Atrion Reports First Quarter Results; Diluted EPS Declines By 12% ALLEN, Texas--(BUSINESS WIRE)

Atrion Reports First Quarter Results;

Diluted EPS Declines By 12%

ALLEN, Texas--(BUSINESS WIRE)--May 8, 2006--Atrion Corporation

(Nasdaq:ATRI) today announced that for the first quarter of 2006 revenues were

5% higher than in the first quarter of last year. Diluted earnings per share,

however, were down 12% compared to the results for the first quarter of 2005.

Commenting on the Company's results, Emile A. Battat, Chairman, said: "In

press releases reporting our third and fourth quarter 2005 results, we noted

that because of the Company's exceptionally strong earnings results in the

quarter ended March 31, 2005, a comparison of our earnings per share in the

first quarter of 2006 with the first quarter of 2005 would not necessarily be

indicative of our performance for 2006. Now that the first quarter has been

completed, we still believe that the above reported decline in earnings for the

current quarter will not be representative of our results for the full year

2006. This year's quarter saw a small increase in revenues even as certain

customers of our ophthalmic and related kitting business continued to have

internal issues of their own. We are hopeful that they will satisfactorily

resolve their issues by the end of the third quarter and then resume purchases

at their customary levels." Mr. Battat added, "Construction of our new Florida

facility continues to move forward on schedule. We expect the staged physical

move of materials, equipment and personnel to begin in June and continue into

much of the third quarter."

Atrion's revenues for the quarter ended March 31, 2006 were $19,503,000

compared with $18,645,000 in the same period in 2005. On a diluted per share

basis, earnings for the period decreased to $1.08 as compared to $1.23 in the

same quarter of last year. Operating income for the current year period totaled

$3,052,000, compared to $3,418,000 in last year's first quarter.

Atrion Corporation designs, develops, manufactures, sells and distributes

products and components primarily to medical markets worldwide.

The statements in this press release that are forward looking are based

upon current expectations and actual results or future events may differ

materially. Words such as "expect," "believes," "anticipates," "intends,"

"hopeful" 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 or future events 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

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

Revenues $19,503 $18,645

Cost of goods sold 12,155 11,024

Gross profit 7,348 7,621

Operating expenses 4,296 4,203

Operating income 3,052 3,418

Interest income (expense), net 10 (6)

Other income, net -- 8

Income before income taxes 3,062 3,420

Income tax provision (956) (1,126)

Net income 2,106 2,294

Income per basic share $1.15 $1.33

Weighted average basic shares outstanding 1,835 1,723

Income per diluted share $1.08 $1.23

Weighted average diluted shares outstanding 1,945 1,865

CONSOLIDATED BALANCE SHEETS

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Cash and cash equivalents $189 $525

Accounts receivable 9,585 8,291

Inventories 17,390 17,705

Prepaid expenses 636 832

Deferred income taxes 620 620

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Total current assets 28,420 27,973

Property, plant and equipment, net 41,517 35,254

Other assets 14,812 15,243

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LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities 9,066 8,226

Line of credit 6,831 2,529

Other non-current liabilities 5,779 5,820

Stockholders' equity 63,073 61,895

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CONTACT: Atrion Corporation

Jeffery Strickland, 972-390-9800