Wilson Greatbatch Technologies Reports Record Revenue and Net Income for Fourth Quarter and Full Year 2001


CLARENCE, N.Y., Jan. 28, 2002 (PRIMEZONE) -- Wilson Greatbatch Technologies, Inc. ("WGT" or "Company") (NYSE:GB), a leading developer and manufacturer of power sources and components used in pacemakers and other implantable medical devices and specialty batteries for non-medical applications, today reported record revenue and net income for the quarter and year ended December 28, 2001.

Consolidated revenues for the fourth quarter increased 24% to $34.7 million, a fourth quarter record, from the same period last year. Quarterly medical technology sales rose 20% and commercial power sources revenues increased 45%. The Company reported net income for the quarter of $2.7 million, or $0.13 per diluted share, on 21.2 million weighted average shares outstanding, compared to net income of $1.1 million or $0.06 per diluted share in the prior year. The prior year quarter included an extraordinary loss on early extinguishment of debt of $.08 per diluted share.

Consolidated revenues for the year 2001 increased 39% to a record $135.6 million from 2000 revenues of $97.8 million. Income from continuing operations for 2001 was a record $11.6 million, or $0.58 per diluted share, compared to $1.0 million, or $0.07 per diluted share, for the prior year. Net income for 2001 was $8.6 million, or $0.43 per diluted shared, up from a loss of $0.5 million, or $0.04 per diluted share, in 2000.

"We are pleased with our fourth quarter performance with substantial growth in revenues and net income over last year, and financial results in line with expectations," said Edward F. Voboril, Chairman, President and Chief Executive Officer. "Overall, the year 2001, our first full year as a public company, was an outstanding one for WGT, marked by record sales and net income as a result of strong demand across our entire product line. In addition, we also benefited in the second half of the year from the Greatbatch-Sierra acquisition. Our 2001 financial performance and successful secondary offering have placed us in an excellent position to further expand our business."

Voboril added, "We see the major long-term market trends continuing to have a favorable effect on our business. These include the wider use of cardiac rhythm management devices, new indications for implantable medical devices, and rising demand for EMI protection for implantable medical devices. We are preparing to capitalize on these trends by making significant investments in our Company, including the expansion of our Research & Development facilities, and the formation of an emerging technologies business unit which will focus on new product applications. A formal Six-Sigma quality initiative is well under way and underscores our continuing commitment to quality leadership."

Voboril concluded, "We expect 2002 to be another year of continued growth and solid financial performance for Wilson Greatbatch with the strongest growth expected in the second half. While we expect softness in some markets for the first half of 2002, we remain well positioned for the future."

The Company also provided initial guidance on estimated revenues and earnings per share for the 2002 full-year. Based on the present business outlook and planned strategic investments, the Company estimates 2002 full-year revenues at approximately $155.0 million. The Company estimates 2002 full-year earnings to be between $0.75 and $0.80 per share on a diluted basis, including the anticipated effect of a change in the accounting standard regarding the amortization of goodwill and intangible assets.

The Company indicated that based upon initial analyses, the adoption of Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets" on January 1, 2002, is expected to generate no impairment of goodwill or other intangible assets.

Wilson Greatbatch Technologies, Inc., with operations in New York, Maryland, Massachusetts and Nevada, is a leading developer and manufacturer of power sources and components used in pacemakers and other implantable medical devices and specialty batteries for non-medical applications. Additional information about Wilson Greatbatch Technologies, Inc. is available at http://www.greatbatch.com.

The management of Wilson Greatbatch Technologies, Inc. will discuss fourth quarter and fiscal 2001 financial results in a conference call scheduled for Monday, January 28, 2002, at 4:30 p.m. Eastern Standard Time. Investors will have the opportunity to listen to the Conference Call over the Internet at http://www.vcall.com/NASApp/Vcall/EventPage?ID-80261. To listen to the live call via the Internet, please go to the Website at least fifteen minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available two hours after the call and will remain available until the next conference call.

Some of the statements in this press release and other written and oral statements made from time to time by the company and its representatives are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of Securities Exchange Act of 1934, as amended, and involve a number of risks and uncertainties. These statements can be identified by terminology such as "may," "will," "should," "could," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are based on the company's current expectations. The company's actual results could differ materially from those stated or implied in such forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements include, among others, the following matters affecting the Company: dependence upon a limited number of customers; product obsolescence; inability to market current or future products; pricing pressure from customers; reliance on third party suppliers for raw materials; products and subcomponents; fluctuating operating results; inability to maintain high quality standards for our products; challenges to our intellectual property rights; product liability claims; inability to successfully consummate and integrate acquisitions; unsuccessful expansion into new markets; competition; inability to obtain licenses to key technology; regulatory changes or consolidation in the healthcare industry; and other risks and uncertainties described in the company's Annual Report on Form 10-K and other periodic filings with the Securities and Exchange Commission. The company assumes no obligation to update forward-looking information in this press release whether to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial conditions or prospects, or otherwise.


                 Wilson Greatbatch Technologies, Inc.
            Condensed Consolidated Statements of Operations
                              (unaudited)
                (in thousands except per share amounts)

                           Three Months Ended          Year Ended
                           -------------------    --------------------
                            Dec. 28,  Dec. 29,    Dec. 28,    Dec. 29,
                              2001      2000        2001        2000
                            -------   -------     --------    -------
 Revenues                   $34,692   $27,949     $135,575    $97,790
 Cost of goods sold          19,101    15,530       74,716     55,446
                            -------   -------     --------    -------

 Gross profit                15,591    12,419       60,859     42,344
 Gross profit as a
  percentage of revenues         45%       44%          45%        43%
 Selling, general and
  administrative expense      5,167     3,280       18,174     11,473
 Research, development
  and engineering costs, net  2,778     2,439       12,575      9,941
 Intangible amortization      2,207     1,635        7,726      6,530
                            -------   -------     --------    -------
                              5,439     5,065       22,384     14,400

 Interest expense               989     1,293        3,588     12,958
 Other expense (income)         128      (190)         266       (189)
                            -------   -------     --------    -------

 Income before income
  taxes and
  extraordinary loss          4,322     3,962       18,530      1,631
 Income tax expense           1,611     1,306        6,939        611
                            -------   -------     --------    -------

 Income before
  extraordinary loss          2,711     2,656       11,591      1,020
 Extraordinary loss on
  retirement of debt,
  net of tax                      0    (1,568)      (2,994)    (1,568)
                            -------   -------     --------    -------

 Net income (loss)          $ 2,711   $ 1,088     $  8,597      ($548)
                            =======   =======     ========    =======

 Basic earnings
  (loss) per share:
   Income from
    continuing operations   $  0.13   $  0.14     $   0.59    $  0.07
   Extraordinary loss
    on retirement of debt      0.00     (0.08)       (0.15)     (0.11)
                            -------   -------     --------    -------
   Net income (loss)        $  0.13   $  0.06     $   0.44     ($0.04)
                            =======   =======     ========    =======
 Diluted earnings
  (loss) per share:
   Income from
    continuing operations   $  0.13   $  0.14     $   0.58    $  0.07
   Extraordinary loss
    on retirement of debt      0.00     (0.08)       (0.15)     (0.11)
                            -------   -------     --------    -------
   Net income (loss)        $  0.13   $  0.06     $   0.43     ($0.04)
                            =======   =======     ========    =======
 Weighted average shares
  outstanding
   Basic                     20,782    18,464       19,563     14,167
   Diluted                   21,194    18,839       19,945     14,434


                 Wilson Greatbatch Technologies, Inc.
                Condensed Consolidated Revenue Detail
                            (unaudited)
                           (in thousands)

                           Three Months Ended          Year Ended
                            -----------------     -------------------
                           Dec. 28,    Dec. 29,   Dec. 28,    Dec. 29,
                              2001       2000       2001       2000
                            --------   --------   --------   --------
 Medical Technology
    Medical Batteries
        Pacemaker           $  4,578   $  6,230   $ 22,923   $ 22,516
        Implantable 
         Cardioverter
         Defibrillators        6,637      3,922     22,215     14,171
        Other                    209      1,142      1,713      4,601
                            --------   --------   --------   --------
           Total Medical 
            Batteries         11,424     11,294     46,851     41,288

    Capacitors                 6,063      2,904     20,290     12,611
    Components                 9,783      8,621     40,513     29,890
                            --------   --------   --------   --------
    Total Medical
     Technology               27,270     22,819    107,654     83,789

 Commercial Power 
  Sources                      7,422      5,130     27,921     14,001
                            --------   --------   --------   --------
 Total Revenue              $ 34,692   $ 27,949   $135,575   $ 97,790
                            ========   ========   ========   ========


                Wilson Greatbatch Technologies, Inc.
                Condensed Consolidated Balance Sheet
                           (unaudited)
                          (In thousands)

                                           December 28,  December 29,
                                               2001         2000
                                            ---------    ---------
 ASSETS
 CURRENT ASSETS:
    Cash and cash equivalents               $  43,272    $      16
    Accounts receivable, net of allowance
      for doubtful accounts of $447 and
       $319 as of Dec. 28, 2001 and
       Dec. 29, 2000, respectively             17,373       12,977
    Inventories                                29,026       13,643
    Prepaid expenses and other assets           2,316        1,442
    Deferred tax asset                          2,888        1,863
                                            ---------    ---------
 Total current assets                          94,875       29,941

  PROPERTY, PLANT AND EQUIPMENT, NET           44,149       36,625
  INTANGIBLE ASSETS, NET                      137,135      104,395
  DEFERRED TAX ASSET                            5,417        8,800
  OTHER ASSETS                                  1,944        1,886
                                            ---------    ---------
  TOTAL ASSETS                              $ 283,520    $ 181,647
                                            =========    =========
  LIABILITIES AND STOCKHOLDERS' EQUITY
  CURRENT LIABILITIES:
    Accounts payable                        $   6,553    $   2,365
    Accrued liabilities                        13,721        9,480
    Current maturities of long-term
     obligations                               13,005        3,017
                                            ---------    ---------
        Total current liabilities              33,279       14,862
  LONG-TERM OBLIGATIONS                        61,397       30,951
                                            ---------    ---------
        Total liabilities                      94,676       45,813
                                            ---------    ---------
  STOCKHOLDERS' EQUITY:
    Common stock                                   21           19
    Capital in excess of par value            200,880      157,526
    Retained deficit                           (8,935)     (17,532)
                                            ---------    ---------
            Subtotal                          191,966      140,013
    Less treasury stock, at cost               (3,122)      (4,179)
                                            ---------    ---------
            Total stockholders' equity        188,844      135,834
                                            ---------    ---------
 TOTAL LIABILITIES AND STOCKHOLDERS'
    EQUITY                                  $ 283,520    $ 181,647
                                            =========    =========


            

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