Merit Medical Reports Record Revenues Up 15 Percent and Improved Earnings for the...

Merit Medical Reports Record Revenues Up 15 Percent and Improved Earnings for
the Third Quarter of 2008

SOUTH JORDAN, Utah, Oct. 23, 2008 (GLOBE NEWSWIRE) -- Merit Medical Systems,
Inc. (Nasdaq:MMSI), a leading manufacturer and marketer of proprietary
disposable devices used primarily in cardiology and radiology procedures, today
reported record revenues of $58.2 million for its third quarter ended September
30, 2008, compared with $50.6 million for the third quarter of 2007, an increase
of 15%. Revenues for the nine-month period ended September 30, 2008 were a
record $169.1 million, compared with $153.4 million for the comparable
nine-month period in 2007, a gain of 10%. Merit also reported that its revenues
accelerated during 2008 with gains of approximately 5% in the first quarter, 10%
in the second quarter and 15% in the third quarter.

Net income for the third quarter ended September 30, 2008 was $5.2 million, up
18% to $0.18 per share, compared to $4.3 million, or $0.15 per share, for the
comparable quarter of 2007. Merit posted the increase in net income despite
incurring expenses of $534,000 for costs associated with Hurricane Ike and
$298,000 for discontinuation of a minor product line. The aforementioned
expenses affected earnings by approximately $0.02 per share after tax.

Net income for the nine-month period ended September 30, 2008 was $15.3 million,
up 40% to $0.54 per share, compared to $10.9 million, or $0.38 per share, for
the same period of 2007.

Gross margins for the third quarter of 2008 were 40.7% of sales, compared to
39.1% of sales for the third quarter of 2007. Gross margins were 41.3% of sales
for the nine-month period ended September 30, 2008, compared to 37.9% of sales
for the comparable period in 2007. The increase in gross margins for the third
quarter of 2008, as compared to the third quarter of 2007, can be attributed
primarily to improvements in manufacturing efficiency and automation, higher
volumes of sales and increased production, and production of certain products in
Mexico.

The decrease in gross margins for the third quarter of 2008, as compared to the
second quarter of 2008, can be attributed primarily to the higher costs of
materials, freight and labor, new product start-up costs, and product mix. The
recent reduction in commodity prices may lead to reduced material costs in the
future.

All four product categories of Merit's business contributed to revenue growth in
the third quarter of 2008, as compared to the third quarter of 2007, with
catheter sales increasing 27%; custom kit and tray sales rising 23%; stand-alone
device sales growing 13%; and inflation device sales increasing 4%.

For the nine-month period ended September 30, 2008, compared to the nine-month
period ended September 30, 2007, catheter sales increased 19%; stand-alone
device sales rose 11%; custom kit and procedure tray sales grew 10%; and
inflation device sales increased 6%.

"Previously we had expressed our belief that we would experience lower revenues
for the third quarter due primarily to the anticipated summer slowdown," said
Fred P. Lampropoulos, Merit's Chairman and Chief Executive Officer. "We are
pleased at the momentum that continued during the quarter. We have achieved
double-digit growth through the first three quarters and expect this to continue
into 2009 with the introduction of several new products that are being
well-received.

"Although the effects of Hurricane Ike on our Angleton, Texas facility were
manageable, we were out of production for approximately three weeks as repairs
were made and the facility and its clean rooms were re-certified," Lampropoulos
continued. "The efforts of our employees in the Angleton facility were above and
beyond the call of duty and in many cases in advance of their own homes and
families. We are grateful that no harm or injury came to any of our employees.
The Angleton facility is now in full production and we believe it will catch up
on its production schedule during the fourth quarter."

Selling, general and administrative expenses for the third quarter of 2008 were
24.6% of sales, compared with 23.1% of sales in the third quarter of 2007. For
the nine-month period ended September 30, 2008, selling, general and
administrative costs were 23.8% of sales, compared with 23.2% of sales for the
first nine months of 2007. The costs of Hurricane Ike and discontinuation of a
minor product line were expensed to SG&A during the third quarter of 2008.
Excluding those expenses, SG&A for the third quarter and nine-month period ended
September 30, 2008 would have been 23.2% and 23.3% of sales, respectively,
compared to 23.1% and 23.3% of sales, respectively, for the same periods in
2007.

Research and development costs during the third quarter of 2008 were 3.8% of
sales, compared with 3.9% of sales for the same period of 2007. Research and
development costs were 4.0% of sales for the first nine months of 2008, compared
with 4.3% of sales for the same period of 2007.

Income from operations for the quarter ended September 30, 2008 was $7.2
million, compared with $6.1 million for the same period in 2007. Income from
operations for the first nine months of 2008 was $22.8 million, compared to
$16.0 million in the same period of 2007.

Merit's effective tax rates for the third quarter and the nine-month period
ended September 30, 2008 were 29.7% and 34.2%, respectively, compared with 30.6%
and 33.3% for the comparable periods of 2007, respectively. The lower effective
tax rate for the third quarter of 2008, compared with the same period of 2007,
was primarily the result of an increase in unrecognized tax benefits related to
Financial Accounting Standards Board Interpretation No. 48, Accounting for
Uncertainty in Income Taxes. The higher effective tax rate for the nine months
ended September 30, 2008, compared with the nine months ended September 30,
2007, was primarily the result of the lapse of the federal research and
development tax credit for 2008, which will be retroactively restored during the
fourth quarter of 2008.

Merit's cash position increased to $31.1 million on September 30, 2008, compared
with $17.6 million on December 31, 2007. Merit continues to be debt free.

CONFERENCE CALL

Merit Medical invites all interested parties to join its officers in its third
quarter earnings conference call to be held today, October 23, 2008, at 5 p.m.
Eastern (4 p.m. Central; 3 p.m. Mountain; and 2 p.m. Pacific). The telephone
numbers to call are (domestic) 800-218-0204; and (international) 303-262-2053. A
live webcast will also be available for the conference call at www.merit.com and
www.fulldisclosure.com.

INCOME STATEMENT
(Unaudited, in thousands except per share data)

Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -----------------------
2008 2007 2008 2007
----------------------- -----------------------

SALES $ 58,153 $ 50,584 $ 169,147 $ 153,425

COST OF SALES 34,469 30,801 99,369 95,247
----------- ----------- ----------- -----------

GROSS PROFIT 23,684 19,783 69,778 58,178

OPERATING EXPENSES
Selling, general
and
administrative 14,329 11,707 40,240 35,580
Research and
development 2,186 1,990 6,756 6,561
----------- ----------- ----------- -----------
Total 16,515 13,697 46,996 42,141

INCOME FROM
OPERATIONS 7,169 6,086 22,782 16,037

OTHER INCOME

Interest income 183 96 495 248
Other income 46 4 25 2
----------- ----------- ----------- -----------
Total other
income - net 229 100 520 250

INCOME BEFORE
INCOME TAX EXPENSE 7,398 6,186 23,302 16,287

INCOME TAX EXPENSE 2,198 1,891 7,967 5,427
----------- ----------- ----------- -----------

NET INCOME $ 5,200 $ 4,295 $ 15,335 $ 10,860
----------- ----------- ----------- -----------

EARNINGS PER SHARE-
Basic $ 0.19 $ 0.16 $ 0.55 $ 0.40
=========== =========== =========== ===========

Diluted $ 0.18 $ 0.15 $ 0.54 $ 0.38
=========== =========== =========== ===========

AVERAGE COMMON
SHARES-
Basic 27,899,636 27,326,554 27,668,711 27,452,969
=========== =========== =========== ===========

Diluted 28,811,891 28,030,792 28,482,246 28,259,959
=========== =========== =========== ===========

BALANCE SHEET
(Unaudited in thousands)

September 30, December 31,
2008 2007
---------- ----------
ASSETS
Current Assets
Cash and cash equivalents $ 31,081 $ 17,574
Marketable Securities 894 --
Trade receivables, net 26,330 26,619
Employee receivables 118 144
Other receivables 706 1,140
Inventories 38,399 34,106
Prepaid expenses and other assets 1,482 1,297
Deferred income tax assets 2,083 811
Income tax refunds receivable 1,108 297
---------- ----------
Total Current Assets 102,201 81,988

Property and equipment, net 103,724 99,696
Other intangibles, net 6,998 6,163
Goodwill 11,680 9,527
Other assets 2,910 2,964
Deferred income tax assets 336 4
Deposits 73 78
---------- ----------
Total Assets $ 227,922 $ 200,420
========== ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Trade payables 12,124 10,275
Accrued expenses 12,694 9,492
Advances from employees 399 267
Liabilities related to unrecognized
tax positions -- 1,023
Income taxes payable 267 737
---------- ----------
Total Current Liabilities 25,484 21,794

Deferred income tax liabilities 6,404 6,082
Liabilities related to unrecognized tax
positions 2,384 2,588
Deferred compensation payable 3,008 3,063
Deferred credits 2,023 2,105
Other long-term obligation 367 420
---------- ----------
Total Liabilities 39,670 36,052

Stockholders' Equity
Common stock 61,036 52,477
Retained earnings 127,282 111,947
Accumulated other comprehensive loss (66) (56)
---------- ----------
Total stockholders' equity 188,252 164,368

---------- ----------
Total Liabilities and Stockholders'
Equity $ 227,922 $ 200,420
========== ==========
ABOUT MERIT

Founded in 1987, Merit Medical Systems, Inc. is engaged in the development,
manufacture and distribution of proprietary disposable medical devices used in
interventional and diagnostic procedures, particularly in cardiology and
radiology. Merit serves client hospitals worldwide with a domestic and
international sales force totaling approximately 100 individuals. Merit employs
approximately 1,650 people worldwide, with facilities in Salt Lake City and
South Jordan, Utah; Angleton, Texas; Richmond, Virginia; Maastricht and Venlo,
The Netherlands; and Galway, Ireland.

The Merit Medical Systems, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3282

Statements contained in this release, which are not purely historical, are
forward-looking statements within the meaning of the Private Securities
Litigation Act of 1995 and are subject to risks and uncertainties such as those
described in Merit's Annual Report on Form 10-K for the year ended December 31,
2007. Such risks and uncertainties include product recalls and product liability
claims; infringement of Merit's technology or the assertion that Merit's
technology infringes the rights of other parties; termination of supplier
relationships, or failure of suppliers to perform; inability to successfully
manage growth through acquisitions; delays in obtaining regulatory approvals, or
the failure to maintain such approvals; concentration of Merit's revenues among
a few products and procedures; development of new products and technology that
could render Merit's products obsolete; market acceptance of new products;
introduction of products in a timely fashion; price and product competition;
availability of labor and materials; cost increases; and fluctuations in and
obsolescence of inventory; volatility of the market price of Merit's common
stock; foreign currency fluctuations; changes in key personnel; work stoppage or
transportation risks; modification or limitation of governmental or private
insurance reimbursement; changes in health care markets related to health care
reform initiatives; and other factors referred to in Merit's Annual Report on
Form 10-K for the year ended December 31, 2007, and other reports filed with the
Securities and Exchange Commission. All subsequent forward-looking statements
attributable to Merit or persons acting on its behalf are expressly qualified in
their entirety by these cautionary statements. Actual results may differ
materially from anticipated results. Financial estimates are subject to change
and are not intended to be relied upon as predictions of future operating
results, and Merit assumes no obligation to update or disclose revisions to
those estimates.

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CONTACT: Merit Medical Systems, Inc.
Anne-Marie Wright, Vice President of Corporate
Communications
(801) 208-4167
Fax: (801) 253-1688
awright@merit.com