Salt Lake City, Utah - In the second calendar quarter (2Q) and first half (1H) of 2008, Utah Medical Products, Inc.'s (Nasdaq: UTMD) changes in financial results compared to the same time period in the prior calendar yea

City, Utah - In the second calendar quarter (2Q) and first half (1H) of 2008,

Utah Medical Products, Inc.'s (Nasdaq: UTMD) changes in financial results

compared to the same time period in the prior calendar year were as

2008 and 1H 2008, UTMD achieved the following profit margins:

in the 2Q 2008 improved by $225 (dollar amounts in thousands, except for

per-share amounts) over 1Q 2008 primarily because obstetrics sales increased by

$165. Comparing 2Q 2008 sales to 2Q 2007 sales in product categories, neonatal

product sales were about the same, obstetrics product sales were down 7%,

gynecology/ electrosurgery product sales were up 2% and blood pressure

monitoring/ components sales were up 1%. Domestic sales in 2Q 2008

were down 4%, while international sales were up 4% compared to 2Q

1H 2008 sales to 1H 2007 sales in product categories, neonatal product sales

were up 1%, obstetrics product sales were down 16%, gynecology/ electrosurgery

product sales were up 1% and blood pressure monitoring/ components sales were up

9%. The 2008 decline in U.S. obstetric product sales slowed to 7% in

2Q 2008 from 24% in 1Q 2008, compared to sales in the same periods in

2007. Obstetrics sales were $681 lower in 1H 2008 than in

1H2007. However, UTMD's total 1H 2008 sales were only $324 lower

because of growth in other product categories and in international

gross profit margin (GPM) in 2Q 2008 was back above 55% after two prior quarters

below 55%, for three reasons: 1) higher sales volume which diluted fixed costs,

2) transfer of work from Ireland to Utah, a lower marginal cost center, and 3)

selective price increases. Despite substantial cost increases in plastic resins,

transportation costs, and wages, UTMD expects to achieve gross margins of about

55% for the remainder of the year. Management estimates that UTMD's 2008 GPM may

be about a half percentage point lower than the 55.4% achieved in

2007. Even with slightly lower sales and GPM compared to 2007, UTMD's

2Q 2008 operating profit margin increased because operating expenses declined by

$65 to 17.2% of sales, compared to 17.9% of sales in 2Q 2007. A

beneficial aspect of losing GPO contracts is not having to pay GPO

administrative fees. GPO fees in 2Q 2008, which are included in sales and

marketing operating expenses, were $20 lower than in 2Q 2007. For the

year, UTMD management now expects it can achieve operating expenses as a

percentage of sales about a half percentage point lower than in

2007. Therefore, for 2008 as a whole, the lower operating expense

ratio will offset the expected lower GPM, resulting in an operating profit

margin about the same as in 2007, which was 37.7% of sales. If the

positive sales trend continues for the 2H of 2008, operating profits for the

year 2008 may be about the same as in 2007, even though obstetrics product sales

are likely to be about $1,000 lower.

though 2Q 2008 operating income was about the same as in 2Q 2007, Income Before

Tax and Net Income were lower because earnings on the Company's invested cash

was $125 lower as a result of lower interest income. Earnings per

share (eps) were not down as much as Net Income because of UTMD's continuing

open market share repurchases. Eps for the most recent 4 calendar

quarters were $1.97, compared to $1.99 at the same time last year.

ratios as of June 30, 2008 which may be of interest to shareholders

2) Days in Receivables

(based on 2Q sales activity) = 50

3) Average Inventory Turns

(based on 2Q CGS) = 3.5

4) Year-to-Date ROE = 10%

(after dividends); 19% (prior to payment of dividends)

of 1H 2008 capital uses, excluding routine operations, follows:

from unexercised option shares added to actual weighted average outstanding

shares for purposes of calculating eps was 36,700 in 2Q 2008 compared to 59,600

in 2Q 2007, and 39,600 in 1H 2008 compared to 66,100 in 1H 2007. The

actual number of outstanding shares at the end of 2Q 2008 was 3,871,000 which

included 2Q option exercises of 800 shares and 2Q share repurchases of

15,200. The average price paid by the Company to repurchase shares in

the open market during 2Q 2008 was $28.18 including commissions. Year-to-date

purchases through 1H 2008 have been 46,600 shares at an average per share cost

of $28.99. The total number of outstanding unexercised employee and outside

director options at June 30, 2008 was 218,800 shares at an average exercise

price of $22.87 per share, including shares awarded but not vested. This

compares to 223,100 unexercised option shares outstanding at the end of 2Q

are cautioned that this press release contains forward looking statements, and

that actual results or events may differ from those projected. Risk

factors that could cause results to differ materially from those projected

include clinical acceptance of products, access to the hospital marketplace that

may become restricted at any time by administrative Group Purchasing

Organization agreements, 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 that

have been outlined in UTMD=s public

disclosure filings with the SEC. The SEC Form 10-Q for 2Q 2008 will

be filed with the SEC by August 9.

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 Utah Medical Products, Inc., visit UTMD=s website

Medical Products, Inc.

STATEMENT, Second Quarter (3 months ended June 30)

thousands except earnings per share):

STATEMENT, First Half (6 months ended June 30)

thousands except earnings per share):