Atrion Corporation Reports Fourth Quarter and Full Year 2004 Results; Diluted EPS Were up 44% for the Quarter and 27% for the Year ALLEN, Texas--(BUSINESS WIRE)

Atrion Corporation Reports Fourth Quarter and Full Year 2004 Results;

Diluted EPS Were up 44% for the Quarter and 27% for the Year

ALLEN, Texas--(BUSINESS WIRE)--Feb. 28, 2005--Atrion Corporation

(Nasdaq:ATRI) announced today higher revenues and earnings per share

for the fourth quarter and the full year 2004. Revenues for the fourth

quarter of 2004 were $16,171,000 compared to $14,790,000 in the same

period of 2003, representing a 9% increase. On a per diluted share

basis, net income for the quarter increased 44% to $.98 from $.68 in

the fourth quarter of 2003. Atrion's revenues for the full year of

2004 increased 5% to $66,081,000 from $62,803,000 in 2003. Net income

per diluted share of $3.50 in 2004 was 27% higher than 2003's net

income of $2.75 per diluted share. The 2004 results are subject to

completion of the Company's audit by its independent auditors.

Commenting on the results, Emile A Battat, Chairman and CEO, said,

"We are very pleased with our results. We benefited from an unusually

strong period of higher sales of newer valves and inflators, and from

continued improvement in operating efficiencies. We should caution,

however, that for small companies like ours, customers' timing of a

few orders at the beginning and the end of a quarter can materially

affect comparisons. Annual comparisons offer a better indication of

growth and profitability than quarterly figures. Since our company has

been focused on internal growth for the past six years, the best

measure of our performance is the growth of our operating income. Here

again, we are very pleased with a 24% increase for the year. We expect

operating income will continue to show double digit growth."

Atrion Corporation designs, develops, manufactures, sells and

distributes products and components primarily to medical markets

The statements in this press release that are forward looking are

based upon current expectations and actual results may differ

materially. Such statements include, but are not limited to, Atrion's

expectations regarding future operating income growth. Words such as

"expects," "believes," "anticipates," "intends," and variations of

such words and similar expressions are intended to identify such

forward-looking statements. These statements involve risks and

uncertainties. The following are some of the factors that could cause

actual results to differ materially from those expressed in or

underlying our forward-looking statements: changing economic, market

and business conditions; acts of war or terrorism; the effects of

governmental regulation; competition and new technologies;

slower-than-anticipated introduction of new products or implementation

of marketing strategies; the Company's ability to protect its

intellectual property; changes in the prices of raw materials; changes

in product mix; and intellectual property and product liability claims

and product recalls. The foregoing list of factors is not exclusive,

and other factors are set forth in the Company's filings with the SEC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

Three Months Ended Twelve Months Ended

December 31, December 31,

-------------------- -------------------

----------- -------- ---------- --------

Revenues $16,171 $14,790 $66,081 $62,803

Cost of goods sold 9,113 9,550 40,804 40,564

----------- -------- ---------- --------

Gross profit 7,058 5,240 25,277 22,239

Operating expenses 4,644 3,601 16,681 15,316

----------- -------- ---------- --------

Operating income 2,414 1,639 8,596 6,923

Interest expense, net (15) (21) (48) (126)

Other income, net 1 (26) 46 (26)

----------- -------- ---------- --------

Income from continuing

operations before provision

for income taxes 2,400 1,592 8,594 6,771

Income tax provision (581) (328) (2,289) (1,879)

----------- -------- ---------- --------

Income from continuing

operations 1,819 1,264 6,305 4,892

discontinued operations -- -- 165 165

----------- -------- ---------- --------

Net income $1,819 $1,264 $6,470 $5,057

=========== ======== ========== ========

Income per basic share:

Income from continuing

operations $1.06 $.74 $3.68 $2.86

discontinued operations -- -- .10 .10

----------- -------- ---------- --------

Net income per basic

share $1.06 $.74 $3.78 $2.96

=========== ======== ========== ========

Weighted average basic shares

outstanding 1,717 1,697 1,711 1,711

=========== ======== ========== ========

Income per diluted share:

Income from continuing

operations $.98 $.68 $3.41 $2.66

discontinued operations -- -- .09 .09

----------- -------- ---------- --------

Net income per diluted

share $.98 $.68 $3.50 $2.75

=========== ======== ========== ========

Weighted average diluted

shares outstanding 1,855 1,850 1,850 1,839

=========== ======== ========== ========

CONSOLIDATED BALANCE SHEETS

----------- --------

Cash and cash equivalents $255 $298

Accounts receivable 7,588 6,226

Inventories 14,013 11,314

Prepaid expenses 1,028 1,894