J. K. Dietrich - FBE 532 – Spring 2006

Circon (A) Case

April 20, 2006

J. K. Dietrich - FBE 532 – Spring 2006

Circon’s Performance

Ratios FY88 FY89 FY90 FY91 FY92 FY93 FY94a FY95a FY96 FY97Margin -2.26% 4.22% 5.29% 8.24% 11.18% 6.62% 9.19% -0.01% 2.73% 6.62%Turnover 1.076 1.244 1.305 0.919 1.000 0.997 0.853 0.884 0.909 0.944ROA -2.44% 5.25% 6.90% 7.57% 11.18% 6.60% 7.83% -0.01% 2.48% 6.25%ROE -14.55% 1.85% 9.30% 5.39% 9.11% 3.26% 7.48% -6.19% 2.09% 4.90%

• Offer by U.S. Surgical first made August 2, 1996 for $18/share when share price was around $12-1/8

• Offer lowered to $17 on December 14, 1996

• Offer limited to 14.9% of shares at $14.50 on June 16, 1997

• Offer to buy remainder at $16.50 until offer dropped on September 15, 1998

J. K. Dietrich - FBE 532 – Spring 2006

Board meeting October 16, 1998

• Auhll agreed to resign• Shares fell to $8.25• Cloutier named interim CEO assigned goal

to engineer sale of company• Circon sold in November 1998 to Maxxim

Medical for $15/share