ICU MEDICAL, INC.. 1 FORWARD LOOKING INFORMATION Any statement concerning Management’s expectation...

ICU MEDICAL, INC.

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FORWARD LOOKING INFORMATION

Any statement concerning Management’s expectation with respect to future results is a forward looking statement based upon the best information currently available to management and assumptions Management believes are reasonable, but Management does not intend the statement to be a representation as to future results. Future results are subject to risks and uncertainties, including the risk factors described in the Company’s filings with the Securities and Exchange Commission, which include those in the Form 8-K dated February 15, 2002. Actual results in the future may differ materially from Management’s current expectations.

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AGENDA

• Company Overview

• IV Industry Overview

• Products

• Growth Strategy

• Marketing and Distribution

• Manufacturing

• Financial History

• Investment Highlights

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COMPANY OVERVIEW

• Core competence– Product innovation

• IV disposables

– Manufacturing innovation• Custom IV systems

• Consistent growth

• Superior distribution

• High barriers to entry

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ICU MEDICAL FACTS

• Compound 5 Year Growth Rates - 12/02– Sales 24%– Net Income 28%– EPS 22%

• Revenue 2002 $ 87.8 million• Return on equity,

excluding investments 41%• Cash and investments - 6/03 $ 69.6 million• Debt -0-• Equity - 6/03 $147.0 million

IV SYSTEMSINDUSTRY OVERVIEW

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MARKET SHARE -IV SOLUTIONS & SETS

Abbott45%

B.Braun10% Baxter

40%

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PROTECTIVE IV CONNECTOR MARKET SIZE and CATALYSTS

• IV Market $4 billion

• Potential U.S. safe connector market over $1.0 billion

• HIV / Hepatitis B transmission - healthcare workers

• High cost of accidental needlesticks

• IV connections are the largest source of needle usage

• Court Cases

• OSHA regulations / CAL OSHA / States

ICU MEDICAL, INC.PRODUCTS

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PRODUCT OVERVIEW

• Proprietary disposable

medical connection systems

for use in intravenous therapy

• Custom IV systems

• Blood collection needles

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REPUTATION FOR INNOVATION

• Create the market for safe medical connectors

– 1984: Click Lock

• Always first with new technology

– 1993: first swabable, needleless system, CLAVE

• CLC 2000 in 1997

• 1O2 Valve in 1998

• Custom IV Systems

• Blood Collection Devices

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DIVERSIFIED REVENUE MIX(Excludes all non product revenue)

CLAVE 64%Custom

System20%

Punctur- Guard

7%

Other 5%

CLC 20004%

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The CLAVE way

The old way

The CLAVE way

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CLAVE® SALES

$19.5

$27.5

$32.1

$39.7

$51.1

$58.5

$32.1 $31.1

$0

$10

$20

$30

$40

$50

$60

1997 1998 1999 2000 2001 2002 H1 '02 H1 '03

Millions

15CLC2000™

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CLC 2000™

• “Clotting” of catheters requires expensive procedures to “flush” clots, or replacement of catheter

• CLC 2000 developed to eliminate clotting of

catheters

• No back flow

17PUNCTUR-GUARD®

18PUNCTUR-GUARD®

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PUNCTUR-GUARD®

• Safety needles for blood collection

• Blood Collection Needle

• “Winged Set”

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1O2 VALVE™

• Only One-Way or Two-Way drug delivery

system: both infusion and aspiration

• Initial Markets: Anesthesia, NICU

• High flow rate, low dead space

• Sell in custom sets

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CUSTOM IV SYSTEMS

• Business Strategy

– Lower cost to customer

– Short delivery time: 3 to 21 days maximum

– No minimum order quantity

– Sell entire system, not just a component

• Method: Innovative proprietary systems

– Automate product design and validation

– Core manufacturing competence

– Low inventory carrying costs

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CUSTOM IV SYSTEMS

•Set Design — Online from offices worldwide

•Central computer in California

•Job order to Baja plant

•Assemble, sterilize (2003) and ship from Baja

23Custom 1o2™ I.V. Set

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25

26

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CUSTOM IV SYSTEM SALES

$1.4

$3.2

$5.3

$6.9

$9.4

$1.2

$15.2

$5.7$6.9

$2.1

$9.5

$4.3

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

1997 1998 1999 2000 2001 2002 H1 '02 H1 '03

All

Setsource

Millions

5% 8% 11% 12% 14% 18% 16% 20% % of Sales

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GROWTH STRATEGY

• Mass customization

• Capitalize on existing products

• New products

• Strategic alliances and acquisitions

• Low cost production

Marketing and

Distribution

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SALES CHANNELS

First Half

1999 2000 2001 2002 H1 ‘02 H1

‘03

• OEMs $33.3 $41.7 $50.3 $63.7 $32.8 $38.9

• Specialty Distributors 11.8 12.1 13.4 17.0 7 .7 11.4

• International 1.9 2.4 5.4 7.1 3.1 1.8

$47.0 $56.2 $69.1 $87.8 $43.6 $52.0

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THE ICU PRODUCT SPECIALIST

• ICU representative in the field

• Driving, motivating & educating distributor

representatives

• Rapid product introduction & feedback

• Intelligence gathering

Manufacturing

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MANUFACTURING HIGHLIGHTS

• Manufacturing and Assembly:– 3 modern facilities in San Clemente– 1 recently expanded facility in Ensenada– 1 facility in Connecticut– 1 facility in Italy

• 42 plastic or silicon molding machines

• 21 automated assembly machines• Manual assembly• Adequate capacity for growth

Financial Overview

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BALANCE SHEETJune 30, 2003

Cash and

investments $ 69.6

Other current assets 32.0

101.6

Fixed assets and other 55.4

$157.0

Current Liabilities $ 10.0

Debt -0-

Equity 147.0

$157.0

(in millions of dollars)

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SUMMARY FINANCIAL DATA

1998 1999 2000 2001 2002

Total Revenue $39.8 $47.0 $56.2 $69.1 $87.8

Gross Profit 23.2 27.1 42.4 40.1 51.3

Operating Income 10.0 13.4 16.6 22.1 30.0

Investment Income 1.4 1.4 2.1 2.0 1.4

Pre Tax 11.4 14.8 18.7 8.7 31.4

Net Income $7.2 $9.4 $11.8 $15.4 $19.7

Per Share (diluted) $0.57 $0.72 $0.87 $1.06 $1.28

(in millions of dollars, except per share)

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SUMMARY FINANCIAL DATA

1998 1999 2000 2001 2002

Total Revenue 100% 100% 100% 100% 100%

Gross Profit 58% 58% 58% 58% 57%

Operating Income 25% 28% 30% 32% 34%

Investment Income 4% 3% 4% 3% 2%

Pre Tax 29% 32% 33% 35% 36%

Net Income 18% 20% 21% 22% 22%

(represented as % of revenue)

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SUMMARY FINANCIAL DATA

2002 2003 2002 2003

Total Revenue $42.4 $52.1 100% 100%

Gross Profit 25.7 29.9 59% 54%

Operating Income 14.4 17.2 33% 33%

Investment Income 0.7 0.6 2% 1%

Pre Tax 15.1 17.8 35% 34%

Net Income 9.5 11.0 22% 21%

Per Share (diluted) $0.62 $0.72

First Half

(in millions of dollars, except per share)

(represented as % of revenue)

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FINANCING

IPO March 1992

Second Offering June 1995

Stockholders

CEO Lopez and Family 10%

Other Officers/Directors 1%

Others over 5% 44%

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SEASONALITY -PERCENT OF ANNUAL SALES

20%

22%

24%

26%

28%

30%

32%

Q 1 Q 2 Q 3 Q 4

1994 1995 1996 1997 1998 1999 2000 2001 2002

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INVESTMENT HIGHLIGHTS

• The leader in proprietary IV connectors

• Establishing a new custom IV systems market

• Strong balance sheet

• Comprehensive growth strategy

• Seasoned management team

• World class manufacturing