Salt Lake City, Utah - In the fourth quarter (4Q) of 2005, Utah Medical Products, Inc.'s (Nasdaq: UTMD) consolidated sales were up 10%, gross profits up 14%, operating profits up 22%, net income up 36% and earnings per s

City, Utah - In the fourth quarter (4Q) of 2005, Utah Medical Products, Inc.'s

(Nasdaq: UTMD) consolidated sales were up 10%, gross profits up 14%, operating

profits up 22%, net income up 36% and earnings per share (eps) up 45%, compared

increase in sales and gross profits reflected improved activity in UTMD's

organic business after a favorable conclusion of the trial with the Food &

Drug Administration (FDA), and a favorable 4Q 2005 to 4Q 2004 comparison due

the loyalty discount given customers in 4Q 2004, but not in 4Q 2005. 4Q 2005

sales were up 7% excluding the discount provided in 4Q 2004 to encourage

customers to remain with UTMD during its defense of FDA allegations which have

now been dismissed on all counts. Operating profits were up substantially

because the Company's operating expenses, which included the expenses associated

with the FDA lawsuit, were only $94,000 higher in 4Q 2005 compared with 4Q

allowing most of the gains achieved in gross profits to translate to operating

net income was up dramatically because the substantial improvement in operating

income, enhanced by slightly higher non-operating income, was taxed at a

substantially lower income tax provision. The income tax provision in 4Q 2005

was 23.4% of income before tax (EBT), compared to 32.4% in 4Q 2004. The lower

income tax provision resulted primarily from The American Jobs Creation Act

2004 (the Act) enacted in October 2004. The Act allows a temporary tax deduction

on accumulated foreign earnings repatriated in 2005 resulting in a permanent

deferred tax liability adjustment related to foreign earnings in prior years,

well as a domestic tax deduction on manufacturing related income. The 45%

increase in 4Q 2005 earnings per share (eps) resulted from all of the above

factors plus a continued reduction in outstanding shares as a result of open

market share repurchases.

year 2005 financial results with 2004, sales and gross profits were both up

but operating profits, net income and eps were down, 40%, 26% and 18%,

respectively. In 1Q 2004, UTMD recognized $5,710,000 (net damages) in operating

income from patent infringement damages net of related expenses, which did

recur in 2005. In 2004, this was reported as non-operating income. In 2005,

reclassified the patent infringement damages received in 1Q 2004 as part of

operating income. Another significant difference between 2005 and 2004 results

was the amount of litigation expense included in operating expenses, which

$1,627,060 and $830,000, respectively. Subtracting the net damages from 2004

operating income prior to litigation costs, and comparing to 2005 operating

income prior to litigation costs, yields a 4% increase. The major tax benefit

obtained in 2005 from the Act virtually offset the higher litigation expenses,

allowing 2005 eps to be approximately the same as without the expense of the

lawsuit and the one-time benefit of the Act.

of the Act, UTMD was able to repatriate Ireland subsidiary earnings generated

since the 1996 inception of its Ireland operations, resulting in a net savings

of about $1,000,000 after all expenses associated with the repatriation. One

those expenses is the present and future estimated interest cost associated

the loan undertaken by subsidiary UTMD, Ltd. in Ireland in order to repatriate

its accrued earnings to the U.S. The appearance of a note payable on UTMD's

balance sheet is the loan balance in Ireland required to facilitate repatriation

of the accumulated earnings. UTMD estimates that this loan will be repaid by

funds generated in Ireland in about five years.

to CEO Kevin Cornwell,

pleased with achieving the $1.80 eps which we had projected in April. Setting

aside the unusual events of the patent infringement damages received in 1Q

the one-time tax savings in 2005 and the expenses of the FDA lawsuit, UTMD's

operating performance comparisons with the prior year are positive, and remain

on a consistent upward slope. The excellent 2005 results are due to the

dedication and determination of our employees, and the continued recognition

many clinicians of the quality and value of our products to the public health.

We look forward to focusing on managing and growing our business in 2006,

allowing continued excellent shareholder returns."

ratios which may be of interest to shareholders follow:

dilution from unexercised option shares added to actual weighted average

outstanding shares for purposes of calculating diluted eps was 246,300 in 4Q

2005 compared to 223,300 in 4Q 2004, and 230,200 in year 2005 compared to

276,100 in 2004. The actual number of outstanding shares at the end of 2005

3,856,340 which included 4Q employee/director option exercises of 123,400 shares

and 4Q share repurchases of 73,500. In 4Q 2005, UTMD repurchased 73,500 shares

in the open market at an average cost including commissions of $28.58 per share.

The total number of outstanding unexercised options at December 31, 2005 was

548,600 shares at an average exercise price of $13.89/ share, including shares

awarded but not vested. This compares to 755,500 option shares outstanding

are cautioned that this press release may contain forward looking statements

that actual events may differ from those projected. Risk factors that could

cause results to differ materially from those projected include market

acceptance of products, timing of regulatory approval of new products,

regulatory intervention in current operations, the Company's ability to

efficiently manufacture, market, and sell its products, among other factors

have been outlined in UTMD=s

disclosure filings with the SEC. The SEC Form 10-K for 2005 will be filed with

the SEC by March 16.

Medical Products, Inc., with particular interest in health care for women and

their babies, develops, manufactures, assembles and markets a broad range of

disposable and reusable specialty medical devices designed for better health

outcomes for patients and their care-providers. For more information about

Medical Products, Inc., visit UTMD=s

Medical Products, Inc.

STATEMENT, Fourth Quarter (3 months ended December 31)

thousands except earnings per share):

STATEMENT, Year (12 months ended December 31)

thousands except earnings per share):