Salt Lake City, Utah - In the second calendar quarter (2Q) of 2005, Utah Medical Products, Inc.'s (Nasdaq: UTMD) consolidated sales were up 3%, gross profits up 2%, operating profits down 6%, net income up 2%, and earnin

City, Utah - In the second calendar quarter (2Q) of 2005, Utah Medical Products,

Inc.'s (Nasdaq: UTMD) consolidated sales were up 3%, gross profits up 2%,

operating profits down 6%, net income up 2%, and earnings per share (eps) up

16%, compared to 2Q 2004.

profits were down even though sales and gross profits were up because the

Company increased its litigation reserve at the end of June to reflect its

estimate of the costs that will be required to complete the litigation process

with the FDA through the trial, which was scheduled on June 30 by the Court

begin on August 30. The litigation expense accrual increased G&A expenses,

which are part of operating expenses, by $300,000.

income was up 2% even though operating profits were down as a result of a

significantly lower income tax provision resulting from The American Jobs

Creation Act of 2004 (the Act) enacted in October 2004 which allows a temporary

tax deduction on repatriated foreign earnings, which must be accomplished in

2005. The disproportionate increase in eps was due to fewer outstanding shares

as a result of open market share repurchases. The Company has repurchased about

15% of its outstanding shares since August 2004.

year-to-date financial results for the first half (1H) of 2005 with 1H 2004,

sales and operating profits were up 2%, and gross profits were about the same.

In 1Q 2004, UTMD recognized $6,060,000 in non-operating income from patent

infringement damages which did not recur in 1H 2005. Consequently, comparing

2005 to 1H 2004 during which UTMD received the patent infringement damages,

profits and eps were down 45% and 38%, respectively. According to CEO Kevin

Cornwell, "1H 2004 performance occurred before the August 2004 FDA lawsuit which

created a cloud over UTMD's reputation for high quality products. Considering

our challenges this year, I believe the current results are excellent, due

the dedication and determination of our employees, and the recognition of many

clinicians of the quality and value to the public health of our products. UTMD's

second quarter performance was better than the first, and we expect third

quarter to continue the improvement trend. UTMD previously projected eps for

shareholders to be about $1.80 for the year 2005. This first half performance

would seem to increase the certainty of accomplishing that goal."

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 eps was 218,700 in 2Q 2005

compared to 301,700 in 2Q 2004, and 224,300 in 1H 2005 compared to 315,100

2004. The actual number of outstanding shares at the end of 2Q 2005 was

3,928,400 which included 2Q employee/director option exercises of 49,800 shares

and 2Q share repurchases of 185,600. The average price paid by the Company

repurchase shares in the open market during 2Q 2005 was $21.72 including

commissions. The total number of outstanding unexercised options at June 30,

2005 was 701,400 shares at an average exercise price of $13.82/ share, including

shares awarded but not vested. This compares to 759,800 option shares

outstanding at the end of 2Q 2004.

are cautioned that this press release contains forward looking statements and

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, a negative outcome in the current

FDA lawsuit, the Company's ability to efficiently manufacture, market, and sell

its products, among other factors that have been outlined in UTMD=s

disclosure filings with the SEC. The SEC Form 10-Q for 2Q 2005 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

Medical Products, Inc., visit UTMD=s

Medical Products, Inc.

STATEMENT, Second Quarter (3 months ended June 30) - (in thousands except

earnings per share):

STATEMENT, First Half (6 months ended June 30) - (in thousands except earnings