EXHIBIT 99.1

RISK FACTORS

     An investment in Possis  Medical'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 a  limited  history  of
profitable operations.

     As of July 31, 2002,  we had  accumulated  a deficit of $45.5  million.  We
incurred an  operating  loss of $11.2  million for the year ended July 31, 2000,
and an operating loss of $3.8 million for the year ended July 31, 2001.

     We became  profitable  on a quarterly  basis in the third quarter of fiscal
2001 and  earned a  profit  for the full  year  for  fiscal  2002.  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, 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.

     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.

     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 eleven United States patents
relating to the  AngioJet  System,  and we have  fourteen  United  States and 22
foreign and four 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.

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     We require all our employees to execute non-disclosure agreements when they
join Possis Medical.  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 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  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.

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     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.

     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.

     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,  78 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.

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     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.