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Merit Medical Reports Record Revenues for the Quarter and Year Ended December 31, 2012 and Gives Sales and Earnings Guidance for



Merit Medical Reports Record Revenues for the Quarter and Year Ended December
31, 2012 and Gives Sales and Earnings Guidance for 2013

Revenues Up 12% for the Quarter and 10% for the Year

SOUTH JORDAN, Utah, Feb. 21, 2013 (GLOBE NEWSWIRE) -- Merit Medical Systems,
Inc. (Nasdaq:MMSI), a leading manufacturer and marketer of proprietary
disposable devices used primarily in cardiology, radiology and endoscopy,
today announced record revenues of $102.2 million for the quarter ended
December 31, 2012, an increase of 12% over revenues of $91.1 million for the
quarter ended December 31, 2011. Revenues for the year ended December 31, 2012
were a record $394.3 million, an increase of 10% over revenues of $359.4
million for the year ended December 31, 2011. Revenues from Merit's core
business grew 10% and 9% for the quarter and year ended December 31, 2012,
respectively, compared to the corresponding periods of 2011. Revenues related
to Merit's recent acquisition of Thomas Medical Products Inc. ("Thomas
Medical") from a division of GE Healthcare were $1.9 million for the last
twelve days of December 2012.

Merit's non-GAAP net income for the quarter ended December 31, 2012 was $6.2
million, or $0.15 per share, compared to $7.4 million, or $0.18 per share, for
the quarter ended December 31, 2011. Merit's non-GAAP net income for the year
ended December 31, 2012 was $30.8 million, or $0.72 per share, compared to
$30.9 million, or $0.78 per share, for the year ended December 31, 2011.

GAAP net income for the quarter ended December 31, 2012 was $641,000, or $0.01
per share, compared to $5.0 million, or $0.12 per share, for the fourth
quarter of 2011. GAAP net income for the year ended December 31, 2012 was
$19.7 million, or $0.46 per share, compared to $23.0 million, or $0.58 per
share, for the year ended December 31, 2011. The decrease in GAAP net income
for the quarter and year ended December 31, 2012 was primarily due to $2.2
million, net of tax, for non-recurring costs related to the acquisition of
Thomas Medical and $1.5 million for a capital loss related to an investment in
a privately-held company.

Gross profits for the fourth quarter of 2012 were 44.5% of sales, compared to
46.3% of sales for the fourth quarter of 2011. Gross profits improved to 46.2%
of sales for the year ended December 31, 2012, compared to 46.0% of sales for
the year ended December 31, 2011. Merit's gross margins would have been 45.3%
and 46.4% of sales for the three- and twelve-month periods ended December 31,
2012, respectively, excluding the non-recurring Thomas Medical acquired
inventory mark-up costs of $831,000 for both the quarter and year ended
December 31, 2012. The decrease in gross margins for the fourth quarter of
2012, when compared to the corresponding period of 2011, was primarily the
result of higher standard costs resulting from lower production volumes for
the fourth quarter of 2012.

"The fourth quarter of 2012 was a very busy quarter for Merit as we conducted
due diligence, acquired Thomas Medical and initiated the transition process,"
said Fred P. Lampropoulos, Merit's Chairman and Chief Executive Officer.
"Additionally, we prepared for the implementation of the new medical device
tax."

"All in all we had a very good sales year while we invested in a number of new
products that we plan to introduce throughout the year," Lampropoulos
continued. "The basixTOUCH™, the most advanced inflation device Merit has ever
produced, is scheduled to be available in the early second quarter of 2013
along with the PHD™ Hemostasis Valve. The TIO™, ONE Snare™ and peritoneal
dialysis catheters have all been released in the past few weeks."

"We have also invested in new business segments over the past year,"
Lampropoulos said. "Recently we initiated sales of procedure packs which are
produced in our Galway, Ireland facility. We also plan to complete our
hypotube and advanced devices unit in Ireland and begin processing product in
early April."

"Despite the challenges of the device industry, Merit has added a stellar line
of new products and acquired technology and capacity to take advantage of the
opportunities that the disruptions and turmoil of the industry have
presented," Lampropoulos added.

For the quarter ended December 31, 2012, compared to the quarter ended
December 31, 2011, Endotek sales rose 32%; catheter sales increased 19%;
stand-alone device sales were up 11%; custom kit and tray sales increased 9%;
embolotherapy device sales grew 6%; and inflation device sales rose 1%. For
the year ended December 31, 2012, compared to the year ended December 31,
2011, Endotek sales rose 31%; stand-alone device sales increased 12%; catheter
sales grew 10%; embolotherapy device sales rose 9%; custom kit and tray sales
were up 3%; and inflation device sales grew 2%. Excluding decreased sales to
an OEM customer, inflation device sales were up 6% for the year ended December
31, 2012.

Selling, general and administrative expenses were 32.7% and 31.0% of Merit's
sales for the quarter and year ended December 31, 2012, respectively, compared
with 30.8% and 29.1% of Merit's sales for the comparable periods of 2011,
respectively. SG&A expenses would have been 30.1% and 30.3% of sales for the
quarter and year ended December 31, 2012, respectively, if not for $2.7
million of non-recurring transaction costs attributable to the Thomas Medical
acquisition for both the quarter and year ended December 31, 2012. Excluding
these non-recurring expenses, the increase in SG&A expenses for the year ended
December 31, 2012 was primarily related to the hiring of additional sales and
marketing representatives, both domestically and internationally, to expand
Merit's sales distribution efforts and pursue increased market share for new
and existing products.

Research and development costs were 7.5% and 7.0% of sales for the quarter and
year ended December 31, 2012, respectively, compared to 6.7% and 6.1% of sales
for the corresponding periods of 2011, respectively. The increase was
primarily due to headcount additions for Merit's research and development
group to support new products and personnel increases in Merit's regulatory
department to support product registrations in foreign countries as Merit
expands its international sales distribution. In addition, acquired in-process
research and development costs were 0.6% and 1.6% of sales for the year ended
December 31, 2012 and 2011, respectively. During the year ended December 31,
2012, Merit spent approximately $2.5 million in acquired in-process research
and development to purchase five new technologies.

Other expense for the quarter and year ended December 31, 2012 was
approximately $2.5 million and $2.0 million, respectively, compared with other
income of approximately $150,000 and other expenses of approximately $315,000,
for the corresponding periods of 2011, respectively. The increase in other
expense for the quarter and year ended December 31, 2012 primarily related to
a loss of approximately $2.4 million of an investment in a privately-held
company accounted for at cost. A realized gain on marketable securities of
approximately $745,000 partially offset the investment loss for the year ended
December 31, 2012.

Merit's effective income tax rates for the quarter and year ended December 31,
2012 were 65.3% and 28.6%, respectively, compared to 14.0% and 29.9% for the
comparable periods of 2011, respectively. Absent the recognition of a deferred
income tax valuation allowance of approximately $631,000 related to certain
capital loss carry forwards, Merit's effective tax rates would have been 31.2%
and 26.3% for the quarter and year ended December 31, 2012. 

The increase in the effective income tax rate for the fourth quarter of 2012,
when compared to the same period of 2011, was primarily the result of a higher
mix of U.S. income compared to Merit's foreign income, which is primarily due
to Merit's Irish operations being taxed at a lower income tax rate than its
U.S. operations. The decrease in the effective income tax rate for the year
ended December 31, 2012, when compared to the corresponding period of 2011,
was the result of a higher mix of foreign income, which is primarily due to
Merit's Irish operations being taxed at a lower rate than its U.S.
operations. 

Merit generated $46.9 million in cash from operations for the year ended
December 31, 2012, compared to $34.0 million for the year ended December 31,
2011.

2013 GUIDANCE

Based upon information currently available to Merit's management, Merit
estimates that for the year ending December 31, 2013, absent extraordinary
transactions, Merit's revenues will be in the range of $455-$465 million, an
increase of approximately 15-18%, compared to revenues of $394.3 million for
the year ended December 31, 2012.  Also, based on information currently
available to Merit's management, Merit estimates that, absent non-recurring
transactions, Merit's GAAP earnings per share for 2013 will be in the range of
$0.40-$0.46, compared to GAAP earnings per share of $0.46 for the year ended
December 31, 2012, and non-GAAP earnings per share of $0.61-$0.67, excluding
the acquired in-process research and development and the amortization of
intangibles, net of tax.

CONFERENCE CALL

Merit invites all interested parties to participate in its fourth quarter and
year-end conference call today, February 21^st, 2013, at 5:00 p.m. Eastern
(4:00 p.m. Central, 3:00 p.m. Mountain, and 2:00 p.m. Pacific). The domestic
phone number is (877) 941-0843, and the international number is (480)
629-9866. A live webcast as well as a rebroadcast can be accessed through the
Investors page at www.merit.com or through the webcasts tab at
www.fulldisclosure.com.

                                                               
BALANCE SHEET                                                  
(Unaudited in thousands)                                       
                                                 December 31, December 31,
                                                 2012         2011
ASSETS                                                         
Current Assets                                                 
Cash and cash equivalents                         $ 9,719      $ 10,128 
Trade receivables, net                            53,402       40,550 
Employee receivables                              169          154 
Other receivables                                 2,672        1,750 
Inventories                                       84,599       69,911 
Prepaid expenses                                  4,133        3,775 
Prepaid income taxes                              1,250        883 
Deferred income tax assets                        4,976        3,704 
Income tax refunds receivable                     1,076        2,797 
Total Current Assets                              161,996      133,652 
                                                               
Property and equipment, net                       234,803      179,140 
Other intangibles, net                            118,131      56,669 
Goodwill                                          175,108      61,144 
Deferred income tax assets                        4,237        5,366 
Marketable Securities                                          2,798 
Other assets                                      11,034       8,248 
Total Assets                                      $ 705,309    $ 447,017 
                                                               
LIABILITIES AND STOCKHOLDERS' EQUITY                           
Current Liabilities                                            
Trade payables                                    34,637       22,727 
Accrued expenses                                  28,349       20,197 
Current portion of long-term debt                 10,000       
Advances from employees                           551          225 
Income taxes payable                              547          646 
Total Current Liabilities                         74,084       43,795 
                                                               
                                                               
Deferred income tax liabilities                   2,373        2,112 
Liabilities related to unrecognized tax benefits  1,858        3,489 
Deferred compensation payable                     5,956        4,585 
Deferred credits                                  2,980        1,984 
Long-term debt                                    227,566      30,737 
Other long-term obligation                        8,915        3,226 
Total Liabilities                                 323,732      89,928 
                                                               
Stockholders' Equity                                           
Common stock                                      172,341      166,231 
Retained earnings                                 210,418      190,708 
Accumulated other comprehensive income (loss)     (1,182)      150 
Total stockholders' equity                        381,577      357,089 
Total Liabilities and Stockholders' Equity        $ 705,309    $ 447,017 
                                                               

                                                                    
INCOME STATEMENT                                                    
(Unaudited, in thousands except                                     
per share amounts)
                                Three Months Ended     Twelve Months Ended
                                December 31,           December 31,
                                2012        2011       2012        2011
                                                                    
SALES                            $ 102,231   $ 91,092   $ 394,288   $ 359,449 
                                                                    
COST OF SALES                    56,768      48,947     212,296     193,981 
                                                                    
GROSS PROFIT                     45,463      42,145     181,992     165,468 
                                                                    
OPERATING EXPENSES                                                  
Selling, general and             33,468      28,028     122,106     104,502 
administrative
Research and development         7,665       6,091      27,795      21,938 
Acquired in-process research                 2,400      2,450       5,838 
and development
Total                            41,133      36,519     152,351     132,278 
                                                                    
INCOME FROM OPERATIONS           4,330       5,626      29,641      33,190 
                                                                    
OTHER INCOME (EXPENSE)                                              
Interest income                  50          77         226         129 
Interest expense                 (252)       (34)       (604)       (789)
Other income (expense)           (2,278)     107        (1,645)     345 
Total other income (expense) -   (2,480)     150        (2,023)     (315)
net
                                                                    
INCOME BEFORE INCOME TAX         1,850       5,776      27,618      32,875 
EXPENSE
                                                                    
INCOME TAX EXPENSE               1,209       806        7,908       9,831 
                                                                    
NET INCOME                       $ 641       $ 4,970    $ 19,710    $ 23,044 
                                                                    
EARNINGS PER SHARE-                                                 
Basic                            $ 0.02      $ 0.12     $ 0.47      $ 0.59 
                                                                    
Diluted                          $ 0.01      $ 0.12     $ 0.46      $ 0.58 
                                                                    
AVERAGE COMMON SHARES-                                              
Basic                           42,442      41,949     42,176      39,086
                                                                    
Diluted                         42,830      42,410     42,610      39,733
                                                                    

Although Merit's financial statements are prepared in accordance with
accounting principles which are generally accepted in the United States of
America ("GAAP"), Merit's management believes that certain non-GAAP financial
measures provide investors with useful information regarding the underlying
business trends and performance of Merit's ongoing operations and can be
useful for period-over-period comparisons of such operations.  The following
table sets forth supplemental financial data and corresponding reconciliations
to GAAP financial statements for the three- and twelve-month periods ended
December 31, 2012 and 2011.  Readers should consider these non-GAAP measures
in addition to, not as a substitute for, financial reporting measures prepared
in accordance with GAAP.  These non-GAAP financial measures exclude some, but
not all, items that affect Merit's net income. Additionally, these
calculations may not be comparable with similarly titled measures of other
companies.

                                                                     
                                     Three Months Ended  Twelve Months Ended
                                     December 31,        December 31,
                                     2012      2011      2012       2011
Non-GAAP ADJUSTMENTS                                                 
GAAP net income                       $ 641     $ 4,970   $ 19,710   $ 23,044 
                                                                     
Acquisition costs                     2,492               2,559      86 
Severance                             242                 494        
Fair value write-up of acquired       831       80        831        724 
inventory sold (a)
Long-term asset impairment charges    116       44        143        103 
(b)
Acquired in-process research and                2,400     2,450      5,838 
development
Amortization of intangible assets                                    
Cost of sales                         876       670       4,072      2,588 
SG&A expenses                         943       804       3,441      3,389 
Loss on capital investment            2,368               2,368      
FV adjustment to contingent           110                 480        
considerations (c)
Income tax effect of reconciling      (3,032)   (1,519)   (6,398)    (4,837)
items (d)
Tax effect on capital loss (e)        631                 631        
                                                                     
Non-GAAP net income                   $ 6,218   $ 7,449   $ 30,781   $ 30,935 
                                                                     
Non-GAAP net income per share         $ 0.15    $ 0.18    $ 0.72     $ 0.78 
                                                                     
Diluted shares used to compute        42,830    42,410    42,610     39,733 
Non-GAAP net income per share
                                                                     

Merit's non-GAAP income, after giving effect to the adjustments referenced in
the preceding table, does not reflect stock-based compensation expense of
approximately $463,000 and approximately $562,000 for the three months ended
December 31, 2012 and 2011, respectively, and stock-based compensation of
approximately $1.9 million and approximately $1.6 million for the year ended
December 31, 2012 and 2011, respectively.

(a) Increase in cost of goods sold related to the mark-up of finished goods
associated with Merit's acquisition of Thomas Medical
(b) Amounts represent abandoned patents
(c) Represents changes in the fair value of contingent consideration
liabilities for recent acquisitions
(d) Reflects an estimated annual income tax rate of 38% on a non-GAAP basis
(e) Reflects the deferred income tax valuation allowance related to certain
capital loss carry forwards

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,
radiology and endoscopy.  Merit serves client hospitals worldwide with a
domestic and international sales force totaling approximately 200 individuals.
Merit employs approximately 2,750 people worldwide with facilities in Salt
Lake City and South Jordan, Utah; Angleton, Texas; Richmond, Virginia;
Malvern, Pennsylvania; Maastricht and Venlo, The Netherlands; Paris, France;
Galway, Ireland; Beijing, China; Copenhagen, Denmark; and Rockland,
Massachusetts.

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,
including, without limitation, statements regarding Merit's forecasted
revenues, net income, financial results or anticipated acquisitions, are
forward-looking statements within the meaning of the Private Securities
Litigation Reform 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, 2011. Such risks and uncertainties include risks relating to
Merit's potential inability to successfully manage growth through
acquisitions, including the inability to commercialize technology acquired
through recent, proposed or future transactions; product recalls and product
liability claims; expenditures relating to research, development, testing and
regulatory approval or clearance of Merit's products and risks that such
products may not be developed successfully or approved for commercial use;
greater governmental scrutiny and regulation of the medical device industry;
reforms to the 510(k) process administered by the U.S. Food and Drug
Administration; compliance with governmental regulations and administrative
procedures; potential restrictions on Merit's liquidity or its ability to
operate its business by its current debt agreements; possible infringement of
Merit's technology or the assertion that Merit's technology infringes the
rights of other parties; the potential of fines, penalties, or other adverse
consequences if Merit's employees or agents violate the U.S. Foreign Corrupt
Practices Act or other laws and regulations; laws targeting fraud and abuse in
the healthcare industry; potential for significant adverse changes in, or
failure to comply with, governing regulations; the effect of changes in tax
laws and regulations in the United States or other countries; increases in the
price of commodity components; negative changes in economic and industry
conditions in the United States and other countries; termination or
interruption of relationships with Merit's suppliers, or failure of such
suppliers to perform; fluctuations in Euro and GBP exchange rates; Merit's
need to generate sufficient cash flow to fund its debt obligations, capital
expenditures, and ongoing operations; concentration of Merit's revenues among
a few products and procedures; development of new products and technology that
could render Merit's existing products obsolete; market acceptance of new
products; volatility in the market price of Merit's common stock; modification
or limitation of governmental or private insurance reimbursement policies;
changes in health care markets related to health care reform initiatives;
failure to comply with applicable environmental laws; changes in key
personnel; work stoppage or transportation risks; uncertainties associated
with potential healthcare policy changes which may have a material adverse
effect on Merit; introduction of products in a timely fashion; price and
product competition; availability of labor and materials; cost increases;
fluctuations in and obsolescence of inventory; and other factors referred to
in Merit's Annual Report on Form 10-K for the year ended December 31, 2011 and
other materials 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 will differ, and 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.

CONTACT: Anne-Marie Wright
         Vice President of Corporate Communications
         (801) 208-4167
         e-mail: awright@merit.com

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