ARRO Arrow Intl (MM)

READING, Pa., Dec. 22 /PRNewswire-FirstCall/ -- As previously reported, the Company's estimated effective tax rate of 35% for fiscal year 2007 was based on the U.S. Congress's anticipated extension of the Research and Development (R&D) tax credit, which occurred on December 9, 2006. On December 20, 2006, the President signed the Tax Relief and Health Care Act of 2006 which extended the R&D tax credit. However, because this legislation was not effective at November 30, 2006, the Company will not reflect any benefit from the R&D tax credit in its first quarter of fiscal year 2007, which ended November 30, 2006. The Company's current estimate of its effective tax rate for the first quarter of fiscal year 2007 is 36%. Because the R&D tax credit has been extended, the Company will reflect the benefit from the R&D tax credit in its effective tax rate for the fiscal year ending August 31, 2007, beginning in its second fiscal quarter. The Company will update its estimate of its fiscal year 2007 effective tax rate in its press release and conference call of its first fiscal quarter results scheduled for Thursday, January 4, 2007. Company Information Arrow International, Inc. (NASDAQ:ARRO) 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, and other health care providers. Arrow International's news releases and other company information can be found on the World Wide Web at http://www.arrowintl.com/. The Company's common stock trades on the NASDAQ Global Select Market(SM) 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, 2006, as amended, 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 relating to interruptions in the supply of or increases in the price of essential raw materials or components; (viii) risks associated with the Company's use of derivative financial instruments; and (ix) dependence on the continued service of key members of the Company's management. DATASOURCE: Arrow International, Inc. CONTACT: Frederick J. Hirt, CFO, Arrow International, +1-610-478-3117 Web site: http://www.arrowintl.com/

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