Compass Therapeutics 8-K Compex Technologies Reports Fiscal 2004 Second Quarter Results

EXHIBIT 99.1

Company Contacts:	Investor Relations Contacts:
Compex Technologies, Inc. Dan W. Gladney, CEO Scott P. Youngstrom, CFO (651) 631-0590 www.compextechnologies.com	E-mail: investorrelations@rehabilicare.com

COMPEX TECHNOLOGIES REPORTS
FISCAL 2004 SECOND QUARTER RESULTS

Announces Record Quarterly Revenues

NEW BRIGHTON, MN (February 12, 2004) — Compex Technologies, Inc. (NASDAQ NM: CMPX)today reported results of operations for the fiscal 2004 second quarter ended December 31, 2003.

Consolidated net sales and rental revenue for the second quarter was a record $22.5 million, an increase of 20% over the prior year’s second quarter revenue of $18.7 million. U.S. revenue was $13.5 million, up 9% from $12.4 million in the same period last year. International revenue was $9.0 million, an increase of 42% compared with $6.3 million in the prior year’s second quarter.

The gross profit margin for the quarter was 68.1%, compared with 69.2% last year. Selling, general and administrative expenses were $12.5 million, or 55.6% of revenue, compared with $10.7 million, or 57.4% of revenue, in the fiscal 2003 second quarter.

Net income was $1.2 million, or $0.10 per diluted share, compared with $942,000, or $0.08 per diluted share in the same period last year.

For the six months ended December 31, 2003, net revenue was $41.6 million, an increase of 14% compared with total revenue of $36.5 million for the six months ended December 31, 2002. Net income for the first half of fiscal 2004 was $1.6 million, or $0.13 per diluted share, compared with net income of $1.9 million, or $0.17 per diluted share in the comparable prior-year period.

“Through the first six months of the year, every product segment we have is up over the same period last year,” said Dan W. Gladney, President and CEO, “with the consumer product line up

just over 35%. We ended the quarter with record revenues, up 20% over the prior year, with increased sales accounting for 12% of the gain and favorable exchange rates accounting for 8%.”

Mr. Gladney continued, “International sales continue to be erratic. Of the 42% increase in revenues, 22% was generated by favorable exchange rates, 12% was due to the acquisition of Filsport, and 9% was generated by the addition of Slendertone. The underlying business, however, saw a 3% decline in volumes across Europe. Nevertheless, we expect our European business to stabilize in the remainder of fiscal 2004.”

Noting that the Company completed an $8.9 million private placement during the quarter, Mr. Gladney also explained, “We have shored up the financial strength and stability of the company by using the majority of the net proceeds to reduce our short-term credit facilities and long-term debt. As a result, we ended the quarter with $6.3 million in debt, down $8.3 million from where we started the quarter.”

Compex Technologies has scheduled an investor conference call at 1:00 p.m. Eastern Time on Thursday, February 12th, 2004, at which it will discuss:

• Results of operations for the quarter ended December 31, 2003

• Recent developments in new product initiatives, endorsements, acquisitions and personnel changes

• Goals and objectives for the year ending June 30, 2004 .

To participate in the live call, please dial (800) 245-3043 and reference Conference ID: Compex. International callers please dial (785) 832-1508 and use the same Conference ID. A telephone replay will be available until 11:00 p.m. Eastern Time on February 26th by dialing (800) 839-8389 domestically and (402) 271-9156 internationally. Investors may also find investor information, including information about how to access replays of the conference call, at the Compex Technologies website at www.compextechnologies.com under the caption “About Us — Investor Relations.”

Compex Technologies, Inc. is engaged in the manufacture and sale of healthcare products based upon electrical stimulation technologies designed to improve health, wellness, athletic performance and physical fitness.

Cautionary Statement:All statements other than historical facts included in this release regarding future operations, and particularly on the outlook for 2004, are subject to the risks inherent in predictions and “forward looking statements.” These statements are based on the beliefs and assumptions of management of Compex Technologies and on information currently available to management. Nevertheless, these forward-looking statements should not be construed as guarantees of future performance. They involve risks, uncertainties, and assumptions identified in Compex Technologies filings with the SEC, including:

• The effect of acquisitions on our results of operations;

• The difficulties in predicting the amount and timing of consumer acceptance of new products;

• The increasing reliance on results of our international operations;

• The effect of fluctuating exchange rates on our international results;

• Our substantial balances of third-party billing business and resulting accounts receivable and the sensitivity of our results to the accuracy of its reserve for uncollectible receivables;

• Changes in, and our compliance with, regulation and industry practice that affects the rates at which its products are reimbursed, the way it manufactures its products, and the documentation which it submits for reimbursement;

Other factors that affect the industry in which Compex Technologies functions include negative publicity about electrical stimulation products for medical and fitness applications and world events that affect the economies of the countries in which its products are sold.

-Tables to Follow-

COMPEX TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

					Three Months Ended						Six Months Ended
					June 30						December 31
					2002			2003			2002			2003
Net sales and rental revenue					$	18,735,080		$	22,464,599		$	36,472,820		$	41,620,865
Cost of sales and rentals						5,777,255			7,160,507			11,224,682			13,597,753
		Gross profit				12,957,825			15,304,092			25,248,138			28,023,112
Operating expenses:
	Selling, general and administrative					10,749,933			12,489,166			20,710,537			23,892,408
	Research and development					517,503			646,673			1,041,576			1,275,150
				Total operating expenses		11,267,436			13,135,839			21,752,113			25,167,558
		Income from operations				1,690,389			2,168,253			3,496,025			2,855,554
Other income (expense):
	Interest expense					(101,647	)		(142,868	)		(214,115	)		(296,611	)
	Other					35,510			22,198			43,349			77,797
			Income before income taxes			1,624,252			2,047,583			3,325,259			2,636,740
Income tax provision						682,000			819,000			1,396,000			1,054,000
		Net income			$	942,252		$	1,228,583		$	1,929,259		$	1,582,740
Net income per common and common equivalent share
		Basic			$	0.09		$	0.11		$	0.18		$	0.14
		Diluted			$	0.08		$	0.10		$	0.17		$	0.13
Weighted average number of shares outstanding
		Basic				10,965,635			11,561,292			10,951,112			11,293,216
		Diluted				11,145,024			12,593,070			11,095,913			12,217,516

COMPEX TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

				June 30,		December 31,
				2003		2003
			ASSETS
Current Assets:
	Cash and cash equivalents			$	5,056,007	$	2,920,406
	Receivables, less reserve of $15,200,590 and $16,028,109				24,955,130		27,403,202
	Inventories:
		Raw materials			1,393,470		1,334,383
		Work in process			33,670		33,608
		Finished goods			10,301,198		13,798,988
	Deferred tax assets				4,675,394		4,675,394
	Prepaid expenses				2,378,044		2,325,397
			Total current assets		48,792,913		52,491,378
	Property, plant and equipment, net				4,536,804		4,598,704
	Goodwill, net				10,583,287		15,691,113
	Other intangible assets, net				883,634		750,781
	Deferred tax assets				750,926		826,170
	Other assets				104,743		149,935
				$	65,652,307	$	74,508,081
			LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
	Current maturities of long-term debt			$	5,363,850	$	2,208,284
	Note payable				4,500,000		1,000,000
	Accounts payable				4,028,608		4,799,576
	Accrued liabilities:
		Payroll			1,567,710		1,869,911
		Commissions			679,015		1,045,199
		Income taxes			2,725,341		1,464,689
		Other			3,349,986		5,249,380
			Total current liabilities		22,214,510		17,637,039
Long-Term Liabilities:
	Long-term debt				1,217,268		3,085,460
	Deferred tax liabilities				675,885		733,527
			Total liabilities		24,107,663		21,456,026
Stockholders’ Equity:
	Common stock, $.10 par value; 30,000,000 shares authorized; issued and outstanding 10,948,469 and 12,115,925 shares, respectively				1,094,847		1,211,592
	Preferred stock, no par value; 5,000,000 shares authorized; none issued and outstanding				—		—
	Additional paid-in capital				21,650,978		30,397,975
	Accumulated other non-owner changes in equity				1,870,183		2,931,112
	Retained earnings				16,928,636		18,511,376
			Total stockholders’ equity		41,544,644		53,052,055
				$	65,652,307	$	74,508,081