Merit Medical Systems (MMSI)

RESEARCH AND DEVELOPMENT

In 2008, we continued to innovate in the treatment of cardiovascular disease by offering our customers a number of new products.  We broadened our Prelude® Sheath Introducer line by developing a number of radial artery access sheaths and valves.  The Prelude® Short Sheath line was designed to meet customer expectations for dialysis graft access.  The MAK NV™ is a new product line developed to offer non-vascular access for our drainage products.  Two other novel products were created to add convenience for the clinician.  The Slip-Not® is a device for securing purse string sutures following procedures involving dialysis grafts.  Also, the Grandstand™ is a temporary sharps holder which adds safety and innovation to our sharps container line.

Research and development expenses were approximately $9.2 million, $8.7 million, and $8.6 million in 2008, 2007, and 2006, respectively.  Our future growth continues to be fueled with multiple product ideas guided by our Chief Executive Officer and our sales and marketing teams, as well as by collaboration with physicians with whom we have longstanding relationships.  We have research and development facilities in South Jordan, Utah; Angleton, Texas; Galway, Ireland; and Venlo, The Netherlands.  We are also expanding our research and development efforts to include a variety of European technological sources.

RESEARCH AND DEVELOPMENT

In 2008, we continued to innovate in the treatment of cardiovascular disease by offering our customers a number of new products.  We broadened our Prelude® Sheath Introducer line by developing a number of radial artery access sheaths and valves.  The Prelude® Short Sheath line was designed to meet customer expectations for dialysis graft access.  The MAK NV™ is a new product line developed to offer non-vascular access for our drainage products.  Two other novel products were created to add convenience for the clinician.  The Slip-Not® is a device for securing purse string sutures following procedures involving dialysis grafts.  Also, the Grandstand™ is a temporary sharps holder which adds safety and innovation to our sharps container line.

Research and development expenses were approximately $9.2 million, $8.7 million, and $8.6 million in 2008, 2007, and 2006, respectively.  Our future growth continues to be fueled with multiple product ideas guided by our Chief Executive Officer and our sales and marketing teams, as well as by collaboration with physicians with whom we have longstanding relationships.  We have research and development facilities in South Jordan, Utah; Angleton, Texas; Galway, Ireland; and Venlo, The Netherlands.  We are also expanding our research and development efforts to include a variety of European technological sources.

RESEARCH AND DEVELOPMENT

In 2008, we continued to innovate in the treatment of cardiovascular disease by offering our customers a number of new products.  We broadened our Prelude® Sheath Introducer line by developing a number of radial artery access sheaths and valves.  The Prelude® Short Sheath line was designed to meet customer expectations for dialysis graft access.  The MAK NV™ is a new product line developed to offer non-vascular access for our drainage products.  Two other novel products were created to add convenience for the clinician.  The Slip-Not® is a device for securing purse string sutures following procedures involving dialysis grafts.  Also, the Grandstand™ is a temporary sharps holder which adds safety and innovation to our sharps container line.

Research and development expenses were approximately $9.2 million, $8.7 million, and $8.6 million in 2008, 2007, and 2006, respectively.  Our future growth continues to be fueled with multiple product ideas guided by our Chief Executive Officer and our sales and marketing teams, as well as by collaboration with physicians with whom we have longstanding relationships.  We have research and development facilities in South Jordan, Utah; Angleton, Texas; Galway, Ireland; and Venlo, The Netherlands.  We are also expanding our research and development efforts to include a variety of European technological sources.

RESEARCH
AND DEVELOPMENT

In 2008, we continued to
innovate in the treatment of cardiovascular disease by offering our customers a
number of new products.  We broadened our
Prelude® Sheath Introducer line by developing a number of radial artery access
sheaths and valves.  The Prelude® Short
Sheath line was designed to meet customer expectations for dialysis graft
access.  The MAK NV™ is a new product
line developed to offer non-vascular access for our drainage products.  Two other novel products were created to add
convenience for the clinician.  The
Slip-Not® is a device for securing purse string sutures following procedures
involving dialysis grafts.  Also, the
Grandstand™ is a temporary sharps holder which adds safety and innovation to
our sharps container line.

Research and development
expenses were approximately $9.2 million, $8.7 million, and $8.6 million in
2008, 2007, and 2006, respectively.  Our
future growth continues to be fueled with multiple product ideas guided by our
Chief Executive Officer and our sales and marketing teams, as well as by
collaboration with physicians with whom we have longstanding
relationships.  We have research and
development facilities in South Jordan, Utah; Angleton, Texas; Galway, Ireland;
and Venlo, The Netherlands.  We are also
expanding our research and development efforts to include a variety of European
technological sources.

RESEARCH
AND DEVELOPMENT

In 2008, we continued to
innovate in the treatment of cardiovascular disease by offering our customers a
number of new products.  We broadened our
Prelude® Sheath Introducer line by developing a number of radial artery access
sheaths and valves.  The Prelude® Short
Sheath line was designed to meet customer expectations for dialysis graft
access.  The MAK NV™ is a new product
line developed to offer non-vascular access for our drainage products.  Two other novel products were created to add
convenience for the clinician.  The
Slip-Not® is a device for securing purse string sutures following procedures
involving dialysis grafts.  Also, the
Grandstand™ is a temporary sharps holder which adds safety and innovation to
our sharps container line.

Research and development
expenses were approximately $9.2 million, $8.7 million, and $8.6 million in
2008, 2007, and 2006, respectively.  Our
future growth continues to be fueled with multiple product ideas guided by our
Chief Executive Officer and our sales and marketing teams, as well as by
collaboration with physicians with whom we have longstanding
relationships.  We have research and
development facilities in South Jordan, Utah; Angleton, Texas; Galway, Ireland;
and Venlo, The Netherlands.  We are also
expanding our research and development efforts to include a variety of European
technological sources.

RESEARCH
AND DEVELOPMENT

In 2008, we continued to
innovate in the treatment of cardiovascular disease by offering our customers a
number of new products.  We broadened our
Prelude® Sheath Introducer line by developing a number of radial artery access
sheaths and valves.  The Prelude® Short
Sheath line was designed to meet customer expectations for dialysis graft
access.  The MAK NV™ is a new product
line developed to offer non-vascular access for our drainage products.  Two other novel products were created to add
convenience for the clinician.  The
Slip-Not® is a device for securing purse string sutures following procedures
involving dialysis grafts.  Also, the
Grandstand™ is a temporary sharps holder which adds safety and innovation to
our sharps container line.

Research and development
expenses were approximately $9.2 million, $8.7 million, and $8.6 million in
2008, 2007, and 2006, respectively.  Our
future growth continues to be fueled with multiple product ideas guided by our
Chief Executive Officer and our sales and marketing teams, as well as by
collaboration with physicians with whom we have longstanding
relationships.  We have research and
development facilities in South Jordan, Utah; Angleton, Texas; Galway, Ireland;
and Venlo, The Netherlands.  We are also
expanding our research and development efforts to include a variety of European
technological sources.

RESEARCH
AND DEVELOPMENT

In 2008, we continued to
innovate in the treatment of cardiovascular disease by offering our customers a
number of new products.  We broadened our
Prelude® Sheath Introducer line by developing a number of radial artery access
sheaths and valves.  The Prelude® Short
Sheath line was designed to meet customer expectations for dialysis graft
access.  The MAK NV™ is a new product
line developed to offer non-vascular access for our drainage products.  Two other novel products were created to add
convenience for the clinician.  The
Slip-Not® is a device for securing purse string sutures following procedures
involving dialysis grafts.  Also, the
Grandstand™ is a temporary sharps holder which adds safety and innovation to
our sharps container line.

Research and development
expenses were approximately $9.2 million, $8.7 million, and $8.6 million in
2008, 2007, and 2006, respectively.  Our
future growth continues to be fueled with multiple product ideas guided by our
Chief Executive Officer and our sales and marketing teams, as well as by
collaboration with physicians with whom we have longstanding
relationships.  We have research and
development facilities in South Jordan, Utah; Angleton, Texas; Galway, Ireland;
and Venlo, The Netherlands.  We are also
expanding our research and development efforts to include a variety of European
technological sources.

RESEARCH AND DEVELOPMENT

Our future growth and success will depend largely on our ability to design and develop innovative new products and improve existing products.  We have directed our development efforts towards innovative technologies to expand our current market and enter new markets.  In order to address our customers’ needs, we involve our sales and marketing personnel, clinicians and physicians in the product development process.  Through collaboration with physicians we are able to respond to customer needs in successfully bringing innovative products to the market.

Our Chief Executive Officer frequently devotes a portion of his time to research and development.  Research and development expenses were approximately $8.7 million, $8.6 million, and $7.0 million in 2007, 2006, and 2005, respectively.  We have research and development facilities in Utah, Texas, The Netherlands, and Ireland that allow us to diversify our development efforts worldwide to meet our customers’ needs.

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RESEARCH
AND DEVELOPMENT

Our future growth
and success will depend largely on our ability to design and develop innovative
new products and improve existing products. 
We have directed our development efforts towards innovative technologies
to expand our current market and enter new markets.  In order to address our customers’ needs, we
involve our sales and marketing personnel, clinicians and physicians in the
product development process.  Through
collaboration with physicians we are able to respond to customer needs in
successfully bringing innovative products to the market.

Our Chief
Executive Officer frequently devotes a portion of his time to research and
development.  Research and development expenses were approximately $8.7
million, $8.6 million, and $7.0 million in 2007, 2006, and 2005,
respectively.  We have research and development facilities in Utah, Texas,
The Netherlands, and Ireland that allow us to diversify our development efforts
worldwide to meet our customers’ needs.

5

RESEARCH AND DEVELOPMENT

We believe that one of our historic strengths has been our ability to quickly adapt our expertise and experience in injection molding, insert molding, catheter extrusion and tipping, guide wire assembly, and electronic and sensor technologies, and to apply these core competencies toward innovative new products and product improvement.  Our development efforts are presently focused on disposable, single-patient or single-use items, which can be included in our custom kits or sold separately.

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Our Chief Executive Officer frequently devotes a portion of his time to research and development.  Research and development expenses were approximately $8.6 million, $7.0 million, and $5.1 million in 2006, 2005, and 2004, respectively.  We did not conduct any customer-sponsored research and development during those periods.  We anticipate that our research and development expenses will range between approximately 4% and 5% of net sales during the year ending December 31, 2007.

RESEARCH AND DEVELOPMENT

We believe that one of our historic strengths has been our ability to quickly adapt our expertise and experience in injection molding, insert molding, catheter extrusion, guide wire assembly, and electronic and sensor technologies, and to apply these core competencies to a perceived need for a new product or product improvement.  Our development efforts are presently focused on disposable, innovative single-patient or single-use items, which can be included in our custom kits or sold separately.

Our executive officers devote a portion of their time to research and development.  Research and development expenses were approximately $7.0 million, $5.1 million, and $4.6 million in 2005, 2004, and 2003, respectively.  We did not conduct any customer-sponsored research and development during those periods.  We anticipate that our research and development expenses will range between approximately 4% and 5% of net sales during the year ending December 31, 2006.

RESEARCH AND DEVELOPMENT

The Company believes that one of its historic strengths is its ability to quickly adapt its expertise and experience in injection molding, insert molding, catheter extrusion, guide wire assembly, and electronic and sensor technologies, and apply these core competencies to a perceived need for a new product or product improvement.  The Company’s development efforts are presently focused on disposable, innovative single-patient or single-use items, which can be included in the Company’s custom kits or sold separately.

The Company’s executive officers devote a portion of their time to research and development.  Research and development expenses were $5,118,851, $4,626,459, and $4,007,622 in 2004, 2003, and 2002, respectively.  The Company did not conduct any customer-sponsored research and development during those periods.  The Company anticipates that its research and development expenses will range between approximately 3% and 4% of net sales during the year ending December 31, 2005.

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