Salt Lake City, Utah - Utah Medical Products, Inc. (Nasdaq:UTMD) reports that for the third calendar quarter (3Q) of 2006 compared to 3Q 2005, consolidated sales were the same, gross profits were down 1%, operating profi

City, Utah - Utah Medical Products, Inc. (Nasdaq:UTMD) reports that for the

third calendar quarter (3Q) of 2006 compared to 3Q 2005, consolidated sales

the same, gross profits were down 1%, operating profits were up 34%, net income

was up 12%, and earnings per share (eps) were up 14%.

2006, UTMD achieved the following profit margins:

3Q 2006 sales to 3Q 2005 sales in product categories, gynecology/ electrosurgery

product sales were up 16%, blood pressure monitoring/ components sales were

same, neonatal product sales were down 2%, and obstetrics product sales were

down 8%. Domestic sales in 3Q 2006 were down 3% while international sales were

up 12%, compared to the same quarter last year. Although trade shipments from

UTMD Ireland were up 9% in EURO terms, they were up 14% in U.S. Dollar terms

because of a weaker U.S. Dollar.

gross profit margin in 3Q 2006 was only 56.7% compared to 57.3% in 3Q 2005,

primarily because the current quarter's sales increases were provided by

international shipments at lower than average prices offsetting decreases in

domestic sales. Even with a lower gross profit margin on the same sales volume,

3Q 2006 operating profits grew dramatically because operating expenses declined

to 17.6% of sales compared to 28.2% of sales in 3Q 2005. Litigation expenses,

which are part of G&A expenses, were $710,000 lower than in 3Q 2005. The

lower litigation expenses were partly offset by $32,700 in additional (noncash)

G&A expenses for estimated option expense according to valuations

established by the Black-Scholes model, which were not part of 3Q 2005 expenses.

In year-to-date 2006 (9M) operating expenses, the impact of expensing options

which did not occur in 2005 was $108,400.

income was also up substantially because, in addition to the increase in

operating profits, the Company benefited from non-operating income of $267,600

during 3Q 2006 compared to $203,000 in 3Q 2005. Virtually all of UTMD's excess

cash is now invested in short term money market instruments, currently yielding

about 5.0%. Partially offsetting the higher non-operating income from

investments, the Company's consolidated provision for income taxes in 3Q 2006

was 33.3% of pretax profits compared to only 20.2% in 3Q 2005. In 2005, UTMD

benefited from The American Jobs Creation Act of 2004 which allowed a tax

deduction on foreign earnings repatriated in 2005.

primary income statement measures of financial performance for the first nine

months (9M) of 2006 increased compared to 2005, according to the following

the most recent 4 calendar quarters were $1.97.

to CEO Kevin Cornwell, "Although sales in 3Q 2006 were lower than our

expectations, we are optimistic that sales will increase in 4Q. Based on an

excellent overall operating performance during the first nine months of the

year, it appears highly likely that UTMD will achieve its goal of $2.00 eps

ratios as of September 30, 2006 which may be of interest to shareholders

Days in Receivables (based on 3Q sales activity) = 47

Average Inventory Turns (based on 3Q CGS) = 3.7

Year-to-Date ROE = 16% (after dividends)

dilution from unexercised option shares added to actual weighted average

outstanding shares for purposes of calculating eps was 91,800 in 3Q 2006

compared to 221,600 in 3Q 2005, and 102,000 in 9M 2006 compared to 223,800

2005. The actual number of outstanding shares at the end of 3Q 2006 was

3,933,900 which included 3Q employee option exercises of 16,000 shares and

share repurchases of 7,100 shares. The average price paid by the Company to

repurchase shares in the open market during 3Q 2006 was $29.93 including

commissions. Year-to-date purchases through 9M 2006 have been 58,800 shares

an average per share cost of $30.69. The total number of outstanding unexercised

options at September 30, 2006 was 269,100 shares at an average exercise price

$18.53/ share, including shares awarded but not vested. This compares to 682,500

unexercised option shares outstanding at the end of 3Q 2005.

are cautioned that this press release may contain 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, 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 3Q 2006 will be filed

with the SEC by November 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, Third Quarter (3 months ended September 30)

thousands except earnings per share):

STATEMENT, First Nine Months (9 months ended September 30)

thousands except earnings per share):