Union
        (&#8220;EU</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;).
        The
        SteriMed Systems are CE Mark compliant as well as ISO Certified, 9001:2000
        and
        14001:1996. In order to meet the specific regulatory requirements of the
        individual members of the EU, MCM has undertaken further efficacy testing
        where
        necessary in order to demonstrate that the SteriMed conforms to all the
        standards in the specific EU member country. Outside of the EU, we are required
        to review and meet whatever the specific</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        standards a country may impose. In countries where we have distributors,
        they
        are required to obtain the necessary regulatory approvals on our behalf at
        their
        expense.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Competition</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">RMW
        has
        routinely been treated and disposed of by means of incineration. Due to the
        pollution generated by medical waste incinerators, novel technologies have
        been
        developed for the disposal of RMW. Some of the</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="center">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">6</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#toc">Table
            of Contents</a></font></div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">issues
        confronting these technologies are: energy requirements, space requirements,
        unpleasant odor, radiation exposure, excessive heat, volume capacity and
        reduction, steam and vapor containment, and chemical pollution. The use of
        the
        SteriMed Systems eliminates concern about these issues: space and energy
        requirements are minimal, there are no odors, radiation, steam, vapor or
        heat
        generated, solid waste volume is reduced by up to 90% and the disinfecting
        chemical is 94% biodegradable</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Marketing
        Strategy </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        have
        designed and are implementing a marketing program which maximizes the uniqueness
        and strengths of the SteriMed Systems while enhancing our customers&#8217; cash flow
        and minimizing their financial restraints. Our sales focus is to those sites
        which best fit the capabilities and requirements of our systems. These include
        those sites generating approximately 2,000 to 12,000 pounds of RMW per month
        and
        are able to provide a room with a minimum of 75 square feet with proper plumbing
        and electricity for the storage and operation of the machine. Within the
        United
        States these facilities include dialysis centers, surgical centers,
        plasmapheresis centers, blood banks, commercial laboratories (both research
        and
        clinical), large physician group practices and specific sites within
        hospitals</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Many
        of
        these facilities are owned by national or international corporations operating
        many facilities. By focusing our sales efforts to these corporations we will
        be
        able to have multiple machine placements within the same organization. This
        offers many advantages to the customer and to us. Not only will we be able
        to
        maximize our selling efforts, we will also be able to compound our warranty
        and
        service effectiveness. This strategy should enable us to maximize resources
        and
        quickly obtain market penetration. We are presently working with a number
        of
        these customers in the implementation of this strategy and in fiscal year
        2005,
        the Company received its first significant order in the U.S. for the SteriMed
        Junior</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#160;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Systems
        from a major dialysis company. In addition, in December 2005, we received
        an
        order for two SteriMed Junior Systems from the United States Department of
        Defense for use by the U.S. Navy. The units are for laboratory test and
        evaluation as part of the U.S. Navy&#8217;s Shipboard Medical Waste Management
        Program.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        do not
        have the depth of marketing or financial capacity that many of our competitors
        have and thus are reliant upon generating interest in our products by virtue
        of
        our technical advantages. This aspect is emphasized in our limited budget
        allocated for marketing.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        business marketing models in the U.S. are either to lease or to sell SteriMed
        Systems. The basic lease terms are a single monthly fee which will include
        the
        cost of the SteriMed, disposables and service for the life of the lease.
        Lease
        terms are usually five years. In the rest of the world, only the sale option
        is
        available. Leasing is not available outside of the US because of the potential
        difficulty in monitoring and collecting monthly leasing fees. Our distributors,
        however, are free to sell or lease the SteriMed Systems in their respective
        markets. Regulatory approvals are required prior to marketing in any country,
        whether the business is conducted by us or our distributors. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
        maximize and augment our sales efforts in the U.S., we have been actively
        recruiting distributors. Ideally, we are seeking local, regional and national
        distributors who will have the right to sell the SteriMed Systems and related
        products within their prescribed geographical areas or business sectors.
        In
        order to gain exclusivity, the distributor must commit to minimum annual
        purchases. The distributor is obligated to work within the guidelines and
        regulatory approvals set up and maintained by us. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Internationally,
        we have distribution agreements in the following countries: Argentina, Brazil,
        Columbia, Costa Rica, Cyprus, Greece, Japan, Mexico, Paraguay, Poland,
        Scandinavia (Norway, Sweden, Finland and Iceland), Singapore, Taiwan, Tunisia
        and Uruguay. In January 2006, we entered into a three-year exclusive
        distributorship agreement for the Caribbean. In February 2006, we entered
        into a
        five-year exclusive distributorship agreement for the territories of Australia
        and New Zealand. In each of the countries, it is the distributors&#8217;
responsibility to obtain, at their own expense, all regulatory approvals
        which
        will be registered in the name of MCM.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Manufacturing</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Presently,
        we manufacture the SteriMed at our facility in Moshav Moledet, Israel. The
        SteriMed Junior is currently manufactured by a third-party manufacturer in
        Israel. We continue to seek sub-assembly manufacturers to enable us to reduce
        the cost of the SteriMed Junior as well as alternative locations in North
        America for the manufacture of our SteriMed Junior. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Approximately
        half of the SteriMed Systems&#8217; components are commercially available from
        third-party suppliers. The remaining components are either generic with
        modification or customized specifically for the SteriMed. We presently have
        depots for parts and supplies located in Ridgefield, NJ and Moledet, Israel.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="center">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">7</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#toc">Table
            of Contents</a></font></div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Maintenance
        and Customer Service Model</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Critical
        to the successful use of the SteriMed Systems is the proper training of the
        personnel carrying out the installation, operation and service of the equipment.
        We provide our customers with a warranty covering parts and labor for one
        year.
        Thereafter, we offer an extended warranty program. Our technical service
        staff
        assists clients in the installation of units and the training of their staff
        and
        on-site operators. This training program is strongly geared towards safety
        and
        maintenance to assure ongoing safe and smooth operation of the unit. After
        installation and training, operation of the unit is monitored by our technical
        staff to assure proper performance. Our technical staff is on-call to assist
        in
        fixing problems or performing repairs. Our goal is to minimize problems through
        ongoing training and strict adherence to maintenance schedules. Our customer
        service staff is available to help with any questions or issues our customers
        might have. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="cautionary_note">CAUTIONARY
</a>NOTE
        REGARDING FORWARD LOOKING
        STATEMENTS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
        prospectus contains or incorporates by reference forward-looking statements
        that
        we believe are within the meaning of Section 27A of the Securities Act and
        Section 21E of the Securities Exchange Act of 1934, which are intended to
        be
        covered by the safe harbors created by such acts. These statements describe
        our
        attempt to predict future events, such as our ability to achieve satisfactory
        operating performance, the viability of our business model, the regulatory
        responses to our product candidates, our ability to obtain needed working
        capital, the market acceptance of our product candidates and the protection
        of
        our proprietary information.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        shares of our common stock being offered for resale by the selling stockholders
        are highly speculative in nature, involve a high degree of risk and should
        be
        purchased only by persons who can afford to lose the entire amount invested
        in
        the common stock. Before purchasing any of the shares of common stock, you
        should carefully consider the following factors relating to our business
        and
        prospects which factors constitute the material risks related to an investment
        in our common stock. If any of the following risks actually occurs, our
        business, financial condition or operating results could be materially adversely
        affected. In such case, the trading price of our common stock could decline,
        and
        you may lose all or part of your investment.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="risk_factors">RISK
</a>FACTORS</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        medical infectious waste disposal industry is subject to extensive federal,
        state and local laws and regulations, both in the US and overseas. Our business
        requires us to obtain many different approvals and permits or other types
        of
        governmental authorizations for each jurisdiction in which we operate. Other
        risks that we face are more specifically defined as follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Manufacturing
        </u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Presently,
        we manufacture the SteriMed at our facility in Moshav Moledet, Israel. The
        SteriMed Junior is currently manufactured by a third-party manufacturer in
        Israel. We continue to seek sub-assembly manufacturers to enable us to reduce
        the cost of the SteriMed Junior as well as alternative locations in North
        America for the manufacture of our SteriMed Junior. I</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">f
        we fail
        to effectively manufacture or fail to develop a market for our SteriMed Systems,
        we will likely be unable to recover the losses we will have incurred in
        attempting to produce and market these products and technologies and may
        be
        unable to make sales or become profitable. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="center">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">8</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#toc">Table
            of Contents</a></font></div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        are
        dependent on third-party suppliers for the components of our SteriMed and
        SteriMed Junior Systems and also for the Ster-Cid</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        disinfectant. At present there are no supply contracts in place and our
        requirements are fulfilled against purchase orders. There can be no assurances
        that we will have adequate supplies of materials. Although we believe that
        the
        required components are readily available and can be provided by other
        suppliers, delays may be incurred in establishing relationships or in waiting
        for quality control assurance with other manufacturers for substitute
        components. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Regulatory
        </u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        medical waste management industry is subject to extensive U.S. EPA, state
        and
        local laws and regulations relating to the collection, packaging, labeling,
        handling, documentation, reporting, treatment and disposal of regulated medical
        waste. The use of the Ster-Cid</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;
        </sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">disinfectant
        in the SteriMed Systems is registered with the U.S. EPA under FIFRA, however,
        the SteriMed Systems are not subject to U.S. EPA registration. Our business
        requires us to comply with these extensive laws and regulations and also
        to
        obtain permits, authorizations, approvals, certificates or other types of
        governmental permission from all states and some local jurisdictions where
        we
        sell or lease the SteriMed Systems. The SteriMed </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">has
        been
        cleared for marketing in 47 states and the SteriMed Junior in 42 states.
        It is
        our objective to obtain approvals from the remaining states. The
        Ster-Cid</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        has been
        registered in 49 states. Our ability to obtain such approvals in the remaining
        states and the timing and cost to do so, if successful, cannot be easily
        determined nor can the receipt of ultimate approval be assumed.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        markets outside the U.S., our ability to market the SteriMed Systems is governed
        by the regulations of the specific country. In foreign countries where we
        market
        through distributors, we rely on them to obtain the necessary regulatory
        approvals to permit the SteriMed System to be marketed in that country. We
        are
        therefore dependent on the distributor to process these applications where
        required. In many of these countries we have no direct control or involvement
        in
        the approval process, and therefore we cannot estimate when our product will
        be
        available in that market.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        believe that we currently comply in all material respects with all applicable
        laws, regulations and permitting requirements. State and local regulations
        change often, however, and new regulations are frequently adopted. Changes
        in
        the applicable regulations could require us to obtain new approvals or permits,
        to change the way in which we operate or to make changes to our SteriMed
        Systems. We might be unable to obtain the new approvals or permits that we
        require, and the cost of compliance with new or changed regulations could
        be
        significant. In the event we are not in compliance, we can be subject to
        fines
        and administrative, civil or criminal sanctions or suspension of our
        business.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        approvals or permits that we require in foreign countries may be difficult
        and
        time-consuming to obtain. They may also contain conditions or restrictions
        that
        limit our ability to operate efficiently, and they may not be issued as quickly
        as we need (or at all). If we cannot obtain the necessary approval or permits
        when needed, or if they contain unfavorable conditions, it could substantially
        impair our ability to sell the SteriMed System in certain
        jurisdictions.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Intellectual
        Property</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        regard
        certain aspects of our products, processes, services and technology as
        proprietary, and we have trademarks and patents for certain aspects of the
        SteriMed </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">S</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ystem.
        </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        ability to compete successfully will depend in part on our ability to protect
        our proprietary rights and to operate without infringing on the proprietary
        right of others, both in the United States and abroad. Our proprietary rights
        to
        Ster-Cid</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;
        </sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">relate
        to
        an exclusive worldwide license that we had obtained from a third party
        manufacturer in Europe to purchase the Ster-Cid</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;
        </sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">disinfectant.
        The patent positions of medical waste technology companies generally involve
        complex legal and factual questions. While patents are important to our
        business, the regulatory approvals are more critical in permitting us to
        market
        our products. We may also apply in the future for patent protection for uses,
        processes, products and systems that we develop. There can be no assurance
        that
        any future patent that we apply for will be issued, or that any existing
        patents
        issued will not be challenged, invalidated or circumvented, or that the rights
        granted thereunder will provide any competitive advantage, or </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">that
        third parties will not infringe or misappropriate our proprietary rights
        or that
        third parties will not independently develop similar products, services and
        technology.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        We may
        incur substantial costs in defending any patent or license infringement suits
        or
        in asserting any patent or license rights, including those granted by third
        parties, the expenditure of which we might not be able to afford. An adverse
        determination could</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="center">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">9</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#toc">Table
            of Contents</a></font></div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">subject
        us to significant liabilities to third parties, require us to seek licenses
        from
        or pay royalties to third parties or require us to develop appropriate
        alternative technology. There can be no assurance that any such licenses
        would
        be available on acceptable terms or at all, or that we could develop alternate
        technology at an acceptable price or at all. Any of these events could have
        a
        material adverse effect on our business and profitability.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        may
        have to resort to litigation to enforce our intellectual property rights,
        protect our trade secrets, determine the validity and scope of the proprietary
        rights of others, or defend ourselves from claims of infringement, invalidity
        or
        unenforceability. Litigation may be expensive and divert resources even if
        we
        win. This could adversely affect our business, financial condition and operating
        results such that it could cause us to reduce or cease operations.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Developing
        products based upon new technologies can result in litigation based on
        allegations of patent and other intellectual property infringement. While
        no
        infringement claims have been made or threatened against us, we cannot assure
        you that third parties will not assert infringement claims against us in
        the
        future, that assertions by such parties will not result in costly litigation,
        or
        that they will not prevail in any such litigation. In addition, we cannot
        assure
        you that we will be able to license any valid and infringed patents from
        third
        parties on commercially reasonable terms or, alternatively, be able to redesign
        products on a cost-effective basis to avoid infringement. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Marketing</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        future growth and profitability depend in part on our ability to respond
        to
        technological changes and successfully develop and market new products that
        achieve significant market acceptance. This industry has been historically
        marked by very rapid technological change and the frequent introductions
        of new
        products. There is no assurance that we will be able to develop new products
        that will realize broad market acceptance.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Competition</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
        are
        numerous methods of handling and disposing of RMW, of which our technology
        is
        one of the available systems. We are not aware of any competitive product
        that
        is similar to the SteriMed Systems with respect to its design and compactness.
        We believe that our SteriMed Systems, due to its ability to be used on site,
        the
        cost basis and ease of use, offers a significant advantage over RMW systems
        offered by our competitors. We realize, however, there can be no assurance
        that
        a different or new technology may not supplant us in the market. Further,
        we
        cannot guarantee that in the event that we are successful in the deployment
        of
        our systems in the marketplace, the predominant companies in the field, which
        have substantially greater resources and market visibility than us, will
        not try
        to develop similar systems. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Liability</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        malfunction or misuse of our SteriMed Systems may result in damage to property
        or persons, as well as violation of various health and safety regulations,
        thereby subjecting us to possible liability. Although our insurance coverage
        is
        in amounts and deductibles customary in the industry, there can be no assurance
        that such insurance will be sufficient to cover any potential liability.
        We
        currently retain a claims made worldwide product liability insurance policy.
        Further, in the event of either adverse claim experience or insurance industry
        trends, we may in the future have difficulty in obtaining product liability
        insurance or be forced to pay very high premiums, and there can be no assurance
        that insurance coverage will continue to be available on commercially reasonable
        terms or at all. In addition, there can be no assurance that insurance will
        adequately cover any product liability claim against us. A successful product
        liability, environmental or other claim with respect to uninsured liabilities
        or
        in excess of insured liabilities could have a material adverse effect on
        our
        business, financial condition and operations. To date, no claims have been
        made
        against us. We believe that our insurance coverage is adequate to cover any
        claims made, and we </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">review</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        our
        insurance requirement with our insurance broker on an annual basis.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Financial</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        raised
        gross proceeds of $3.0 million in a placement of Series D Preferred Stock
        and
        warrants in the second quarter of Fiscal 2006, gross proceeds of $4.5 million
        in
        a placement of Series C Preferred Stock and warrants in the second quarter
        of
        fiscal 2005, and gross proceeds of $1.5 million in a placement of convertible
        secured notes in the third quarter of fiscal 2004. The net proceeds from
        these
        placements should fulfill our capital needs through</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="center">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">10</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#toc">Table
            of Contents</a></font></div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">March
        31,
        2007 based upon our present business plan. However, we expect to require
        additional working capital or other funds in the near future should we need
        to
        modify our business plan. These funds are required to support our marketing
        efforts, to obtain additional regulatory approvals both domestically and
        overseas as well as to support our manufacturing purposes. In the event we
        are
        unable to achieve any market penetration in the near term, secure regulatory
        approvals or build inventory available for immediate delivery, our ability
        to
        secure additional funding could be severely jeopardized. No assurance can
        be
        given that we will be successful in obtaining additional funds, whether publicly
        or privately or through equity or debt. Any such financing could be highly
        dilutive to stockholders.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        the
        past, we have experienced significant losses and negative cash flows from
        operations. If these trends continue in the future, it could adversely effect
        our financial condition. For the years ended September 30, 2005 and September
        30, 2004, we experienced net losses of approximately $2.5 and $3.2 million
        from
        continuing operations respectively. Further, we incurred negative cash flows
        from operations of approximately $2.9 million and $2.8 million for the years
        ended September 30, 2005 and 2004, respectively. These results have had a
        negative impact on our financial condition. There can be no assurance that
        our
        business will become profitable in the future and that additional losses
        and
        negative cash flows from operations will not be incurred. If these trends
        continue in the future, it could have a material adverse effect on our financial
        condition </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Personnel</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        success is highly dependent on the continued efforts of a small management
        team.
        Should operations expand, we will need to hire persons with a variety of
        skills.
        Competition for these skilled individuals could be intense, and there can
        be no
        assurance that we will be successful in attracting and retaining key personnel
        in the future. Our failure to do so could adversely affect our business and
        financial condition. We do not have employment agreements with or carry any
        &#8220;key-man&#8221; insurance on the lives of any of our officers or
        employees.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="use_proceeds">USE
</a>OF
        PROCEEDS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Selling Stockholders will receive all of the proceeds from the resale of
        the
        Shares. We will not receive any of the proceeds from the resale of the Shares.
        To the extent the Selling Stockholders exercise their options to purchase
        shares
        of common stock offered hereby, we would receive up to approximately $830,000
        from such exercises, all of which funds will be added to our general working
        capital and used for general business purposes.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="description_securities">DESCRIPTION
</a>OF
        SECURITIES TO BE
        REGISTERED</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        are
        authorized to issue 50,000,000 shares of common stock, $0.01 par value. Each
        share has one vote for election of directors and all other matters submitted
        to
        a vote of stockholders. Shares of common stock do not have cumulative voting,
        preemptive, redemption or conversion rights.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        holders of shares of common stock are entitled to dividends when and as declared
        by the board of directors from funds legally available therefore, and, upon
        liquidation are entitled to share pro rata in any distribution to holders
        of
        common stock, subject to the right of holders of outstanding preferred stock.
        No
        dividends have ever been declared by the board of directors on the common
        stock.
        There are no conversion rights or redemption or sinking fund provisions with
        respect to our common stock. All of the outstanding shares of common stock
        are,
        and all shares sold hereunder will be, when issued upon payment therefore,
        duly
        authorized, validly issued, fully paid and non-assessable.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="selling_stockholders">SELLING
</a>STOCKHOLDERS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        table
        and notes below describe, as of January 31, 2006, certain information regarding
        the beneficial ownership of common stock with respect to each Selling
        Stockholder: (a) the name of the Selling Stockholder and his relationship
        to us
        during the last three years; (b) the number of shares of common stock he
        beneficially owned as of the date of this prospectus; (c) the number of Shares
        which he may offer pursuant to this prospectus; and (d) the amount and the
        percentage our common stock that would be owned by him after completion of
        this
        offering, assuming he disposes of all of the Shares being offered by him
        pursuant to this prospectus. The information contained in this table or notes
        may be amended or supplemented from time to time.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="center">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">11</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#toc">Table
            of Contents</a></font></div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div align="left">
        <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
              <td align="left" valign="bottom" width="23%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="15%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="15%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="15%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td colspan="6" valign="bottom" width="27%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Beneficial
                  Ownership after</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
                  Offering</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="23%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Name</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>*</strong></font></div>
              </td>
              <td width="2%" style="border-bottom: black thin solid;">
                <div>&#160;</div>
              </td>
              <td align="left" colspan="2" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Relationship
                  to</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Company</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                <div>&#160;</div>
              </td>
              <td align="left" colspan="2" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Number
                  of Shares</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Beneficially</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Owned
                  Prior to</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
                  Offering</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup><strong>1</strong></sup></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                <div>&#160;</div>
              </td>
              <td align="left" colspan="2" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Shares
                  being</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>offered</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                <div>&#160;</div>
              </td>
              <td align="left" colspan="2" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Number
                  of </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Shares</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                <div>&#160;</div>
              </td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Percentage
                  of Common </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Stock</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="23%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="15%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="15%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="15%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="15%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="top" width="23%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">George
                  Aaron</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="15%" style="border-bottom: #e2eef6;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Chairman
                of the Board; Chief Executive Officer; President</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="top" width="14%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">360,887(2</font></div>
              </td>
              <td align="left" valign="top" width="1%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="top" width="14%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">120,000</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="top" width="14%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">240,887</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="top" width="9%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7.2</font></div>
              </td>
              <td align="left" valign="top" width="1%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="23%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="14%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="14%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="14%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="top" width="23%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Jonathan
                  Joels</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="15%" style="border-bottom: #e2eef6;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Director;
                Chief Financial Officer; Treasurer; Secretary</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="top" width="14%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">355,226(3</font></div>
              </td>
              <td align="left" valign="top" width="1%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="top" width="14%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">120,000</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="top" width="14%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">235,226</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="top" width="9%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7.1</font></div>
              </td>
              <td align="left" valign="top" width="1%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="23%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="14%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="14%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="14%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="23%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Elliott
                  Koppel</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="15%" style="border-bottom: #e2eef6;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">VP
                Sales &amp; Marketing</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="14%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">50,194(4</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="14%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">45,000</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="14%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,194</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">**</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="23%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="14%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="14%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="14%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="23%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sol
                  Triebwasser, Ph.D.</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="15%" style="border-bottom: #e2eef6;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Director</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="14%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">25,495(5</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="14%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">25,425</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="14%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">70</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">**</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="23%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="15%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="14%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="14%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="14%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#e2eef6">
              <td align="left" valign="bottom" width="23%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Jeffrey
                  L. Hymes, M.D.</font></div>
              </td>
              <td width="2%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="15%" style="border-bottom: #e2eef6;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Director</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="14%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23,750(6</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="14%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23,750</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="14%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-0-</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #e2eef6;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">**</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #e2eef6;">&#160;</td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <div>&#160;</div>
        <div>
          <hr style="COLOR: black" align="left" noshade size="1" width="20%">
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*<font id="TAB2" style="LETTER-SPACING: 7pt">&#160;&#160;</font></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Except
        otherwise indicated above, the address of the holder is Caprius, Inc., One
        University Plaza, Hackensack, NJ 07601.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">**&#160;&#160;
        </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Less
        than
        one percent (1%).</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 18pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Beneficial
                  owner means any person who, directly, or indirectly, through any
                  contract
                  arrangement, understanding, relationship or otherwise has or shares:
                  (i)
                  voting power, which includes the power to vote, or to direct the
                  voting
                  of, shares of our common stock; and/or (ii) investment power, which
                  includes the power to dispose, or to direct the disposition of,
                  shares of
                  our common stock, except where otherwise noted. While under SEC
                  rules, a
                  person is also deemed to be a beneficial owner of a security if
                  that
                  person has the right to acquire beneficial ownership of such security
                  at
                  any time within 60 days from the date of this prospectus, the table
                  includes shares underlying outstanding options that are to vest
                  more than
                  60 days from the date hereof.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 18pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                  (i) 353 shares in retirement accounts, (ii) 9,075 shares underlying
                  warrants presently exercisable, (iii) 5 shares jointly owned with
                  his wife
                  and (iv) 20,000 shares underlying options presently exercisable.
                  Also
                  includes 100,000 shares underlying options not presently
                  exercisable.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 18pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                  (i) 48,000 shares as trustee for his children, (ii) 8,618 shares
                  underlying warrants presently exercisable, (iii) 875 shares underlying
                  warrants owned by his wife for which he disclaims beneficial ownership,
                  (iv) 20,000 shares underlying options presently exercisable and
                  (v) 17,241
                  shares in a retirement account. Also includes 100,000 shares underlying
                  options not presently exercisable.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 18pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
                  (i) 4,644 shares underlying warrants and (ii) 20,000 shares underlying
                  options presently exercisable. Also includes 25,000 shares underlying
                  options not presently exercisable.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 18pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
                  5,425 shares underlying options presently exercisable. Also includes
                  options for 20,000 shares not presently
                  exercisable.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 18pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(6)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
                  2,500 shares underlying options presently exercisable and 1,250
                  shares
                  underlying options which are currently not exercisable. Also includes
                  20,000 shares underlying options not presently
                  exercisable.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Selling Stockholders listed in the above table may have sold or transferred,
        in
        transactions pursuant to this prospectus or exempt from the registration
        requirements of the Securities Act, some or all of their Shares since the
        date
        on which the information in the above table is presented. Information about
        the
        Selling Stockholders may change from time to time. Information about other
        person who may hereafter become Selling Stockholders will be set forth in
        prospectus supplements or post-effective amendments, if required.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Because
        the Selling Stockholders may offer all or some of their common stock from
        time
        to time, and none is obligated to sell any Shares, we cannot estimate the
        amount
        of the common stock in the column &#8220;Shares Being Offered&#8221; in the above table that
        will be held by the Selling Stockholders after this offering. Also, this
        prospectus</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="center">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">12</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#toc">Table
            of Contents</a></font></div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">does
        not
        include shares that may be acquired upon exercise of options that we may
        grant
        to the Selling Stockholders in the future. The shares issuable upon exercise
        of
        options granted in the future may subsequently be sold pursuant to this
        prospectus, as supplemented to reflect the offering of such underlying shares
        for resale or in transaction exempt from the registration requirements of
        the
        Securities Act. See &#8220;Plan of Distribution&#8221; for further information.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="plan_distribution">PLAN
</a>OF
        DISTRIBUTION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">None
        of
        the Selling Stockholders has advised us of any specific plans for the sale,
        transfer, gift or other disposition of the Shares offered under this prospectus.
        However, if any Shares are sold, we expect that the Shares will be sold from
        time to time primarily through transactions on the over-the-counter bulletin
        board, or on any other national securities exchanges or market system where
        our
        common stock is then listed, although sales also may be made in negotiated
        transactions or otherwise.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Selling Stockholders may sell the Shares through various means, including
        directly or indirectly to purchasers, in one or more transactions on any
        stock
        exchange or securities market on which the Shares are traded at the time
        of
        sale, in privately negotiated transactions, or through a combination of these
        methods. These sales may be at fixed prices, which may change, at market
        prices
        available at the time of sale, at prices based on the available market price
        at
        the time of sale, or at negotiated prices. If the Shares are sold through
        underwriters, broker-dealers, or agents, these parties may be compensated
        for
        their services in the form of discounts or brokerage commissions and charges
        or
        compensation in the form of discounts, concessions or commissions from such
        Selling Stockholder or the purchaser of the Shares so sold for whom such
        broker-dealers may act or to whom they may sell as principal or both (which
        compensation, as to a particular broker-dealer, may be in excess of customary
        commissions). Shares covered by this prospectus also may be sold under Rule
        144
        or another exemption under the Securities Act, rather than pursuant to this
        Prospectus, provided they meet the criteria and conform to the requirements
        for
        such Rules.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        connection with the sale of the Shares, the Selling Stockholders and any
        participating broker or dealer may be deemed to be &#8220;underwriters&#8221; within the
        meaning of the Securities Act, and any profits on the sale of Shares or
        commissions they receive may be deemed to be underwriting discounts and
        commissions under the Securities Act.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        will
        pay all costs, expenses and fees in connection with the registration of the
        Shares offered by the Selling Stockholders under this Prospectus. Brokerage
        commissions and similar selling expenses, if any, attributable to the sale
        of
        the Shares will be borne by the Selling Stockholders.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
        is
        no assurance that any of the Selling Stockholders will sell any or all of
        the
        Shares offered by them hereby.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="experts">EXPERTS</a></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        financial statements incorporated in this prospectus by reference to the
        Annual
        Report on Form 10-KSB for the year ended September 30, 2005, have been so
        incorporated in reliance on the report of Marcum &amp; Kliegman LLP, an
        independent registered public accounting firm, given upon the authority of
        said
        firm as experts in accounting and auditing.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="legal_matters">LEGAL
</a>MATTERS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        validity of the Shares that may be sold using this prospectus will be passed
        upon for us by Thelen Reid &amp; Priest LLP.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="additional_info">ADDITIONAL
</a>INFORMATION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        have
        filed with the SEC a Registration Statement on Form S-8 with respect to the
        Shares offered in this prospectus. This prospectus does not contain all of
        the
        information and exhibits set forth in the Registration Statement. For further
        information regarding us and the Shares, we refer you to the Registration
        Statement. With</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="center">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">13</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#toc">Table
            of Contents</a></font></div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">respect
        to each such document filed with the SEC as an exhibit to the Registration
        Statement, reference is made to the exhibit for a more complete description
        of
        the matter involved.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        are
        subject to the reporting requirements of the Securities Exchange Act of 1934,
        as
        amended (the &#8220;Exchange Act&#8221;), and file quarterly and annual reports, proxy
        statements and other information with the SEC. You may read and copy any
        document that we file, including the Registration Statement and its exhibits,
        at
        the public reference facilities of the SEC in Washington, D.C. or online
        at
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>www.sec.gov</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        or from
        commercial document retrieval services. Additionally, you may request a copy
        of
        any such document from us by contacting us at (212) 554-4550.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><a name="incorporation_reference">INCORPORATION
</a>OF
        CERTAIN DOCUMENTS BY
        REFERENCE</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        SEC
        allows us to &#8220;incorporate by reference&#8221; information in this prospectus certain
        information we file with the SEC, which means that:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font size="2"><br></font>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

              <tr valign="top" style="line-height: 1.25;">
                <td style="width: 42pt;">&#160;</td>
                <td style="width: 14pt;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
                </td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">incorporated
                    documents are considered part of this
                    prospectus;</font></div>
                </td>
              </tr>

          </table>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

              <tr valign="top" style="line-height: 1.25;">
                <td style="width: 42pt;">&#160;</td>
                <td style="width: 14pt;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
                </td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">we
                    can disclose important information to you by referring you to
                    those
                    documents; and</font></div>
                </td>
              </tr>

          </table>
        </div>
        <div>&#160;</div>
        <div>
          <div>
            <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

                <tr valign="top" style="line-height: 1.25;">
                  <td style="width: 42pt;">&#160;</td>
                  <td style="width: 14pt;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
                  </td>
                  <td>
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">certain
                      information that we file after the date of this prospectus
                      with the SEC
                      will automatically update and supersede information contained
                      in this
                      prospectus and the registration
                      statement.</font></div>
                  </td>
                </tr>

            </table>
          </div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        following documents filed with the SEC are incorporated herein by
        reference:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 36pt;">&#160;</td>
              <td style="width: 36pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                  Caprius, Inc. equity financing of February 17, 2006 on Form 8-K
                  filed with
                  the SEC on February 17, 2006; and on Form 8-K-A thereto filed on
                  March 3,
                  2006.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 36pt;">&#160;</td>
              <td style="width: 36pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                  Caprius, Inc. Quarterly Report on Form 10-QSB for the three months
                  ended
                  December 31, 2005 filed with the SEC on February 14,
                  2006;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 36pt;">&#160;</td>
              <td style="width: 36pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                  Caprius, Inc. Annual Report on Form 10-KSB for the fiscal year
                  ended
                  September 30, 2005, filed with the SEC on December 21,
                  2005;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 36pt;">&#160;</td>
              <td style="width: 36pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                  Caprius, Inc. Information Statement, dated December 6, 2005, filed
                  with
                  the SEC on December 8, 2005; and</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 36pt;">&#160;</td>
              <td style="width: 36pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(e)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                  description of our common stock contained in our Certificate of
                  Incorporation, filed as Exhibit 3.1 to our Form 8-K filed with
                  the SEC on
                  April 5, 2005.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="center">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">14</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#toc">Table
            of Contents</a></font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PART
        II</strong></font><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INFORMATION
        REQUIRED IN THE REGISTRATION STATEMENT</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        3.<font id="TAB2" style="LETTER-SPACING: 7pt">&#160;&#160;</font></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Incorporation
        of Certain Documents by Reference.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Caprius,
        Inc. is subject to the informational requirements of the Securities Exchange
        Act
        of 1934, as amended (the &#8220;Exchange Act&#8221;), and in accordance therewith files
        reports and other information with the Securities and Exchange Commission
        (the
&#8220;SEC&#8221;). The following documents, which are on file with the SEC, are
        incorporated herein by reference and made a part hereof:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 36pt;">&#160;</td>
              <td style="width: 36pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                  Caprius, Inc. equity financing of February 17, 2006 on Form 8-K
                  filed with
                  the SEC on February 17, 2006; and on Form 8-K-A thereto filed on
                  March 3,
                  2006.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 36pt;">&#160;</td>
              <td style="width: 36pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                  Caprius, Inc Quarterly Report on Form 10-QSB for the three months
                  ended
                  December 31, 2005 filed with the SEC on February 14,
                  2006;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 36pt;">&#160;</td>
              <td style="width: 36pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                  Caprius, Inc. Annual Report on Form 10-KSB for the fiscal year
                  ended
                  September 30, 2005, filed with the SEC on December 21,
                  2005;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 36pt;">&#160;</td>
              <td style="width: 36pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                  Caprius, Inc. Information Statement, dated December 6, 2005, filed
                  on
                  December 8, 2005; and</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 36pt;">&#160;</td>
              <td style="width: 36pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(e)</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                  description of our Common Stock contained in our Certificate of
                  Incorporation, filed as Exhibit 3.1 to our Form 8-K filed on April
                  5,
                  2005.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
        documents filed by us pursuant to Sections 13(a), 13(c), 14 and 15(d) of
        the
        Exchange Act, prior to the filing of a post-effective amendment which indicates
        that all securities offered have been sold or which deregisters all securities
        then remaining unsold, shall be deemed to be incorporated by reference in
        this
        Registration Statement and to be a part hereof from the date of filing such
        documents. Any document, or any statement contained in a document, incorporated
        or deemed to be incorporated by reference herein shall be deemed to be modified
        or superseded for purposes of this Registration Statement to the extent that
        a
        document or statement contained herein, or in any other subsequently filed
        document that also is deemed to be incorporated by reference herein, modifies
        or
        supersedes such document or statement. Any statement so modified or superseded
        shall not be deemed, except as so modified or superseded, to constitute a
        part
        of this Registration Statement. Subject to the foregoing, all information
        appearing in this Registration Statement is qualified in its entirety by
        the
        information appearing in the documents incorporated by reference.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        4.<font id="TAB2" style="LETTER-SPACING: 7pt">&#160;&#160;</font></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Description
        of Securities.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
        applicable.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        5.<font id="TAB2" style="LETTER-SPACING: 7pt">&#160;&#160;</font></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Interests
        of Named Experts and Counsel.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
        applicable.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        6.<font id="TAB2" style="LETTER-SPACING: 7pt">&#160;&#160;</font></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Indemnification
        of Directors and Officers.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        shall
        indemnify any person who was or is a party or is threatened to be made a
        party
        to any threatened, pending or completed action, suit or proceeding, whether
        civil, criminal, administrative or investigative, or by or in the right of
        the
        Company to procure judgment in our favor, by reason of the fact that he is
        or
        was a director, officer, employee or agent of the Company, or is or was serving
        at our request as a director, officer, manager employee or agent of another
        corporation, partnership, joint venture, limited liability company, trust
        or
        other enterprise against expenses (including attorneys&#8217; fees), judgment, fines
        and amounts paid in settlement actually and reasonably incurred by him in
        connection with such action, suit or proceeding if he acted in good faith
        and in
        a manner he reasonably believed to be in or not opposed to our best interests,
        in accordance with and to the full extent permitted</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="center">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">II-1</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#toc">Table
            of Contents</a></font></div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">by
        statute. Expenses (including attorneys&#8217; fees) incurred in defending any civil,
        criminal administrative or investigative action, suit or proceeding may be
        paid
        by us in advance of the final disposition of such action, suit or proceeding
        as
        authorized by the Board of Directors in the specific case upon receipt of
        an
        undertaking by or on behalf of the director, officer, manager, employee or
        agent
        to repay such amount unless it shall ultimately be determined that he is
        entitled to be indemnified by us as authorized by this paragraph.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Specifically,
        no indemnification shall be made in respect of any claim, issue or matter
        as to
        which such director or officer shall have been adjudged to be liable to the
        Company unless and only to the extent that the Delaware Court of Chancery
        or the
        court in which action or suit was brought shall determine upon application
        that,
        despite the adjudication of liability but in view of all the circumstances
        of
        the case, such person is fairly and reasonably entitled to indemnity for
        such
        expenses which the Court of Chancery or such other court shall deem
        proper.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        indemnification shall not be deemed exclusive of any other rights to which
        those
        seeking indemnification may be entitled under this Certificate of Incorporation,
        the By-Laws or any agreement or vote of stockholders or disinterested directors
        or otherwise, both as to action in his official capacity and as to action
        in
        another capacity while holding such office, and shall continue as to a person
        who has ceased to be a director, officer, employee or agent and shall inure
        to
        the benefit of the heirs, executors and administrators of such a
        person.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        7.<font id="TAB2" style="LETTER-SPACING: 7pt">&#160;&#160;</font></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exemption
        from Registration Claimed.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
        applicable.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        8.<font id="TAB2" style="LETTER-SPACING: 7pt">&#160;&#160;</font></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibits.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        following is a list of exhibits filed as a part of this Registration Statement
        which are incorporated herein:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit
                  No.</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="left" valign="top" width="66%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.1</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="justify" valign="top" width="66%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Caprius,
                  Inc. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2002
                  Stock Option Plan (the &#8220;Plan&#8221;) (incorporated by reference to Appendix A to
                  Proxy Statement, <br>dated May 31, 2002).</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.1*</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="justify" valign="top" width="66%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Opinion
                  of Thelen Reid &amp; Priest LLP regarding the legality of shares of Common
                  Stock being registered.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.1*</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="justify" valign="top" width="66%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                  of Option Agreement for Stock Option granted under the 2002
                  Plan.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23.1*</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="justify" valign="top" width="66%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consent
                  of Marcum &amp; Kliegman LLP</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23.2*</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="justify" valign="top" width="66%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consent
                  of Thelen Reid &amp; Priest LLP (included in Exhibit 5.1).</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24.1*</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="justify" valign="top" width="66%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Power
                  of Attorney (included in the signature pages to this Registration
                  Statement).</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <hr style="COLOR: black" align="left" noshade size="1" width="20%">
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*&#160;
        Filed herewith.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        9.<font id="TAB2" style="LETTER-SPACING: 7pt">&#160;&#160;</font></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Undertakings.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 35pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)<font id="TAB2" style="LETTER-SPACING: 7pt">&#160;&#160;&#160;</font>The
        undersigned&#160;Registrant hereby undertakes that, for purposes of determining
        any liability under the Securities Act of 1933, as amended, each filing of
        the
        Registrant&#8217;s annual report pursuant to Section&#160;13(a)&#160;or
        Section&#160;15(d)&#160;of the Exchange Act (and, where applicable, each filing
        of an employee benefit plan&#8217;s annual report pursuant to
        Section&#160;15(d)&#160;of the Exchange Act) that is incorporated by reference
        in this Registration Statement shall be deemed to be a new registration
        statement relating to the securities offered herein, and the offering of
        such
        securities at that time shall be deemed to be the initial bona fide offering
        thereof </font>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(f)<font id="TAB2" style="LETTER-SPACING: 7pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        undersigned Registrant hereby undertakes:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 35pt; TEXT-INDENT: 35pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)<font id="TAB2" style="LETTER-SPACING: 7pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
        file,
        during any period in which offers or sales are being made, a post-effective
        amendment to this Registration Statement:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="center">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">II-2</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#toc">Table
            of Contents</a></font></div>
        </div>
        <div>&#160;</div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)<font id="TAB2" style="LETTER-SPACING: 7pt">&#160;&#160;&#160;</font></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
        include any prospectus required by Section&#160;10(a)(3)&#160;of the Securities
        Act of 1933, as amended (the &#8220;Act&#8221;);</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)<font id="TAB2" style="LETTER-SPACING: 7pt">&#160;&#160;<font id="TAB2" style="LETTER-SPACING: 7pt">&#160;</font></font></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
        reflect in the prospectus any facts or events arising after the effective
        date
        of this Registration Statement (or the most recent post-effective amendment
        thereof) which, individually or in the aggregate, represent a fundamental
        change
        in the information set forth in the Registration Statement. Notwithstanding
        the
        foregoing, any increase or decrease in volume of securities offered (if the
        total dollar value of securities offered would not exceed that which was
        registered) and any deviation from the low or high end of the estimated maximum
        offering range may be reflected in the form of prospectus filed with the
        Commission pursuant to Rule&#160;424(b)&#160;(&#167;230.424(b)&#160;of this chapter)
        if, in the aggregate, the changes in volume and price represent no more than
        a
        20% change in the maximum aggregate offering price set forth in the &#8220;Calculation
        of Registration Fee&#8221; table in the effective registration statement;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)<font id="TAB2" style="LETTER-SPACING: 7pt">&#160;&#160;<font id="TAB2" style="LETTER-SPACING: 7pt">&#160;</font></font></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
        include any material information with respect to the plan of distribution
        not
        previously disclosed in the Registration Statement or any material change
        to
        such information in the Registration Statement;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Provided,
        however, that paragraphs (f)(1)(i)&#160;and (f)(1)(ii)&#160;shall not apply to
        information contained in periodic reports filed by the Registrant pursuant
        to
        Section&#160;13 or Section&#160;15(d)&#160;of the Exchange Act that are
        incorporated by reference in this Registration Statement.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)<font id="TAB2" style="LETTER-SPACING: 7pt">&#160;&#160;&#160;</font></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">That,
        for
        the purpose of determining any liability under the Act, each such post-effective
        amendment shall be deemed to be a new registration statement relating to
        the
        securities offered therein, and the offering of such securities at that time
        shall be deemed to be the initial bona fide offering thereof.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)<font id="TAB2" style="LETTER-SPACING: 7pt">&#160;&#160;&#160;</font></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
        remove
        from registration by means of a post-effective amendment any of the securities
        being registered which remain unsold at the termination of the
        offering.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(h)<font id="TAB2" style="LETTER-SPACING: 7pt">&#160;&#160;&#160;</font>&#160;Insofar
        as
        indemnification for liabilities arising under the Act of may be permitted
        to
        directors, officers and controlling persons of the Registrant pursuant to
        the
        foregoing provisions, or otherwise, the Registrant has been advised that
        in the
        opinion of the Securities and Exchange. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Commission
        such indemnification is against public policy as expressed in the Act and
        is,
        therefore, unenforceable.&#160; In the event that a claim for indemnification
        against such liabilities (other than the payment by the Registrant of expenses
        incurred or paid by a director, officer or controlling person of the Registrant
        in the successful defense of any action, suit or proceeding) is asserted
        by such
        director, officer or controlling person in connection with the securities
        being
        registered, the Registrant will, unless in the opinion of its counsel the
        matter
        has been settled by controlling precedent, submit to a court of appropriate
        jurisdiction the question whether such indemnification by it is against public
        policy as expressed in the Act and will be governed by the final adjudication
        of
        such issue.</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="center">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">II-3</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#toc">Table
            of Contents</a></font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
        to the requirements of the Securities Act of 1933, the Registrant certifies
        that
        it has reasonable grounds to believe that it meets all the requirements for
        filing on Form S-8 and has duly caused this registration statement to be
        signed
        on its behalf by the undersigned, thereunto duly authorized, in the City
        of New
        York, State of New York, on this 3rd day of March, 2006.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="38%">&#160;</td>
              <td align="left" colspan="2" valign="top" width="40%">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CAPRIUS,
                  INC.</strong></font></div>
                <div>&#160;</div>
                <div>&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="38%">&#160;</td>
              <td align="left" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:</font></div>
              </td>
              <td align="left" valign="top" width="37%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
                  Jonathan Joels</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="38%">&#160;</td>
              <td align="left" valign="top" width="3%">&#160;</td>
              <td align="left" valign="top" width="37%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Jonathan
                  Joels</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
                  Financial Officer, Treasurer and
                  Secretary</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>POWER
        OF ATTORNEY</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">That
        each
        of the undersigned appoints George Aaron and Jonathan Joels as his true and
        lawful attorney-in-fact and agent, with full power of substitution and
        resubstitution, for him including post-effective amendments and related
        registration statements, to this Registration Statement, and to file same,
        with
        exhibits thereto and other documents in connection therewith, with the
        Securities and Exchange Commission, granting unto said attorneys-in-fact
        and
        agents, full power and authority to do separately and perform each and every
        act
        requisite and necessary to be done, as fully to all intents and purposes
        as he
        might or could so in person, hereby ratifying and confirming all that said
        attorneys-in-fact and agents, or their substitutes may lawfully do or cause
        to
        be done by virtue hereof. This Power of Attorney may be signed in several
        counterparts.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
        to the requirements of the Securities Act of 1933, as amended, this Registration
        Statement has been signed by the following persons in the capacities and
        on the
        date indicated. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td valign="top" width="21%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Name</u></font></div>
              </td>
              <td valign="top" width="32%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Title</u></font></div>
              </td>
              <td valign="top" width="26%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Date</u></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="21%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>/s/
                  George Aaron</u></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">George
                  Aaron</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chairman
                  of the Board, President and Chief Executive Officer</font></div>
              </td>
              <td align="left" valign="top" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 7pt">&#160;&#160;</font>March
                  3,
                  2006</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="21%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>/s/
                  Jonathan Joels</u></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Jonathan
                  Joels</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director,
                  Chief Financial Officer and Treasurer</font></div>
              </td>
              <td align="left" valign="top" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 7pt">&#160;&#160;</font>March
                  3,
                  2006</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="21%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>/s/
                  Jeffrey L. Hymes</u></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Jeffrey
                  L. Hymes, M.D. </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</font></div>
              </td>
              <td align="left" valign="top" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 7pt">&#160;&#160;</font>March
                  3,
                  2006</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="21%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>/s/
                  Sol Triebwasser</u></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sol
                  Triebwasser, Ph.D. </font></div>
              </td>
              <td align="left" valign="top" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</font></div>
              </td>
              <td align="left" valign="top" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 7pt">&#160;&#160;</font>March
                  3,
                  2006</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="center">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">II-4</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#toc">Table
            of Contents</a></font></div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INDEX
        TO EXHIBITS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        following is a list of exhibits filed as part of this Registration Statement,
        which are incorporated herein:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit
                  No. </strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="left" valign="top" width="68%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Description
                  of Exhibits</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.1*</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="justify" valign="top" width="68%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="ex5-1.htm">Opinion
                  of Thelen Reid &amp; Priest LLP regarding the
                  legality of shares of Common Stock being registered</a></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.1*</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="justify" valign="top" width="68%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="ex10-1.htm">Form
                  of Option Agreement for stock option granted under
                  the 2002 Plan</a></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23.1*
                  </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="justify" valign="top" width="68%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><a href="ex23-1.htm">Consent
                  of Marcum &amp; Kliegman LLP</a></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23.2*</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="justify" valign="top" width="68%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consent
                  of Thelen Reid &amp; Priest LLP (included in Exhibit 5.1)</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24.1*</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="justify" valign="top" width="68%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Power
                  of Attorney (included in the signature pages to this Registration
                  Statement)</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <div>
          <hr style="COLOR: black" align="left" noshade size="1" width="20%">
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*&#160;
        Filed herewith.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="center">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">II-5</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 9pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><a href="#toc">Table
            of Contents</a></font></div>
        </div>
      </div>
    </div>
  </body>
</html>
[{"type": "S-8", "sequence": "1", "filename": "forms-8.htm", "description": "FORM S-8", "secsgml_size_bytes": 283470}]
{"company-data": {"conformed-name": "CAPRIUS INC", "cik": "0000722567", "assigned-sic": "4955", "irs-number": "222457487", "state-of-incorporation": "DE", "fiscal-year-end": "0930"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-132210", "film-number": "06664944"}, "business-address": {"street1": "ONE UNIVERSITY PLAZA, SUITE 400", "city": "HACKENSACK", "state": "NJ", "zip": "07601", "phone": "201-342-0900"}, "mail-address": {"street1": "ONE UNIVERSITY PLAZA, SUITE 400", "city": "HACKENSACK", "state": "NJ", "zip": "07601"}, "former-company": {"former-conformed-name": "ADVANCED NMR SYSTEMS INC", "date-changed": "19920703"}}
Form S-8
Table
      of Contents
As
        Filed with the Securities and Exchange Commission on March 3,
        2006
Registration
          No. 333-__________
U.S.
        SECURITIES AND EXCHANGE COMMISSION
Washington,
        D.C. 20549
FORM
        S-8
REGISTRATION
        STATEMENT UNDER THE
SECURITIES
        ACT OF 1933
CAPRIUS,
        INC.
(Exact
        name of registrant as specified in its charter)
Delaware
22-2457487
(State
                  or other jurisdiction of
incorporation
                  or organization)
(IRS
                  Employer Identification No.)
One
        University Plaza, Suite 400
Hackensack,
        NJ 07601
(Address
        of Principal Executive Offices) (Zip Code)
1993
        Stock Option Plan
2002
        Stock Option Plan
(Full
        title of the plan)
Jonathan
                  Joels
Treasurer
                  and Chief Financial Officer
Caprius,
                  Inc.
One
                  University Plaza, Suite 400
Hackensack,
                  NJ 07601
(201)
                  342-0900
Copy
                  to:
Bruce
                  A. Rich, Esq.
Thelen
                  Reid & Priest LLP
875
                  Third Avenue
New
                  York, New York 10022
(212)
                  603-2000
(Name,
        address, telephone number, including area code, of agent for
        service)
CALCULATION
        OF REGISTRATION FEE
Title
                    Of Securities
To
                    Be Registered
Amount
                    to be
registered
(1)
Proposed
                    maximum offering price per share
Proposed
                    maximum aggregate offering
price
Amount
                    of
Registration
                    Fee
Common
                    Stock $.01 par value
190,200
(2
)
$
1.60
                    (5
)
$
304,320
$
35.82
Common
                    Stock $.01 par value
509,800
(3
)
$
2.29
                    (6
)
$
1,166,750
$
137.33
Common
                    Stock $.01 par value
34,925
(4
)
$
4.19
                    (6
)
$
146,475
$
17.24
Total
734,925
$
1,617,545
$
190.39
(1)
Pursuant
                  to Rule 416(a) under the Securities Act of 1933, as amended (the
                  "Securities Act"), this registration statement also covers any additional
                  securities to be offered or issued as a result of a stock split,
                  stock
                  dividend or similar transactions.
(2)
Shares
                  issuable upon exercise of options available for grant under 2002
                  Stock
                  Option Plan.
(3)
Shares
                  issuable upon exercise of options previously granted under the
                  2002 Stock
                  Option Plan.
(4)
Shares
                  issuable upon exercise of options previously granted under the
                  1993 Stock
                  Option Plan.
(5)
Estimated
                  solely for the purpose of calculating the registration fee as determined
                  in accordance with Rule 457(c) and (h) under the Securities Act
                  (based on
                  the closing price per share of the common stock as reported on
                  the OTCBB
                  as of March 1, 2006.
(6)
Pursuant
                  to Rule 457(h) under the Securities Act, the proposed maximum offering
                  price per share was calculated based on the weighted average exercise
                  price of the options granted.
Proposed
        sales to take place as soon as possible after the effective date of the
        Registration Statement as options granted under the Plan and the Agreements
        are
        exercised.
Table
            of Contents
EXPLANATORY
        NOTE
Caprius,
        Inc. (the "Company or "we") has prepared this Registration Statement in
        accordance with the requirements of Form S-8 under the Securities Act of
        1933,
        as amended (the "Securities Act"), to register an aggregate of 734,925 shares of
        our common stock, par value $0.01 per share, that are reserved for issuance
        upon
        exercise of options granted or to be granted under (1) our 2002 Stock Option
        Plan (the "2002 Plan") and (2) our 1993 Stock Option Plan (the "1993
        Plan").
This
        Registration Statement also includes a prospectus (the "Reoffer Prospectus")
        prepared in accordance with General Instruction C of Form S-8 and in accordance
        with the requirements of Part I of Form S-3. This Reoffer Prospectus may
        be used
        for reofferings and resales of shares of common stock which may be deemed
        to be
"control securities" under the Securities Act and the rules and regulations
        promulgated thereunder that have been acquired by the Selling Stockholders
        identified in the Reoffer Prospectus. The number of shares of common stock
        included in the Reoffer Prospectus represents the total number of shares
        of
        common stock that may be acquired by the Selling Stockholders upon exercise
        of
        options previously granted under the 2002 Plan, and does not necessarily
        represent a present intention to sell all such shares of common
        stock.
The
        second part of this Registration Statement contains information required
        in
        accordance with the requirements of Part II of Form S-8.
Table
            of Contents
PART
        I
INFORMATION
        REQUIRED IN THE SECTION 10(a) PROSPECTUS
Item
        1.
Plan
        Information
Not
        filed
        as part of this Registration Statement as permitted by the Note to Part 1
        of Form S-8.  The documents containing the information specified in
        this item have been or will be sent or given to participants in the 2002
        Stock
        Option Plan and the 1993 Plan as specified by Rule 428(b)(1) under the
        Securities Act. These documents are not being filed with the Securities and
        Exchange Commission (the "Commission"), but constitute along with the documents
        incorporated by reference into this Registration Statement, a prospectus
        that
        meets the requirements of Section 10(a) of the Securities Act.
Item
        2.
Registrant
        Information and Employee Plan Annual Information
We
        will
        furnish without charge to each person to whom the prospectus is delivered,
        upon
        the written or oral request of such person, a copy of any and all of the
        documents incorporated by reference in Item 3 of Part II of this Registration
        Statement, other than exhibits to such documents (unless such exhibits are
        specifically incorporated by reference to the information that is incorporated).
        Those documents are incorporated by reference in the Section 10(a) prospectus.
        Requests should be directed to Caprius, Inc., One University Plaza, Suite
        400,
        Hackensack, NJ 07601, Attention: President. Telephone: (201)
        342-0900.
Table
            of Contents
REOFFER
        PROSPECTUS
CAPRIUS,
        INC.
334,175
        shares of Common Stock
This
        prospectus is being used for the offering and sale of up to an aggregate
        of
        334,175 shares (the "Shares") of our common stock that may be issued to certain
        of our officers and directors (the "Selling Stockholders") upon their exercise
        of options granted to them under our 2002 Stock Option Plan (the "2002 Plan")
        and the 1993 Stock Option Plan (the "1993 Plan").
The
        Selling Stockholders, or their permitted transferees, who are listed in the
        section of this prospectus entitled "Selling Stockholders," may offer any or all
        of the Shares owned by them that are covered by this prospectus for resale
        from
        time to time. We will not receive any proceeds from the sale of the Shares;
        however, we will receive the proceeds, if any, from the exercise of the options
        and original issue of the Shares. We will pay all of the expenses associated
        with this prospectus. The Selling Stockholders will pay the other costs,
        such as
        brokerage commissions, if any, associated with the sale of the
        Shares.
The
        Shares that are issuable to the Selling Stockholders may be "restricted
        securities" under the Securities Act of 1933, as amended (the "Securities Act"),
        before their sale under this prospectus. We have prepared this prospectus
        for
        the sole purpose of registering the Shares under the Securities Act in order
        to
        allow them to offer and sell the Shares to the public, subject to any
        contractual limitations or legal restrictions.
Our
        common stock is currently traded on an over-the-counter bulletin board under
        the
        symbol CAPS.OB. On March 1, 2006, the closing price for our common stock
        was
        $1.60. You are urged to obtain current market quotations for our common stock
        before purchasing any of the Shares being offered for sale pursuant to this
        prospectus.
Investing
        in our common stock involves risks that are described in the "Risk Factors"
section beginning on page 8.
NEITHER
        THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION
        HAS
        APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ACCURACY OR
        ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
        OFFENSE.
The
        date
        of this Prospectus is March 3, 2006.
Table
            of Contents
TABLE
        OF CONTENTS
Page
THE
                  COMPANY
4
CAUTIONARY
                  NOTE REGARDING FORWARD LOOKING
                  STATEMENTS
8
RISK
                  FACTORS
8
USE
                  OF PROCEEDS
11
DESCRIPTION
                  OF SECURITIES TO BE
                  REGISTERED
11
SELLING
                  STOCKHOLDERS
11
PLAN
                  OF DISTRIBUTION
13
EXPERTS
13
LEGAL
                  MATTERS
13
ADDITIONAL
                  INFORMATION
13
INCORPORATION
                  OF CERTAIN DOCUMENTS BY
                  REFERENCE
14
You
        should rely only on the information contained in this prospectus. We have
        not
        authorized anyone to provide you with any information that is different from
        the
        information contained in this prospectus. The Selling Stockholders are offering
        to sell, and seeking offers to buy, the Shares only in jurisdictions where
        such
        offers and sales are permitted. The information contained in this prospectus
        is
        accurate only as of the date of the front cover of this Prospectus, regardless
        of the time of the delivery of this prospectus or of any sale of the Shares.
        Our
        business, financial condition, results of operations and prospects may have
        changed since that date.
3
Table
            of Contents
THE
COMPANY
General
Caprius,
        Inc. was founded in 1983. Through our subsidiary M.C.M. Environmental
        Technologies, Inc., ("MCM"), we are engaged in the development, marketing and
        sale of the SteriMed and SteriMed Junior Compact Systems in the U.S. and
        international markets. The SteriMed Systems simultaneously shred and disinfect
        regulated medical waste.
Through
        June 1999, we essentially operated in the business of developing specialized
        medical imaging systems, as well as operating the Strax Institute, a
        comprehensive breast imaging center. In June 1999, we acquired Opus Diagnostics,
        Inc. and began manufacturing and selling medical diagnostic assays constituting
        the Therapeutic Drug Monitoring Business (the "TDM Business"). In October 2002,
        we sold the TDM business. The Strax Institute was sold in September 2003.
        In
        December 2002, we acquired 57.33% of the capital stock of MCM, and subsequently
        increased our ownership of MCM to 96.66% as of September 30, 2005. In February
        2006, we closed the sale of shares of our Series D Convertible Preferred
        Stock
        and our 2006 Series A and B Warrants in a private placement for net proceeds
        of
        $2.7 million.
Description
        of MCM Environmental Technologies, Inc. Business
Background
        of the Regulated Medical Waste Industry in the United
        States
In
        1988,
        the Federal Government passed the Medical Waste Tracking Act ("MWTA"). This Act
        defined medical waste and the types of medical waste that were to be regulated.
        In addition to defining categories of medical waste, the law mandated that
        generators of Regulated Medical Waste ("RMW") be responsible for and adhere to
        strict guidelines and procedures when disposing of RMW. The mandates included
        a
"cradle to grave" responsibility for any RMW produced by a facility, the
        necessity to track the disposal of RMW and defined standards for segregating,
        packaging, labeling and transporting of RMW.
The
        MWTA
        led to the development of individual state laws regulating how RMW is to
        be
        disposed of. As a result of these laws, it became necessary for medical waste
        generating facilities to institute new procedures and processes for transporting
        medical waste from the facility to an offsite treatment and disposal center,
        or
        obtain their own on-site system for treatment and disposal acceptable to
        the
        regulators.
The
        other
        major impact on the RMW market was the adoption of the Clean Air Amendments
        of
        1997. This act dramatically reduced or eliminated the type of emissions that
        are
        permitted from the incineration of RMW. Due to this, generators of RMW, which
        were incinerating their waste, were forced into costly upgrades of their
        incinerators or to find other methods of disposal.
Most
        generators of RMW use waste management firms to transport, treat and dispose
        of
        their waste. Due to legislative and other market factors, the costs for
        this type of service have been increasing at a dramatic pace. At the same
        time,
        many medical waste generators are coming under increasing pressure to reduce
        expenses as a result of the decreasing reimbursement payments from Medicare
        and
        other third party providers. Additionally, the added liability of RMW generators
        as a result of the "cradle to grave" manifest requirement has made it more
        attractive to use medical waste management methods that do not require tracking
        systems. The combination of these pressures is forcing medical waste generators
        to seek innovative methods for their waste disposal. We believe these factors
        create a demand for an onsite RMW treatment option. MCM has identified and
        is
        working with specific segments and niches within the RMW market on which
        it
        feels it might capitalize.
Background
        of the Regulated Medical Waste Industry Outside of the United
        States
The
        industrialized countries of the European Union and Japan are implementing
        medical waste laws that are or will be similar to U.S. regulations. In 1994,
        the
        European Commission implemented a directive where member states had to adhere
        to
        the provisions of the United Nations Economic Commission for Europe ("UNECE")
        European Agreement on the International Carriage of Dangerous Goods by Road.
        This requires that clinical or medical waste be packed, marked, labeled and
        documented according to defined specifications. Regulations and
4
Table
            of Contents
cost
        factors have prompted European RMW generators to seek alternative medical
        waste
        disposal options. MCM recognizes an excellent opportunity for SteriMed sales
        in
        Europe, and is working with regulators, potential joint venture partners
        and
        distributors.
Throughout
        the less industrialized and third world countries, the disposal of hospital
        waste is coming under increasing scrutiny and regulations. Many countries
        are in
        the process of updating and enforcing regulations regarding the disposal
        of RMW.
        MCM is attempting to establish relationships worldwide directly or through
        distributors, in many of these countries.
The
        MCM SteriMed Systems
The
        SteriMed Systems are patented, environmentally friendly, on-site disinfecting,
        shredding and disposal systems that can process regulated clinical waste,
        including sharps, dialysis filters, pads, bandages, plastic tubing and even
        glass
,
        in a 15
        minute cycle
.
        The
        units, comparable in size to a washer-dryer, simultaneously shred, grind,
        mix
        and disinfect the waste with the proprietary Ster-Cid® solution. After
        treatment, the material may be discarded as unrecognizable conventional solid
        waste, in accordance with appropriate regulatory requirements. The resultant
        treated waste is as low as 10% of the original volume.
The
        SteriMed Systems are comprised of two different sized units, and the required
        Ster-Cid® disinfectant solution which can be utilized with both units. The
        larger SteriMed can treat up to 20 gallons (75 liters) of medical waste per
        cycle. The smaller version, SteriMed Junior, can treat 4 gallons (15 liters)
        per
        cycle. As the technology for disinfection is chemical based, within the
        definitions used in the industry, it is considered as an alternative treatment
        technology.
We
        have
        the worldwide exclusive rights for the manufacture, use and sale of the
        Ster-Cid
®
proprietary disinfectant used in the SteriMed System. The Ster-Cid
®
is
        currently manufactured solely for us by the licensor. In the event that the
        licensor is unable to manufacture the Ster-Cid
®
,
        we have
        the right to have Ster-Cid® manufactured by an alternative manufacturer.
        Ster-Cid
®
is
        approximately 90% biodegradable. Ster-Cid
®
is
        considered a pesticide by the U.S. EPA and, in compliance with Federal
        Insecticide, Fungicide, Rodenticide Act of 1972 ("FIFRA"), and it is registered
        with the U.S. EPA.
The
        process
of
        registering a pesticide under FIFRA involves submission of an application
        package to the U.S. EPA. The EPA's review of this application includes
        assessment of the hazards to human health and the environment that may be
        posed
        by the pesticide. This process can take up to a year or more to complete.
        MCM
        had assigned an agent experienced with the FIFRA registration process to
        carry
        out this process for Ster-Cid
®
.
        This
        process was completed in September 1999 at which time the Ster-Cid
®
was
        assigned a FIFRA Registration number.
During
        the SteriMed disinfecting cycle, the concentration of Ster-Cid® is approximately
        0.5% of the total volume of liquids. The Ster-Cid
®
disinfectant has been tested in independent laboratories and has been shown
        to
        meet U.S. EPA guidelines for disinfection. Furthermore, it is accepted by
        the
        Publicly Owned Treatment Works ("POTW") allowing for its discharge into the
        sewer system.
Both
        the
        SteriMed and SteriMed Junior are safe and easy to operate, involving ½ day of
        training provided by our technical support staff to operators as designated
        by
        the end-user. The operator is trained to handle the daily and weekly
        responsibilities for the routine preparation, maintenance, and minor
        troubleshooting of the SteriMed Systems. Daily maintenance includes filling
        the
        system with the Ster-Cid
®
,
        removal
        and replacement of the filter bags, and disposing of the filter bag as black
        bag
        waste.
The
        trained operator places the red bag waste containing RMW into the SteriMed
        receiver chamber and activates the start button. The water and
        Ster-Cid
®
are
        then
        automatically released into the treatment chamber. The shredding, grinding
        and
        mixing of the waste is then initiated to expose all surfaces of the medical
        waste to the chemical solution during
the
        15
minute
        processing cycle. At the end of each specified number of cycles, the trained
        operator then puts the residue into a regular black bag, ready for disposal
        as
        regular solid waste.
Both
        SteriMed and the SteriMed Junior are equipped with an integrated monitoring
        system, including a PLC display, which indicates each of the system's functions
        to guide the operator through its operations. Access to the PLC program is
        secured, accessible only by MCM's technicians to prevent operators from
        overriding the treatment process. Relevant information concerning treatment
        parameters may be electronically forwarded, at the
5
Table
            of Contents
end
        of
        each treatment cycle, to a designated printer at any location within the
        facility. In addition, the system is capable, at the option of the facility,
        to
        have the treatment parameters for all cycles in a day forwarded to MCM's
        maintenance center.
Regulations
        and Regulatory Compliance for Alternative Medical Waste Treatment Technologies
        in the United States
Our
        use
        of the Ster-Cid
®
disinfectant in the SteriMed Systems is registered by the U.S. EPA under
        FIFRA.
        The SterCid
®
disinfectant is considered a pesticide, and is registered under FIFRA Number
        71814. FIFRA gives the federal government control over the distribution,
        sale
        and use of pesticides. All pesticides used in the U.S. must be registered
        (licensed) by the U.S. EPA under FIFRA. Registration of pesticides is to
        seek
        assurance that they will be properly labeled, and if used in accordance with
        label specifications, will not cause unreasonable harm to the
        environment.
The
        MCM
        SteriMed systems are regulated at the state level by the individual states'
Environmental, Conservation, Natural Resources, or Health Department. Each
        state
        has its own specific approval requirements. Generally, most states require
        an
        application for registration or approval be submitted along with back-up
        information, including but not limited to operating manuals, service manuals,
        and procedures. Additionally, many states require contingency and safety
        plans
        be submitted, and that efficacy testing be performed. MCM has demonstrated
        through efficacy testing that it can inactivate the 4Log10 concentration
        of
Bacillus
        atrophaeus (
formerly
Bacillus subtilis)
spores.
        This meets or exceeds most state regulatory requirements.
The
        SteriMed Senior has been cleared for
marketing
        in 47 states and the SteriMed Junior in 42 states
.
        The
        Ster-Cid
®
disinfectant has been registered in 49 states. We are currently seeking to
        obtain approvals from the remaining states.
Local
        and
        county level authorities generally require that discharge permits be obtained
        from POTW by all facilities that discharge a substantial amount of liquids
        or
        specifically regulated substances to the sewer system. The SteriMed Systems
        process effluent has been characterized and found to be within the lower
        range
        of the general discharge limits set forth by the National Pollutant Discharge
        Elimination System (NPDES) Permitting Program, which are used to establish
        POTW
        discharge limits.
These
        approvals allow the SteriMed Systems effluent to be discharged to a municipal
        sewer and the treated disinfected solid waste to be disposed of in a municipal
        landfill.
The
        process used by the SteriMed Systems, unlike many other waste medical disposal
        technologies, is not subject to the Clean Air Act Amendments of 1990 because
        there is no incineration or generation of toxic fumes in the process. It
        is also
        not subject to the Hazardous Materials Transportation Authorization Act of
        1994
        as there is no transportation of hazardous waste involved.
Regulations
        and Regulatory Compliance for Alternative Medical Waste Treatment Technologies
        outside of the United States
CE
        Mark
        compliancy is a requirement for equipment sold in the European Union
        ("EU
").
        The
        SteriMed Systems are CE Mark compliant as well as ISO Certified, 9001:2000
        and
        14001:1996. In order to meet the specific regulatory requirements of the
        individual members of the EU, MCM has undertaken further efficacy testing
        where
        necessary in order to demonstrate that the SteriMed conforms to all the
        standards in the specific EU member country. Outside of the EU, we are required
        to review and meet whatever the specific
standards a country may impose. In countries where we have distributors,
        they
        are required to obtain the necessary regulatory approvals on our behalf at
        their
        expense.
Competition
RMW
        has
        routinely been treated and disposed of by means of incineration. Due to the
        pollution generated by medical waste incinerators, novel technologies have
        been
        developed for the disposal of RMW. Some of the
6
Table
            of Contents
issues
        confronting these technologies are: energy requirements, space requirements,
        unpleasant odor, radiation exposure, excessive heat, volume capacity and
        reduction, steam and vapor containment, and chemical pollution. The use of
        the
        SteriMed Systems eliminates concern about these issues: space and energy
        requirements are minimal, there are no odors, radiation, steam, vapor or
        heat
        generated, solid waste volume is reduced by up to 90% and the disinfecting
        chemical is 94% biodegradable
.
Marketing
        Strategy
We
        have
        designed and are implementing a marketing program which maximizes the uniqueness
        and strengths of the SteriMed Systems while enhancing our customers' cash flow
        and minimizing their financial restraints. Our sales focus is to those sites
        which best fit the capabilities and requirements of our systems. These include
        those sites generating approximately 2,000 to 12,000 pounds of RMW per month
        and
        are able to provide a room with a minimum of 75 square feet with proper plumbing
        and electricity for the storage and operation of the machine. Within the
        United
        States these facilities include dialysis centers, surgical centers,
        plasmapheresis centers, blood banks, commercial laboratories (both research
        and
        clinical), large physician group practices and specific sites within
        hospitals
Many
        of
        these facilities are owned by national or international corporations operating
        many facilities. By focusing our sales efforts to these corporations we will
        be
        able to have multiple machine placements within the same organization. This
        offers many advantages to the customer and to us. Not only will we be able
        to
        maximize our selling efforts, we will also be able to compound our warranty
        and
        service effectiveness. This strategy should enable us to maximize resources
        and
        quickly obtain market penetration. We are presently working with a number
        of
        these customers in the implementation of this strategy and in fiscal year
        2005,
        the Company received its first significant order in the U.S. for the SteriMed
        Junior
Systems
        from a major dialysis company. In addition, in December 2005, we received
        an
        order for two SteriMed Junior Systems from the United States Department of
        Defense for use by the U.S. Navy. The units are for laboratory test and
        evaluation as part of the U.S. Navy's Shipboard Medical Waste Management
        Program.
We
        do not
        have the depth of marketing or financial capacity that many of our competitors
        have and thus are reliant upon generating interest in our products by virtue
        of
        our technical advantages. This aspect is emphasized in our limited budget
        allocated for marketing.
Our
        business marketing models in the U.S. are either to lease or to sell SteriMed
        Systems. The basic lease terms are a single monthly fee which will include
        the
        cost of the SteriMed, disposables and service for the life of the lease.
        Lease
        terms are usually five years. In the rest of the world, only the sale option
        is
        available. Leasing is not available outside of the US because of the potential
        difficulty in monitoring and collecting monthly leasing fees. Our distributors,
        however, are free to sell or lease the SteriMed Systems in their respective
        markets. Regulatory approvals are required prior to marketing in any country,
        whether the business is conducted by us or our distributors.
To
        maximize and augment our sales efforts in the U.S., we have been actively
        recruiting distributors. Ideally, we are seeking local, regional and national
        distributors who will have the right to sell the SteriMed Systems and related
        products within their prescribed geographical areas or business sectors.
        In
        order to gain exclusivity, the distributor must commit to minimum annual
        purchases. The distributor is obligated to work within the guidelines and
        regulatory approvals set up and maintained by us.
Internationally,
        we have distribution agreements in the following countries: Argentina, Brazil,
        Columbia, Costa Rica, Cyprus, Greece, Japan, Mexico, Paraguay, Poland,
        Scandinavia (Norway, Sweden, Finland and Iceland), Singapore, Taiwan, Tunisia
        and Uruguay. In January 2006, we entered into a three-year exclusive
        distributorship agreement for the Caribbean. In February 2006, we entered
        into a
        five-year exclusive distributorship agreement for the territories of Australia
        and New Zealand. In each of the countries, it is the distributors'
responsibility to obtain, at their own expense, all regulatory approvals
        which
        will be registered in the name of MCM.
Manufacturing
Presently,
        we manufacture the SteriMed at our facility in Moshav Moledet, Israel. The
        SteriMed Junior is currently manufactured by a third-party manufacturer in
        Israel. We continue to seek sub-assembly manufacturers to enable us to reduce
        the cost of the SteriMed Junior as well as alternative locations in North
        America for the manufacture of our SteriMed Junior.
Approximately
        half of the SteriMed Systems' components are commercially available from
        third-party suppliers. The remaining components are either generic with
        modification or customized specifically for the SteriMed. We presently have
        depots for parts and supplies located in Ridgefield, NJ and Moledet, Israel.
7
Table
            of Contents
Maintenance
        and Customer Service Model
Critical
        to the successful use of the SteriMed Systems is the proper training of the
        personnel carrying out the installation, operation and service of the equipment.
        We provide our customers with a warranty covering parts and labor for one
        year.
        Thereafter, we offer an extended warranty program. Our technical service
        staff
        assists clients in the installation of units and the training of their staff
        and
        on-site operators. This training program is strongly geared towards safety
        and
        maintenance to assure ongoing safe and smooth operation of the unit. After
        installation and training, operation of the unit is monitored by our technical
        staff to assure proper performance. Our technical staff is on-call to assist
        in
        fixing problems or performing repairs. Our goal is to minimize problems through
        ongoing training and strict adherence to maintenance schedules. Our customer
        service staff is available to help with any questions or issues our customers
        might have.
CAUTIONARY
NOTE
        REGARDING FORWARD LOOKING
        STATEMENTS
This
        prospectus contains or incorporates by reference forward-looking statements
        that
        we believe are within the meaning of Section 27A of the Securities Act and
        Section 21E of the Securities Exchange Act of 1934, which are intended to
        be
        covered by the safe harbors created by such acts. These statements describe
        our
        attempt to predict future events, such as our ability to achieve satisfactory
        operating performance, the viability of our business model, the regulatory
        responses to our product candidates, our ability to obtain needed working
        capital, the market acceptance of our product candidates and the protection
        of
        our proprietary information.
The
        shares of our common stock being offered for resale by the selling stockholders
        are highly speculative in nature, involve a high degree of risk and should
        be
        purchased only by persons who can afford to lose the entire amount invested
        in
        the common stock. Before purchasing any of the shares of common stock, you
        should carefully consider the following factors relating to our business
        and
        prospects which factors constitute the material risks related to an investment
        in our common stock. If any of the following risks actually occurs, our
        business, financial condition or operating results could be materially adversely
        affected. In such case, the trading price of our common stock could decline,
        and
        you may lose all or part of your investment.
RISK
FACTORS
The
        medical infectious waste disposal industry is subject to extensive federal,
        state and local laws and regulations, both in the US and overseas. Our business
        requires us to obtain many different approvals and permits or other types
        of
        governmental authorizations for each jurisdiction in which we operate. Other
        risks that we face are more specifically defined as follows:
Manufacturing
Presently,
        we manufacture the SteriMed at our facility in Moshav Moledet, Israel. The
        SteriMed Junior is currently manufactured by a third-party manufacturer in
        Israel. We continue to seek sub-assembly manufacturers to enable us to reduce
        the cost of the SteriMed Junior as well as alternative locations in North
        America for the manufacture of our SteriMed Junior. I
f
        we fail
        to effectively manufacture or fail to develop a market for our SteriMed Systems,
        we will likely be unable to recover the losses we will have incurred in
        attempting to produce and market these products and technologies and may
        be
        unable to make sales or become profitable.
8
Table
            of Contents
We
        are
        dependent on third-party suppliers for the components of our SteriMed and
        SteriMed Junior Systems and also for the Ster-Cid
®
disinfectant. At present there are no supply contracts in place and our
        requirements are fulfilled against purchase orders. There can be no assurances
        that we will have adequate supplies of materials. Although we believe that
        the
        required components are readily available and can be provided by other
        suppliers, delays may be incurred in establishing relationships or in waiting
        for quality control assurance with other manufacturers for substitute
        components.
Regulatory
The
        medical waste management industry is subject to extensive U.S. EPA, state
        and
        local laws and regulations relating to the collection, packaging, labeling,
        handling, documentation, reporting, treatment and disposal of regulated medical
        waste. The use of the Ster-Cid
®
disinfectant
        in the SteriMed Systems is registered with the U.S. EPA under FIFRA, however,
        the SteriMed Systems are not subject to U.S. EPA registration. Our business
        requires us to comply with these extensive laws and regulations and also
        to
        obtain permits, authorizations, approvals, certificates or other types of
        governmental permission from all states and some local jurisdictions where
        we
        sell or lease the SteriMed Systems. The SteriMed
has
        been
        cleared for marketing in 47 states and the SteriMed Junior in 42 states.
        It is
        our objective to obtain approvals from the remaining states. The
        Ster-Cid
®
has been
        registered in 49 states. Our ability to obtain such approvals in the remaining
        states and the timing and cost to do so, if successful, cannot be easily
        determined nor can the receipt of ultimate approval be assumed.
In
        markets outside the U.S., our ability to market the SteriMed Systems is governed
        by the regulations of the specific country. In foreign countries where we
        market
        through distributors, we rely on them to obtain the necessary regulatory
        approvals to permit the SteriMed System to be marketed in that country. We
        are
        therefore dependent on the distributor to process these applications where
        required. In many of these countries we have no direct control or involvement
        in
        the approval process, and therefore we cannot estimate when our product will
        be
        available in that market.
We
        believe that we currently comply in all material respects with all applicable
        laws, regulations and permitting requirements. State and local regulations
        change often, however, and new regulations are frequently adopted. Changes
        in
        the applicable regulations could require us to obtain new approvals or permits,
        to change the way in which we operate or to make changes to our SteriMed
        Systems. We might be unable to obtain the new approvals or permits that we
        require, and the cost of compliance with new or changed regulations could
        be
        significant. In the event we are not in compliance, we can be subject to
        fines
        and administrative, civil or criminal sanctions or suspension of our
        business.
The
        approvals or permits that we require in foreign countries may be difficult
        and
        time-consuming to obtain. They may also contain conditions or restrictions
        that
        limit our ability to operate efficiently, and they may not be issued as quickly
        as we need (or at all). If we cannot obtain the necessary approval or permits
        when needed, or if they contain unfavorable conditions, it could substantially
        impair our ability to sell the SteriMed System in certain
        jurisdictions.
Intellectual
        Property
We
        regard
        certain aspects of our products, processes, services and technology as
        proprietary, and we have trademarks and patents for certain aspects of the
        SteriMed
S
ystem.
Our
        ability to compete successfully will depend in part on our ability to protect
        our proprietary rights and to operate without infringing on the proprietary
        right of others, both in the United States and abroad. Our proprietary rights
        to
        Ster-Cid
®
relate
        to
        an exclusive worldwide license that we had obtained from a third party
        manufacturer in Europe to purchase the Ster-Cid
®
disinfectant.
        The patent positions of medical waste technology companies generally involve
        complex legal and factual questions. While patents are important to our
        business, the regulatory approvals are more critical in permitting us to
        market
        our products. We may also apply in the future for patent protection for uses,
        processes, products and systems that we develop. There can be no assurance
        that
        any future patent that we apply for will be issued, or that any existing
        patents
        issued will not be challenged, invalidated or circumvented, or that the rights
        granted thereunder will provide any competitive advantage, or
that
        third parties will not infringe or misappropriate our proprietary rights
        or that
        third parties will not independently develop similar products, services and
        technology.
We may
        incur substantial costs in defending any patent or license infringement suits
        or
        in asserting any patent or license rights, including those granted by third
        parties, the expenditure of which we might not be able to afford. An adverse
        determination could
9
Table
            of Contents
subject
        us to significant liabilities to third parties, require us to seek licenses
        from
        or pay royalties to third parties or require us to develop appropriate
        alternative technology. There can be no assurance that any such licenses
        would
        be available on acceptable terms or at all, or that we could develop alternate
        technology at an acceptable price or at all. Any of these events could have
        a
        material adverse effect on our business and profitability.
We
        may
        have to resort to litigation to enforce our intellectual property rights,
        protect our trade secrets, determine the validity and scope of the proprietary
        rights of others, or defend ourselves from claims of infringement, invalidity
        or
        unenforceability. Litigation may be expensive and divert resources even if
        we
        win. This could adversely affect our business, financial condition and operating
        results such that it could cause us to reduce or cease operations.
Developing
        products based upon new technologies can result in litigation based on
        allegations of patent and other intellectual property infringement. While
        no
        infringement claims have been made or threatened against us, we cannot assure
        you that third parties will not assert infringement claims against us in
        the
        future, that assertions by such parties will not result in costly litigation,
        or
        that they will not prevail in any such litigation. In addition, we cannot
        assure
        you that we will be able to license any valid and infringed patents from
        third
        parties on commercially reasonable terms or, alternatively, be able to redesign
        products on a cost-effective basis to avoid infringement.
Marketing
Our
        future growth and profitability depend in part on our ability to respond
        to
        technological changes and successfully develop and market new products that
        achieve significant market acceptance. This industry has been historically
        marked by very rapid technological change and the frequent introductions
        of new
        products. There is no assurance that we will be able to develop new products
        that will realize broad market acceptance.
Competition
There
        are
        numerous methods of handling and disposing of RMW, of which our technology
        is
        one of the available systems. We are not aware of any competitive product
        that
        is similar to the SteriMed Systems with respect to its design and compactness.
        We believe that our SteriMed Systems, due to its ability to be used on site,
        the
        cost basis and ease of use, offers a significant advantage over RMW systems
        offered by our competitors. We realize, however, there can be no assurance
        that
        a different or new technology may not supplant us in the market. Further,
        we
        cannot guarantee that in the event that we are successful in the deployment
        of
        our systems in the marketplace, the predominant companies in the field, which
        have substantially greater resources and market visibility than us, will
        not try
        to develop similar systems.
Liability
The
        malfunction or misuse of our SteriMed Systems may result in damage to property
        or persons, as well as violation of various health and safety regulations,
        thereby subjecting us to possible liability. Although our insurance coverage
        is
        in amounts and deductibles customary in the industry, there can be no assurance
        that such insurance will be sufficient to cover any potential liability.
        We
        currently retain a claims made worldwide product liability insurance policy.
        Further, in the event of either adverse claim experience or insurance industry
        trends, we may in the future have difficulty in obtaining product liability
        insurance or be forced to pay very high premiums, and there can be no assurance
        that insurance coverage will continue to be available on commercially reasonable
        terms or at all. In addition, there can be no assurance that insurance will
        adequately cover any product liability claim against us. A successful product
        liability, environmental or other claim with respect to uninsured liabilities
        or
        in excess of insured liabilities could have a material adverse effect on
        our
        business, financial condition and operations. To date, no claims have been
        made
        against us. We believe that our insurance coverage is adequate to cover any
        claims made, and we
review
our
        insurance requirement with our insurance broker on an annual basis.
Financial
We
        raised
        gross proceeds of $3.0 million in a placement of Series D Preferred Stock
        and
        warrants in the second quarter of Fiscal 2006, gross proceeds of $4.5 million
        in
        a placement of Series C Preferred Stock and warrants in the second quarter
        of
        fiscal 2005, and gross proceeds of $1.5 million in a placement of convertible
        secured notes in the third quarter of fiscal 2004. The net proceeds from
        these
        placements should fulfill our capital needs through
10
Table
            of Contents
March
        31,
        2007 based upon our present business plan. However, we expect to require
        additional working capital or other funds in the near future should we need
        to
        modify our business plan. These funds are required to support our marketing
        efforts, to obtain additional regulatory approvals both domestically and
        overseas as well as to support our manufacturing purposes. In the event we
        are
        unable to achieve any market penetration in the near term, secure regulatory
        approvals or build inventory available for immediate delivery, our ability
        to
        secure additional funding could be severely jeopardized. No assurance can
        be
        given that we will be successful in obtaining additional funds, whether publicly
        or privately or through equity or debt. Any such financing could be highly
        dilutive to stockholders.
In
        the
        past, we have experienced significant losses and negative cash flows from
        operations. If these trends continue in the future, it could adversely effect
        our financial condition. For the years ended September 30, 2005 and September
        30, 2004, we experienced net losses of approximately $2.5 and $3.2 million
        from
        continuing operations respectively. Further, we incurred negative cash flows
        from operations of approximately $2.9 million and $2.8 million for the years
        ended September 30, 2005 and 2004, respectively. These results have had a
        negative impact on our financial condition. There can be no assurance that
        our
        business will become profitable in the future and that additional losses
        and
        negative cash flows from operations will not be incurred. If these trends
        continue in the future, it could have a material adverse effect on our financial
        condition
Personnel
Our
        success is highly dependent on the continued efforts of a small management
        team.
        Should operations expand, we will need to hire persons with a variety of
        skills.
        Competition for these skilled individuals could be intense, and there can
        be no
        assurance that we will be successful in attracting and retaining key personnel
        in the future. Our failure to do so could adversely affect our business and
        financial condition. We do not have employment agreements with or carry any
        "key-man" insurance on the lives of any of our officers or
        employees.
USE
OF
        PROCEEDS
The
        Selling Stockholders will receive all of the proceeds from the resale of
        the
        Shares. We will not receive any of the proceeds from the resale of the Shares.
        To the extent the Selling Stockholders exercise their options to purchase
        shares
        of common stock offered hereby, we would receive up to approximately $830,000
        from such exercises, all of which funds will be added to our general working
        capital and used for general business purposes.
DESCRIPTION
OF
        SECURITIES TO BE
        REGISTERED
We
        are
        authorized to issue 50,000,000 shares of common stock, $0.01 par value. Each
        share has one vote for election of directors and all other matters submitted
        to
        a vote of stockholders. Shares of common stock do not have cumulative voting,
        preemptive, redemption or conversion rights.
The
        holders of shares of common stock are entitled to dividends when and as declared
        by the board of directors from funds legally available therefore, and, upon
        liquidation are entitled to share pro rata in any distribution to holders
        of
        common stock, subject to the right of holders of outstanding preferred stock.
        No
        dividends have ever been declared by the board of directors on the common
        stock.
        There are no conversion rights or redemption or sinking fund provisions with
        respect to our common stock. All of the outstanding shares of common stock
        are,
        and all shares sold hereunder will be, when issued upon payment therefore,
        duly
        authorized, validly issued, fully paid and non-assessable.
SELLING
STOCKHOLDERS
The
        table
        and notes below describe, as of January 31, 2006, certain information regarding
        the beneficial ownership of common stock with respect to each Selling
        Stockholder: (a) the name of the Selling Stockholder and his relationship
        to us
        during the last three years; (b) the number of shares of common stock he
        beneficially owned as of the date of this prospectus; (c) the number of Shares
        which he may offer pursuant to this prospectus; and (d) the amount and the
        percentage our common stock that would be owned by him after completion of
        this
        offering, assuming he disposes of all of the Shares being offered by him
        pursuant to this prospectus. The information contained in this table or notes
        may be amended or supplemented from time to time.
11
Table
            of Contents
Beneficial
                  Ownership after
the
                  Offering
Name
*
Relationship
                  to
Company
Number
                  of Shares
Beneficially
Owned
                  Prior to
the
                  Offering
1
Shares
                  being
offered
Number
                  of
Shares
Percentage
                  of Common
Stock
George
                  Aaron
Chairman
                of the Board; Chief Executive Officer; President
360,887(2
)
120,000
240,887
7.2
%
Jonathan
                  Joels
Director;
                Chief Financial Officer; Treasurer; Secretary
355,226(3
)
120,000
235,226
7.1
%
Elliott
                  Koppel
VP
                Sales & Marketing
50,194(4
)
45,000
5,194
**
Sol
                  Triebwasser, Ph.D.
Director
25,495(5
)
25,425
70
**
Jeffrey
                  L. Hymes, M.D.
Director
23,750(6
)
23,750
-0-
**
*
Except
        otherwise indicated above, the address of the holder is Caprius, Inc., One
        University Plaza, Hackensack, NJ 07601.
**
Less
        than
        one percent (1%).
(1)
Beneficial
                  owner means any person who, directly, or indirectly, through any
                  contract
                  arrangement, understanding, relationship or otherwise has or shares:
                  (i)
                  voting power, which includes the power to vote, or to direct the
                  voting
                  of, shares of our common stock; and/or (ii) investment power, which
                  includes the power to dispose, or to direct the disposition of,
                  shares of
                  our common stock, except where otherwise noted. While under SEC
                  rules, a
                  person is also deemed to be a beneficial owner of a security if
                  that
                  person has the right to acquire beneficial ownership of such security
                  at
                  any time within 60 days from the date of this prospectus, the table
                  includes shares underlying outstanding options that are to vest
                  more than
                  60 days from the date hereof.
(2)
Includes
(i) 353 shares in retirement accounts, (ii) 9,075 shares underlying
                  warrants presently exercisable, (iii) 5 shares jointly owned with
                  his wife
                  and (iv) 20,000 shares underlying options presently exercisable.
                  Also
                  includes 100,000 shares underlying options not presently
                  exercisable.
(3)
Includes
(i) 48,000 shares as trustee for his children, (ii) 8,618 shares
                  underlying warrants presently exercisable, (iii) 875 shares underlying
                  warrants owned by his wife for which he disclaims beneficial ownership,
                  (iv) 20,000 shares underlying options presently exercisable and
                  (v) 17,241
                  shares in a retirement account. Also includes 100,000 shares underlying
                  options not presently exercisable.
(4)
Includes
                  (i) 4,644 shares underlying warrants and (ii) 20,000 shares underlying
                  options presently exercisable. Also includes 25,000 shares underlying
                  options not presently exercisable.
(5)
Includes
                  5,425 shares underlying options presently exercisable. Also includes
                  options for 20,000 shares not presently
                  exercisable.
(6)
Includes
                  2,500 shares underlying options presently exercisable and 1,250
                  shares
                  underlying options which are currently not exercisable. Also includes
                  20,000 shares underlying options not presently
                  exercisable.
The
        Selling Stockholders listed in the above table may have sold or transferred,
        in
        transactions pursuant to this prospectus or exempt from the registration
        requirements of the Securities Act, some or all of their Shares since the
        date
        on which the information in the above table is presented. Information about
        the
        Selling Stockholders may change from time to time. Information about other
        person who may hereafter become Selling Stockholders will be set forth in
        prospectus supplements or post-effective amendments, if required.
Because
        the Selling Stockholders may offer all or some of their common stock from
        time
        to time, and none is obligated to sell any Shares, we cannot estimate the
        amount
        of the common stock in the column "Shares Being Offered" in the above table that
        will be held by the Selling Stockholders after this offering. Also, this
        prospectus
12
Table
            of Contents
does
        not
        include shares that may be acquired upon exercise of options that we may
        grant
        to the Selling Stockholders in the future. The shares issuable upon exercise
        of
        options granted in the future may subsequently be sold pursuant to this
        prospectus, as supplemented to reflect the offering of such underlying shares
        for resale or in transaction exempt from the registration requirements of
        the
        Securities Act. See "Plan of Distribution" for further information.
PLAN
OF
        DISTRIBUTION
None
        of
        the Selling Stockholders has advised us of any specific plans for the sale,
        transfer, gift or other disposition of the Shares offered under this prospectus.
        However, if any Shares are sold, we expect that the Shares will be sold from
        time to time primarily through transactions on the over-the-counter bulletin
        board, or on any other national securities exchanges or market system where
        our
        common stock is then listed, although sales also may be made in negotiated
        transactions or otherwise.
The
        Selling Stockholders may sell the Shares through various means, including
        directly or indirectly to purchasers, in one or more transactions on any
        stock
        exchange or securities market on which the Shares are traded at the time
        of
        sale, in privately negotiated transactions, or through a combination of these
        methods. These sales may be at fixed prices, which may change, at market
        prices
        available at the time of sale, at prices based on the available market price
        at
        the time of sale, or at negotiated prices. If the Shares are sold through
        underwriters, broker-dealers, or agents, these parties may be compensated
        for
        their services in the form of discounts or brokerage commissions and charges
        or
        compensation in the form of discounts, concessions or commissions from such
        Selling Stockholder or the purchaser of the Shares so sold for whom such
        broker-dealers may act or to whom they may sell as principal or both (which
        compensation, as to a particular broker-dealer, may be in excess of customary
        commissions). Shares covered by this prospectus also may be sold under Rule
        144
        or another exemption under the Securities Act, rather than pursuant to this
        Prospectus, provided they meet the criteria and conform to the requirements
        for
        such Rules.
In
        connection with the sale of the Shares, the Selling Stockholders and any
        participating broker or dealer may be deemed to be "underwriters" within the
        meaning of the Securities Act, and any profits on the sale of Shares or
        commissions they receive may be deemed to be underwriting discounts and
        commissions under the Securities Act.
We
        will
        pay all costs, expenses and fees in connection with the registration of the
        Shares offered by the Selling Stockholders under this Prospectus. Brokerage
        commissions and similar selling expenses, if any, attributable to the sale
        of
        the Shares will be borne by the Selling Stockholders.
There
        is
        no assurance that any of the Selling Stockholders will sell any or all of
        the
        Shares offered by them hereby.
EXPERTS
The
        financial statements incorporated in this prospectus by reference to the
        Annual
        Report on Form 10-KSB for the year ended September 30, 2005, have been so
        incorporated in reliance on the report of Marcum & Kliegman LLP, an
        independent registered public accounting firm, given upon the authority of
        said
        firm as experts in accounting and auditing.
LEGAL
MATTERS
The
        validity of the Shares that may be sold using this prospectus will be passed
        upon for us by Thelen Reid & Priest LLP.
ADDITIONAL
INFORMATION
We
        have
        filed with the SEC a Registration Statement on Form S-8 with respect to the
        Shares offered in this prospectus. This prospectus does not contain all of
        the
        information and exhibits set forth in the Registration Statement. For further
        information regarding us and the Shares, we refer you to the Registration
        Statement. With
13
Table
            of Contents
respect
        to each such document filed with the SEC as an exhibit to the Registration
        Statement, reference is made to the exhibit for a more complete description
        of
        the matter involved.
We
        are
        subject to the reporting requirements of the Securities Exchange Act of 1934,
        as
        amended (the "Exchange Act"), and file quarterly and annual reports, proxy
        statements and other information with the SEC. You may read and copy any
        document that we file, including the Registration Statement and its exhibits,
        at
        the public reference facilities of the SEC in Washington, D.C. or online
        at
www.sec.gov
or from
        commercial document retrieval services. Additionally, you may request a copy
        of
        any such document from us by contacting us at (212) 554-4550.
INCORPORATION
OF
        CERTAIN DOCUMENTS BY
        REFERENCE
The
        SEC
        allows us to "incorporate by reference" information in this prospectus certain
        information we file with the SEC, which means that:
·
incorporated
                    documents are considered part of this
                    prospectus;
·
we
                    can disclose important information to you by referring you to
                    those
                    documents; and
·
certain
                      information that we file after the date of this prospectus
                      with the SEC
                      will automatically update and supersede information contained
                      in this
                      prospectus and the registration
                      statement.
The
        following documents filed with the SEC are incorporated herein by
        reference:
(a)
the
                  Caprius, Inc. equity financing of February 17, 2006 on Form 8-K
                  filed with
                  the SEC on February 17, 2006; and on Form 8-K-A thereto filed on
                  March 3,
                  2006.
(b)
the
                  Caprius, Inc. Quarterly Report on Form 10-QSB for the three months
                  ended
                  December 31, 2005 filed with the SEC on February 14,
                  2006;
(c)
the
                  Caprius, Inc. Annual Report on Form 10-KSB for the fiscal year
                  ended
                  September 30, 2005, filed with the SEC on December 21,
                  2005;
(d)
the
                  Caprius, Inc. Information Statement, dated December 6, 2005, filed
                  with
                  the SEC on December 8, 2005; and
(e)
the
                  description of our common stock contained in our Certificate of
                  Incorporation, filed as Exhibit 3.1 to our Form 8-K filed with
                  the SEC on
                  April 5, 2005.
14
Table
            of Contents
PART
        II
INFORMATION
        REQUIRED IN THE REGISTRATION STATEMENT
Item
        3.
Incorporation
        of Certain Documents by Reference.
Caprius,
        Inc. is subject to the informational requirements of the Securities Exchange
        Act
        of 1934, as amended (the "Exchange Act"), and in accordance therewith files
        reports and other information with the Securities and Exchange Commission
        (the
"SEC"). The following documents, which are on file with the SEC, are
        incorporated herein by reference and made a part hereof:
(a)
the
                  Caprius, Inc. equity financing of February 17, 2006 on Form 8-K
                  filed with
                  the SEC on February 17, 2006; and on Form 8-K-A thereto filed on
                  March 3,
                  2006.
(b)
the
                  Caprius, Inc Quarterly Report on Form 10-QSB for the three months
                  ended
                  December 31, 2005 filed with the SEC on February 14,
                  2006;
(c)
the
                  Caprius, Inc. Annual Report on Form 10-KSB for the fiscal year
                  ended
                  September 30, 2005, filed with the SEC on December 21,
                  2005;
(d)
the
                  Caprius, Inc. Information Statement, dated December 6, 2005, filed
                  on
                  December 8, 2005; and
(e)
the
                  description of our Common Stock contained in our Certificate of
                  Incorporation, filed as Exhibit 3.1 to our Form 8-K filed on April
                  5,
                  2005.
All
        documents filed by us pursuant to Sections 13(a), 13(c), 14 and 15(d) of
        the
        Exchange Act, prior to the filing of a post-effective amendment which indicates
        that all securities offered have been sold or which deregisters all securities
        then remaining unsold, shall be deemed to be incorporated by reference in
        this
        Registration Statement and to be a part hereof from the date of filing such
        documents. Any document, or any statement contained in a document, incorporated
        or deemed to be incorporated by reference herein shall be deemed to be modified
        or superseded for purposes of this Registration Statement to the extent that
        a
        document or statement contained herein, or in any other subsequently filed
        document that also is deemed to be incorporated by reference herein, modifies
        or
        supersedes such document or statement. Any statement so modified or superseded
        shall not be deemed, except as so modified or superseded, to constitute a
        part
        of this Registration Statement. Subject to the foregoing, all information
        appearing in this Registration Statement is qualified in its entirety by
        the
        information appearing in the documents incorporated by reference.
Item
        4.
Description
        of Securities.
Not
        applicable.
Item
        5.
Interests
        of Named Experts and Counsel.
Not
        applicable.
Item
        6.
Indemnification
        of Directors and Officers.
We
        shall
        indemnify any person who was or is a party or is threatened to be made a
        party
        to any threatened, pending or completed action, suit or proceeding, whether
        civil, criminal, administrative or investigative, or by or in the right of
        the
        Company to procure judgment in our favor, by reason of the fact that he is
        or
        was a director, officer, employee or agent of the Company, or is or was serving
        at our request as a director, officer, manager employee or agent of another
        corporation, partnership, joint venture, limited liability company, trust
        or
        other enterprise against expenses (including attorneys' fees), judgment, fines
        and amounts paid in settlement actually and reasonably incurred by him in
        connection with such action, suit or proceeding if he acted in good faith
        and in
        a manner he reasonably believed to be in or not opposed to our best interests,
        in accordance with and to the full extent permitted
II-1
Table
            of Contents
by
        statute. Expenses (including attorneys' fees) incurred in defending any civil,
        criminal administrative or investigative action, suit or proceeding may be
        paid
        by us in advance of the final disposition of such action, suit or proceeding
        as
        authorized by the Board of Directors in the specific case upon receipt of
        an
        undertaking by or on behalf of the director, officer, manager, employee or
        agent
        to repay such amount unless it shall ultimately be determined that he is
        entitled to be indemnified by us as authorized by this paragraph.
Specifically,
        no indemnification shall be made in respect of any claim, issue or matter
        as to
        which such director or officer shall have been adjudged to be liable to the
        Company unless and only to the extent that the Delaware Court of Chancery
        or the
        court in which action or suit was brought shall determine upon application
        that,
        despite the adjudication of liability but in view of all the circumstances
        of
        the case, such person is fairly and reasonably entitled to indemnity for
        such
        expenses which the Court of Chancery or such other court shall deem
        proper.
The
        indemnification shall not be deemed exclusive of any other rights to which
        those
        seeking indemnification may be entitled under this Certificate of Incorporation,
        the By-Laws or any agreement or vote of stockholders or disinterested directors
        or otherwise, both as to action in his official capacity and as to action
        in
        another capacity while holding such office, and shall continue as to a person
        who has ceased to be a director, officer, employee or agent and shall inure
        to
        the benefit of the heirs, executors and administrators of such a
        person.
Item
        7.
Exemption
        from Registration Claimed.
Not
        applicable.
Item
        8.
Exhibits.
The
        following is a list of exhibits filed as a part of this Registration Statement
        which are incorporated herein:
Exhibit
                  No.
Exhibit
4.1
Caprius,
                  Inc.
2002
                  Stock Option Plan (the "Plan") (incorporated by reference to Appendix A to
                  Proxy Statement,
dated May 31, 2002).
5.1*
Opinion
                  of Thelen Reid & Priest LLP regarding the legality of shares of Common
                  Stock being registered.
10.1*
Form
                  of Option Agreement for Stock Option granted under the 2002
                  Plan.
23.1*
Consent
                  of Marcum & Kliegman LLP
23.2*
Consent
                  of Thelen Reid & Priest LLP (included in Exhibit 5.1).
24.1*
Power
                  of Attorney (included in the signature pages to this Registration
                  Statement).
* 
        Filed herewith.
Item
        9.
Undertakings.
(b)
The
        undersigned Registrant hereby undertakes that, for purposes of determining
        any liability under the Securities Act of 1933, as amended, each filing of
        the
        Registrant's annual report pursuant to Section 13(a) or
        Section 15(d) of the Exchange Act (and, where applicable, each filing
        of an employee benefit plan's annual report pursuant to
        Section 15(d) of the Exchange Act) that is incorporated by reference
        in this Registration Statement shall be deemed to be a new registration
        statement relating to the securities offered herein, and the offering of
        such
        securities at that time shall be deemed to be the initial bona fide offering
        thereof
(f)
The
        undersigned Registrant hereby undertakes:
(1)
To
        file,
        during any period in which offers or sales are being made, a post-effective
        amendment to this Registration Statement:
II-2
Table
            of Contents
(i)
To
        include any prospectus required by Section 10(a)(3) of the Securities
        Act of 1933, as amended (the "Act");
(ii)
To
        reflect in the prospectus any facts or events arising after the effective
        date
        of this Registration Statement (or the most recent post-effective amendment
        thereof) which, individually or in the aggregate, represent a fundamental
        change
        in the information set forth in the Registration Statement. Notwithstanding
        the
        foregoing, any increase or decrease in volume of securities offered (if the
        total dollar value of securities offered would not exceed that which was
        registered) and any deviation from the low or high end of the estimated maximum
        offering range may be reflected in the form of prospectus filed with the
        Commission pursuant to Rule 424(b) (§230.424(b) of this chapter)
        if, in the aggregate, the changes in volume and price represent no more than
        a
        20% change in the maximum aggregate offering price set forth in the "Calculation
        of Registration Fee" table in the effective registration statement;
(iii)
To
        include any material information with respect to the plan of distribution
        not
        previously disclosed in the Registration Statement or any material change
        to
        such information in the Registration Statement;
Provided,
        however, that paragraphs (f)(1)(i) and (f)(1)(ii) shall not apply to
        information contained in periodic reports filed by the Registrant pursuant
        to
        Section 13 or Section 15(d) of the Exchange Act that are
        incorporated by reference in this Registration Statement.
(2)
That,
        for
        the purpose of determining any liability under the Act, each such post-effective
        amendment shall be deemed to be a new registration statement relating to
        the
        securities offered therein, and the offering of such securities at that time
        shall be deemed to be the initial bona fide offering thereof.
(3)
To
        remove
        from registration by means of a post-effective amendment any of the securities
        being registered which remain unsold at the termination of the
        offering.
(h)
Insofar
        as
        indemnification for liabilities arising under the Act of may be permitted
        to
        directors, officers and controlling persons of the Registrant pursuant to
        the
        foregoing provisions, or otherwise, the Registrant has been advised that
        in the
        opinion of the Securities and Exchange.
Commission
        such indemnification is against public policy as expressed in the Act and
        is,
        therefore, unenforceable.  In the event that a claim for indemnification
        against such liabilities (other than the payment by the Registrant of expenses
        incurred or paid by a director, officer or controlling person of the Registrant
        in the successful defense of any action, suit or proceeding) is asserted
        by such
        director, officer or controlling person in connection with the securities
        being
        registered, the Registrant will, unless in the opinion of its counsel the
        matter
        has been settled by controlling precedent, submit to a court of appropriate
        jurisdiction the question whether such indemnification by it is against public
        policy as expressed in the Act and will be governed by the final adjudication
        of
        such issue.
II-3
Table
            of Contents
SIGNATURES
Pursuant
        to the requirements of the Securities Act of 1933, the Registrant certifies
        that
        it has reasonable grounds to believe that it meets all the requirements for
        filing on Form S-8 and has duly caused this registration statement to be
        signed
        on its behalf by the undersigned, thereunto duly authorized, in the City
        of New
        York, State of New York, on this 3rd day of March, 2006.
CAPRIUS,
                  INC.
By:
/s/
                  Jonathan Joels
Jonathan
                  Joels
Chief
                  Financial Officer, Treasurer and
                  Secretary
POWER
        OF ATTORNEY
That
        each
        of the undersigned appoints George Aaron and Jonathan Joels as his true and
        lawful attorney-in-fact and agent, with full power of substitution and
        resubstitution, for him including post-effective amendments and related
        registration statements, to this Registration Statement, and to file same,
        with
        exhibits thereto and other documents in connection therewith, with the
        Securities and Exchange Commission, granting unto said attorneys-in-fact
        and
        agents, full power and authority to do separately and perform each and every
        act
        requisite and necessary to be done, as fully to all intents and purposes
        as he
        might or could so in person, hereby ratifying and confirming all that said
        attorneys-in-fact and agents, or their substitutes may lawfully do or cause
        to
        be done by virtue hereof. This Power of Attorney may be signed in several
        counterparts.
Pursuant
        to the requirements of the Securities Act of 1933, as amended, this Registration
        Statement has been signed by the following persons in the capacities and
        on the
        date indicated.
Name
Title
Date
/s/
                  George Aaron
George
                  Aaron
Chairman
                  of the Board, President and Chief Executive Officer
March
                  3,
                  2006
/s/
                  Jonathan Joels
Jonathan
                  Joels
Director,
                  Chief Financial Officer and Treasurer
March
                  3,
                  2006
/s/
                  Jeffrey L. Hymes
Jeffrey
                  L. Hymes, M.D.
Director
March
                  3,
                  2006
/s/
                  Sol Triebwasser
Sol
                  Triebwasser, Ph.D.
Director
March
                  3,
                  2006
II-4
Table
            of Contents
INDEX
        TO EXHIBITS
The
        following is a list of exhibits filed as part of this Registration Statement,
        which are incorporated herein:
Exhibit
                  No.
Description
                  of Exhibits
5.1*
Opinion
                  of Thelen Reid & Priest LLP regarding the
                  legality of shares of Common Stock being registered
10.1*
Form
                  of Option Agreement for stock option granted under
                  the 2002 Plan
23.1*
Consent
                  of Marcum & Kliegman LLP
23.2*
Consent
                  of Thelen Reid & Priest LLP (included in Exhibit 5.1)
24.1*
Power
                  of Attorney (included in the signature pages to this Registration
                  Statement)
* 
        Filed herewith.
II-5
Table
            of Contents