887568--12/10/2009--ZOLL_MEDICAL

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If We Fail to Compete Successfully in the Future Against Existing or Potential Competitors, Our Operating Results May Be Adversely Affected. The Resumption of Unrestricted Shipments of Physio-Control, a Division of Medtronic, May Adversely Affect our Revenues and Profits. Healthcare Reform Legislation Could Adversely Affect Our Revenue and Financial Condition. General Economic Conditions, Which Are Largely Out of the Company s Control, May Adversely Affect the Company s Financial Condition and Results of Operations. Recent Economic Trends Could Adversely Affect our Financial Performance. Current and Future State and Municipal Budget Deficits Could Adversely Affect our Financial Performance. The Adoption of Federal Medical Device Tax Surcharge by the U.S. Government Could Reduce Our Profitability. It is Possible that if Competitors Increase Their Use of Price Discounting, Our Gross Margins Could Decline. Our Operating Results are Likely to Fluctuate, Which Could Cause Our Stock Price to be Volatile, and the Anticipation of a Volatile Stock Price Can Cause Greater Volatility. We May Acquire Other Businesses, and We May Have Difficulty Integrating These Businesses or Generating an Acceptable Return from Acquisitions. We Acquired New Products and Technologies, Such as Temperature Management Technology from Alsius Corporation. If We Are Not Successful in Integrating these Products and Technologies and Growing Our Business with These Products and Technologies, Our Operating Results May Be Affected. We Are Conducting Clinical Trials Related to Newer Technologies Which May Prove Unsuccessful and Have a Negative Impact on Future Sales. Our Approach to Our Backlog Might Not Be Successful. We May be Required to Implement a Costly Product Recall. Changes Affecting Healthcare Reimbursement and Payors May Require Us to Decrease the Selling Price for Our Products or Could Result in a Reduction in the Size of the Market for Our Products, Each of Which Could Have a Negative Impact on Our Financial Performance. We Can be Sued for Producing Defective Products and We May be Required to Pay Significant Amounts to Those Harmed If We are Found Liable, and Our Business Could Suffer from Adverse Publicity. Recurring Sales of Electrodes to Our Customers May Decline. Failure to Produce New Products or Obtain Market Acceptance for Our New Products in a Timely Manner Could Harm Our Business. Our Dependence on Sole and Single Source Suppliers Exposes Us to Supply Interruptions and Manufacturing Delays Caused by Faulty Components, Which Could Result in Product Delivery Delays and Substantial Costs to Redesign Our Products. We May Not be Able to Obtain Appropriate Regulatory Approvals for Our New Products. If We Fail to Comply With Applicable Regulatory Laws and Regulations, the FDA and Other U.S. and Foreign Regulatory Agencies Could Exercise Any of Their Regulatory Powers, Which Could Have a Material Adverse Effect on Our Business. Our Industry Is Experiencing Greater Scrutiny by Governmental Authorities, Which May Lead to Greater Governmental Regulation and Heightened Regulatory Enforcement. We Are Dependent upon Licensed and Purchased Technology for Upgradeable Features in Our Products, and We May Not Be Able to Renew These Licenses or Purchase Agreements in the Future. Fluctuations in Currency Exchange Rates May Adversely Affect Our International Sales. Our Current and Future Investments May Lose Value in the Future. Future Changes in Applicable Laws and Regulations Could Have an Adverse Effect on Our Business. Changes in Tax Laws or Exposure to Additional Income Tax Liabilities Could Have a Material Impact on Our Financial Condition, Results of Operations and Liquidity. Some of Our Activities May Subject Us to Risks under Federal and State Laws Prohibiting Kickbacks and False or Fraudulent Claims. Patients May Not Be Able to Obtain Appropriate Insurance Coverage for Our LifeVest Product. Our LifeVest Product is a Reimbursable Product and Is Subject to Laws that Are Different from Our Capital Equipment Business. Failure to Comply with HIPAA Obligations Would Put Us at Risk. Uncertain Customer Decision Processes May Result in Long Sales Cycles, Which Could Result in Unpredictable Fluctuations in Revenues and Delay the Replacement of Cardiac Resuscitation Devices. Reliance on Domestic and International Distributors to Sell Our Products Exposes Us to Business Risks That Could Result in Significant Fluctuations in Our Results of Operations. Our International Sales Expose Our Business to a Variety of Risks That Could Result in Significant Fluctuations in Our Results of Operations. We May Fail to Adequately Protect or Enforce Our Intellectual Property Rights or Secure Rights to Third Party Intellectual Property, and Our Competitors Can Use Some of Our Previously Proprietary Technology. Reliance on Overseas Vendors for Some of the Components for Our Products Exposes Us to International Business Risks, Which Could Have an Adverse Effect on Our Business. Intangibles and Goodwill We Currently Carry on Our Balance Sheet May Become Impaired. Provisions in Our Charter Documents, Our Shareholder Rights Agreement and State Law May Make It Harder for Others To Obtain Control of the Company Even Though Some Stockholders Might Consider Such a Development to be Favorable. We Have Only One Manufacturing Facility for Each of Our Major Products and Any Damage or Incapacitation of Any of the Facilities Could Impede Our Ability to Produce These Products. We Hold Various Marketable Securities Investments Which Are Subject to Market Risk, Including Volatile Interest Rates and a Volatile Stock Market. Our Strategic Alliance With Welch Allyn May Not Be Successful Which May Adversely Impact Our Operating Results. The Company Has Acquired Substantially All the Assets of Alsius Corporation. If We are Not Successful in Fully Integrating this Business, Our Operating Results May be Affected. We May Incur Significant Liability if it is Determined Under FDA Regulations That We Are Promoting Off-Label Use of Our Temperature Management Products.

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887568--12/10/2009--ZOLL_MEDICAL_CORP