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Atrion Reports Third Quarter Results

November 9, 2018

ALLEN, Texas, Nov. 09, 2018 (GLOBE NEWSWIRE) -- Atrion Corporation (NASDAQ: ATRI) today announced that for the third quarter ended September 30, 2018 revenues totaled $39.3 million, up from $37.9 million for the same period in 2017. Net income for the third quarter of 2018 totaled $9.2 million compared to $8.0 million for the third quarter of 2017, with diluted earnings per share for the third quarter of 2018 at $4.96 compared to $4.29 for the same period in 2017.

Commenting on the Company’s results for the third quarter of 2018 compared to the same period last year, David A. Battat, President & CEO, said, “Aggregate revenue growth in all product lines excluding Ophthalmology was up 6%. The overall revenue growth of 4% was achieved despite a 23% decline in Ophthalmology as we are winding down certain products with contract and intellectual property expirations. This headwind will continue to impact our comparisons until the end of the first quarter of 2019. Net income and diluted EPS were both up 16% compared to last year’s third quarter.” Mr. Battat concluded, “During the quarter we added $4.3 million to our cash and short and long term investments bringing the total to $87 million as of September 30, 2018. We continue to be debt free.”

Atrion Corporation develops and manufactures products primarily for medical applications. The Company’s website is www.atrioncorp.com.

Statements in this press release that are forward looking are based upon current expectations and actual results or future events may differ materially. Such statements include, but are not limited to, Atrion’s expectations regarding the headwind from Ophthalmology sales until the end of the first quarter of 2019. Words such as “expects,” “believes,” “anticipates,” “intends,” “should”, “plans,” “will” and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements involve risks and uncertainties. The following are some of the factors that could cause actual results or future events to differ materially from those expressed in or underlying our forward-looking statements: changing economic, market and business conditions; acts of war or terrorism; the effects of governmental regulation; competition and new technologies; slower-than-anticipated introduction of new products or implementation of marketing strategies; the Company’s ability to protect its intellectual property; changes in the prices of raw materials; changes in product mix; and intellectual property and product liability claims and product recalls. The foregoing list of factors is not exclusive, and other factors are set forth in the Company’s filings with the Securities and Exchange Commission. The forward-looking statements in this press release are made as of the date hereof, and we do not undertake any obligation, and disclaim any duty, to supplement, update or revise such statements, whether as a result of subsequent events, changed expectations or otherwise, except as required by applicable law.

Contact:Jeffery StricklandVice President and Chief Financial Officer(972) 390-9800

ATRION CORPORATION UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, ---------------------- ------------------------ 2018 2017 2018 2017 - ------ - - ------ - - ------- - - ------- - Revenues $ 39,274 $ 37,903 $ 117,522 $ 112,571 Cost of goods sold 21,275 19,498 61,349 57,841 - ------ - - ------ - - ------- - - ------- - Gross profit 17,999 18,405 56,173 54,730 Operating expenses 7,242 6,926 22,784 21,749 - ------ - - ------ - - ------- - - ------- - Operating income 10,757 11,479 33,389 32,981 Interest and dividend income 439 287 1,157 806 Other investment income (loss) 21 -- (1,153 ) -- Other income 20 -- 20 1 - ------ - - ------ - - ------- - - ------- - Income before income taxes 11,237 11,766 33,413 33,788 Income tax provision (2,016 ) (3,795 ) (6,907 ) (5,841 ) Net income $ 9,221 $ 7,971 $ 26,506 $ 27,947 - ------ - - ------ - - ------- - - ------- - Income per basic share $ 4.98 $ 4.30 $ 14.30 $ 15.16 - ------ - - ------ - - ------- - - ------- - Weighted average basic shares outstanding 1,853 1,852 1,853 1,844 - ------ - - ------ - - ------- - - ------- - Income per diluted share $ 4.96 $ 4.29 $ 14.27 $ 15.06 - ------ - - ------ - - ------- - - ------- - Weighted average diluted shares outstanding 1,858 1,857 1,857 1,856 - ------ - - ------ - - ------- - - ------- -

ATRION CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands) Sep 30, Dec. 31, ASSETS 2018 2017 --------- --------- (Unaudited ) Current assets: Cash and cash equivalents $ 50,031 $ 30,136 Short-term investments 15,465 35,468 - ------- - ------- Total cash and short-term investments 65,496 65,604 Accounts receivable 20,766 17,076 Inventories 32,172 29,354 Prepaid expenses and other 2,599 3,199 - ------- - ------- Total current assets 121,033 115,233 Long-term investments 21,166 9,136 Property, plant and equipment, net 72,447 66,369 Other assets 13,097 13,042 - ------- - ------- $ 227,743 $ 203,780 - ------- - ------- LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities 11,987 9,622 Line of credit -- -- Other non-current liabilities 10,599 9,770 Stockholders’ equity 205,157 184,388 - ------- - ------- $ 227,743 $ 203,780 - ------- - -------

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