Angeion Corporation Reports Fifth Consecutive Year of Double-Digit Revenue Growth

Angeion Corporation (NASDAQ: ANGN) today reported results for its fourth quarter and fiscal year ended October 31, 2007. "Solid results in our fourth quarter highlighted another successful fiscal year for Angeion--our fifth consecutive year of double-digit revenue growth,” Rodney A. Young, President and Chief Executive Officer commented. "Fiscal 2007 results were driven by 14.6% annual revenue growth. Our continued strong performance in the hospital, physician office, and clinic market, coupled with growth in commercial health and fitness, demonstrates the effectiveness of our strategy to provide solutions that span the continuum of health.” Fiscal 2007 Highlights Accomplishments included: Fifth consecutive year of double-digit revenue growth. Successful Q4 launch of CCM Express® nutritional measurement device for hospital intensive care units. Agreement with strategic partner, Garmin International, which enables integration of Angeion’s New Leaf Active Metabolic TrainingTM with Garmin’s Forerunner 305 GPS fitness device, and New representative branch office in Milan, Italy. For the fiscal year ended October 31, 2007, Angeion reported revenues of $38.6 million, up 14.6%, from revenues of $33.7 million a year ago. Net income for fiscal 2007 was $1.1 million or $0.24 per diluted share, versus $1.4 million, or $0.38 per diluted share last year. Net income for fiscal 2006 included a gain from discontinued operations of $171,000 or $0.04 per diluted share. In the fourth quarter ended October 31, 2007, Angeion reported net income of $111,000, or $0.03 per diluted share, on revenues of $9.1 million. This compares to net income of $755,000, or $0.20 per diluted share, on revenues of $10.7 million in the fourth quarter of last year. The Company reported that its gross margin improved to 51.9% in the fourth quarter of fiscal 2007, up from 49.2% in the same quarter last year, as a result of manufacturing efficiencies and improved product mix. Sales to Angeion’s large clinical research customer accounted for 8.7% of revenues in the fourth quarter of 2007 versus 34.7% in the fourth quarter of 2006. Excluding sales to this customer, revenue for the fourth quarter of 2007 increased by 19.3% over the fourth quarter of 2006 and 24.1% for the year. The Company expects revenues from clinical research to continue throughout fiscal 2008 but at a reduced level due to this customer’s unanticipated early conclusion of their clinical trial. "Our sales and marketing team is intensely focused on landing other contracts with clinical research customers,” said Young. "Fiscal 2007 marked another strong year for our products across all markets we serve. We are particularly excited about the continued growth of our MedGraphics cardiorespiratory products in the hospital and physician clinic market, as well as the notable growth in the number of consumers participating in our New Leaf Active Metabolic Training™ within the commercial health and fitness market. On the medical side of our business, sales of our Elite™ Series and Ultima™ Series for pulmonary function and gas exchange had a substantial impact to our fourth quarter, as well as our overall success in fiscal 2007. Our New Leaf brand of products saw an increase of 40% in sales of client assessment packs and helped drive margin improvements for the year,” stated Young. "Our most recent product introduction--the CCM Express (critical care management) for hospital intensive care units (ICUs)--was successfully launched in October. The CCM Express provides a precise measurement of the nutritional requirements of critically ill patients on ventilators. This compact and uniquely differentiated nutritional measurement medical device has received great acceptance domestically, with multiple evaluations in process across the country. Internationally we have shipped CCM Express units to our distribution partners to fulfill orders from their customers in both hospitals and larger medical centers,” said Young. Earlier in fiscal 2007 the Company established a representative branch office in Milan, Italy, to provide support and field service for Angeion’s international distribution partners. Through this office, the Company offers real-time technical and marketing support, as well as a European training and service support location. In fiscal 2007, the existence of the Milan office was instrumental in establishing a new business relationship with a strategically important international distribution partner. Looking Ahead in 2008 "Our top priority in fiscal 2008 is to execute our strategy to grow profitably,” said Young. Keys to success will be: new product introductions, including MedGraphics’ much-anticipated new cardiopulmonary diagnostic system for the hospital market, and the new resting metabolic product for the weight loss and corporate market from New Leaf physician-office targeted marketing campaigns for chronic pulmonary disease entering select new markets creatively and aggressively increasing our presence in the commercial fitness markets enhancing our international distribution channel and continuing to add new partners to grow our international presence, particularly in Europe and Latin America, and pursuing new client accounts in the clinical research arena. "We see significant new product and program opportunities. Moreover, we believe we can leverage our broad clinical trials experience with other customers. While there is economic uncertainty, and the Company may experience fluctuations in quarter-to-quarter performance, we look forward to a productive 2008,” concluded Young. About Angeion Corporation Founded in 1986, Angeion Corporation acquired Medical Graphics Corporation in December 1999. Medical Graphics develops, manufactures and markets non-invasive cardiorespiratory diagnostic systems that are sold under the MedGraphics (www.medgraphics.com) and New Leaf Fitness (www.newleaffitness.com) brand and trade names. These cardiorespiratory diagnostic systems have a wide range of applications in healthcare as well as health and fitness. The Company’s products are sold internationally through distributors and in the United States through a direct sales force that targets heart and lung specialists located in hospitals, university-based medical centers, medical clinics and physicians’ offices, pharmaceutical companies, medical device manufacturers, clinical research organizations, health and fitness clubs, personal training studios, and other exercise facilities. For more information about Angeion, visit www.angeion.com. The discussion above contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements by their nature involve substantial risks and uncertainties. Our actual results may differ materially depending on a variety of factors including: (i) our ability to successfully operate our business including our ability to develop, improve, and update our cardiorespiratory diagnostic products and successfully sell these products under the MedGraphics and New Leaf Fitness brand names into existing and new markets, (ii) our ability to achieve constant margins for our products and consistent and predictable operating expenses in light of variable revenues from our clinical research customers, (iii) our ability to effectively manufacture and ship products in required quantities to meet customer demands, (iv) our ability to expand our international revenue through our distribution partners and our Milan Italy representative branch office; (v) our ability to successfully defend ourselves from product liability claims related to our cardiorespiratory diagnostic products and claims associated with our prior cardiac stimulation products, (vi) our ability to protect our intellectual property, (vii) our ability to develop and maintain an effective system of internal controls and procedures and disclosure controls and procedures, and (viii) our dependence on third-party vendors. Additional information with respect to the risks and uncertainties faced by the Company may be found in, and the above discussion is qualified in its entirety by, the other risk factors that are described from time to time in the Company’s Securities and Exchange Commission reports, including the Annual Report on Form 10-K for the year ended October 31, 2007. ANGEION CORPORATION AND SUBSIDIARIES Condensed Consolidated Financial Information (unaudited, in thousands except per share amounts)           Three Months Ended Year Ended October 31, October 31, Consolidated Statements of Earnings 2007 2006 2007 2006 Revenues $ 9,131 $ 10,709 $ 38,580 $ 33,651 Cost of goods sold   4,392   5,441   19,106   17,016 Gross margin   4,739   5,268   19,474   16,635   Operating expenses: Selling and marketing 2,462 2,330 10,107 8,148 General and administrative 1,236 881 4,220 3,209 Research and development 745 680 2,820 2,367 Amortization of intangibles   176   203   733   812   4,619   4,094   17,880   14,536 Operating income 120 1,174 1,594 2,099 Interest income   51   31   182   81 Income before taxes 171 1,205 1,776 2,180 Provision for taxes   60   450   719   914   Income from continuing operations 111 755 1,057 1,266 Gain from discontinued operations, net of taxes of $103   -   -   -   171 Net income $ 111 $ 755 $ 1,057 $ 1,437   Earnings per share - basic Continuing operations $ 0.03 $ 0.21 $ 0.27 $ 0.35 Discontinued operations   -   -   -   0.05 Net income per share $ 0.03 $ 0.21 $ 0.27 $ 0.40 Earnings per share - diluted Continuing operations $ 0.03 $ 0.20 $ 0.24 $ 0.34 Discontinued operations   -   -   -   0.04 Net income per share $ 0.03 $ 0.20 $ 0.24 $ 0.38 Weighted average common shares outstanding Basic   4,088   3,681   3,987   3,634 Diluted   4,183   3,865   4,353   3,752   October 31, October 31, Consolidated Balance Sheets 2007 2006 Cash $ 6,908 $ 4,069 Other current assets 13,607 12,821 Equipment and intangible assets   4,018   4,863 $ 24,533 $ 21,753   Current liabilities 6,361 6,686 Long-term liabilities 743 757 Shareholders' equity   17,429   14,310 $ 24,533 $ 21,753