Angeion Corporation Reports
Results for the Third Quarter of 2007

Notable Sales Growth in Core Markets

SAINT PAUL, Minnesota. (September 13, 2007) — Angeion Corporation (NASDAQ: ANGN) today reported results for its third quarter ended July 31, 2007.

“As anticipated, sales to our core markets showed notable year-over-year revenue growth. This growth was strong enough to offset the expected revenue-reduction from our large clinical research customer, as it enters the next phase of its clinical trials which does not require additional cardiorespiratory diagnostic systems,” Rodney A. Young, President and Chief Executive Officer commented. “Our third quarter performance in the hospital, physician office, clinic and health & fitness club markets reflects the continuing strength of our sales and marketing teams and our product technologies.”

Third Quarter Highlights

Notable accomplishments for the quarter included:

• 44% revenue growth in our core markets for the third quarter of 2007; excluding our large clinical research customer
• Gross margin improvement to 49.9% versus 49.0% in third quarter of 2006; and
• Total revenue for the third quarter of 2007 increased slightly over last year, even with reduced clinical research revenues

Angeion reported revenues of $8.9 million in the third quarter, ended July 31, 2007, up 0.8% from revenues of $8.8 million in the third quarter of last year. The Company had net income of $4,000, or $0.00 per diluted share, in the third quarter of 2007 versus net income of $394,000, or $0.10 per diluted share, in the third quarter last year.

For the nine months ended July 31, 2007, Angeion reported revenues of $29.4 million versus $22.9 million in the same period of last year. Net income for the first nine months of fiscal 2007 was $946,000, or $0.22 per diluted share, versus $682,000, or $0.18 per diluted share, in the same period of last year, a gain of 38.7%. Net income for the nine months ended July 31, 2006, included a gain from discontinued operations of $171,000 or $0.04 per diluted share.

The Company reported that sales to its large clinical research customer accounted for 11.1% of sales in the third quarter of 2007 versus 37.7% in the third quarter of 2006. Excluding sales to this customer, revenue for the three months increased by $2.4 million, or 43.8%, compared to the third quarter of 2006. The Company expects revenues from this clinical research customer to continue throughout fiscal 2008, but at a reduced level due to the completion of the systems installation phase of its current clinical studies.

The Company reported that its gross margin improved to 49.9% in the third quarter of fiscal 2007, up from 49.0% in the same quarter last year, as a result of manufacturing efficiencies and improved product mix. However, operating expenses were higher, primarily as a result of technical service costs necessary to support the clinical research business secured over the past eighteen months. The Company also incurred additional costs that were one-time in nature, including establishing a new business-development branch office in Milan, Italy; fees related to establishing a new international distributor; and costs and expenses associated with a special shareholder meeting held in August 2007.

“We are excited that MedGraphics’ cardiorespiratory diagnostic product revenues in the third quarter of 2007 grew by nearly 44% over 2006, even without the significant contribution of our large clinical research customer,” Young commented. “In addition, New Leaf revenues grew as a result of unit sales of Client Assessment Packs, the indicator of new consumer participation in the New Leaf Active Metabolic Training™ programs, which increased 66% in the third quarter compared to the same period of 2006.”

Looking Ahead

“New products are paramount to our overall growth strategy; and our near-term plans include several new product introductions,” Young said. “One of our new products will address a growing need in the hospital intensive care unit (ICU) for precise measurement of the nutritional needs of patients on ventilators. Failure to meet the challenges associated with managing the nutritional requirements of critically-ill, ventilated-patients can lead to multiple complexities; including extended hospital-patient stays, significantly increased hospital costs, patient morbidity and mortalities. In the U.S. alone, there are approximately 3,400 hospital ICUs and approximately 84,000 ventilators in use for critically-ill patients. The new product we have developed to answer this market need is a small, portable medical device, called an indirect calorimeter that will uniquely provide a nutritional measurement for ventilated patients. We anticipate revenues from this new ICU-based product to begin by the end of this fiscal year,” Young stated.

“For the remainder of 2007, our focus remains on the basic business fundamentals; drive sales in our cardiorespiratory MedGraphics hospital/physician office market segment, add new clients to our clinical research business roster, and increase the number of new participants using our New Leaf Active Metabolic Training™. We are continuing to bring forth new product concepts and the associated patents into our pipeline,” concluded Young.

-- Download Financials --