LeMaitre Vascular (LMAT)

Impairment charge. In January 2008 we were notified by one of our Biomateriali customers that they would no longer purchase certain product lines from us. As a result, we recorded an impairment charge of $0.4 million to write-down intangible assets related to that customer relationship.

Interest income. Interest income was $0.2 million for the three months ended March 31, 2008, compared to $0.4 million for the three months ended March 31, 2007, due to lower average cash balances in the quarter.

21

Table of Contents

Interest expense. Interest expense increased to $16,000 for the three months ended March 31, 2008, from $5,000 in the comparable period in the prior year, primarily due to interest expense related to deferred Biomateriali acquisition payments.

Foreign exchange gains. Foreign exchange gains were $147,000 for the three months ended March 31, 2008, an increase from $29,000 in the year earlier period due to the comparatively weaker U.S. dollar.

Income tax expense. Our provision for income taxes for the three months ended March 31, 2008, was $290,000 compared to $28,000 for the three months ended March 31, 2007. The tax provision was the result of many factors, including the mix of jurisdictional earnings and losses and the recording of a deferred tax liability related to the amortization of goodwill for U.S. tax reporting purposes, which could not be offset by existing deferred tax assets. The provision was also a result of the effects of permanent and discrete tax items related to uncertain international tax positions. We monitor the mix of profitability by tax jurisdiction and adjust our annual expected rate on a quarterly basis as needed.