Teleflex first quarter net revenue increases 6% to $388.7 million

Teleflex Incorporated (NYSE: TFX), a leading, global provider of medical technology products, today reported financial results for the three months ended March 27, 2011.

First quarter 2011 net revenues were $388.7 million, an increase of 6% over the prior year period. Excluding the impact of foreign exchange, first quarter 2011 net revenues increased 6% over the prior year period.

First quarter 2011 GAAP diluted earnings per share from continuing operations was $0.42, a decrease of 49% over the prior year period. First quarter 2011 adjusted diluted earnings per share from continuing operations (previously referred to as "adjusted diluted cash earnings per share from continuing operations") was $0.96, a decrease of 5% over the prior year period.

"In the first quarter, our team made significant progress towards completing our transition to a global medical technology leader and executing on our strategic plan," said Benson Smith, Chairman, President & CEO. "We completed several transactions that allow us to redeploy resources to our core medical business, while exiting non-medical segments and reducing debt. At the same time, we increased the year over year revenue growth rate within our medical business and intend to build on the first quarter momentum during the remainder of the year."

Added Mr. Smith, "During the quarter, we enhanced our competitive position in the medical business by acquiring the VasoNova™ VPS™ vascular positioning system, a central venous catheter tip navigation system. In March, VasoNova received 510(k) clearance from the FDA for expanded use of the VPS tip location technology as an alternative to chest x-ray or fluoroscopy in adult patients during peripherally inserted central catheter procedures. This unique confirmation technology eliminates the need for costly X-rays and revision procedures, which we believe is an important advance in the evolution of vascular access. In addition, during the quarter, we received 510(k) clearance from the FDA for our Arrow® NextStep™ Antegrade Chronic Hemodialysis catheter, which is designed to attain long term vascular access for hemodialysis and apheresis."

"We also reached several agreements that position us for increased medical product revenue growth as the year progresses," continued Mr. Smith. "For example, we expanded our vascular access product offerings with a global distribution agreement for POLYSITE® intravenous implantable infusion ports. In addition, we were awarded three new group purchasing organization (GPO) contracts and received two GPO contract extensions for a combination of vascular access, surgical, respiratory and anesthesia products. At the same time, we continue to focus resources on medical product R&D and acquiring unique technologies in order to drive future introduction of new, differentiated products designed to expand market share, increase growth opportunities and build shareholder returns."

BUSINESS SEGMENT RESULTS

Medical Segment

First quarter 2011 net revenues were $354.0 million, an increase of 3% over the prior year period on an as reported and on a constant currency basis.

Critical Care first quarter 2011 net revenues were $237.1 million, an increase of 5% on both a reported and constant currency basis over the prior year period. The increase in revenue was due to higher sales of vascular access, respiratory and urology products.

Surgical Care first quarter 2011 net revenues were $65.0 million, an increase of 3% on both a reported and constant currency basis over the prior year period. The increase in revenue was due to higher sales of ligation, closure and chest drainage products.

Cardiac Care first quarter 2011 net revenues were $17.7 million, a decrease of 3% over the prior year period. Excluding the impact of foreign exchange, first quarter 2011 net revenues decreased 4% over the prior year period. The decrease in revenue was due to the voluntary recall of the 5800 series intra-aortic balloon catheters that was announced in December of 2010.

OEM and Development Services first quarter 2011 net revenues were $33.9 million, a decrease of 4% on both a reported and constant currency basis over the prior year period. The decrease in revenue was due to lower sales of specialty products.

Non-Core Assets

First quarter 2011 net revenues were $34.7 million, an increase of 46% over the prior year period. Excluding the impact of foreign exchange, first quarter 2011 net revenues increased 42% over the prior year period. The increase in revenue was due to higher sales of cargo spares and repairs products.

BALANCE SHEET HIGHLIGHTS

Cash and cash equivalents at March 27, 2011 were $202.3 million compared to $208.5 million at December 31, 2010, a decrease of 3%.

Net accounts receivable at March 27, 2011 were $289.8 million compared to $294.2 million at December 31, 2010, a decrease of 1%.

Net inventories at March 27, 2011 were $319.9 million compared to $338.6 million at December 31, 2010, a decrease of 6%.

Net debt obligations at March 27, 2011 were $727.4 million compared to $788.6 million at December 31, 2010, a decrease of 8%.

2011 OUTLOOK

In the first quarter of 2011, management approved a plan to sell the Company's Aerospace businesses. The Company has begun actively marketing the cargo container business, while it continues to serve its customers and provide appropriate transition. For financial statement purposes, the assets, liabilities, results of operations and cash flows of this business have been segregated from those of continuing operations and are presented in the Company's condensed consolidated financial statements as discontinued operations. The accompanying condensed consolidated financial statements have been reclassified to reflect this presentation.

The cargo container business was expected to contribute annual revenue, adjusted earnings per share, and cash flow from operations of $50 million, $0.05 per diluted share, and $5 million, respectively. As a result, the Company is adjusting its financial estimates with respect to forecasted 2011 revenue from a range of $1.625 billion to $1.655 billion to a range of $1.575 billion to $1.605 billion; adjusted earnings per share from a range of $4.50 to $4.70 to a range of $4.45 to $4.65; and cash flow from continuing operations from $230 million to $225 million.

LONGER-TERM GROWTH AND PROFITABILITY OBJECTIVES

With the portfolio transition to healthcare largely complete, we have increased our focus on delivering long-term growth and profitability. As such, we are targeting the achievement of the following objectives within the next five years:

• Consolidated revenue growth of approximately 5%
• Consolidated gross margins of approximately 55%
• Consolidated research and development expense of approximately 5%
• Consolidated operating margins of approximately 25%
• Return on equity of approximately 15%

We believe revenue growth will be achieved through the introduction of new products and product line extensions, expansion of our geographic reach, leveraging our existing distribution channels, further investment in our global sales and marketing groups and select acquisitions that enhance or expedite our development initiatives and our ability to increase our market share. We anticipate that margin expansion will be achieved through various initiatives which may include: consolidation of distribution facilities; efficiencies gained from the reduction of third-party vendors; consolidation and productivity improvements of manufacturing locations and customer service; and further initiatives to realize increased efficiencies with respect to general and administrative expenses. We expect that some of these benefits to be offset by increases in spending in research and development.