Atrion Reports Fourth Quarter and Full Year Results.

Business Editors & Health/Medical Writers

ALLEN, Texas--(BUSINESS WIRE)--Feb. 25, 2002

EPS up 4.5% for the quarter and 50% for the year

Atrion Corporation (Nasdaq/NM:ATRI) today announced higher revenues and significantly higher earnings per share from continuing operations for the year ended December 31, 2001. Revenues for the full year of 2001 increased 12% to $57,605,000 from $51,447,000 in 2000. Income from continuing operations in 2001 was $1.88 per diluted share versus $1.25 per diluted share in 2000. Net income in 2001 totaled $4.30 per diluted share versus $1.31 per diluted share in 2000. Both years included gains from discontinued operations.

Commenting on the Company's results, Emile A. Battat, Chairman, said "For the year, I am very pleased that we met or exceeded all of our financial objectives, with sales rising 12% and diluted earnings per share from continuing operations increasing by more than 50% for the third year in a row. From the current level we believe that we can grow our earnings per share from continuing operations by more than 15% per year over the next three years."

Atrion's revenues for the fourth quarter decreased 3% to $12,607,000 compared with $12,960,000 in the same period in 2000. On a diluted per share basis, net income for the period increased 4.5% compared to the fourth quarter of 2000. Due to rounding, diluted earnings per share are reported as $.39 for the fourth quarter of 2001compared to $.38 in the prior-year period.

With respect to the fourth quarter, Mr. Battat said, "The decrease in sales, while disappointing, reflected the challenging economic environment where some customers adjusted inventories to reflect current demand levels. In addition, following the tragic events of September 11, sales of valves and other components to manufacturers of aviation life jackets declined significantly. The sales decline also came after an unusually strong third quarter for the Company, when sales rose 24% compared to the same period in the prior year. Improved manufacturing efficiencies, lower operating costs, and higher tax benefits on export sales, helped increase our net income for the quarter by 15% compared to the same period last year."

Atrion Corporation designs, develops, manufactures, sells and distributes products and components primarily to medical 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 growth in earnings per share from continuing operations over the next three years. Words such as "expects," "believes," "anticipates," "intends," and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially, including, but not limited to, the effects of changing economic, business and technological conditions, market acceptance of the Company's products, the effects of governmental regulation, changes in research and development requirements, the impact of competition and other factors set forth in the Company's filings with the SEC.

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

                            Three Months Ended    Twelve Months Ended
                                December 31,          December 31,
                              2001        2000     2001         2000
                              ----        ----     ----         ----
Revenues                   $ 12,607    $ 12,960  $ 57,605    $ 51,447
Cost of goods sold            7,913       7,959    35,777      31,561
                           --------    --------  --------    --------
       Gross profit           4,694       5,001    21,828      19,886
Operating expenses            3,533       3,719    16,008      15,640
                           --------    --------  --------    --------
       Operating income       1,161       1,282     5,820       4,246

Interest expense, net            (6)       (157)     (223)       (654)
Other income (expense), net      32           3       468          (6)
                           --------    --------  --------    --------
       Income before income
        taxes                 1,187       1,128     6,065       3,586
Income tax provision           (274)       (334)   (1,803)       (923)
                           --------    --------  --------    --------
Income from continuing
 operations                     913         794     4,262       2,663
Gain on disposal of
 discontinued operations        --          --      5,492         129
                           --------    --------  --------    --------
     Net income            $    913    $    794  $  9,754    $  2,792
                           ========    ========  ========    ========

Earnings per basic share:
   Continuing operations   $    .44    $    .39  $   2.10    $   1.30
   Gain on disposal of
    discontinued operations     --          --       2.70         .06
                           --------    --------  --------    --------
     Net income per share  $    .44    $    .39  $   4.80    $   1.36
                           ========    ========  ========    ========

Weighted average basic
 shares outstanding           2,067       2,014     2,033       2,047
                           ========    ========  ========    ========

Earnings per diluted share:
   Continuing operations   $    .39    $    .38  $   1.88    $   1.25
   Gain on disposal of
    discontinued
    operations                  --          --       2.42         .06
                           --------    --------  --------    --------
     Net income per share  $    .39    $    .38  $   4.30    $   1.31
                           ========    ========  ========    ========

Weighted average diluted
 shares outstanding           2,325       2,110     2,272       2,135
                           ========    ========  ========    ========

                          ATRION CORPORATION
                 UNAUDITED CONSOLIDATED BALANCE SHEETS
                            (In thousands)

                                           Dec. 31,        Dec. 31,
                                            2001             2000
                                           -------         -------
ASSETS
Current assets:
   Cash and cash equivalents              $    542        $    159
   Accounts receivable                       7,559           7,175
   Inventories                              11,114          10,110
   Other current assets                      1,463             575
                                           -------        --------
     Total current assets                   20,678          18,019
Property, plant and equipment, net          25,378          26,247
Other assets                                18,231          19,424
                                           -------        --------
                                          $ 64,287        $ 63,690
                                           =======        ========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities                       $  5,446        $  4,705
Long-term debt                              17,125           7,400
Other non-current liabilities                2,541           7,571
Stockholders' equity                        39,175          44,014
                                          --------        --------
                                          $ 64,287        $ 63,690
                                          ===========     ========