Salt Lake City, Utah - Utah Medical Products, Inc. (Nasdaq:UTMD) reports that all primary income statement measures of financial performance in First Quarter (1Q) 2006 increased compared to 1Q 2005, according to the foll

City, Utah - Utah Medical Products, Inc. (Nasdaq:UTMD) reports that all primary

income statement measures of financial performance in First Quarter (1Q)

increased compared to 1Q 2005, according to the following table:

increase in operating profits was smaller than the growth in sales and gross

profits because of higher operating expenses from 1) an increase in sales

marketing expense due primarily to an expanded sales force ($89,000), 2)

legal fees and litigation expenses ($58,000) and the non-cash expense ($43,000)

associated with expensing unvested stock options per SFAS 123R. However,

higher operating expenses ($194,000 total increase) were largely offset by

higher non-operating income ($160,000) from the investment of cash balances.

income increased less than EBT due to a higher income tax provision in 1Q

In 2005, UTMD was allowed a temporary tax deduction on repatriated foreign

earnings as a result of The American Jobs Creation Act of 2004. However,

number of diluted shares used to calculate eps, as a result of share repurchases

since 1Q 2005, more than compensated for the higher income tax provision.

Compared to 1Q 2005, diluted outstanding shares used for calculating 1Q 2006

were down 6%. Eps for 1Q 2006 were $.50. Eps for 1Q 2005 were $.46. Eps for

most recent twelve months were $1.85.

2006, UTMD achieved a gross profit margin of 56.4% and a net profit margin

28.7%. In 1Q 2005, those respective profit margins were 56.1% and

1Q 2006 sales to 1Q 2005 sales in product categories, neonatal product sales

were up 35%, obstetrics product sales were unchanged, gynecology/ electrosurgery

product sales were up 10% and blood pressure monitoring/ components sales

down 8%. Both domestic and international sales were up 7%. Although trade

shipments from Ireland were up 4% in EURO terms, they were down 5% in US

terms because of a stronger U.S. dollar.

balance sheet remained strong. Compared to December 31, 2005, working capital

increased more than $0.9 million. Stockholders' Equity increased more than $1.0

million even though dividends and share repurchases, which reduce Stockholders'

Equity, totaled $1.1 million.

ratios which may be of interest to shareholders follow:

Receivables (based on 1Q sales activity) = 44

Inventory Turns (based on 1Q CGS) = 3.7

ROE (after payment of dividends) = 17%

dilution from unexercised option shares added to actual weighted average

outstanding shares for purposes of calculating eps was 117,000 in 1Q 2006

compared to 230,000 in 1Q 2005. The actual number of outstanding shares at

end of 1Q 2006 was 3,966,400 which included 1Q employee and outside director

option exercises of 266,600 shares and 1Q share repurchases of 12,100. The

average price paid by the Company to repurchase shares in the open market

1Q 2006 was $30.67 including commissions. The total number of outstanding

unexercised options at March 31, 2006 was about 280,000 shares at an average

exercise price of $17.75/ share, including shares awarded but not vested.

compares to 728,000 option shares outstanding at the end of 1Q 2005.

factors that could cause results to differ materially in future quarters

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-Q for 1Q 2006 will be filed

with the SEC by May 10.

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, First Quarter ended March 31 (in thousands except earnings per