EXHIBIT 99.1

RISK FACTORS

AN INVESTMENT IN POSSIS MEDICAL, INC.'S COMMON STOCK INVOLVES A NUMBER OF RISKS.
YOU SHOULD CONSIDER CAREFULLY THE FOLLOWING RISK FACTORS, TOGETHER WITH THE
OTHER INFORMATION IN THIS 10-K, BEFORE BUYING ANY SHARES. YOU ALSO SHOULD BE
AWARE THAT THIS FILING CONTAINS FORWARD-LOOKING STATEMENTS THAT ARE NOT RELATED
TO HISTORICAL RESULTS. THESE FORWARD-LOOKING STATEMENTS, SUCH AS STATEMENTS
CONCERNING OUR STRATEGIES, PLANS, OBJECTIVES, EXPECTATIONS AND INTENTIONS,
INVOLVE RISKS AND UNCERTAINTIES. OUR ACTUAL RESULTS COULD DIFFER MATERIALLY FROM
THOSE ANTICIPATED IN THESE FORWARD-LOOKING STATEMENTS. FACTORS THAT COULD CAUSE
OR CONTRIBUTE TO SUCH DIFFERENCES INCLUDE, BUT ARE NOT LIMITED TO, THE FOLLOWING
RISK FACTORS.

WE HAVE HAD A HISTORY OF OPERATING LOSSES AND LIMITED HISTORY OF PROFITABLE
OPERATIONS.

As of July 31, 2004, we had accumulated a deficit of $18.0 million.

We became profitable on a quarterly basis in the third quarter of fiscal 2001
and earned a profit for the fiscal years 2004, 2003, and 2002, respectively. To
maintain profitability, we must continue to achieve significant sales in the
United States. We must convince health care professionals, third-party payors
and the general public of the medical and economic benefits of the AngioJet(R)
Rheolytic(TM) Thrombectomy System. We cannot assure you that we will succeed in
marketing this product and continue to achieve significant sales. Even if we
accomplish this goal, we cannot assure you that we will operate profitably on a
consistent basis.

OUR PRODUCTS ARE SUBJECT TO EXTENSIVE GOVERNMENTAL REGULATION.

Our products and manufacturing activities are subject to extensive and rigorous
federal and state regulation in the United States and various regulatory
requirements in other countries, including Japan. Current United States Food and
Drug Administration (FDA) enforcement policy strictly prohibits the marketing of
approved medical devices for unapproved uses. Therefore, even if our products
receive regulatory approval, regulators may significantly limit the uses for
which our products may be marketed. In addition, the process of obtaining and
maintaining required regulatory approvals can be lengthy and expensive, and the
outcome of the process can be uncertain. Moreover, regulatory approvals may be
withdrawn if we fail to comply with regulatory standards or if unforeseen
problems arise following the initial marketing of a product.

Additionally, we are required to adhere to Quality System Regulations
promulgated by the FDA relating to product design, development, manufacturing,
servicing, testing and documentation. Failure to comply with applicable Quality
System Regulations or other regulatory requirements may result in fines, delays
or suspensions of approvals, injunctions against further distribution of our
products, seizures or recalls of products, operating restrictions, criminal
prosecutions or other sanctions, in addition to adverse publicity. The adoption
of new regulations or changes in existing regulations could prevent us from
obtaining, or affect the timing of, future regulatory approvals and could
adversely affect the marketing of our existing products. We cannot assure you
that we will be able to obtain necessary regulatory approvals on a timely basis
or at all. Delays in our receipt of or failure to receive regulatory approvals,
the loss of previously received approvals or our failure to comply with
regulatory requirements would have a material adverse effect on our business,
financial condition and results of operations.



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WE ARE A ONE PRODUCT/SINGLE PRODUCT-LINE COMPANY.

We have focused our resources on the continued development and refinement of our
AngioJet System. If we fail to obtain additional regulatory approvals, a new
competitor emerges or the medical community rejects the use of the AngioJet
System for multiple purposes, our business, financial condition and results of
operations would be materially and adversely affected.

WE HAVE ONLY ONE MANUFACTURING FACILITY.

We manufacture all of our AngioJet System products at our manufacturing facility
in Minneapolis, Minnesota. If this facility was to be destroyed, shut down or
unable to be used for its intended purpose the Company would not be able to
manufacture the AngioJet System products until a replacement facility was found.
In addition, the equipment of which some is uniquely designed to produce
AngioJet System product would also have to be replaced. Once the manufacturing
facility and equipment were replaced the manufacturing operations would have to
be revalidated prior to production of human use product could start. The
replacement of the manufacturing facility and equipment and the revalidation of
the facilities could take several months before manufacturing operations could
restart. The result of the manufacturing facility being unable to be used for
its intended purpose and any delay in the process of producing product for human
use would have a material adverse effect on our business, financial condition
and results of operations.


THE INDUSTRY IN WHICH WE COMPETE IS CHARACTERIZED BY RAPID TECHNOLOGICAL CHANGE
AND INTENSE COMPETITION.

The medical products market is characterized by rapidly evolving technology and
intense competition. Our future success depends on our ability to keep pace with
advancing technology and competitive innovations. Potential competitors have
developed or are in the process of developing technologies that are, or in the
future may be, the basis for competitive products, some of which may accomplish
desired therapeutic effects through entirely different methods than the products
we are developing.

We believe our AngioJet System will face intense competition from a variety of
treatments for the removal of blood clots, including clot-dissolving
(thrombolytic) drug therapies, surgical intervention, balloon embolectomy,
mechanical and laser thrombectomy devices, ultrasound ablators, and other
thrombectomy devices based on waterjet systems that are currently being
developed by other companies.

Many of the companies developing competing devices have substantially greater
capital and substantially greater resources for and experience in research and
development, regulatory matters, manufacturing and marketing than we have. These
companies will be serious competitors for us and may succeed in developing
products that are more effective and/or less costly than the AngioJet System.
Furthermore, these companies may be more successful than we are in manufacturing
and marketing their products. Our competitors or others may develop
technologies, products or procedures that are more effective than any we are
developing or that may render our technology and products obsolete or
noncompetitive. The advent of new devices, procedures or new pharmaceutical
agents could hinder our ability to compete effectively and could have a material
adverse effect on our business, financial condition and results of operations.

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OUR SUCCESS DEPENDS ON OUR ABILITY TO MAINTAIN PATENTS AND OTHER PROPRIETARY
RIGHTS.

Our success depends and will continue to depend in part on our ability to
maintain patent protection for our products and processes, to preserve our trade
secrets and to operate without infringing the proprietary rights of third
parties. We attempt to protect our technology by filing patent applications for
technology that we consider important to the development of our business, among
other measures described below. We currently hold 19 United States and ten
foreign patents relating to the AngioJet System, and we have 21 United States
and 23 foreign patent applications pending relating to the AngioJet System.
Claims relating to medical technology patents involve complex legal and factual
questions. Therefore, their outcomes are highly uncertain. We cannot assure you
that our pending applications will result in patents being issued to us or that
either our new patents or our existing patents will give us a competitive
advantage. Moreover, our competitors may design around any patents issued to us,
third parties may receive patent protection on their own waterjet devices, and
others may hold or receive patents containing claims that may cover products
developed by us.

We require all our employees to execute non-disclosure agreements when they join
Possis Medical, Inc. These agreements generally provide that all confidential
information developed or made known to the employee by us during the course of
his or her employment with Possis Medical, Inc. must be kept confidential and
not disclosed to third parties. We cannot assure you, however, that these
non-disclosure agreements and other safeguards will protect our proprietary
information and know-how, or that they will provide us adequate remedies in the
event of unauthorized use or disclosure of confidential information. We also
cannot assure you that others will be unable to develop such information
independently.

We also rely on unpatented proprietary technology and trade secrets that we seek
to protect in part through confidentiality agreements with employees and other
parties. We cannot assure you that the employees and other parties will comply
with these agreements, that we will have adequate remedies for any breach or
that we can meaningfully protect our rights to unpatented proprietary technology
in any other way. We also cannot assure you that others will be unable
independently to develop or otherwise acquire substantially equivalent
proprietary technology and trade secrets, or that they will keep the technology
secret. The disclosure of this type of information could have a material adverse
effect on our business, financial condition and results of operations.

The medical device industry has seen much litigation with respect to patent and
other intellectual property rights. Litigation may be necessary for us to
enforce our patents, to protect our trade secrets and know-how, to defend
against claimed infringement of others' rights or to determine the ownership,
scope or validity of the proprietary rights of Possis Medical, Inc. and others.
However, litigation also could be extremely costly to us and could divert our
resources and efforts away from our products and day-to-day business matters. If
the litigation had an adverse outcome, it could subject us to substantial
liabilities to third parties, require us to seek licenses from third parties and
prevent us from manufacturing, selling or using our products. Any of these
results could have a material adverse effect on our business, financial
condition and results of operations.

ACCEPTANCE OF OUR PRODUCTS AND OUR PROFITS MAY BE LIMITED BY CHANGES IN
THIRD-PARTY REIMBURSEMENTS.

Health care providers (such as hospitals and physicians) that purchase medical
devices like the AngioJet System for the treatment of patients generally rely on
third-party payors like Medicare, Medicaid and private insurance plans to
reimburse all or part of the costs associated with the health care services they
provide. In certain foreign markets, the pricing of and profits generated by
health care products are subject to government control. In some states, Medicare
and Medicaid payors reimburse hospitals for inpatient medical procedures at a
pre-determined rate based on diagnosis-related groups. Currently, we do not
believe that U.S. reimbursement rates are a material impediment to adoption of
our therapy. If these rates do not include, and third-party payors do not
otherwise provide, adequate reimbursement to health care providers for the cost
of our products, our products will not gain wide market acceptance and our
financial results will suffer.



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The Health Care Financing Administration (HCFA) is the federal agency
responsible for administering the Medicare system. HCFA has prohibited Medicare
from paying for certain new procedures that are still under investigation or
that are not deemed safe and effective for the condition being treated.
Therefore, even if a device has FDA approval, Medicare payors may deny
reimbursement if they conclude that the device is experimental or that it will
not improve the condition being treated.

The market for our products also could be adversely affected by future
legislation to reform the nation's health care system or by changes in industry
practices regarding reimbursement. We cannot assure you that the reimbursement
rates of third-party payors will allow us to price our products at levels
sufficient to realize an appropriate return on our investment in product
development.


WE DEPEND ON KEY PERSONNEL.

We depend greatly on a limited number of key management and technical personnel.
Moreover, because of the highly technical nature of our business, our ability to
continue our technological developments and to market our products--and thereby
develop a competitive edge in the marketplace--depends in large part on our
ability to attract and retain qualified technical and key management personnel.
Competition for qualified personnel is intense, and we cannot assure you that we
will be able to attract and retain the individuals we need. The loss of key
personnel, or our inability to hire or retain qualified personnel, could have a
material adverse effect on our business, financial condition and results of
operations.

WE MAY BE SUBJECT TO PRODUCT LIABILITY CLAIMS, FOR WHICH INSURANCE COVERAGE MAY
BE INSUFFICIENT.

The manufacture and sale of our products may subject us to product liability
claims. The United States Supreme Court has held that, despite a company's
compliance with FDA regulations, it may not be shielded from common-law
negligent-design claims or manufacturing and labeling claims based on state
laws. Product liability insurance is expensive and in the future may not be
available on acceptable terms, if at all. We cannot assure you that the coverage
limits of our product liability insurance policies will be adequate if a product
liability claim is brought against us. A successful claim or series of claims
against us that exceeds our insurance coverage could have a material adverse
effect on our business, financial condition and results of operations. Moreover,
whether or not successful, product liability litigation would likely divert the
attention of our key personnel and could adversely affect our reputation and the
marketability of our technology and products. Consequently, any product
liability litigation could have a material adverse effect on our business,
financial condition and results of operations.

IT IS UNCERTAIN WHETHER WE WILL BE ABLE TO OBTAIN FUNDING SUFFICIENT TO MEET OUR
FUTURE CAPITAL NEEDS.

We anticipate that cash on hand, the interest expected to be earned on such cash
and expected revenues will be sufficient to finance our operations for at least
the next twelve to eighteen months. However, we cannot assure you that
additional capital will not be needed sooner. Depending on the level of product
sales, we may need to raise additional funds in the future. We cannot assure you
that additional capital will be available to us or that it will be available on
satisfactory terms. Raising additional capital through equity financing may
dilute the equity interests of the shareholders of the company, and debt
financing may involve restrictive covenants. Failure to secure additional
financing if and when needed could have a material adverse effect on our
business, financial condition and results of operations.



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THE SECURITIES MARKET IS VOLATILE, AND OUR COMMON STOCK PRICE MAY FLUCTUATE
WIDELY.

The market price of our stock has in the past been subject to significant
fluctuations. Moreover, the markets for equity securities in general, and for
those of smaller medical device manufacturers in particular, have been volatile
in the past, and the price of our common stock in the future could be subject to
wide fluctuations in response to quarterly variations in operating results, news
and product announcements, trading volume, general market trends and other
factors. We cannot assure you that our common stock will trade in the future at
market prices in excess of its current market price.

WE HAVE IN PLACE CERTAIN PROTECTIONS AGAINST TAKEOVER ATTEMPTS.

Of the 100 million shares of capital stock authorized by our amended and
restated articles of incorporation, 79 million shares are undesignated. Our
Board of Directors may issue the undesignated shares on terms and with the
rights, preferences and designations determined by the Board without shareholder
action. In addition, we have adopted a shareholder rights plan that provides for
the exercise of preferred share purchase rights when a person becomes the
beneficial owner of 15% or more of our outstanding common stock (subject to
certain exceptions). We also are subject to provisions of the Minnesota Business
Corporation Act that limit the voting rights of shares acquired in specified
types of acquisitions and that restrict specified types of business
combinations. The existence or issuance of "blank check" stock, the existence of
our shareholder rights plan and the effect of anti-takeover provisions under
Minnesota law, individually or in the aggregate, may discourage potential
takeover attempts and delay, deter or prevent a change in control. They also may
make the removal of management more difficult, which could deprive our
shareholders of opportunities to sell their shares at prices higher than
prevailing market prices.

WE DEPEND ON SINGLE-SOURCE SUPPLIERS.

We depend on single-source suppliers for some of the raw materials used in the
manufacture of our products. If we cannot obtain key raw materials from our
suppliers, we cannot assure you that the materials will be available from other
suppliers, that other suppliers will agree to supply the materials to us, or
that our use of the other suppliers would be approved by the FDA. Although we
believe our supply of raw materials currently is adequate for the needs of our
business, we cannot assure you that new sources of supply will be available when
needed. Any interruption in our supply of raw materials could have a material
adverse effect on our ability to manufacture our products until a new source of
supply is located and, therefore, could have a material adverse effect on our
business, financial condition and results of operations.






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