Atrion Reports First Quarter Results.

ALLEN, Texas--(BUSINESS WIRE)--May 3, 1999--

Atrion Corporation (Nasdaq/NM:ATRI) today announced earnings for the first quarter of $0.13 per diluted share in line with previously announced expectations. Net income was $0.15 per diluted share in the first quarter of 1998. Revenues for the first quarter increased 14% to $11,580,000 compared with $10,162,000 in the first quarter in 1998. The increase in revenues in 1999 over the first quarter in 1998 was primarily attributable to the inclusion for the full quarter in 1999 of revenues from the product lines and operations acquired on January 30, 1998.

Commenting on the Company's results, Emile A. Battat, Chairman, said "Operating income before interest and taxes for the 1999 first quarter was higher than in the first quarter of 1998 even with three months of increased costs associated with the development and marketing of our Myocardial Protection System (MPS) in the 1999 quarter compared with two months of those costs in the first quarter of 1998. Our 1999 first quarter earnings were also significantly higher than our earnings per share of $0.07 in each of the third and fourth quarters of 1998. These increases reflect improvements in the results of our established businesses and reductions in certain corporate expenses. We expect these trends to continue for the rest of 1999 and expect significantly higher per share earnings from continuing operations for the full year compared with 1998. We are also pleased with the continued progress and acceptance of our MPS system."

The Company repurchased 136,600 shares of Atrion common during the quarter ended March 31, 1999 in an open market transaction. Last week, the Company completed the purchase of an additional 301,524 shares in a Dutch auction tender offer. After these repurchases the Company's book value now exceeds $18.00 per share based upon its 2,524,429 shares currently outstanding.

Atrion Corporation designs, develops, manufactures, sells and distributes medical products and components to markets worldwide.

The statements in this press release that are forward looking are based upon current expectations and actual results may differ materially. Such statements include, but are not limited to, Atrion's expectations regarding results for established businesses and the level of corporate expenses for the remainder of 1999 and the Company's earnings from continuing operations for the full year of 1999. Forward-looking statements contained herein involve risks and uncertainties that could cause actual results to differ materially, including, but not limited to, the effect of changing economic and business conditions, market acceptance of the Company's products, changes in expected research and development requirements, changes in growth of the medical products industry and other factors set forth in the Company's filings with the SEC. -0-

                          ATRION CORPORATION
             UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
                (In thousands, except per share data)

                                             Three Months Ended
                                                  March 31,
                                              -----------------
                                               1999      1998
                                              -------   -------
Revenues                                      $11,580   $10,162
Cost of goods sold                              6,956     6,428
                                              -------   -------
       Gross profit                             4,624     3,734
Operating expenses                              4,018     3,155
                                              -------   -------
       Operating income                           606       579
Interest income (expense), net                      6       193
Other income, net                                  11        28
                                              -------   -------
       Income before income taxes                 623       800
Income tax provision                              229       302
                                              -------   -------
       Net income                             $   394   $   498
                                              =======   =======

Earnings per basic share                      $  0.13   $  0.15
                                              =======   =======

Weighted average basic shares outstanding       2,920     3,234
                                              =======   =======

Earnings per diluted share                    $  0.13   $  0.15
                                              =======   =======

Weighted average diluted shares outstanding     2,944     3,238
                                              =======   =======



                          ATRION CORPORATION
                 UNAUDITED CONSOLIDATED BALANCE SHEETS
                            (In thousands)

                                             March 31,  Dec. 31,

                                               1999      1998

ASSETS                                        -------   -------
Current assets:
   Cash and cash equivalents                  $   181   $ 5,635
   Accounts receivable                          7,763     7,278
   Inventories                                  9,129     8,568
   Other current assets                         1,878     1,358
                                              -------   -------
     Total current assets                      18,951    22,839
Property, plant and equipment, net             23,919    17,394
Other assets                                   20,199    20,182
                                              -------   -------

                                              $63,069   $60,415
                                              =======   =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
   Accounts payable and accrued liabilities   $ 5,224   $ 3,929
   Current maturities of long-term debt          --         203
                                              -------   -------
     Total current liabilities                  5,224     4,132
Long-term debt                                  2,170      --
Other non-current liabilities                   6,965     6,914
Stockholders' equity                           48,710    49,369