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ATS Medical Announces Second Quarter Results
Date:8/4/2008

second quarter of 2007. Gross margin improvements were the result of lower product costs and increased contribution of new products. The second quarter of 2008 was the fourth consecutive quarter of gross margin improvement for ATS. The prior record for gross margin was 60.3% in the first quarter of 2008.

"Our strong second quarter revenue growth and gross profit improvement demonstrate measurable progress toward our near term goals of attaining positive cash flow and profitability," said Michael Dale, Chairman, President and Chief Executive Officer. "Our growth was widespread both geographically and across multiple product segments, demonstrating the expanding market acceptance of the ATS brand. We were especially pleased with growth in the United States, which is maintaining its positive momentum as a result of several new product introductions and growing brand awareness."

Recent and Upcoming New Product Highlights

Surgical Arrhythmias

* Minimally invasive surgical ablation: The Company is developing procedure protocols and physician education programs to expand market awareness and the utility of the Company's CryoMaze products for the minimally invasive treatment of cardiac arrhythmias.

* ATS CryoMaze surgical ablation system: Several new products are under development to enhance the utility of the Company's existing products and tools for the treatment of cardiac arrhythmias. The Company anticipates launching a next generation ablation clamp and probe in the third quarter.

Tissue Heart Valves

* ATS 3f(R) Aortic Bioprosthesis: The Company's first generation tissue valve was launched on a targeted basis in several international markets in the first half of 2008. Initial market response has been positive and second quarter 2008 tissue valve revenue increased 96% compared to the first quarter of 2008 and 224% compared to the second quarter of 2007.

As announced previously, in the first quarter of 2008 the Food
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SOURCE ATS Medical, Inc.
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