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ARROW INTERNATIONAL, INC. WILL FILE FORM 12b-25 WITH SEC Reading, PA, April 12, 2005 -- Arrow International, Inc. (Nasdaq:ARRO) announced that it will file a Form 12b-25 with the Securities and Exchange Commission today to request an extension of up to five days to file its Quarterly Report on Form 10-Q for its second quarter ended February 28, 2005. The Company requires additional time to complete its review of certain financial information to be included in its financial statements reported in the Form 10-Q, which has been delayed by the recent decision of its Board of Directors, previously announced on April 7, 2005, to discontinue the development, sales and marketing programs related to the Arrow LionHeart® Left Ventricular Assist System (LVAS). The Company intends to file its Form 10-Q as soon as it is able. In addition, Arrow has completed its analysis of the accounting treatment related to its U.S. shipping terms, as discussed in its March 21, 2005 press release announcing its preliminary second fiscal quarter results, and will record an adjustment in its second quarter to reflect in-transit time for its sales to U.S. customers and international distributors. The Company’s analysis indicated that the transit time to U.S. customers was two business days and the transit time to international distributors was seven days for air and truck shipments and 55 days for ocean vessel shipments. Accordingly, the Company has made the following reductions to its second quarter operating results to reflect the change in its accounting for U.S. shipping terms:
Arrow also stated that inventory increased by $2.1 million as a result of the change in accounting for U.S. shipping terms. The Company did not restate its financial statements for any prior periods. Additional information will be included in the Company’s second quarter Form 10-Q. The Company’s sales reduction of $4.3 million will be recognized in sales for its third fiscal quarter ending on May 31, 2005. While these sales amounts will be recognized at that time, a similar amount of days’ sales would be excluded from the end of the third quarter, and these sales would then be recognized in the fourth fiscal quarter. Accordingly, the incremental effect on any future quarter would be the difference between the adjustment at the beginning of the quarter and the corresponding adjustment at the end of the quarter. 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.
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