Possis Medical, Inc. Reports Fourth-Quarter and Full-Year Results; Quarterly Revenue and Earnings in Line with Guidance

The company reported fourth-quarter net income, on a generallyaccepted accounting principles (GAAP) basis, of $479,000, or $0.03 perdiluted share. This includes stock-based compensation expense of$710,000, net of tax, or $0.04 per diluted share, due to theimplementation of SFAS 123(R). Net income prior to fiscal 2006 did notinclude stock-based compensation expense.

Non-GAAP (pro forma) net income, adjusted to eliminate the effectof stock-based compensation expense for the fiscal 2006 fourth quarterwas $1.2 million, or $0.07 per diluted share. This compares with netincome of $1.3 million, or $0.07 per diluted share, in the fourthquarter of fiscal 2005, and with non-GAAP net income of $542,000, or$0.03 per diluted share, sequentially in the third quarter of fiscal2006. Please refer to the non-GAAP "Consolidated Statements of Incomeand Comprehensive Income" included in this press release, as well asthe table reconciling net income per diluted share on a GAAP basis tonet income per share on a non-GAAP basis.

Possis Medical's fiscal 2006 fourth-quarter revenue and GAAP netincome were within the range of its previously issued expectations.

"While fiscal 2006 proved to be a challenging year for Possis, weended the year on a promising note: meeting our expectations for thefourth quarter and delivering solid sequential increases," said RobertG. Dutcher, CEO of Possis Medical. "At other times in our past, wehave endured difficult operational periods and emerged stronger due toour focus, prudent financial management and superior technology. Weenter fiscal 2007 with a strong cash position, a full productpipeline, promising new clinical science and the continued commitmentto research and development needed for growth."

Earlier in fiscal 2006, turnover in the Possis' sales forcecontributed to sales execution issues. According to Dutcher, thecompany has restructured both the sales force and its compensationplan. The new structure will increase the number of quota-carryingterritories and strengthen overall sales expertise. Additionally, thenew compensation plan is designed to attract and retain talent andmaximize incremental sales growth. Possis is currently in the processof training new hires and expects to be fully staffed and trained bythe end of September. Going forward, the company expects to return toa more normal level of turnover in its sales force.

For the fiscal year ended July 31, 2006, sales totaled $61.9million, versus $65.1 million in the prior year. Net income for the 12months was $809,000, or $0.05 per diluted share, on a GAAP basis,including stock-based compensation expense of $3.0 million, net oftax, or $0.17 per diluted share. Non-GAAP (pro forma) net incometotaled $3.8 million, or $0.21 per diluted share, compared to $6.2million, or $0.34 per diluted share, for fiscal 2005.

In the fiscal 2006 fourth quarter, Possis sold 29 AngioJet(R)Drive Units worldwide and 22 in the U.S. Total U.S. drive units in thefield, which contributes to catheter sales, increased to 1,672 at theend of the fiscal 2006 fourth quarter from 1,645 units at the end ofthe fiscal 2006 third quarter. The average catheter utilization rateper installed drive unit, a measure of recurring usage, improvedsequentially to 7.1 in the fourth quarter compared to 6.6 in the thirdquarter. Catheter utilization was 8.2 in the fourth quarter of fiscal2005.

"Even with the interventional medical community eagerly awaitingapproval of our next-generation AngioJet drive unit, the UltraConsole, we continued to deliver meaningful drive unit sales duringthe fourth quarter. We expect the Ultra Console to help generate newgrowth for our AngioJet business going forward," said Dutcher.

The company's gross profit margin was 71.5 percent in the fourthquarter, versus 74.1 percent in the year-ago fourth quarter. For theyear, Possis' gross profit margin was 72.3 percent, versus 73.9percent in fiscal 2005. The quarterly and full-year decreases wereprimarily due to lower sales volume. Average selling prices remainedfirm across the company's product lines.

Selling, general and administrative expenses (SG&A) increased by$1.2 million from the same period last year, to $8.7 million in thethree months ended July 31, 2006. For the year, SG&A rose by $4.4million from fiscal 2005, to $33.0 million. The increase in both thequarter and full year are attributable primarily to SFAS 123(R)stock-based compensation charges combined with marketing, clinicalstudy and field sales expenditures.

Fourth quarter 2006 research and development (R&D) spendingdecreased by $540,000, from the prior-year period, to $2.3 million.The prior-year period reflected high levels of spending to completedevelopment of the AngioJet Ultra Console. For fiscal 2006, R&Dspending increased by $400,000 to $10.9 million, due primarily tostock-based compensation expense. R&D spending was 18 percent ofrevenue in fiscal 2006, reaffirming Possis' ongoing commitment todevelop and bring new products to market.

The company reported that at July 31, 2006, cash, cashequivalents, and marketable securities had increased to $48.1 million,from $45.8 million at April 30, 2006. In fiscal 2006, Possisrepurchased approximately $3.2 million of its common shares. Possisrepurchased $550,000 of common stock in the most recent quarter. Thecompany expects to continue share repurchases in fiscal 2007 to helpoffset stock-based compensation programs.

"Possis has a proven business model and strong balance sheet thathave allowed us to remain profitable in a challenging environmentwhile still investing aggressively in R&D," said Dutcher. "Because ofour R&D investments in fiscal 2006, we have a full product pipelinethat will provide the fuel for a return to growth in fiscal 2007 andbeyond."

Dutcher added, "Today, our market-leading AngioJet technology isapproved for use in three areas of the human body. Our goal movingforward is to expand the use of AngioJet thrombectomy throughout thebody--including new areas such as treating deep vein thrombosis (DVT),pulmonary embolism (PE) and ischemic stroke. In addition, we arelooking beyond our current thrombectomy markets and focusing onintroducing new products that address unmet needs in the broaderendovascular treatment market. These new products will come frominternal development efforts and possibly partnerships with othercompanies."

Product Introduction and Development Update

GuardDOG(R) Occlusion System

Possis recently received 510(k) clearance from the FDA to use itsGuardDOG Occlusion System during treatment of peripheral vasculardisease. The GuardDOG System enables physicians to quickly andeffectively manage local blood flow while employing interventionaltechniques and devices such as the AngioJet System to treat vasculardisease. Peripheral vascular disease is a potentially limb- andlife-threatening condition, and the GuardDOG Occlusion System providesa new option for controlling local blood flow and facilitatinginfusion of therapeutic or diagnostic fluids, as well as delivery ofinterventional devices.

Possis is currently completing necessary production requirementsin preparation for market evaluations at select medical sites tosupport full U.S. market release of the GuardDOG system by the end ofthe 2006 calendar year.

Spiroflex(R) Catheter Family

Possis has a submission for coronary approval for the Spiroflexcatheter pending with FDA. Spiroflex is already marketed forperipheral arterial thrombus. In addition, Possis recently added a newmember to the Spiroflex catheter family, the Spiroflex VG catheter.The new model, designed to replace the company's existing XVGcatheter, is the first AngioJet catheter of its size to be offered ina Rapid Exchange platform.

Utilizing its proprietary Spiroflex shaft technology, theSpiroflex VG catheter benefits from several design improvements madeto the most recent generation of Possis Medical products. This newcatheter offers improved trackability inside the vessel and includestip and hub improvements found on the original Spiroflex catheterreleased earlier in fiscal year 2006.

The Spiroflex VG catheter is now fully released for sale in theU.S. for peripheral use, and the company will submit it for coronaryapproval in the U.S. in the coming weeks. The Spiroflex has receivedcoronary CE mark approval, and application will soon be made for theSpiroflex VG. Said Dutcher, "The combination of our family ofSpiroflex catheters and our new Ultra Console forms thenext-generation AngioJet system: a quick, effective and safe way toremove thrombus."

SafeSeal(TM) Hemostasis Patch

In June 2006, Possis Medical secured exclusive U.S. distributionrights to the SafeSeal(TM) Hemostasis Patch, a topical wound dressingthat decreases the time needed to control bleeding from the puncturemade into a blood vessel to perform an endovascular procedure.

Since its launch, SafeSeal has achieved revenues of $148,000.Possis estimates the total realizable market opportunity to be $45million today and growing to $100 million by 2009.

The launch of the SafeSeal patch is part of Possis' increasedefforts to leverage its customer base and sales force by increasingits catalog of endovascular treatment products beyond the AngioJetsystem. Current Possis customers can benefit from an expanding catalogof unique interventional products.

AngioJet Ultra Console

The AngioJet Ultra Console is the next-generation AngioJet DriveUnit. Designed to create and monitor flow of the saline solution thatis delivered to the catheter tip, the Ultra Console providessignificantly more flexibility and an easier set-up process, making itmuch simpler to operate than Possis' current drive unit.

Said Dutcher, "Our submission for the Ultra Console continues inactive review at the FDA, and we hope for approval in the next fewmonths. We're very excited about the potential of this unit--it is thefoundation that will help generate the next generation of growth forour AngioJet thrombectomy business. We anticipate a full market launchin fiscal 2007."

Clinical Science Update

During the year, Possis made significant progress on important newclinical science. Initiatives centered on strengthening support forthe AngioJet system in its core markets, and developing its use in newmarkets, including DVT and PE.

Journal of Invasive Cardiology Publishes New Results of AngioJetThrombectomy Use in High-Risk Patients

In July, important new observational studies of the AngioJetThrombectomy System for treating heart attack patients were publishedas a supplement to The Journal of Invasive Cardiology. The supplementdetailed "real-world" results from five patient registries presentedby a panel of leading interventional cardiologists during the March2006 annual convention of the American College of Cardiology (ACC).

These registry results led the panel to conclude in part that "useof the AngioJet with primary percutaneous catheter-based intervention(PCI) is safe and suggest, that the AngioJet may improve proceduraland clinical outcomes in a broad spectrum of real-world ST-elevationmyocardial infarction (STEMI) patients treated with primary PCI."

Said Dutcher, "This peer-reviewed Supplement is a valuablecompendium of clinical evidence that AngioJet thrombectomy in heartattack patients with visible thrombus is safe and effective at rapidlyresolving the thrombus and restoring flow--and results in betterclinical outcomes. This is an important step in helping physiciansunderstand the clinical value AngioJet thrombectomy brings to thetreatment of coronary thrombus in a variety of settings."

As a further step, Possis is working with a leading clinicalresearcher and trialist to combine all available AngioJet clinicalexperience in treating acute coronary syndrome patients into a singlelarge clinical dataset suitable for a more sophisticated meta-analysisof AngioJet safety and benefit in such patients. If successful, thiseffort could be presented or published later in fiscal 2007.

Venus Applications

Beyond its current mechanical thrombectomy markets, Possis isworking with the FDA to secure the appropriate approvals to useAngioJet thrombectomy to treat DVT. Initially, the company hadsubmitted an investigational device exemption (IDE) to the FDA forpermission to sponsor a clinical trial, called APEX-D. This remains inactive discussion with FDA. In addition, and partly in response tothis process, Possis has also filed a 510(k) seeking market clearancefor general venous use of the AngioJet Xpeedior(R) catheter, currentlymarketed for peripheral arterial thrombus.

Said Dutcher, "A favorable reply from FDA would be an importantfirst step, giving us initial, general-market clearance for venoususe, from which future clinical study results could establish a morecompelling therapeutic benefit for AngioJet treatment of venousthrombus."

JETSTENT

Possis' JETSTENT clinical trial has enrolled 114 patients to date,triggering the first planned interim analysis that is now underway.The intention of the interim analysis is to assure that patientrandomization to the two treatment arms is effective, that protocolcompliance is high, and that endpoints and other outcomes beingevaluated are appropriate.

Dr. Sianos' Experience

The company recently announced that Dr. Georgios Sianos at theThoraxcentre in Rotterdam, The Netherlands, presented compellingresults showing that AngioJet thrombectomy in heart attack patientswith large thrombus prior to treatment with drug eluting stentsmarkedly reduces the incidence of stent thrombosis in follow-up out totwo years. Dr. Sianos' results were presented this year at the May2006 EuroPCR meeting in Paris, and most recently at the Septembermeeting of the European Society of Cardiology/World Congress ofCardiology in Barcelona. They also will be presented at the OctoberTranscatheter Cardiovascular Therapeutics (TCT) conference inWashington, DC, and in November at the American Heart Associationmeeting in Chicago. Dr. Sianos' analyses have been submitted forpublication to the Journal of the American College of Cardiology.

According to Possis, new reports concerning the higher risk ofcoronary blood clots forming after implantation of drug-eluting stents(DES) present an exciting new opportunity to establish the value ofAngioJet thrombectomy in reducing stent thrombosis.

Noted Dutcher, "In June, the Wall Street Journal reported thatsome U.S. hospitals are decreasing their use of drug-eluting stentsbecause of mounting concern over higher rates of late-stent thrombosisamong patients who receive them. In addition, a major stentmanufacturer confirmed that its recent internal re-analysis revealed astatistically significant increase in late-stent thrombosis with itsdrug eluting stents, compared to its bare-metal stents. And the U.S.FDA has made recent statements describing its close monitoring of theevolving situation as well. Clearly, this is an important issue andfinding a solution is critical."

Continued Dutcher, "The compelling and very favorable resultsbeing reported by Dr. Sianos and his colleagues reinforce otherresearch that identifies thrombus as a significant risk factor forsubsequent major complications such as stent thrombosis. The resultsalso strongly suggest that for heart attack patients with largethrombus, AngioJet thrombectomy before treatment with drug-elutingstents provides safer long-term outcomes. We will vigorously pursueadditional future research opportunities to further explore thisimportant benefit."

Business Outlook

Looking ahead to fiscal 2007, Possis Medical anticipates sales inthe range of $70 million to $76 million, with gross margins in thelow-to-mid 70's, as a percent of sales. Non-GAAP (pro forma) netincome per diluted share for fiscal 2007 is estimated to range between$0.34 and $0.48 per share. GAAP net income per diluted share, whichincludes the impact of SFAS 123(R) stock-based compensation expense,is expected to be in the range of $0.17 - to $0.31 per share.

The company anticipates first-quarter net sales of $15.5 millionto $16 million and non-GAAP (pro forma) net income, as adjusted toeliminate SFAS 123(R) for stock-compensation expense, in the rangebetween breakeven and $.03 per diluted share. Possis expects to incura GAAP net loss, which includes SFAS 123(R), of between $.01 and $.04per diluted share in the first quarter of fiscal 2007.

"Looking forward, we are excited by the momentum that we bringinto fiscal 2007. We will have a fully staffed and trained salesforce, a portfolio of core products and new products such as GuardDOGthat meet the needs of the broader thrombus management market. Withour solid financial platform, strong product pipeline, a focus on R&Dand a commitment to new clinical science, we're well positioned forfiscal 2007," concluded Dutcher.

The company will host a conference call today, Wednesday, Sept.20, 2006 at 9:30 am (CT). Bob Dutcher, Chairman & CEO, and JulesFisher, CFO, will discuss the fourth-quarter and full-year operatingresults and their outlook for fiscal 2007.

To join the conference call, dial 1-888-889-7567 (international1-517-645-6377) and give the password "conference." A replay of theconference call will be available one hour after the call ends through11:59 P.M. (CT) on September 27, 2006. To access the replay, dial1-866-443-8013 (international 1-203-369-1124).

For individual investors, a Webcast of the conference call will beavailable at www.possis.com under the "Investors" tab, or atwww.fulldisclosure.com. Institutional investors can access the Webcastthrough a password-protected site at www.streetevents.com. An archivedWebcast of Possis' conference call will be available for 30 days.

Possis Medical, Inc. develops manufactures and markets pioneeringmedical devices for the large and growing cardiovascular and vasculartreatment markets. The AngioJet Rheolytic Thrombectomy System ismarketed in the United States for blood clot removal from nativecoronary arteries, leg arteries, coronary bypass grafts and AVdialysis access grafts.

Certain statements in this press release constitute"forward-looking statements" within the meaning of Federal SecuritiesLaws. Some of these statements relate to estimated future revenue,gross margins, expenses and earnings per share, regulatory approvals,new product introductions and indications, clinical initiatives, andsales force productivity and turnover. These statements are based onour current expectations and assumptions, and entail various risks anduncertainties that could cause actual results to differ materiallyfrom those expressed in such forward-looking statements, such as, theeffectiveness of our sales and marketing efforts in re-establishingcoronary product usage, our ability to effectively manage new productdevelopment timelines, the effectiveness of our initiatives to reducesales force turnover and improve productivity, and our ability togenerate suitable clinical registry data to support growing use of theAngioJet in coronary applications. A discussion of these and otherfactors that could impact the Company's future results are set forthin the cautionary statements included in the Company's Form 10-K forthe year ended July 31, 2005, filed with the Securities and ExchangeCommission.

This release includes non-GAAP (pro forma) net income, non-GAAP(pro forma) net income per share data, and non-GAAP (pro forma) keybusiness indicators, and other non-GAAP line items from theConsolidated Statements of Income and Comprehensive Income, includingcost of medical products, operating expenses (including selling,general and administrative, and research and development), andprovision for income taxes. These measures are not in accordance with,or an alternative for, generally accepted accounting principles andmay be different from non-GAAP (pro forma) measures used by othercompanies. Possis believes that the presentation of non-GAAP (proforma) net income, non-GAAP (pro forma) net income per share data,non-GAAP (pro forma) key business indicators and other non-GAAP lineitems from the Consolidated Statements of Income and ComprehensiveIncome, when shown in conjunction with the corresponding GAAPmeasures, provides useful information to management and investorsregarding financial and business trends relating to its financialcondition and results of operations. Possis further believes thatwhere the adjustments used in calculating non-GAAP (pro forma) netincome and non-GAAP (pro forma) net income per share are based onspecific identified charges that impact different line items in thestatements of income (including cost of medical products, selling,general and administrative and research and development expense), thatit is useful to investors to know how these specific line items in thestatements of income are affected by these adjustments. In particular,as Possis begins to apply SFAS 123(R), it believes that it is usefulto investors to understand how the expenses associated with theapplication of SFAS 123(R) are reflected on its ConsolidatedStatements of Income and Comprehensive Income.


POSSIS MEDICAL, INC. CONSOLIDATED STATEMENTS
OF INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)

Three Months Ended Twelve Months Ended
------------------------- -------------------------
July 31, July 31, July 31, July 31,
2006 2005 2006 2005
------------ ------------ ------------ ------------
Product sales..... $16,049,769 $16,280,480 $61,879,378 $65,053,329

Cost of sales and
other expenses:
Cost of medical
products....... 4,581,390 4,223,856 17,114,312 16,966,874
Selling, general
and
administrative. 8,675,864 7,498,389 32,990,441 28,625,132
Research and
development.... 2,330,225 2,870,227 10,907,289 10,501,719
------------ ------------ ------------ ------------
Total cost of
sales and
other
expenses.... 15,587,479 14,592,472 61,012,042 56,093,725
------------ ------------ ------------ ------------

Operating income.. 462,290 1,688,008 867,336 8,959,604
Interest income. 516,852 360,921 1,812,900 1,274,149
Loss on sale of
securities..... (12,150) (13,327) (148,476) (114,401)
------------ ------------ ------------ ------------

Income before
income taxes..... 966,992 2,035,602 2,531,760 10,119,352
Income tax
provision........ 487,948 758,048 1,723,159 3,963,934
------------ ------------ ------------ ------------

Net income........ 479,044 1,277,554 808,601 6,155,418

Other
comprehensive
loss, net of tax:
Unrealized gain
(loss) on
securities....... 9,000 (108,000) (89,000) (104,000)
------------ ------------ ------------ ------------
Comprehensive
income........... $488,044 $1,169,554 $719,601 $6,051,418
============ ============ ============ ============

Weighted average
number of common
shares
outstanding:
Basic........ 17,181,540 17,303,812 17,223,562 17,616,072
Diluted...... 17,490,821 17,822,780 17,824,739 18,310,906

Net income per
common share:
Basic........ $0.03 $0.07 $0.05 $0.35
============ ============ ============ ============
Diluted...... $0.03 $0.07 $0.05 $0.34
============ ============ ============ ============

Note: Net income for the three and twelve months ended July 31,
2006 includes stock-based compensation expense of $710,000 and
$2,962,000, net of tax, due to the implementation of SFAS 123(R).

Net income for the three and twelve months ended July 31, 2005 did
not include stock-based compensation expense under SFAS 123(R). The
table below reflects net income and diluted net income per share for
the three and twelve months ended July 31, 2006 compared with the
three and twelve months ended July 31, 2005 including the pro forma
stock-based compensation expense as follows:


Three Months Ended Twelve Months Ended
------------------------- -------------------------
July 31, July 31, July 31, July 31,
2006 2005 2006 2005
------------ ------------ ------------ ------------
Net income - as
reported. $1,277,554 $6,155,418
Stock-based
compensation
expense, net of
tax - as
reported. 1,210,000 3,169,000
------------ ------------ ------------ ------------
Net (loss) income,
including the
effect of stock-
based
compensation
expense. $479,044 $67,554 $808,601 $2,986,418
============ ============ ============ ============
Diluted net income
per share - as
reported. $0.07 $0.34
Stock-based
compensation
expense, net of
tax, as reported. (0.07) (.017)
------------ ------------ ------------ ------------
Diluted net (loss)
income per share,
including the
effect of stock-
based
compensation
expense. $0.03 $0.00 $0.05 $0.16
============ ============ ============ ============


POSSIS MEDICAL, INC. AND SUBSIDIARIES
NON-GAAP (PRO FORMA) CONSOLIDATED STATEMENTS OF
INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)

Three Months Ended Twelve Months Ended
------------------------- -------------------------
July 31, July 31, July 31, July 31,
2006 2005 2006 2005
------------ ------------ ------------ ------------
Product sales..... $16,049,769 $16,280,480 $61,879,378 $65,053,329

Cost of sales and
other expenses:
Cost of medical
products....... 4,484,390 4,223,856 16,696,312 16,966,874
Selling, general
and
administrative. 8,095,864 7,498,389 30,711,441 28,625,132
Research and
development.... 2,147,225 2,870,227 10,142,289 10,501,719
------------ ------------ ------------ ------------
Cost of sales
and other
expenses.... 14,727,479 14,592,472 57,550,042 56,093,725
------------ ------------ ------------ ------------

Operating income.. 1,322,290 1,688,008 4,329,336 8,959,604
Interest income. 516,852 360,921 1,812,900 1,274,149
Loss on sale of
securities..... (12,150) (13,327) (148,476) (114,401)
------------ ------------ ------------ ------------

Income before
income taxes..... 1,826,992 2,035,602 5,993,760 10,119,352
Provision for
income taxes..... 637,948 758,048 2,223,159 3,963,934
------------ ------------ ------------ ------------

Net income........ 1,189,044 1,277,554 3,770,601 6,155,418

Other
comprehensive
income, net of
tax:
Unrealized gain
(loss) on
securities....... 9,000 (108,000) (89,000) (104,000)
------------ ------------ ------------ ------------
Comprehensive
income........... 1,198,044 $1,169,554 3,681,601 $6,051,418
============ ============ ============ ============

Weighted average
number of common
shares
outstanding:
Basic........ 17,181,540 17,303,812 17,223,562 17,616,072
Diluted...... 17,490,821 17,822,780 17,824,739 18,310,906

Net income per
common share:
Basic........ $0.07 $0.07 $0.22 $0.35
============ ============ ============ ============
Diluted...... $0.07 $0.07 $0.21 $0.34
============ ============ ============ ============

Note: The impact of SFAS 123(R) is excluded from the three and
twelve months ending July 31, 2006; the three and twelve months ending
July 31, 2005, is shown as reported.


POSSIS MEDICAL, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

July 31, July 31,
ASSETS 2006 2005
------------ ------------

CURRENT ASSETS:
Cash and cash equivalents................. $3,505,796 $5,257,244
Marketable securities..................... 44,610,130 39,169,811
Trade receivables (less allowance for
doubtful accounts and returns of $572,000
and $669,000, respectively).............. 8,356,776 8,274,839
Inventories............................... 5,915,950 5,830,204
Prepaid expenses and other assets......... 1,663,322 1,158,214
Deferred tax assets....................... 1,331,000 1,042,000
------------ ------------
Total current assets.................... 65,382,974 60,732,312

PROPERTY AND EQUIPMENT, net................. 5,090,198 4,879,221

DEFERRED TAX ASSET, net..................... 10,756,000 12,113,949

OTHER ASSETS................................ 723,262 425,914
------------ ------------

TOTAL ASSETS................................ $81,952,434 $78,151,396
============ ============

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Trade accounts payable.................... $2,040,367 $1,355,402
Accrued salaries, wages, and commissions.. 3,468,961 3,212,525
Other liabilities......................... 2,715,421 2,468,669
------------ ------------
Total current liabilities............... 8,224,749 7,036,596

OTHER LIABILITIES........................... 823,975 526,914
COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY:
Common stock-authorized, 100,000,000
shares of $0.40 par value each; issued
and outstanding, 17,173,504 and
17,326,487 shares, respectively.......... 6,858,730 6,930,595
Additional paid-in capital................ 77,378,276 75,710,188
Accumulated other comprehensive loss...... (329,000) (240,000)
Retained deficit.......................... (11,004,296) (11,812,897)
------------ ------------
Total shareholders' equity.............. 72,903,710 70,587,886
------------ ------------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY.. $81,952,434 $78,151,396
============ ============


AngioJet System Key Business Indicators

----------------------------------------------------------------------
Q4-05 Q1-06 Q2-06 Q3-06 Q4-06
----------------------------------------------------------------------
U.S. AngioJet Revenue -
$(000) $15,609 $15,029 $14,582 $14,748 $15,258
----------------------------------------------------------------------
U.S. Drive Units Sold 40 42 28 46 22
----------------------------------------------------------------------
U.S. Drive Units in the
Field 1,509 1,560 1,600 1,645 1,672
----------------------------------------------------------------------
U.S. Catheter Utilization 8.2 7.5 7.0 6.6 7.1
----------------------------------------------------------------------
Gross Margin % 74.1% 72.7% 74.2% 71.1% 71.5%
----------------------------------------------------------------------
EPS Diluted $0.07 $0.01 $0.02 ($0.02) $0.03
----------------------------------------------------------------------


Comparison of Net Income Per Diluted Share Including the Effect of
Stock-Based Compensation Expense Under SFAS 123(R) and SFAS 123

----------------------------------------------------------------------
Net Income Per Diluted Share Q4-05 Q1-06 Q2-06 Q3-06 Q4-06
----------------------------------------------------------------------
Net income per diluted share -
as reported for prior
periods (1) $0.07 N/A N/A N/A N/A
----------------------------------------------------------------------
Stock-based compensation
expense, net of tax, per
share (2) $(0.07) $(0.04) $(0.04) $(0.05) $(0.04)
----------------------------------------------------------------------
Net income (loss) per share
including the effect of
stock-based compensation
expense (3) $0.00 $0.01 $0.02 $(0.02) $0.03
----------------------------------------------------------------------

Notes:

1. Net income and net income per share prior to fiscal 2006 did
not include stock-based compensation expense under SFAS 123.

2. Stock-based compensation expense and stock-based compensation
expense per share prior to fiscal 2006 is calculated based on
SFAS 123 as previously disclosed in Possis' financial
statement footnotes.

3. Net income (loss) and net income (loss) per share prior to fiscal
2006 represents pro forma information based on SFAS 123 as
previously disclosed in Possis' financial statement footnotes.