> About Arrow > Press Release

ARROW INTERNATIONAL, INC. ANNOUNCES REVISION OF FOURTH QUARTER AND FULL YEAR SALES ESTIMATES

READING, PA, August 30, 2005 – Arrow International, Inc. (Nasdaq: ARRO) announced today revised estimates for the Company’s net sales for the fourth quarter ending August 31, 2005 due in large part to the Company’s ongoing manufacturing capacity constraints which, as previously reported, it is in the process of addressing through a major capital investment program. For the fourth quarter ending August 31, 2005, net sales are expected to be $113 to $114 million compared to the prior estimate for the quarter of $116 to $119 million.

The Company’s revised estimate for full fiscal year 2005 net sales is $453 to $454 million as compared to the previous estimate of $456 to $459 million.

Carl G. Anderson, Jr., Arrow’s Chairman and CEO, stated, “Our U.S. business was challenged to meet demand due to backorders on several products. As a result, we expect sales to be below our previous estimates. Sales of Arrow Epidural Kits are below our previous estimates due to technical difficulties experienced in July 2005 with a component in the kits. Arrow StimuCath® sales have been constrained due to a shortage of components supplied by third parties. While the backorders are traceable in large part to capacity constraints, we are pleased that in the last few weeks of the quarter we have seen increased sales resulting from the completion of a portion of the ongoing expansion of our manufacturing facilities, which is contributing much needed additional capacity to meet customer demand.”

While at this juncture the Company is not able to forecast fourth quarter diluted earnings per share, it does expect that these decreased sales will adversely impact earnings for the fourth quarter and full fiscal year 2005.

Company Information

Arrow International, Inc. develops, manufactures and markets a broad range of clinically advanced, disposable catheters and related products for critical and cardiac care. The Company’s products are used primarily by anesthesiologists, critical care specialists, surgeons, emergency and trauma physicians, cardiologists, interventional radiologists, electrophysiologists, and other health care providers.

Arrow International’s news releases and other company information can be found on its website at http://www.arrowintl.com.

The Company’s common stock trades on The Nasdaq Stock Market® under the symbol ARRO.

Safe Harbor Statement

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This news release provides historical information and includes forward-looking statements (including projections). Although the Company believes that the expectations in such forward-looking statements are reasonable, the Company can give no assurance that such expectations will prove to have been correct. The forward-looking statements are based upon a number of assumptions and estimates that, while presented with numerical specificity and considered reasonable by the Company, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies which are beyond the control of the Company, and upon assumptions with respect to future business decisions which are subject to change. Accordingly, the forward-looking statements are only an estimate, and actual results will vary from the forward-looking statements, and these variations may be material. Consequently, the inclusion of the forward-looking statements should not be regarded as a representation by the Company of results that actually will be achieved. Forward-looking statements are necessarily speculative in nature, and it is usually the case that one or more of the assumptions in the forward-looking statements do not materialize. Investors are cautioned not to place undue reliance on the forward-looking statements. In connection with the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995, the Company cautions the reader that, among others, the factors below, which are discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2004 and in its other filings with the Securities and Exchange Commission, could cause the Company’s results to differ materially from those stated in the forward-looking statements. These factors include: (i) stringent regulation of the Company’s products by the US Food and Drug Administration and, in some jurisdictions, by state, local and foreign governmental authorities; (ii) the highly competitive market for medical devices and the rapid pace of product development and technological change in this market; (iii) pressures imposed by the health care industry to reduce the cost or usage of medical products and services; (iv) dependence on patents and proprietary rights to protect the Company’s trade secrets and technology, and the need for litigation to enforce or defend these rights; (v) risks associated with the Company’s international operations; (vi) potential product liability risks inherent in the design, manufacture and marketing of medical devices; (vii) risks associated with the Company’s use of derivative financial instruments; and (viii) dependence on the continued service of key members of the Company’s management.