Aga Medical Holdings, Inc. (1421419) SEC Filing 10-K Annual report for the fiscal year ending Thursday, December 31, 2009

Exhibit 99.1

AGA Medical Reports Strong 2009 Fourth Quarter and Full Year Financial Results

Company Reports Record Net Sales of $54.2 Million, 28% Increase over Q4 2008;
EBITDA of $12.3 Million, 41% Growth over Q4 2008

Conference Call Scheduled for 8 a.m. ET Today

MINNEAPOLIS, Feb. 16, 2010 — AGA Medical Holdings (NASDAQ: AGAM), a leading developer of interventional medical devices for the minimally invasive treatment of structural heart defects and vascular abnormalities, today reported financial results for the fourth quarter and full year ended Dec. 31, 2009.

Financial Results for Fourth Quarter 2009 vs. Fourth Quarter 2008

Net sales for the fourth quarter of 2009 were $54.2 million, a 28% increase over $42.4 million for the fourth quarter of 2008. On a constant currency basis, net sales grew 25% year over year.

John Barr, President and Chief Executive Officer of AGA Medical, commented, “As our first full quarter as a public company, we are pleased to report that the fourth quarter was the strongest sales quarter in AGA’s history.  Clearly, we are seeing the benefit of our investment in our sales channels with balanced growth across all geographies.  In addition, our vascular business grew substantially, led by the European launch of our AMPLATZER Vascular Plug 4, which was a strong contributor to our highly successful quarter.”

Gross margins for the fourth quarter of 2009 were 85.9% compared to 82.3% in the prior year period. The increase in gross margin was due to higher average selling prices which were in part due to the distributor to direct conversions completed last year, as well as continued improvement in manufacturing efficiencies. In the prior year period, gross margins were unfavorably impacted as the company amortized the excess cost of inventory repurchased from distributors in territories that AGA Medical converted to direct distribution in 2008.  Excluding this charge, gross margins would have been 84.5% in the prior quarter.

Total operating expenses for the fourth quarter of 2009 were $42.4 million, compared to $31.1 million in the fourth quarter of 2008. The expense increase was due to higher selling, general and administrative expenses of $8.8 million related primarily to the conversion of distributors that was largely completed in January 2009. In addition, expenses included investments made to expand the company’s U.S. sales force and some incremental investment in corporate infrastructure.  Legal fees associated with ongoing patent litigation were approximately $2.0 million in the quarter.  In addition, R&D spending increased by approximately $1.3 million due to a continued investment in the company’s R&D pipeline, which includes its clinical trials.

AGA Medical Corporation

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