ZOLL Medical Corporation Announces Third Quarter Results; Revenue Declines in Spite of Higher Order Growth

Overall orders grew approximately 14% compared to the same perioda year ago. As previously disclosed, the Company was unable to shipall orders received during the third quarter. Backlog at the end ofthe third quarter totaled approximately $7 million as compared toapproximately $2 million at the beginning of the quarter. The Q3ending backlog included a significant M Series(TM) hospital order,totaling just under $2 million, and almost $2 million of shippable AEDorders that could not be produced and shipped within the quarter.

Shipments to the North American market decreased 11% to $39.4million as compared to $44.1 million for the comparable prior yearperiod. North American hospital revenues decreased to $17.4 million ascompared to $21.7 million in the third quarter of last year, includingan approximate $3.7 million decline in shipments of defibrillatorproducts to the U.S. military. Sales to the North Americanpre-hospital market decreased 3% to $17.0 million, as compared to$17.6 million in the comparable prior year period. Internationalrevenues increased 13% to $11.7 million as compared to $10.3 millionin the third quarter of last year. Shipments of AED's decreased by 12%to $6.9 million as compared to $7.8 million in the same period lastyear due to the unexpected increase in backlog. Had all unit ordersbeen shipped, AED revenues would have increased by approximately 17%over the prior year period. Total shipments of AutoPulse(TM) wereapproximately $1.7 million for the quarter, up modestly from theprevious quarter.

Richard A. Packer, President and Chief Executive Officer of ZOLL,commented, "Although we were disappointed with our revenue andearnings results for the quarter, our order growth was reasonable at14% overall. Given the significant change in our backlog I believe itis necessary to consider order growth when assessing the business thisquarter. Orders in the North American hospital market grew 22%, so wehave seen continued progress in that market. In the North Americanpre-hospital market total orders grew 7%. Excluding orders for theAutoPulse, North American pre-hospital orders were essentiallyunchanged. We expect to see improved performance in this market withthe introduction of our new E Series(TM) product. In International, wecontinue to be pleased with our progress as orders grew approximately17%. So taken in total our order rate was acceptable."

Commenting further Mr. Packer stated, "As previously discussed weintend to use our backlog to help us improve our execution withend-of-quarter shipments. This will be a positive outcome from thedisappointing Q3 shipping results."

Commenting on the future, Mr. Packer added, "Although we had muchhigher hopes for the ramp-up of the AutoPulse, we believe the productwill grow significantly in the coming quarters. We need to focus onconverting the high level of interest in the AutoPulse intoaccelerated purchasing activity. We believe this will occur withincreased product awareness, successful usage and time for customer'sbudget cycles to provide funding. In addition we are very excitedabout the launch of the E Series, a new defibrillator that we believewill have specific appeal for the EMS market. We have completed ourlaunch of this product to our U.S. EMS sales force and have initiatedthe launch internationally. The reception from our sales force andearly customer reviews has been very encouraging. Specific featuresdriving this excitement include the ruggedness of the product,suitcase-style design, display technology, multiple battery choicesand an innovative approach to cable management. We believe thisproduct will compare very favorably to competitive offerings and allowus to regain momentum in the EMS market."

Mr. Packer concluded, "While the recent performance of the Companyhas not been what we had hoped, a number of things are coming togetherwhich bode very well for ZOLL in 2006. Our defibrillator R&D pipelineis providing exciting new products with the recently released AED Proand the brand new E Series. Combined with the AutoPulse we have apowerful combination with which to drive EMS growth. The AutoPulse isallowing us to penetrate new accounts around the world, and momentumwill build with time. Our changes in International personnel anddistribution are taking hold and yielding improved performance. Wecontinue to make progress in the AED market and our efforts arebeginning to yield more profitable growth. We believe we will be verywell positioned to drive operating leverage as we move through 2006."

About ZOLL Medical Corporation

ZOLL Medical Corporation (NASDAQ: ZOLL) is committed to developingtechnologies that help advance the practice of resuscitation. Withproducts for pacing, defibrillation, circulation, ventilation, andfluid resuscitation, ZOLL provides a comprehensive set of technologiesthat can help clinicians, EMS professionals, and lay rescuersresuscitate sudden cardiac arrest or trauma victims. ZOLL also designsand markets software that automates the documentation and managementof both clinical and non-clinical data.

ZOLL has operations in the United States, Canada, the UnitedKingdom, Germany, France, The Netherlands, Australia, and Austria.With direct operations, international offices, and business partnersin all the world's major markets, ZOLL markets and sells its productsin more than 140 countries. For more information, visit www.zoll.comor call +1 (978) 421-9655.

Certain statements contained in this press release, includingstatements regarding the anticipated development of the Company'sbusiness, expectations concerning future product revenues andfinancial results and other statements contained herein regardingmatters that are not historical facts, are "forward-looking"statements (as defined in the Private Securities Litigation Reform Actof 1995). Because such statements are subject to risks anduncertainties, actual results may differ materially from thoseexpressed or implied by such forward-looking statements. Factors thatcould cause actual results to differ materially from those expressedor implied by such forward-looking statements include, but are notlimited to, those factors discussed in the section entitled "RiskFactors" in the Company's Quarterly Report on Form 10-Q filed with theSEC on May 13, 2005, including the future performance of the directsales operations, as well as uncertainties regarding the marketacceptance and profitability of the ZOLL AED Plus, the AED Pro, the ESeries, the Power Infuser and the AutoPulse, the length and severityof economic slowdown and their impact on capital spending budgets, thepotential reductions in overall capital equipment expenditures in thehospital and pre-hospital markets, the impact of the acquisition ofRevivant, the impact of the war on terrorism, the potential disruptionin the transportation industry on the Company's supply chain andproduct distribution channels, and the desire or ability of otherparties to purchase the Company's products.

Copyright (C) 2005 ZOLL Medical Corporation. All rights reserved.269 Mill Road, Chelmsford, MA 01824-4105. AED Plus, M Series,AutoPulse, and Power Infuser are trademarks of ZOLL MedicalCorporation. The LifeVest System is a trademark of Lifecor, Inc. TheResQPOD is a trademark of Advanced Circulatory Systems, Inc. ZOLL is aregistered trademark of ZOLL Medical Corporation. All trademarks areproperty of their respective owners.
ZOLL MEDICAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

July 3, October 3,
2005 2004
----------------------
ASSETS
Current assets:
Cash and cash equivalents $ 43,209 $ 40,685
Short-term investments 6,484 18,325
Accounts receivable, net 41,068 51,038
Inventory 42,315 31,702
Prepaid expenses and other current assets 7,131 7,273
---------- -----------
Total current assets 140,207 149,023
Property and equipment, net 23,208 24,221
Other assets, net 49,365 33,948
---------- -----------
$ 212,780 $ 207,192
========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 8,006 $ 12,321
Accrued expenses and other liabilities 26,621 21,917
---------- -----------
Total current liabilities 34,627 34,238
Deferred income taxes 0 2,008
Total stockholders' equity 178,153 170,946
---------- -----------
$ 212,780 $ 207,192
========== ===========


ZOLL MEDICAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share)

Three Months Ended Nine Months Ended

July 3, July 4, July 3, July 4,
2005 2004 2005 2004
-------------------------------------------------
Net sales $ 51,093 $ 54,454 $ 154,213 $ 156,057
Cost of goods sold 21,660 23,356 66,680 67,753
------------ ------------ ----------- -----------
Gross profit 29,433 31,098 87,533 88,304
Expenses:
Selling and
marketing 18,826 19,351 57,473 55,343
General and
administrative 4,612 3,703 13,509 10,440
Research and
development 5,824 4,706 17,472 13,726
------------ ------------ ----------- -----------
Total expenses 29,262 27,760 88,454 79,509
Income (loss) from
operations 171 3,338 (921) 8,795
Other income 79 500 411 1,370
------------ ------------ ----------- -----------
Income (loss)
before taxes 250 3,838 (510) 10,165
Taxes (benefit) 118 1,266 (235) 3,354
------------ ------------ ----------- -----------
Net income (loss) $ 132 $ 2,572 $ (275)$ 6,811
============ ============ =========== ===========
Earnings per share:
Basic $ 0.01 $ 0.28 $ (0.03)$ 0.74
============ ============ =========== ===========
Diluted $ 0.01 $ 0.28 $ (0.03)$ 0.73
============ ============ =========== ===========
Weighted average
common shares:
Basic 9,576 9,211 9,557 9,158
Diluted 9,632 9,316 9,557 9,283