-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FG41GEakxP3bzRVseXZaYai4+MURXWSuXWrFCqgQhs71xLDXm8L1uIH1aP4yemcN BnE0i+tiq9ynkU3fpnd1PA== 0001299933-04-001758.txt : 20041112 0001299933-04-001758.hdr.sgml : 20041111 20041112151331 ACCESSION NUMBER: 0001299933-04-001758 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20041108 ITEM INFORMATION: Cost Associated with Exit or Disposal Activities ITEM INFORMATION: Material Impairments ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041112 DATE AS OF CHANGE: 20041112 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TELEFLEX INC CENTRAL INDEX KEY: 0000096943 STANDARD INDUSTRIAL CLASSIFICATION: SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841] IRS NUMBER: 231147939 STATE OF INCORPORATION: DE FISCAL YEAR END: 1226 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05353 FILM NUMBER: 041138732 BUSINESS ADDRESS: STREET 1: 155 SOUTH LIMERICK ROAD STREET 2: CORPORATE OFFICES CITY: LIMERICK STATE: PA ZIP: 19468 BUSINESS PHONE: 610 948-5100 MAIL ADDRESS: STREET 1: 155 SOUTH LIMERICK ROAD CITY: LIMERICK STATE: PA ZIP: 19468 8-K 1 htm_1761.htm LIVE FILING Teleflex Incorporated (Form: 8-K)  

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

     
Date of Report (Date of Earliest Event Reported):   November 8, 2004

Teleflex Incorporated
__________________________________________
(Exact name of registrant as specified in its charter)

     
Delaware 1-5353 23-1147939
_____________________
(State or other jurisdiction 		_____________
(Commission 		______________
(I.R.S. Employer
of incorporation) File Number) Identification No.)
      
155 South Limerick Road, Limerick, Pennsylvania   19468
_________________________________
(Address of principal executive offices) 		  ___________
(Zip Code)
     
Registrant’s telephone number, including area code:   610-948-5100

Not Applicable
______________________________________________
Former name or former address, if changed since last report

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.05. Costs Associated with Exit or Disposal Activities.

On November 8, 2004, the Board of Directors of Teleflex Incorporated (the "Company") approved a divestiture and restructuring program. Under the program, the Company will take the following actions:

· The Company will divest its Tier 1 automotive pedal systems business "the pedals business" while continuing to serve its Tier 1 automotive customers and provide an appropriate transition. In this regard, the Company has begun a process to actively market and selectively review alternatives relating to divestiture of this business. Beginning in the fourth quarter of 2004, the pedal systems business will be reflected in the company’s financial statements as a discontinued operation.

· The Company will exit substantially from the aftermarket services portion of its Industrial Gas Turbine Services product line "the IGT business" by the end of 2004 while continuing to complete work underway for current customers. The aftermarket services business includes parts, repair services an d outage services provided to customers in the power generation market.

· The Company immediately will begin a program to consolidate manufacturing facilities, shifting resources from smaller facilities to larger manufacturing sites. Consolidation will take place primarily in Europe and North America and will affect all three of the Company’s business segments.

· The Company will continue its consolidation of back office and administrative functions to create shared services and facilitate further standardization of processes throughout the organization.

The Company has determined to pursue the program to address underperforming businesses, changes in market conditions and a cost structure that the Company believes has prevented some of its businesses from competing effectively on a global basis.

The Company currently estimates that the total amount of one-time charges to be recorded in connection with the program is in the range of $174 million to $188 mill ion before taxes, which it anticipates will be recorded over the next 18 months, including a range of $102 million to $107 million before taxes to be recorded in the fourth quarter of 2004. The total charges to be recorded over the next 18 months include the following components:

· Approximately $44 million to $47 million in connection with employee severance costs and bonuses to employees to maintain their employment with the Company until plant closures occur.

· Approximately $6 million to $8 million in connection with contract terminations, primarily relating to leases.

· Approximately $101 million to $108 million in connection with the write down of assets, principally certain long-term assets and goodwill, but also reflecting write-downs in realization of certain inventory and receivables balances.

· Approximately $23 to $25 million relating to other costs, including relocation and moving costs, retraining costs and consulting costs.

The Comp any estimates amount of the charges relating to the program that will result in future cash expenditures is in the range of $73 million to $80 million.

As the program progresses, management will reevaluate the estimated costs set forth above, and may revise its estimates and the accounting charges relating thereto, as appropriate, consistent with generally accepted accounting principles.

This report contains forward-looking statements, including, but not limited to statements relating to planned actions under the divestiture and restructuring program; costs expected to be recorded in connection with the program; timing of actions under the program; and anticipated charges to be recorded in the fourth quarter of 2004 and over the next 18 months. Actual results could differ materially from those described in the forward-looking statements due to, among other things, inability to sell businesses at prices, or within time-periods, anticipated by management; unanticipated expenditures in connecti on with the effectuation of the program; costs and length of time required to comply with legal requirements applicable to certain aspects of the program; unanticipated difficulties in connection with consolidation of manufacturing and administrative functions; and other factors described in the Company’s periodic filings with the Securities and Exchange Commission.





Item 2.06. Material Impairments.

Reference is made to the discussion of the divestiture and restructuring program in Item 2.05 of this Form 8-K. As a result of the Board of Directors’ approval of the program, management concluded, on November 8, 2004, that a material charge for impairment is required under generally accepted accounting principles for certain of its assets, including the various assets of the pedals business whose value will not be realized based on the estimated sales price for that business; goodwill associated with the IGT business; certain fixed assets, inventory and accounts receivable that management estimates will not be recoverable as a result of the decision to close or consolidate certain manufacturing facilities. The Company estimates that the impairment charge for such assets, which is a part of the estimated charges relating to the program set forth in Item 2.05 of this Form 8-K, is in the range of $101 million to $108 million.





Item 7.01. Regulation FD Disclosure.

The Company is providing financial information that reflects unaudited financial results for 2002, 2003 and the first nine months of 2004 reflecting the treatment of the Company’s Tier 1 automotive pedal systems business as a discontinued operation. A copy of this information is furnished with this report as Exhibit 99.1

On November 10, 2004, the Company issued a press release announcing the divestiture and restructuring program discussed in Item 2.05 of this Form 8-K. A copy of the press release is furnished with this report as Exhibit 99.2.

The information in this Item 7.01 and in the exhibits attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.





Item 9.01. Financial Statements and Exhibits.

The following exhibit is being furnished with this report


99.1 Unaudited Pro Forma Segment Results of Operations reflecting the treatment of the Company’s Tier 1 automotive pedal systems business as a discontinued operation

99.2 Press Release dated November 10, 2004





SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

         
    Teleflex Incorporated
          
November 12, 2004   By:   Martin S. Headley
       
        Name: Martin S. Headley
        Title: Executive Vice President and Chief Financial Officer

Exhibit Index


     
Exhibit No.   Description
 
99.1
  Unaudited Proforma Segment Results of Operations reflecting the treatment of the Company's Tier 1 automotive pedal systems business as a discontinued operation
99.2
  Press Release dated November 10, 2004
EX-99.1 2 exhibit1.htm EX-99.1 EX-99.1
                                         
               Exhibit 99.1
Teleflex Incorporated
                                        
Pro forma Segment Results of Operations
           2004 - (Unaudited)
        
             
Restated to Reflect Discontinued Operations
                           YTD
 
             Q1       Q2       Q3       Q3  
Revenues
                                        
   Commercial
   $ 313,347     $ 322,568     $ 267,620     $ 903,535  
   Medical
     150,600       158,245       204,824       513,669  
   Aerospace
     136,590       136,168       125,785       398,543  
 
                                        
 
           $ 600,537     $ 616,981     $ 598,229     $ 1,815,747  
 
                                        
Operating profit (*)
                                        
   Commercial
   $ 31,716     $ 36,201     $ 16,542     $ 84,459  
   Medical
     22,906       26,498       30,465       79,869  
   Aerospace
     1,613       (4,579 )     3,519       553  
 
                                        
 
             56,235       58,120       50,526       164,881  
   Corporate expenses
     6,561       6,527       7,585       20,673  
   Gain (loss) on sale of businesses and assets
     —       (5,083 )     563       (4,520 )
 
                                        
Income before interest and taxes
             49,674       56,676       42,378       148,728  
   Interest expense
     6,775       6,145       12,590       25,510  
 
                                        
Income before taxes from continuing operations
     42,899       50,531       29,788       123,218  
   Taxes on income from continuing operations
     11,211       13,859       5,534       30,604  
 
                                        
Net income from continuing operations
     31,688       36,672       24,254       92,614  
 
                                        
Operating loss from discontinued operations
     (1,966 )     (3,080 )     (8,646 )     (13,692 )
Taxes on earnings from discontinued operations
     250       (573 )     (1,885 )     (2,208 )
 
                                        
Net income
           $ 29,472     $ 34,165     $ 17,493     $ 81,130  
 
                                        
Earnings per share:
                                        
Basic:
                                        
   Earnings from continuing operations
     0.80       0.91       0.60       2.31  
   Loss from discontinued operations
     (0.06 )     (0.06 )     (0.17 )     (0.29 )
 
                                        
Net earnings
             0.74       0.85       0.43       2.02  
Diluted:
                                        
   Earnings from continuing operations
     0.79       0.90       0.60       2.29  
   Loss from discontinued operations
     (0.06 )     (0.06 )     (0.17 )     (0.29 )
 
                                        
Net earnings
             0.73       0.84       0.43       2.00  
Average number of common and common equivalent
                                
shares outstanding
                                        
Basic
             39,990       40,195       40,273       40,153  
Diluted
             40,457       40,538       40,414       40,470  

      (*) Segment operating profit is defined as a segment’s revenues reduced by its cost of sales and its operating expenses. Corporate expenses, gain (loss) on sale of businesses and assets, interest expense and taxes on income are excluded from the measure.

These discontinued operations have not historically been separately identified, consolidated and audited as presented in this schedule. Thus these estimates may be revised during the audit process.

1

                                                 
   Teleflex Incorporated
                                        
   Pro forma Segment Results of Operations
                   2003 - (Unaudited)                
             
   Restated to Reflect Discontinued Operations
                                   Full
 
             Q1       Q2       Q3       Q4     Year
Revenues
                                                
   Commercial
   $ 267,323     $ 286,603     $ 252,027     $ 283,591     $ 1,089,544  
   Medical
     118,145       129,679       139,644       147,243       534,711  
   Aerospace
     128,265       130,061       131,965       138,309       528,600  
 
                                                
 
           $ 513,733     $ 546,343     $ 523,636     $ 569,143     $ 2,152,855  
 
                                                
Operating profit (*)
                                                
   Commercial
   $ 29,440     $ 33,664     $ 19,359     $ 28,990     $ 111,453  
   Medical
     19,047       21,576       20,992       23,740       85,355  
   Aerospace
     1,913       1,940       469       4,917       9,239  
 
                                                
 
             50,400       57,180       40,820       57,647       206,047  
   Corporate expenses
     5,055       4,981       5,387       6,041       21,464  
   Gain on sale of businesses and assets
     (3,068 )     —       —       —       (3,068 )
 
                                                
Income before interest and taxes
             48,413       52,199       35,433       51,606       187,651  
   Interest expense
     6,565       6,610       6,580       6,582       26,337  
 
                                                
Income before taxes from continuing operations
     41,848       45,589       28,853       45,024       161,314  
   Taxes on income from continuing operations
     12,171       13,015       7,364       10,562       43,112  
 
                                                
Net income from continuing operations
     29,677       32,574       21,489       34,462       118,202  
 
                                                
Operating loss from discontinued operations
     (313 )     (759 )     (3,544 )     (5,207 )     (9,823 )
Taxes on earnings from discontinued operations
     123       (20 )     (277 )     (550 )     (724 )
 
                                                
Net income
           $ 29,241     $ 31,835     $ 18,222     $ 29,805     $ 109,103  
 
                                                
Earnings per share:
                                                
Basic:
                                                
   Earnings from continuing operations
     0.75       0.83       0.54       0.87       2.99  
   Loss from discontinued operations
     (0.01 )     (0.02 )     (0.08 )     (0.12 )     (0.23 )
 
                                                
Net earnings
             0.74       0.81       0.46       0.75       2.76  
Diluted:
                                                
   Earnings from continuing operations
     0.75       0.82       0.53       0.86       2.96  
   Loss from discontinued operations
     (0.01 )     (0.02 )     (0.08 )     (0.12 )     (0.23 )
 
                                                
Net earnings
             0.74       0.80       0.45       0.74       2.73  
Average number of common and common equivalent
                                        
shares outstanding
                                                
Basic
             39,446       39,539       39,655       39,751       39,598  
Diluted
             39,700       39,837       40,072       40,157       39,942  

      (*) Segment operating profit is defined as a segment’s revenues reduced by its cost of sales and its operating expenses. Corporate expenses, gain on sale of businesses and assets, interest expense and taxes on income are excluded from the measure.

These discontinued operations have not historically been separately identified, consolidated and audited as presented in this schedule. Thus these estimates may be revised during the audit process.

2

                                                 
Teleflex Incorporated
                                                
Pro forma Segment Results of Operations
           2002 - (Unaudited)
                
             
Restated to Reflect Discontinued Operations
                                   Full
 
             Q1       Q2       Q3       Q4     Year
Revenues
                                                
   Commercial
   $ 237,350     $ 263,758     $ 236,274     $ 234,748     $ 972,130  
   Medical
     107,303       113,473       112,223       115,678       448,677  
   Aerospace
     135,341       141,185       133,899       131,630       542,055  
 
                                                
 
           $ 479,994     $ 518,416     $ 482,396     $ 482,056     $ 1,962,862  
 
                                                
Operating profit (*)
                                                
   Commercial
   $ 25,996     $ 30,301     $ 19,820     $ 25,142     $ 101,259  
   Medical
     17,367       18,394       17,617       18,935       72,313  
   Aerospace
     11,429       10,888       7,954       3,905       34,176  
 
                                                
 
             54,792       59,583       45,391       47,982       207,748  
   Corporate expenses
     4,570       4,613       4,893       4,828       18,904  
   Gain on sale of businesses and assets
     —       —       —       (10,085 )     (10,085 )
 
                                                
Income before interest and taxes
             50,222       54,970       40,498       53,239       198,929  
   Interest expense
     6,036       6,239       6,280       6,468       25,023  
 
                                                
Income before taxes from continuing operations
     44,186       48,731       34,218       46,771       173,906  
   Taxes on income from continuing operations
     13,537       14,764       7,323       12,104       47,728  
 
                                                
Net income from continuing operations
             30,649       33,967       26,895       34,667       126,178  
 
                                                
Operating (loss) profit from discontinued operations
     (292 )     (617 )     (1,078 )     569       (1,418 )
Taxes on earnings from discontinued operations
     (61 )     (186 )     (463 )     204       (506 )
 
                                                
Net income
           $ 30,418     $ 33,536     $ 26,280     $ 35,032     $ 125,266  
 
                                                
Earnings per share:
                                                
Basic:
                                                
   Earnings from continuing operations
     0.79       0.86       0.68       0.88       3.21  
   (Loss) income from discontinued operations
     (0.01 )     (0.01 )     (0.01 )     0.01       (0.02 )
 
                                                
Net earnings
             0.78       0.85       0.67       0.89       3.19  
Diluted:
                                                
   Earnings from continuing operations
     0.77       0.85       0.68       0.87       3.17  
   (Loss) income from discontinued operations
     —       (0.01 )     (0.02 )     0.01       (0.02 )
 
                                                
Net earnings
             0.77       0.84       0.66       0.88       3.15  
Average number of common and common equivalent
                                        
shares outstanding
                                                
Basic
             39,038       39,241       39,341       39,384       39,251  
Diluted
             39,638       39,968       39,820       39,717       39,786  

      (*) Segment operating profit is defined as a segment’s revenues reduced by its cost of sales and its operating expenses. Corporate expenses, gain on sale of businesses and assets, interest expense and taxes on income are excluded from the measure.

These discontinued operations have not historically been separately identified, consolidated and audited as presented in this schedule. Thus these estimates may be revised during the audit process.

3 EX-99.2 3 exhibit2.htm EX-99.2 EX-99.2

     
Exhibit 99.2
 
    
Teleflex ®
  NEWS
 
    
155 South Limerick Road, Limerick, PA 19468 USA - Phone: 610-948-5100 — Fax: 610-948-0811
     
Contact:
  Julie McDowell
Vice President, Corporate Communications
610-948-2836

FOR IMMEDIATE RELEASE November 10, 2004

TELEFLEX ANNOUNCES RESTRUCTURING PROGRAM
Actions Expected to Achieve Annualized Cost Benefits of
$75-$85 Million by the End of 2005

Limerick, PA — Teleflex Incorporated (NYSE: TFX) today announced the initiation of a divestiture and restructuring program designed to improve future operating performance and position Teleflex for earnings growth in the years ahead. The planned actions include exiting or divesting underperforming businesses, consolidating operations and leveraging infrastructure for greater productivity. The company expects to record costs related to this program in the range of $174 million to $188 million pre-tax over the next 18 months. Of these charges, the non-cash portion will be approximately $101 million to $108 million pre-tax with the vast majority related to a planned sale of the Tier 1 automotive pedal systems business and the exit from a portion of the industrial gas turbine services business. As a result of these actions, the company expects to achieve cost benefits in the range of $50 million to $54 million pre-tax in 2005 and attain an annualized cost benefit in the range of $75 million to $85 million pre-tax in the fourth quarter of 2005.

In the fourth quarter of 2004, the company anticipates that it will record one-time charges in the range of $102 million to $107 million pre-tax of which the non-cash portion will be in the range of $88 million to $91 million pre-tax. The company continues to expect full year 2004 diluted earnings per share from operations before charges related to the divestiture and restructuring program to be in the range of $2.64 to $2.74. At this time, based on estimated timing of when actions will occur, the company expects diluted earnings per share for the full year 2004 from continuing operations, including charges related to the divestiture and restructuring program, to be in the range of $1.20 to $1.47.

“These actions are designed to provide significant benefits to Teleflex and to position the company to return to our historic double-digit operating margin level by the end of 2005,” said Jeffrey P. Black, president and chief executive officer. “It is important to note that Teleflex’s core businesses have

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delivered solid results. While we are funding these actions we believe we can double the rate of growth of our cash flow from operations, maintain a strong balance sheet and position ourselves for future growth opportunities.”

Added Black, “We need to take aggressive actions to deal with underperforming businesses, changed market conditions, and a cost structure that prevents some of our businesses from competing

effectively on a global basis. These are difficult decisions that impact people across the company and we plan to execute this program with respect for our employees and a commitment to performing for our customers. At the same time, we strongly believe these changes are critical for Teleflex to continue to strengthen its global competitiveness and meet the needs of our stakeholders in the years ahead.”

The divestiture and restructuring program encompasses the following actions:

• The company has made a decision to divest its Tier 1 automotive pedal systems business

and has begun a process to actively market and selectively review alternatives while

continuing to serve its Tier 1 automotive customers and provide an appropriate transition.

Beginning in the fourth quarter of 2004, the pedal systems business will be reflected in the

company’s consolidated financial statements as a discontinued operation. Revenues from the

automotive pedal systems business are expected to be approximately $130 million in 2004.

• The company will substantially exit the aftermarket services portion of its Industrial Gas

Turbine Services product line by the end of the year while continuing to complete work
underway for current customers. The IGT aftermarket services business includes parts,
repair services and outage services provided to customers in the power generation market.
Revenues from the IGT aftermarket services business are expected to be approximately
$28 million in 2004.

• Teleflex will begin a program to consolidate manufacturing facilities, shifting resources

from smaller facilities to larger manufacturing sites. Consolidation will take place primarily
in Europe and North America and will impact all three Business Segments — Commercial,

Medical and Aerospace. Specific actions will begin immediately and will be announced locally over the next few months.

• In addition, Teleflex will continue its consolidation of back office and administrative functions

to create shared services and facilitate further standardization of processes across the global

organization.

In total, the divestiture and restructuring program, when fully implemented, is expected to result in 26 fewer locations and a reduction of approximately 1,600 positions or roughly 7 percent of the company’s workforce.

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In addition to this program, Teleflex is continuing its portfolio evaluation process to identify product lines for divestiture, phase out or consolidation and is working with its investment bankers to evaluate appropriate alternatives for those businesses in the Commercial and Aerospace segments that are under review.

Teleflex will hold a conference call to discuss this announcement on Thursday, November 11, at 10:00 a.m. (ET). The conference call will be available live and archived on the company’s website at www. teleflex.com. In addition, an audio replay will be available from November 11 until November 16 by calling 888-286-8010 (US/Canada) or 617-801-6888 (International), passcode # 51930871. The company plans to provide further details and an outlook for 2005 in a press release to be distributed after market close on December 15, with a conference call the following morning December 16, at 10:00 am (ET). An announcement providing further conference call details will be distributed in December prior to that scheduled event.

In addition, Teleflex is providing unaudited historical financial information reflecting the treatment of the pedal systems business as a discontinued operation on its website:

http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=84306&eventID=967129

Teleflex Incorporated
Projected One-Time Restructuring and Other Charges

$000’s

                         
Severance and stay bonuses to be paid
to permanently terminated employees
     44,000     to
    47,000  
Write-down of certain asset values
     101,000     to
    108,000  
Contract termination costs
     6,000     to
    8,000  
Other
     23,000     to
    25,000  
 
                        
 
     174,000               188,000  
 
                        

Teleflex at a Glance:
Teleflex is a diversified industrial company with annual revenues of more than $2 billion. The company designs, manufactures and distributes quality engineered products and services for the medical, aerospace, automotive, marine and industrial markets worldwide. Teleflex employs more than 21,000 people worldwide who focus on providing innovative solutions for customers. Additional information about Teleflex can be obtained from the company’s website on the Internet at www.teleflex.com.

Forward-looking information:
This press release contains forward-looking statements, including, but not limited to, statements relating to planned actions under the restructuring program; charges expected to be recorded in connection with the restructuring program; expected cost benefits and other benefits resulting from the restructuring program; expected reductions in location and workforce; timing of divestitures, phase out or consolidation of Teleflex businesses; expected full year diluted earnings per share from operations before and after giving the effect of charges related to the restructuring
program; and expected 2004 revenues from portions of the industrial gas turbine services business and the pedal systems business. Actual results could differ materially from those in these forward-looking statements due to, among other things, inability to sell businesses at prices, or within time-periods, anticipated by management;

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unanticipated expenditures in connection with the effectuation of restructuring programs; costs and length of time required to comply with legal requirements applicable to certain aspects of the restructuring program; unanticipated difficulties in connection with consolidation of manufacturing and administrative functions; customer reaction to the program; and other factors described in Teleflex’s filings with the Securities and Exchange Commission.

Notes:
On March 2, 2004, the company announced that it had been notified that a jury had rendered a verdict against one of its subsidiaries in a trademark infringement case in the amount of $2.6 million as “reasonable royalties” and an additional $32.2 million as “unjust enrichment.” Judgment was not entered on the verdict and the trial judge has reserved judgment on the matter. Under applicable Federal trademark law, the trial judge has the discretion to determine whether and in what amount an award for unjust enrichment will be made. As of November 10, 2004, no judgment had been entered on this matter. The company cannot predict when judgment will be entered in this case, nor predict what amount, if any, may be awarded for unjust enrichment.

For more information please refer to the company’s 2003 Form 10-K and annual report to shareholders available at www.teleflex.com.

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