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Kensey Nash Reports Strong Second Quarter and First Six Month Fiscal Year 2009 Results
Date:1/28/2009

ond quarter of fiscal 2008. Net sales of biomaterials products increased 14%, to $13.1 million from $11.5 million in the comparable prior fiscal year period, driven by strong cardiovascular product sales. Cardiovascular sales of $5.3 million, consisting primarily of sales of vascular closure product components to St. Jude Medical, increased 48%, from $3.5 million in the prior fiscal year period. The increase in cardiovascular sales was attributable to ordering patterns of components used in the manufacture of the Angio-Seal(TM) device by St. Jude Medical. Orthopaedic sales were essentially flat year-over-year at $7.1 million versus $7.2 million in the prior fiscal year period, although they were down sequentially from the Company's strong first quarter sales of $8.0 million. Net sales of sports medicine products increased 18% in the second quarter of fiscal 2009 over the prior fiscal year comparable quarter; however, net sales of spine products declined 15% in the same comparable quarter, primarily due to weaker sales of one of the Company's bone void filler products.

The second quarter of fiscal 2009 represented the second full quarter of endovascular product sales to Spectranetics (Nasdaq: SPNC) following the Company's completion of the sale of its endovascular business in May 2008. As previously announced, these sales are at a reduced transfer price compared to the direct to market price reflected in the Company's historical sales figures. As a result of this reduced transfer price, sales of endovascular products during the quarter decreased 47% to $878,000 from $1.7 million in the prior fiscal year period, although overall net unit sales to Spectranetics increased when compared to prior fiscal year and prior sequential quarter end-user unit sales. Sequentially, endovascular product sales increased by 11% in the second quarter, as Spectranetics
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