----

----

| x | Quarterly      Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of      1934 for the Quarterly Period Ended June 30,  2008 |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------|

| o | Transition      Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of      1934 for the Transition Period    from    to |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Delaware                                                            |   | 63-0821819                                |
|---------------------------------------------------------------------|--------|-------------------------------------------|
| (State      or Other Jurisdiction of Incorporation or Organization) |   | (I.R.S.      Employer Identification No.) |

| Large accelerated      filer  o | Accelerated      filer  x | Non-accelerated      filer  o | Smaller reporting      company  o |
|--------------------------------------|--------------------------------|------------------------------------|----------------------------------------|

|  Title      of Each Class               |   | Number      of Shares Outstanding atJuly      30, 2008 |
|----------------------------------------------|--------|--------------------------------------------------------|
| Common      stock, Par Value $0.10 per share |   | 1,967,285                                              |

----

----

----

ATRIONCORPORATION AND SUBSIDIARIES

| PART I.    Financial    Information | 2                                                                                                            |
|----------------------------------------------------|--------------------------------------------------------------------------------------------------------------|
|                                               |                                                                                                         |   |
| Item      1.                                       | Financial Statements                                                                                         |   |
|                                               |                                                                                                         |   |
|                                               | Consolidated Statements of Income (Unaudited) For the Three      and Six months Ended June 30, 2008 and 2007 | 3 |
|                                               |                                                                                                         |   |
|                                               | Consolidated Balance Sheets (Unaudited) June 30, 2008 and      December 31, 2007                             | 4 |
|                                               |                                                                                                         |   |
|                                               | Consolidated Statements of Cash Flows (Unaudited) For the      Six months Ended June 30, 2008 and 2007       | 5 |
|                                               |                                                                                                         |   |
|                                               | Notes to Consolidated Financial Statements      (Unaudited)                                                  | 6 |
|                                               |                                                                                                         |   |
| Item      2.                                       | Management's Discussion and Analysis of Financial Condition and      Results of Operations                   | 8 |
|                                               |                                                                                                         |   |
| Item 3.                                            | Quantitative and Qualitative Disclosures About Market      Risk                                              | 12 |
|                                               |                                                                                                         |   |
| Item      4.                                       | Controls and Procedures                                                                                      | 13 |
|                                               |                                                                                                         |   |
| PART      II.   Other      Information   | 14                                                                                                           |
|                                               |                                                                                                         |   |
| Item      1.                                       | Legal Proceedings                                                                                            | 14 |
|                                               |                                                                                                         |   |
| Item      1A.                                      | Risk Factors                                                                                                 | 14 |
|                                               |                                                                                                         |   |
| Item      4.                                       | Submission of Matters to a Vote of Security      Holders                                                     | 14 |
|                                               |                                                                                                         |   |
| Item      6.                                       | Exhibits and Reports on Form 8-K                                                                             | 14 |
|                                               |                                                                                                         |   |
| SIGNATURES                                         | 15                                                                                                           |

----

Table of Contents

PART I

----

Table of Contents

Item 1.  Financial Statements

ATRION CORPORATION AND SUBSIDIARIES

|                                             |   | Three      Months EndedJune 30,          |   |   | Six      Months EndedJune 30, |   |
|--------------------------------------------------|--------|-----------------------------------------------|--------|--------|------------------------------------|--------|
|                                             |   | 2008                                          |   |   | 2007                               |   |   | 2008 |   |   | 2007 |   |
|                                             |   | (in      thousands, except per share amounts) |   |
| Revenues                                         |   | $                                             | 24,242 |   |                               | $      | 23,199 |   |   | $ | 48,844 |   |   | $ | 46,237 |   |
| Cost      of goods sold                          |   |                                          | 13,137 |   |                               |   | 12,880 |   |   |   | 27,059 |   |   |   | 26,258 |   |
| Gross      profit                                |   |                                          | 11,105 |   |                               |   | 10,319 |   |   |   | 21,785 |   |   |   | 19,979 |   |
|                                             |   |                                          |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses:                         |   |                                          |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Selling                                          |   |                                          | 1,646  |   |                               |   | 1,672 |   |   |   | 3,345 |   |   |   | 3,323 |   |
| General      and administrative                  |   |                                          | 2,505  |   |                               |   | 2,471 |   |   |   | 5,245 |   |   |   | 5,088 |   |
| Research      and development                    |   |                                          | 823    |   |                               |   | 750 |   |   |   | 1,610 |   |   |   | 1,405 |   |
|                                             |   |                                          | 4,974  |   |                               |   | 4,893 |   |   |   | 10,200 |   |   |   | 9,816 |   |
| Operating      income                            |   |                                          | 6,131  |   |                               |   | 5,426 |   |   |   | 11,585 |   |   |   | 10,163 |   |
|                                             |   |                                          |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Other      income:                               |   |                                          |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                             |   |                                          | 49     |   |                               |   | 10 |   |   |   | 85 |   |   |   | 20 |   |
| Interest      expense                            |   |                                          | --     |   |                               |   | (77 | ) |   |   | -- |   |   |   | (218 | ) |
| Other      income (expense), net                 |   |                                          | 1      |   |                               |   | -- |   |   |   | 1 |   |   |   | -- |   |
|                                             |   |                                          | 50     |   |                               |   | (67 | ) |   |   | 86 |   |   |   | (198 | ) |
| Income      before provision for income taxes    |   |                                          | 6,181  |   |                               |   | 5,359 |   |   |   | 11,671 |   |   |   | 9,965 |   |
| Provision      for income taxes                  |   |                                          | (2,046 | )      |                               |   | (1,741 | ) |   |   | (3,880 | ) |   |   | (3,210 | ) |
|                                             |   |                                          |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                  |   | $                                             | 4,135  |   |                               | $      | 3,618 |   |   | $ | 7,791 |   |   | $ | 6,755 |   |
|                                             |   |                                          |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Income      per basic share                      |   | $                                             | 2.11   |   |                               | $      | 1.92 |   |   | $ | 4.00 |   |   | $ | 3.60 |   |
| Weighted      average basic shares outstanding   |   |                                          | 1,956  |   |                               |   | 1,883 |   |   |   | 1,946 |   |   |   | 1,878 |   |
|                                             |   |                                          |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Income      per diluted share                    |   | $                                             | 2.06   |   |                               | $      | 1.83 |   |   | $ | 3.89 |   |   | $ | 3.42 |   |
| Weighted      average diluted shares outstanding |   |                                          | 2,005  |   |                               |   | 1,978 |   |   |   | 2,004 |   |   |   | 1,977 |   |
|                                             |   |                                          |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Dividends      per common share                  |   | $                                             | 0.24   |   |                               | $      | 0.20 |   |   | $ | 0.48 |   |   | $ | 0.40 |   |

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Table of Contents

ATRION CORPORATION AND SUBSIDIARIES

|                                                                                              |   | June 30,                                 |    |   | December 31, |   |
|---------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|---------|--------|-------------------|--------|
| Assets                                                                                            |   | 2008                                          |    |   | 2007              |   |
|                                                                                              |   | (in      thousands, except per share amounts) |    |
| Current      assets:                                                                              |   |                                          |    |   |              |   |
| Cash      and cash equivalents                                                                    |   | $                                             | 7,803   |   |              | $      | 3,531 |   |
| Accounts      receivable                                                                          |   |                                          | 12,116  |   |              |   | 9,601 |   |
| Inventories                                                                                       |   |                                          | 20,231  |   |              |   | 17,387 |   |
| Prepaid      expenses                                                                             |   |                                          | 1,167   |   |              |   | 1,483 |   |
| Other                                                                                             |   |                                          | 607     |   |              |   | 607 |   |
|                                                                                              |   |                                          | 41,924  |   |              |   | 32,609 |   |
|                                                                                              |   |                                          |    |   |              |   |   |   |
|                                                                                              |   |                                          |    |   |              |   |   |   |
| Property,      plant and equipment                                                                |   |                                          | 92,819  |   |              |   | 89,736 |   |
| Less      accumulated depreciation and amortization                                               |   |                                          | 38,187  |   |              |   | 35,686 |   |
|                                                                                              |   |                                          | 54,632  |   |              |   | 54,050 |   |
|                                                                                              |   |                                          |    |   |              |   |   |   |
| Other      assets and deferred charges:                                                           |   |                                          |    |   |              |   |   |   |
| Patents                                                                                           |   |                                          | 1,853   |   |              |   | 2,011 |   |
| Goodwill                                                                                          |   |                                          | 9,730   |   |              |   | 9,730 |   |
| Other                                                                                             |   |                                          | 1,102   |   |              |   | 913 |   |
|                                                                                              |   |                                          | 12,685  |   |              |   | 12,654 |   |
|                                                                                              |   |                                          |    |   |              |   |   |   |
|                                                                                              |   | $                                             | 109,241 |   |              | $      | 99,313 |   |
|                                                                                              |   |                                          |    |   |              |   |   |   |
|                                                                                              |   |                                          |    |   |              |   |   |   |
| Liabilities and      Stockholders’ Equity                                                   |   |                                          |    |   |              |   |   |   |
| Current      liabilities:                                                                         |   |                                          |    |   |              |   |   |   |
| Accounts      payable and accrued liabilities                                                     |   | $                                             | 6,473   |   |              | $      | 6,349 |   |
| Accrued      income and other taxes                                                               |   |                                          | 1,862   |   |              |   | 515 |   |
|                                                                                              |   |                                          | 8,335   |   |              |   | 6,864 |   |
|                                                                                              |   |                                          |    |   |              |   |   |   |
| Line      of credit                                                                               |   |                                          | --      |   |              |   | -- |   |
|                                                                                              |   |                                          |    |   |              |   |   |   |
| Other      non-current liabilities                                                                |   |                                          | 7,150   |   |              |   | 7,007 |   |
|                                                                                              |   |                                          |    |   |              |   |   |   |
| Stockholders’      equity:                                                                  |   |                                          |    |   |              |   |   |   |
| Common      shares, par value $0.10 per share; authorized 10,000 shares, issued 3,420      shares |   |                                          | 342     |   |              |   | 342 |   |
| Paid-in      capital                                                                              |   |                                          | 18,674  |   |              |   | 15,790 |   |
| Accumulated      other comprehensive loss                                                         |   |                                          | (486    | )      |              |   | (486 | ) |
| Retained      earnings                                                                            |   |                                          | 110,865 |   |              |   | 104,021 |   |
| Treasury      shares,1,453 at June 30, 2008 and 1,509 at December 31, 2007, at      cost          |   |                                          | (35,639 | )      |              |   | (34,225 | ) |
| Total      stockholders’ equity                                                             |   |                                          | 93,756  |   |              |   | 85,442 |   |
|                                                                                              |   |                                          |    |   |              |   |   |   |
|                                                                                              |   |                                          |    |   |              |   |   |   |
|                                                                                              |   | $                                             | 109,241 |   |              | $      | 99,313 |   |

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Table of Contents

ATRION CORPORATION AND SUBSIDIARIES

|                                                                                        |   | Six      months EndedJune 30, |   |
|---------------------------------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                                                        |   | 2008                               |   |   | 2007 |   |
|                                                                                        |   | (In      thousands)                |   |
| Cash      flows from operating activities:                                                  |   |                               |   |   |   |   |
| Net      income                                                                             |   | $                                  | 7,791  |   |   | $ | 6,755 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities: |   |                               |   |   |   |   |   |   |
| Depreciation      and amortization                                                          |   |                               | 3,054  |   |   |   | 2,637 |   |
| Deferred      income taxes                                                                  |   |                               | 242    |   |   |   | 333 |   |
| Stock-based      compensation                                                               |   |                               | 327    |   |   |   | 131 |   |
| Other                                                                                       |   |                               | 37     |   |   |   | 35 |   |
|                                                                                        |   |                               | 11,451 |   |   |   | 9,891 |   |
|                                                                                        |   |                               |   |   |   |   |   |   |
| Changes      in operating assets and liabilities:                                           |   |                               |   |   |   |   |   |   |
| Accounts      receivable                                                                    |   |                               | (2,515 | ) |   |   | (1,026 | ) |
| Inventories                                                                                 |   |                               | (2,844 | ) |   |   | 140 |   |
| Prepaid      expenses                                                                       |   |                               | 316    |   |   |   | 303 |   |
| Other      non-current assets                                                               |   |                               | (189   | ) |   |   | (35 | ) |
| Accounts      payable and current liabilities                                               |   |                               | 125    |   |   |   | 294 |   |
| Accrued      income and other taxes                                                         |   |                               | 1,347  |   |   |   | 572 |   |
| Other      non-current liabilities                                                          |   |                               | (98    | ) |   |   | 118 |   |
|                                                                                        |   |                               | 7,593  |   |   |   | 10,257 |   |
|                                                                                        |   |                               |   |   |   |   |   |   |
| Cash      flows from investing activities:                                                  |   |                               |   |   |   |   |   |   |
| Property,      plant and equipment additions                                                |   |                               | (3,515 | ) |   |   | (3,758 | ) |
|                                                                                        |   |                               |   |   |   |   |   |   |
| Cash      flows from financing activities:                                                  |   |                               |   |   |   |   |   |   |
| Line      of credit advances                                                                |   |                               | --     |   |   |   | 13,826 |   |
| Line      of credit repayments                                                              |   |                               | --     |   |   |   | (20,525 | ) |
| Exercise      of stock options                                                              |   |                               | 525    |   |   |   | 499 |   |
| Shares      tendered for employees’ taxes on stock option exercises                   |   |                               | (870   | ) |   |   | (47 | ) |
| Tax      benefit related to stock options                                                   |   |                               | 1,481  |   |   |   | 456 |   |
| Dividends      paid                                                                         |   |                               | (942   | ) |   |   | (756 | ) |
|                                                                                        |   |                               | 194    |   |   |   | (6,547 | ) |
|                                                                                        |   |                               |   |   |   |   |   |   |
| Net      change in cash and cash equivalents                                                |   |                               | 4,272  |   |   |   | (48 | ) |
| Cash      and cash equivalents at beginning of period                                       |   |                               | 3,531  |   |   |   | 333 |   |
| Cash      and cash equivalents at end of period                                             |   | $                                  | 7,803  |   |   | $ | 285 |   |
|                                                                                        |   |                               |   |   |   |   |   |   |
|                                                                                        |   |                               |   |   |   |   |   |   |
| Cash      paid for:                                                                         |   |                               |   |   |   |   |   |   |
| Interest      (net of capitalization)                                                       |   | $                                  | --     |   |   | $ | 258 |   |
| Income      taxes                                                                           |   | $                                  | 261    |   |   | $ | 1,220 |   |

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Table of Contents

ATRION CORPORATION AND SUBSIDIARIES

| (1) | Basis      of Presentation |
|-----|----------------------------|

| (2) | Inventories |
|-----|-------------|

|                   |   | June 30,2008 |   |   | December 31,2007 |   |
|------------------------|--------|-------------------|--------|--------|-----------------------|--------|
| Raw      materials     |   | $                 | 8,384  |   |                  | $      | 7,452 |   |
| Work      in process   |   |              | 5,378  |   |                  |   | 4,513 |   |
| Finished      goods    |   |              | 6,469  |   |                  |   | 5,422 |   |
| Total      inventories |   | $                 | 20,231 |   |                  | $      | 17,387 |   |

| (3) | Income      per share |
|-----|-----------------------|

| (1)                                                |   | Three      months endedJune 30,          |   |   | Six      months endedJune 30, |   |
|----------------------------------------------------|--------|-----------------------------------------------|--------|--------|------------------------------------|--------|
| (2)                                                |   | 2008                                          |   |   | 2007                               |   |   | 2008 |   |   | 2007 |   |
| (3)                                                |   | (in      thousands, except per share amounts) |   |
| Net      income                                    |   | $                                             | 4,135  |   |                               | $      | 3,618 |   |   | $ | 7,791 |   |   | $ | 6,755 |   |
|                                               |   |                                          |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average basic shares outstanding     |   |                                          | 1,956  |   |                               |   | 1,883 |   |   |   | 1,946 |   |   |   | 1,878 |   |
| Add:  Effect      of dilutive securities |   |                                          | 49     |   |                               |   | 95 |   |   |   | 58 |   |   |   | 99 |   |
| Weighted      average diluted shares outstanding   |   |                                          | 2,005  |   |                               |   | 1,978 |   |   |   | 2,004 |   |   |   | 1,977 |   |
|                                               |   |                                          |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      per share:                           |   |                                          |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                              |   | $                                             | 2.11   |   |                               | $      | 1.92 |   |   | $ | 4.00 |   |   | $ | 3.60 |   |
| Diluted                                            |   | $                                             | 2.06   |   |                               | $      | 1.83 |   |   | $ | 3.89 |   |   | $ | 3.42 |   |

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Table of Contents

| (4) | Pension      Benefits |
|-----|-----------------------|

|                                 |   | Three      Months endedJune 30, |   |   | Six      Months endedJune 30, |   |
|--------------------------------------|--------|--------------------------------------|--------|--------|------------------------------------|--------|
|                                 |   | 2008                                 |   |   | 2007                               |   |   | 2008 |   |   | 2007 |   |
| Service      cost                    |   | $                                    | --     |   |                               | $      | 65 |   |   | $ | -- |   |   | $ | 130 |   |
| Interest      cost                   |   |                                 | 56     |   |                               |   | 80 |   |   |   | 112 |   |   |   | 160 |   |
| Expected      return on assets       |   |                                 | (55    | )      |                               |   | (123 | ) |   |   | (110 | ) |   |   | (246 | ) |
| Prior      service cost amortization |   |                                 | --     |   |                               |   | (9 | ) |   |   | -- |   |   |   | (18 | ) |
| Actuarial      loss                  |   |                                 | 8      |   |                               |   | 15 |   |   |   | 16 |   |   |   | 30 |   |
|                                 |   |                                 |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Net      periodic pension cost       |   | $                                    | 9      |   |                               | $      | 28 |   |   | $ | 18 |   |   | $ | 56 |   |

| (5) | Recent      Accounting Pronouncements |
|-----|---------------------------------------|

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Table of Contents

| Item 2. | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations |
|---------|-------------------------------------------------------------------------------------------------------|

|   | · | Focusing      on customer needs; |
|--------|--------|----------------------------------|

|   | · | Expanding      existing product lines and developing new  products; |
|--------|--------|---------------------------------------------------------------------|

|   | · | Maintaining      a culture of controlling cost; and |
|--------|--------|-----------------------------------------------------|

|   | · | Preserving      and fostering a collaborative, entrepreneurial management      structure. |
|--------|--------|-------------------------------------------------------------------------------------------|

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Table of Contents

|                |   | Three      Months endedJune 30, |   |
|---------------------|--------|--------------------------------------|--------|
|                |   | 2008                                 |   |   | 2007 |   |
|                |   |                                 |   |   |   |   |
| Fluid      Delivery |   | $                                    | 8,648  |   |   | $ | 7,533 |   |
| Cardiovascular      |   |                                 | 7,116  |   |   |   | 6,009 |   |
| Ophthalmology       |   |                                 | 3,588  |   |   |   | 4,863 |   |
| Other               |   |                                 | 4,890  |   |   |   | 4,794 |   |
| Total               |   | $                                    | 24,242 |   |   | $ | 23,199 |   |

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Table of Contents

|                |   | Six      Months endedJune 30, |   |
|---------------------|--------|------------------------------------|--------|
|                |   | 2008                               |   |   | 2007 |   |
|                |   |                               |   |   |   |   |
| Fluid      Delivery |   | $                                  | 16,896 |   |   | $ | 14,747 |   |
| Cardiovascular      |   |                               | 14,584 |   |   |   | 12,061 |   |
| Ophthalmology       |   |                               | 7,368  |   |   |   | 9,517 |   |
| Other               |   |                               | 9,996  |   |   |   | 9,912 |   |
| Total               |   | $                                  | 48,844 |   |   | $ | 46,237 |   |

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Table of Contents

| Item 3. | Quantitative      and Qualitative Disclosures About MarketRisk |
|---------|----------------------------------------------------------------|

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Table of Contents

| Item 4. | Controls      and Procedures |
|---------|------------------------------|

----

Table of Contents

PART II

| Item 1. | Legal      Proceedings |
|---------|------------------------|

| Item 1A. | Risk      Factors |
|----------|-------------------|

| Item 4. | Submission      of Matters to a Vote of SecurityHolders |
|---------|---------------------------------------------------------|

| Nominee                       | Votes      For | Votes      Withheld |
|-------------------------------|----------------|---------------------|
| Emile A. Battat     | 1,716,449      | 58,975              |
| Ronald N. Spaulding | 1,366,343      | 409,081             |

| Item 6. | Exhibits      and Reports on Form 8-K |
|---------|---------------------------------------|

| (a)    | Exhibits                 |
|--------|--------------------------|
|   |                     |   |
|   | 10.1                     | 2006      Equity Incentive Plan (As last amended on May 9, 2008) |
|   |                     |   |
|   | 31.1                     | Sarbanes-Oxley      Act Section 302 Certification of Chief ExecutiveOfficer |
|   |                     |   |
|   | 31.2                     | Sarbanes-Oxley      Act Section 302 Certification of Chief FinancialOfficer |
|   |                     |   |
|   | 32.1                     | Certification      Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 of      The Sarbanes – Oxley Act Of 2002 |
|   |                     |   |
|   | 32.2                     | Certification      Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 of      The Sarbanes – Oxley Act Of 2002 |
|   |                     |   |
| (b)    | Reports      on Form 8-K |

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SIGNATURES

| Date:  August      8, 2008 | /s/ Emile A. Battat |
|--------------------------------------|-------------------------------|
|                                 | Emile A. Battat     |
|                                 | Chairman      and             |
|                                 | Chief      Executive Officer  |
|                                 |                          |
|                                 |                          |
| Date:  August      8, 2008 | /s/ Jeffery Strickland        |
|                                 | Jeffery      Strickland       |
|                                 | Vice      President and       |
|                                 | Chief      Financial Officer  |

----