Salt Lake City, Utah - In the third quarter (3Q) of 2005, Utah Medical Products, Inc.'s (Nasdaq: UTMD) consolidated sales were up 5%, gross profits up 6%, operating profits down 20%, net income down 1% and earnings per s

City, Utah - In the third quarter (3Q) of 2005, Utah Medical Products, Inc.'s

(Nasdaq: UTMD) consolidated sales were up 5%, gross profits up 6%, operating

profits down 20%, net income down 1% and earnings per share (eps) up 13%,

compared to 3Q 2004.

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

organic business. Operating profits were down substantially because of the

Company's legal expenses associated with the Food & Drug Administration

(FDA) lawsuit. The accrued liabilities reserve at the end of September reflects

UTMD's latest estimate to complete the litigation process with the FDA, for

which the trial was delayed during 3Q, and concluded October 4. During the

delay, the legal fees meter continued to run. Litigation expenses increased

G&A expenses, which are part of operating expenses, by $710,000.

net income was down only 1%, even though operating profits were down 20%,

result of a significantly lower income tax provision resulting from The American

Jobs Creation Act of 2004 (the Act) enacted in October 2004. The Act allows

temporary tax deduction on repatriated foreign earnings in 2005 resulting

permanent deferred tax liability adjustment related to foreign earnings in

years, as well as a domestic tax deduction on manufacturing related income.

addition, UTMD recorded a favorable deferred tax liability adjustment after

conclusion of a formal IRS audit in 3Q. The 13% increase in eps compared

2004, even though net income was down slightly, was due to fewer outstanding

shares as a result of open market share repurchases.

year-to-date financial results for the first three quarters (9M) of 2005

2004, sales were up 3%, gross profits up 2%, operating profits down 48%,

income down 36% and eps down 28%. In 1Q 2004, UTMD recognized $5,710,000

operating income from patent infringement damages net of related expenses,

did not recur in 2005. Previously, this was reported as non-operating income.

Beginning this quarter, UTMD is reclassifying the patent infringement damages

1Q 2004 as part of its operating income. The most recent twelve months' (TTM)

to CEO Kevin Cornwell,

the unusual events of the patent infringement damages in 1Q 2004, the one-time

tax savings in 2005 and the costs of the FDA lawsuit, UTMD's operating

performance comparisons with the prior year are positive. In net income and

terms, litigation costs have been essentially offset by the tax savings.

excellent 2005 results are due to the dedication and determination of our

employees, and the continued recognition of many clinicians of the quality

value of our products to the public health."

ratios which may be of interest to shareholders follow:

Days in Receivables (based on 3Q sales activity) = 44.4

Average Inventory Turns (based on 2Q CGS) = 4.1

Year-to-Date ROE = 22%

dilution from unexercised option shares added to actual weighted average

outstanding shares for purposes of calculating eps was 221,600 in 3Q 2005

compared to 246,600 in 3Q 2004, and 223,800 in 9M 2005 compared to 291,600

2004. The actual number of outstanding shares at the end of 3Q 2005 was

3,881,900 which included 3Q employee/director option exercises of 13,800

and 3Q share repurchases of 60,400. The average price paid by the Company

repurchase shares in the open market during 3Q 2005 was $22.06 including

commissions. The total number of outstanding unexercised options at September

30, 2005 was 682,500 shares at an average exercise price of $13.89/ share,

including shares awarded but not vested. This compares to 795,300 option

outstanding at the end of 3Q 2004.

are cautioned that this press release contains 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, a negative outcome in the

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 3Q 2005 will be filed

with the SEC by November 9.

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

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

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, Third Quarter (3 months ended September 30) - (in thousands except

earnings per share):

STATEMENT, Three Quarters (9 months ended September 30) - (in thousands except

earnings per share):