Third Quarter Net Product Sales Increase to $112.8 million; 
                       15% Constant Currency Growth

                   Third Quarter GAAP EPS Reaches $0.06

         Full-Year 2009 Revenue and Earnings Guidance Increased

PLYMOUTH, Minn., Oct. 27, 2009 (GLOBE NEWSWIRE) -- ev3 Inc. (Nasdaq:EVVV), a global endovascular device company, today reported financial results for its fiscal third quarter. ev3's net sales totaled $112.8 million in the third quarter of 2009 versus $107.0 million in the same quarter of the prior year. Third quarter of 2008 net sales included $7.0 million of research collaboration revenues from our former agreement with Merck, which was terminated on July 22, 2008. Third quarter of 2009 net product sales of $112.8 million increased approximately 13% versus the prior year product sales. Excluding approximately $1.7 million of negative impact due to foreign currency exchange rates, net product sales increased 15% versus the prior year quarter.

Reconciliations of non-GAAP financial measures used in this release to the most comparable U.S. GAAP measures for the respective periods can be found immediately following the detail of net sales by geography later in this release.

Robert Palmisano, president and chief executive officer of ev3 Inc., commented, "We achieved another quarter of strong results, with exceptionally robust growth in our neurovascular and international businesses and sequential gross margin expansion of 250 basis points to 74.6%. We are also pleased by the addition of the Pipeline Embolization Device, which we launched in Europe during the third quarter, to our product portfolio."

ev3's GAAP net income for the third quarter of 2009 was $6.7 million, or $0.06 per diluted share, compared to a net loss of $(7.3) million, or $(0.07) per diluted share, in the third quarter of 2008. ev3's non-GAAP adjusted net income was $19.4 million, or $0.17 per diluted share, compared to adjusted net income of $3.9 million, or $0.04 per diluted share, in the third quarter of 2008. Non-GAAP adjusted net income and adjusted earnings per share for the third quarter of 2009 excludes non-cash amortization expense of $6.8 million, non-cash stock-based compensation of $3.6 million and charges relating to the estimated change in fair value of the future contingent consideration associated with the acquisition of Chestnut Medical (Chestnut) of $2.3 million.

Cash and cash equivalents totaled $80.5 million as of the end of the third quarter of 2009, an increase of $20.1 million compared to the end of the second quarter of 2009.

Palmisano concluded, "Our third quarter results reflect the impact of our manufacturing efficiency improvements and the progress we have made to enhance our business processes and improve our operating leverage. For the remainder of 2009, our continued focus will be on achieving revenue growth at or above market growth rates, sustaining improvement in profitability and generating cash."

Sales Review

By product segment, peripheral vascular net product sales increased 1% versus the prior year quarter and 2% on a constant currency basis. Excluding atherectomy, peripheral vascular net sales increased 6% on a constant currency basis. Neurovascular net sales, which include product sales from recently acquired Chestnut, increased 37% versus the prior year quarter and 39% on a constant currency basis.

On a geographic basis, ev3 U.S. net product sales increased approximately 8% versus the prior year quarter. International net product sales increased 21% versus the prior year quarter and 26% on a constant currency basis. Changes in foreign currency exchange rates had a negative impact of approximately $1.7 million on net sales compared to the third quarter of the prior year.

An investor presentation summarizing the company's third quarter of 2009 results is available at http://ir.ev3.net.

Outlook

ev3 expects fiscal year 2009 net sales to be in the range of $446 to $450 million compared to $402.2 million of net product sales in 2008. Net product sales growth is expected to be approximately 11% to 12%. Foreign currency exchange rate fluctuations are expected to negatively impact revenue growth by $6 to $7 million in 2009 compared to 2008. ev3 expects non-GAAP adjusted earnings per share to be in the range of $0.58 to $0.62 per diluted share, an increase of $0.49 to $0.53 over 2008, based on approximately 109.1 million shares outstanding. ev3's adjusted net earnings per share guidance excludes estimated amortization expense of approximately $25.0 million, inclusive of amortization relating to Chestnut of approximately $3.1 million, non-cash stock-based compensation of approximately $14.6 million, charges relating to the estimated change in fair value of the future contingent consideration associated with the Chestnut acquisition of $4.9 million, vacant leased facilities reserve expense of $3.4 million, gain on the divestiture of non-strategic investment assets of $4.1 million, and a tax benefit of $19.0 million resulting from the purchase accounting for the acquisition of Chestnut.

The company expects fourth quarter of 2009 net sales to be in the range of $124 to $128 million and non-GAAP adjusted earnings per share to be in the range of $0.20 to $0.24 per diluted share, based on approximately 112.8 million shares outstanding. ev3's non-GAAP adjusted earnings per share for the fourth quarter of 2009 excludes estimated amortization expense of approximately $6.6 million, inclusive of amortization relating to Chestnut of approximately $1.4 million, non-cash stock-based compensation of approximately $3.6 million and charges relating to the estimated change in fair value of the future contingent consideration associated with the Chestnut acquisition of $2.4 million.

Earnings Call Information

ev3 will host a conference call today, October 27, 2009, beginning at 7:30 a.m. Central Time (8:30 a.m. Eastern Time) to review its results of operations for the third quarter of 2009 and future outlook, followed by a question and answer session.

The conference call will be available to interested parties through a live audio webcast at http://ir.ev3.net, where it will be archived and accessible for approximately 12 months. The live dial-in number for the call is 888-680-0878 (U.S.) or +1-617-213-4855 (International). The participant passcode is 66747346.

If you do not have access to the Internet and want to listen to an audio replay of the conference call, dial 888-286-8010 (U.S.) or +1-617-801-6888 (International) and enter passcode 11076648. The audio replay will be available beginning at 10:30 a.m. Central Time on Tuesday, October 27, 2009 until Tuesday, November 3, 2009.

About ev3 Inc.

Since its founding in 2000, ev3 has been dedicated to developing breakthrough and clinically proven technologies for the endovascular treatment of peripheral vascular and neurovascular diseases. The company offers a comprehensive portfolio of treatment options, including the primary interventional technologies used today - peripheral angioplasty balloons, stents, plaque excision systems, embolic protection devices, liquid embolics, embolization coils, flow diversion devices, thrombectomy catheters and occlusion balloons. More information about the company and its products can be found at http://www.ev3.net.

ev3, the ev3 logo, SilverHawk, Axium, Onyx, Solitaire, Pipeline and Alligator are trademarks of ev3 Inc. and its subsidiaries, registered in the U.S. and other countries. All other trademarks and trade names referred to in this press release are the property of their respective owners.

Forward-Looking Statements

Statements contained in this press release that relate to future, not past, events are forward-looking statements under the Private Securities Litigation Reform Act of 1995. Forward-looking statements often can be identified by words such as "expect," "anticipate," "intend," "will," "may," "believe," "could," "continue," "future," "estimate," "outlook," "guidance," or the negative of these words or other words of similar meaning. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Uncertainties and risks may cause ev3's actual results to be materially different than those expressed in or implied by ev3's forward-looking statements. For ev3, particular uncertainties and risks include, among others, ev3's future operating results and financial performance, fluctuations in foreign currency exchange rates, the effect of the current global economic crisis, ev3's ability to implement, fund and achieve sustainable cost savings measures that will better align its operating expenses with its anticipated net sales levels and reallocate resources to better support growth initiatives, the timing of regulatory approvals and introduction of new products, market acceptance of new products, success of clinical testing, availability of third party reimbursement, impact of competitive products and pricing, the effect of regulatory actions and the cost and effect of changes in tax and other legislation. More detailed information on these and additional factors that could affect ev3's actual results are described in ev3's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q. Except as required by law, ev3 undertakes no obligation to publicly update its forward-looking statements.

Use of Non-GAAP Financial Measures

To supplement ev3's consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP), ev3 uses certain non-GAAP financial measures in this release. Reconciliations of the non-GAAP financial measures used in this release to the most comparable U.S. GAAP measures for the respective periods can be found in tables later in this release immediately following the detail of net sales by geography.