ABOUT OUR COMPANY
                              
ZEVEX ZEVEX International, through its wholly owned
subsidiary, ZEVEX Incorporated, International manufactures
and markets niche products using ultrasound technology and
sophisticated electronic components.

ZEVEX' s core business is the design and manufacture
ofmarkets ultrasonic sensor components embodying ultrasound
technology forto Original Equipment Manufacturers (OEM's),
who incorporate our components into their products.  In
recent years, the Company ZEVEX has opened new markets
evolved to become a manufacturer by introducing its first
proprietary product, the BottleWatchr.  Our company is
further expanding its market potential with the development
of new proprietary products and complete electronic
instruments for sale under private label.

The ZEVEX's growth strategy of the Company includes
expanding our OEM business and increasing sales of our
proprietary products expansion.  ZEVEX is committed to
growing its business by sales of proprietary ZEVEX products.
ZEVEX  is committed to grow its business by aligning our
goals with the needs of our customers in the following ways:
in the following ways:

     -growing the baseIntroducing innovative proprietary
          products for niche applications.
     -Producing new component products and private-label
          instruments.

     -Achieving further market penetration with our
          company's existing OEM products.

ZEVEX's products are currently sold directly and through
distributors to customers worldwide.  Our  The Company's
headquarters and 18,000-square foot manufacturing facility
are located at 5175 Greenpine Drive, Salt Lake City, Utah.

The common stock of ZEVEX is traded in Over the Counter
(OTC) markets under the symbols ZVXI and ZVXIU.

U.

                   REVENUES1995 HIGHLIGHTS
                              
                              
ZEVEX achieved excellent sales results for fiscal year 1995.
During 1995 revenues soared 59% to a record $5,295,762,
versus revenues of $3,332,437 for 1994.


Net ZEVEX achieved excellent results for fiscal year 1995 --
the best in the company's nine year history.  We enjoyed a
phenomenal 60% increase in revenues on record earnings of
 . Net income was up to $316,800, compared to a net loss of
$24,662 in 1994.  Net income per share rose to $0.24 over a
net loss of $0.02 per share in 1994was up               .
Earnings per share increased        .
                       1995 HIGHLIGHTS
PATENTING INNOVATION
Nineteen ninety-five was a year of triumphant firsts for
ZEVEX. Our company filed six patent applications in 1995,
and was awarded the first of those patents for its
BottleWatchr sensing technology .  ZEVEX has five patents
pending for future products.
INTRODUCING NEW PRODUCTS
In 1995, ZEVEX discovered the trials and the rewards of
bringing our first proprietary product to market.   ZEVEX
successfully launched the production version of
BottleWatchr, a non-invasive liquid level indicator used
with bottles of irrigating solution during cataract
surgery..
The patented technology of BottleWatchr enjoys a unique
sales position as the only product of its kind in  a
worldwide an international market.  BottleWatchr, which has
been well-received by the market, generated tremendous
enthusiasm at the American Academy of Ophthalmology and the
European Society for Cataract and Refractive Surgery trade
shows in 1995.  Exclusive distribution agreements for
ZEVEX's BottleWatchr have been established with dealers in


Western Europe, Japan, and Australia.  We expect sales of
BottleWatchr to increase significantly with product
awareness in 1996.

STREAMLINING DESIGN EFFICIENCIES

This last year has seen us make In 1995, ZEVEX made great
strides in refining and streamlining our design and
production processes to to accommodate a doubling of ZEVEX's
production demands.  We have realized the need to streamline
our technical efforts, placing special emphasis on the
importance of the initial design and validation stages to
speed up production, and get our products to market
fasteraccelerate project development time from prototype to
market-ready product.  For example, ZEVEXX's introducedtion
of 3-D CAD (three-dimensional  Computer Aided Design)
technology to its design group to facilitates the rapid
creation of a working prototype directly from our files
through a process called stereo-lithography.  IThe
introducingtion of CAD technology allows us to get our
products to market faster and more economically, because we
can assess a working model before investing in production
tooling.  ZEVEX will continue to introduce strategic
technology, like 3-D CAD, to its design group where such
investments will clearly contribute to our bottom line.
ZEVEX will continue to introduce strategic technology, like
3D CAD, to its design group where such investments will
clearly contribute to our bottom line.


EMPHASIZING SKILLED MANUFACTURING

In manufacturing during 1995, we emphasized the acquisition
and training of a more skilled workforce as an investment in
longterm efficiency.  We also increased the size of our
physical plant by over 4,000 square feet to accomodate
increased production demands.  In 1996 we will further
enhance training programs.  In addition, over the next year,
we will concentrate on upgrading our equipment and
facilities to keep up with rapid production growth while
enhancing speed and accuracy.  As the leaders of progress at
ZEVEX, management will use master
scheduling and planning to capitalize on our top-notch
production force.  ZEVEX's concentration on planning and
building from within will allow us to realize the fullest
potential of our resources -- both economic and human.
Our success in 1995 illustrated the benefits of harmonizing
the interests of our customers, our vendors, and our
employees to foster a strong and highly effective
manufacturing team.  In 1996 we are poised to team even
better with our vendors to ensure the consistency and
reliability of supplies necessary to meet our dramatically
increased production demands.



LOOKING TOWARD 1996

Our success in 1995 illustrated the benfits of harmonizing
the interests of our customers, our vendors, and our
employees to foster a strong and highly effective
manufacturing team.  In 1996 we are poised to team even
better with our vendors to ensure the consistency and
reliability of supplies necessary to meet our dramatically
increased production demands.

ZEVEX's growth in 1995 facilitates our company's
diversification in the new  year.  In 1996 we will continue
to grow and nurture our established customer base
relationships.  Simultaneously, we will focus on the
introduction and production of innovative proprietary
products to expand and diversify our revenue base sources.
In 1996 we will strive to improve the margins on our current
products through measures already introduced to streamline
design and increase production efficiencies.

In the new year, wWe will continue to direct our
energiesengergies toward the growth of our resources, our
revenues and our people. (ZEVEX's most important assets).
We will continue to be competitive with larger companies by
tapping the depth of our unique and multi-talented team at
ZEVEX.  We know our company is only as successful as the
many dedicated individuals making it run.leaders of
innovation in a competitive industry.


Every employee at ZEVEX is committed to our company's and
our customers' success.  Nineteen ninety-five has shown us
that we can deliver an outstanding products to an eager
markets, and 1996 looks even brighter.  ZEVEX is on the
threshold of phenomenal growth.  We are proud of the
accomplishments of our employees as the life force of our
company, and we are grateful to our shareholders for their
continued support and confidence in our future.  Nineteen
ninety-six promises once again to reward that confidence.



                      ZEVEX'S PRODUCTS
                              
Ultrasonic air bubble detectors are noninvasive sensors that
are used to detect air bubbles in solutions flowing through
intravenous fluid lines.  These devices, which employ our
company's proprietary ultrasound technology, are used to
prevent the infusion of air into the bloodstreams of
patients connected to blood collection systems, drug
infusion pumps, hemodialysis machines and cardiopulmonary
bypass systems.

Ultrasonic liquid level detectors employ ultrasound to
detect liquid volumes, or simply the presence of liquids,
within a
vessel.  Our company has patented its noninvasive sensor
technology, which provides efficient transmission of
ultrasonic energy in the absence of a viscous coupling
medium, such as gel. Liquid level detectors are presently
employed in medical applications, which include blood level
monitoring in reservoirs of cardiopulmonary bypass systems.
Ultrasonic phacoemulsification handpieces, drive circuits
and instruments are employed in ophthalmic surgery for the
removal of cataracts.  Ultrasonic phacoemulsification refers
to an outpatient procedure whereby ultrasonic energy is
harnessed to fragment cataract tissue while an irrigating
solution emulsifies the material for removal via aspiration.
Our company produces handpieces, drive circuits, and
complete instruments under private label, which are in turn
used by ophthalmologists to perform cataract surgery.
BottleWatchr liquid level indicators noninvasively monitor
liquid levels  in  bottles  of  balanced salt  solution
that  are  used extensively  in  cataract  and retinal
surgery.   Balanced  salt solution   is  required  to
nourish  and  support  the  delicate structures  of  the eye
during ocular surgery, the  depletion  of which  can
complicate surgery, or, in the worst  case,  lead  to
irreparable  damage of the patient's eye.  When the liquid
level drops  below  the  user-specified position of  the
BottleWatchr, audible and visible alarms immediately
activate.  BottleWatchr is the  first  proprietary  product
to be trademarked  and  marketed under the ZEVEX name, and
worldwide distribution was successfully established
during                      1995.
        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
               CONDITION AND RESULTS OF OPERATIONS
               
General

ZEVEX's sales results for 1995 were the strongest in our
company's history.  Revenues increased 59%, from $3,332,437
in 1994 to $5,295,762 in 1995.  Management attributes
increased sales in 1995 to an aggressive marketing operation
that emphasized unsurpassed customer service and increased
product visibility, both nationally and internationally.

In 1996, management plans to continue our successful
marketing practices.  In addition, we will enhance sales by
developing and introducing new products for specialized
applications in medicine and industry.  We will align our
development of new products with the needs of our customers
through strategic alliances with our customers and our
vendors.  Management intends to open new and expand existing
markets for our proprietary products by anticipating needed
technology, achieving high-visibility and maintaining a
reputation for quality.

In the past, ZEVEX has experienced variations in operating
results from quarter to quarter due to fluctuations in the
timing and size of orders from major OEM customers.
Management believes that increased demand for ZEVEX's
proprietary products will offset such modulations of our
company's quarterly results in the future.




ZEVEX's gross profit as a percentage of sales was 42.1% in
1995, as compared to 39.5% in 1994.  Management attributes
the increase to product mix and management's concentration
on improving
manufacturing efficiencies.

During 1995, ZEVEX's general and administrative expenses
increased to $1,324,749 or 25.0% of gross sales as opposed
to $1,023,988 or 30.7% of gross sales in 1994.  The
increased expenses resulted from our company's expansion of
its physical facilities, which in turn increased rental,
utility and related expenses.  Our company also increased
overhead when it improved customer service by expanding its
sales, marketing and customer service staff.  In addition,
certain administrative costs were associated with our
company's establishment of more extensive internal
production and management controls, and improved quality
assurance procedures and documentation.  Our company also
had an increase in legal expenses associated with patent and
trademank costs as well as increases in employee-related
expenses such as insurance, taxation and pension benefits.
Management anticipates that general and administrative
expenses in 1996 will continue at approximately the same
rate as in the previous year.

In 1995, ZEVEX continued research and development
activities, independent of engineering conducted on behalf
of its customers, in an effort to develop new company owned
technologies and products in areas where management
perceived a demand.  Our company invested $502,255 in 1995
and $419,278 in 1994 directly in new research and
development projects.  Management remains committed to
aggressive research and development activities and
anticipates an investment of $500,000 in 1996.

Operating income increased to $905,460, or 17.1% of gross
sales, in 1995, from $291,780, or 8.8% of gross sales, in
1994. Similarly, ZEVEX earned a net income of $316,800, or
6.0% of gross sales, in 1995, compared to a net loss of
$24,622, or (.7)% of gross sales, in 1994.  These increases
during 1995 as compared to 1994 are principally due to
ZEVEX's product mix delivered during the year.

Liquidity and Capital Resources

During 1995, the $316,800 net income from operating
activities created net cash of $214,361 as our company
funded an increase in accounts receivable, inventories and
work in process for future sale.  Operating activities
during 1994 used net cash of $461,721 as ZEVEX funded an
increase in accounts receivable and inventories.

ZEVEX's purchases of new research, production, testing
equipment and tooling increased to $237,331 in 1995 from
$136,744 in 1994. The increase in purchases of equipment is
primarily due to upgrading our company's production
fixturing, tooling and research and engineering capabilities
in 1995.  Our company expects to spend approximately
$240,000 in 1996 for additional manufacturing equipment as
well as for normal replacement of obsolete equipment.


Financing activities used nominal amounts of cash during
each of the preceding three years for interest on long-term
indebtedness.

Our company's working capital at December 31, 1995, was
$2,528,418, as compared to $2,269,944 and $2,304,984 at
December 31, 1994 and 1993 respectively.  The portion of
working capital represented by cash at such dates was
$870,333, $864,332 and $1,462,979 respectively.  Our company
utilizes substantial portions of its cash from time to time
to fund its operations including increases in inventories,
accounts receivable and work in process in connection with
various customer orders. Management
anticipates that ZEVEX's current working capital will meet
our company's working capital requirements for current sales
volumes.
Inflation and Changing Prices
Our company has not been, and in the near term is not
expected to be, materially affected by inflation or changing
prices.
                  SHAREHOLDER'S INFORMATION
                              
                              
CORPORATE ADDRESS                  TRANSFER AGENT
5175 Greenpine Drive               Colonial Stock Transfer
Salt Lake City, Utah 84123         440 East 400 South, Suite
100
Telephone: (801) 264-1001          Salt Lake City, Utah
84111
FAX: (801) 264-1051
                                   INDEPENDENT AUDITORS
FORM 10K                           Nielsen, Grimmett and
Company
Available from our company         175 East 400 South, Suite
600
upon request.                      Salt Lake City, Utah
84111

ANNUAL MEETING
The Annual Meeting of ZEVEX
stockholders will be held on
April 18, 1996


                 PRICE RANGE OF COMMON STOCK
                              
The common stock shares and units of ZEVEX International,
Inc. are traded on the OTC (Over-the-Counter) Bulletin Board
and listed on the OTC pink sheets under ZVXI and ZVXIU.

                    High Bid  High Bid   Low Bid   Low Bid
                     Common     Units    Common     Units
Fiscal Year 1994
    First Quarter     $4.50     $4.75     $3.75     $4.00
    Second Quarter    $3.75     $4.00     $2.75     $3.00
    Third Quarter     $3.25     $3.25     $2.50     $2.50
    Fourth Quarter    $3.25     $3.25     $2.00     $2.00

Fiscal Year 1995
    First Quarter     $3.75     $3.75     $2.50     $2.50
    Second Quarter    $4.00     $4.00     $2.75     $2.75
    Third Quarter     $3.25     $3.50     $2.25     $2.25
    Fourth Quarter    $4.00     $4.25     $3.25     $3.20


On March 18, 1994, ZEVEX warrants began trading on the OTC
Bulletin Board System.

As of February 12, 1996, our company had 580 shareholders of
record, including shares held of record by brokerage houses
and clearing corporations on behalf of their customers.