<PAGE>
================================================================================



                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-Q

        (MARK ONE)

          [X]   QUARTERLY PURSUANT TO SECTION 13 OR 15(D) OF THE
                SECURITIES EXCHANGE ACT OF 1934

               FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2001


                                       OR

          [ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF
                THE SECURITIES EXCHANGE ACT OF 1934
                   FOR THE TRANSITION PERIOD FROM         TO
                                                  -------    --------

                         Commission File Number: 0-27605
                                ----------------

                            VASCULAR SOLUTIONS, INC.
             (Exact name of registrant as specified in its charter)


              MINNESOTA                               41-1859679
      (State of Incorporation)               (IRS Employer Identification No.)

                             2495 XENIUM LANE NORTH
                          MINNEAPOLIS, MINNESOTA 55441
                    (Address of Principal Executive Offices)

                                 (763) 656-4300
               (Registrant's telephone number, including are code)





                                ----------------




Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the past
12 months (or for such shorter period that the registrant was required to file
such reports), and has been subject to such filing requirements for the past 90
days. Yes [X] No [ ]


The registrant had 13,268,717 shares of common stock, $.01 par value per share,
outstanding as of October 25, 2001.


================================================================================


<PAGE>

                            VASCULAR SOLUTIONS, INC.

                                      INDEX
<TABLE>
<CAPTION>

                                                                                                PAGE
                                                                                                ----
<S>                                                                                             <C>
PART I.   FINANCIAL INFORMATION

         Item 1.  Financial Statements (Unaudited)

                  Consolidated Balance Sheets                                                     2

                  Consolidated Statements of Operations                                           3

                  Consolidated Statements of Cash Flows                                           4

                  Notes to Unaudited Consolidated Financial Statements                            5

         Item 2.  Management's Discussion and Analysis of Financial Condition and
                  Results of Operations                                                           8

         Item 3.  Quantitative and Qualitative Disclosure About Market Risks                     11


PART II.  OTHER INFORMATION

         Item 1.  Legal Proceedings                                                              12

         Item 2.  Changes in Securities and Use of Proceeds                                      13

         Item 3.  Defaults upon Senior Securities                                                13

         Item 4.  Submission of Matters to a Vote of Security Holders                            13

         Item 5.  Other Information                                                              13

         Item 6.  Exhibits and Reports on Form 8-K                                               13
</TABLE>




                                       1
<PAGE>

                            VASCULAR SOLUTIONS, INC.

                          CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                                    SEPTEMBER 30,   DECEMBER 31,
                                                                                        2001            2000
                                                                                    ------------    ------------
                                                                                     (Unaudited)       (Note)
<S>                                                                                 <C>             <C>
ASSETS
Current assets:
     Cash and cash equivalents ............................................         $ 35,852,018    $ 44,097,563
     Accounts receivable, net of allowance for doubtful
        accounts of $110,000 in 2001 and $80,000 in 2000 ..................            1,315,442       1,971,383
     Inventories ..........................................................            2,354,341       2,466,445
     Prepaid expenses .....................................................              257,332         231,251
                                                                                    ------------    ------------
Total current assets ......................................................           39,779,133      48,766,642

Property and equipment, net ...............................................              928,384         894,094
                                                                                    ------------    ------------
Total assets ..............................................................         $ 40,707,517    $ 49,660,736
                                                                                    ============    ============



LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
     Accounts payable .....................................................         $    769,982    $    933,059
     Accrued compensation .................................................              659,879       1,344,995
     Accrued expenses .....................................................              244,112         188,792
                                                                                    ------------    ------------
Total current liabilities .................................................            1,673,973       2,466,846


Commitments and contingencies

Shareholders' equity:
     Common Stock, $ 01 par value:
        Authorized shares - 40,000,000
        Issued and outstanding - September 30,
            2001 - 13,268,717; December 31, 2000 - 13,116,008 .............              132,687         131,160
Additional paid-in capital ................................................           70,564,670      69,965,240
Other .....................................................................             (108,894)        (38,182)
Accumulated deficit .......................................................          (31,554,919)    (22,864,328)
                                                                                    ------------    ------------
Total shareholders' equity ................................................           39,033,544      47,193,890
                                                                                    ------------    ------------
Total liabilities and shareholders' equity ................................         $ 40,707,517    $ 49,660,736
                                                                                    ============    ============
</TABLE>

See accompanying notes

Note:  The balance sheet at December 31, 2000 has been derived from the audited
financial statements at that date



                                       2
<PAGE>


                            VASCULAR SOLUTIONS, INC.

                     CONSOLIDATED STATEMENTS OF OPERATIONS


<TABLE>
<CAPTION>
                                               THREE MONTHS ENDED                      NINE MONTHS ENDED
                                                 SEPTEMBER 30,                           SEPTEMBER 30,
                                            2001               2000                 2001                2000
                                       ------------        ------------        ------------        ------------
                                                 (unaudited)                              (unaudited)

<S>                                    <C>                 <C>                 <C>                 <C>
Net sales ..........................   $  2,528,994        $  2,037,251        $  9,192,179        $  3,388,046
Cost of goods sold .................      1,084,631             875,822           3,688,708           1,578,379
                                       ------------        ------------        ------------        ------------
Gross profit .......................      1,444,363           1,161,429           5,503,471           1,809,667

Operating expenses:
      Research and development .....      1,101,759             913,545           3,144,412           2,460,031
      Clinical and regulatory ......        314,662             246,330             961,358             772,937
      General and administrative ...        576,086             524,674           2,068,509           1,753,353
      Sales and marketing ..........      3,342,840           2,107,292           9,471,270           4,418,204
                                       ------------        ------------        ------------        ------------
Total operating expenses ...........      5,335,347           3,791,841          15,645,549           9,404,525
                                       ------------        ------------        ------------        ------------

Operating loss .....................     (3,890,984)         (2,630,412)        (10,142,078)         (7,594,858)

Interest income ....................        369,794             530,756           1,451,487             745,103
                                       ------------        ------------        ------------        ------------
Net loss ...........................   $ (3,521,190)       $ (2,099,656)       $ (8,690,591)       $ (6,849,755)
                                       ============        ============        ============        ============

Basic and diluted net
      loss per share ...............   $      (0 27)       $      (0 19)       $      (0 66)       $      (0 96)
                                       ============        ============        ============        ============

Shares used in computing
      basic and diluted net loss
      per share ....................     13,247,040          10,907,770          13,185,989           7,144,711
                                       ============        ============        ============        ============
</TABLE>


See accompanying notes


                                       3
<PAGE>


<TABLE>
<CAPTION>
                                                                          THREE MONTHS ENDED              NINE MONTHS ENDED
                                                                            SEPTEMBER 30,                   SEPTEMBER 30,
                                                                        2001            2000            2001            2000
                                                                    ------------    ------------    ------------    ------------
                                                                            (unaudited)                      (unaudited)
<S>                                                                 <C>             <C>             <C>             <C>
OPERATING ACTIVITIES
Net loss for the period ........................................    $ (3,521,190)   $ (2,099,656)   $ (8,690,591)   $ (6,849,755)
Adjustments to reconcile net loss:
      Depreciation and amortization ............................         110,114          96,967         317,867         261,027
      Value of options granted for services ....................            --              --            10,398            --
      Deferred compensation expense ............................          14,457          18,210          41,948          54,351
      Changes in operating assets and liabilities:
           Accounts receivable .................................         600,484      (1,000,719)        655,941      (1,379,291)
           Inventories .........................................         295,105        (341,625)        112,104        (872,953)
           Prepaid expenses ....................................          70,729          54,028         (26,081)       (177,433)
           Accounts payable ....................................        (279,303)        (97,443)       (163,077)         10,400
           Accrued compensation and expenses ...................         (98,141)        306,415        (629,796)        744,791
                                                                    ------------    ------------    ------------    ------------
Net cash used in operating activities ..........................      (2,807,745)     (3,063,823)     (8,371,287)     (8,208,863)

INVESTING ACTIVITIES
      Purchases of property and equipment ......................         (77,402)       (110,395)       (352,157)       (461,024)
                                                                    ------------    ------------    ------------    ------------
Net cash used in investing activities ..........................         (77,402)       (110,395)       (352,157)       (461,024)

FINANCING ACTIVITIES
      Proceeds from exercise of stock options ..................         138,686          19,920         492,992          74,920
      Net proceeds from sale of common stock ...................            --        43,975,486            --        43,975,486
                                                                    ------------    ------------    ------------    ------------
Net cash provided by financing activities ......................         138,686      43,995,406         492,992      44,050,406
                                                                    ------------    ------------    ------------    ------------
Effect of exchange rate changes on cash and cash equivalents....           5,661            --           (15,093)           --
Increase (decrease) in cash and cash equivalents ...............      (2,740,800)     40,821,188      (8,245,545)     35,380,519
Cash and cash equivalents at beginning of period ...............      38,592,818       5,088,522      44,097,563      10,529,191
                                                                    ------------    ------------    ------------    ------------

Cash and cash equivalents at end of period .....................    $ 35,852,018    $ 45,909,710    $ 35,852,018    $ 45,909,710
                                                                    ============    ============    ============    ============
</TABLE>

See accompanying notes



                                       4
<PAGE>
                            VASCULAR SOLUTIONS, INC.
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


(1)      BASIS OF PRESENTATION

         The accompanying unaudited financial statements of Vascular Solutions,
         Inc. (the "Company") have been prepared in accordance with generally
         accepted accounting principles for interim financial information and
         with the instructions to Form 10-Q and Regulation S-X. Accordingly,
         they do not include all of the information and footnotes required by
         generally accepted accounting principles for complete financial
         statements. In the opinion of management, all normal, recurring
         adjustments considered necessary for a fair presentation have been
         included. The financial statements should be read in conjunction with
         the audited financial statements for the year ended December 31, 2000
         included in the Annual Report on Form 10-K of the Company filed with
         the Securities and Exchange Commission. Interim results of operations
         are not necessarily indicative of the results to be expected for the
         full year or any other interim periods.


(2)      COMPUTATION OF NET LOSS PER SHARE

         In accordance with Statement of Financial Accounting Standards No. 128,
         Earnings Per Share, (SFAS 128), basic net loss per share for the three
         months and nine months ended September 30, 2001 and 2000 is computed by
         dividing net loss by the weighted average common shares outstanding
         during the periods presented. Diluted net loss per share is computed by
         dividing net loss by the weighted average common and dilutive potential
         common shares outstanding computed in accordance with the treasury
         stock method. For all periods presented, diluted loss per share is the
         same as basic loss per share, because the effect of outstanding
         options, warrants and convertible preferred stock is antidilutive.


(3)      REVENUE RECOGNITION

         In the United States and Germany, the Company sells its products
         directly to hospitals and clinics. Revenue is recognized upon shipment
         of products to customers.

         In all other international markets, the Company sells its products to
         international distributors which subsequently resell the products to
         hospitals and clinics. The Company has agreements with each of its
         distributors which provide that title and risk of loss pass to the
         distributor upon shipment of the products to the distributor. The
         Company warrants that its products are free from manufacturing defects
         at the time of shipment to the distributor. Revenue is recognized upon
         shipment of products to distributors following the receipt and
         acceptance of a distributor's purchase order. Allowances are provided
         for estimated warranty costs at the time of shipment. To date, warranty
         costs have been insignificant.





                                       5

<PAGE>
                            VASCULAR SOLUTIONS, INC.
         NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS-CONTINUED


(4)      INVENTORIES

         Inventories are stated at the lower of cost (first-in, first-out
         method) or market and are comprised of the following at:


<TABLE>
<CAPTION>
                                                   SEPTEMBER 30,   DECEMBER 31,
                                                       2001           2000
                                                       ----           ----
                                                     (unaudited)

<S>                                                <C>             <C>
           Raw materials.........................  $ 1,942,713     $1,746,279
           Work-in process.......................      292,207        371,176
           Finished goods........................      119,421        348,990
                                                   -----------     ----------
                                                   $ 2,354,341     $2,466,445
                                                   ===========     ==========
</TABLE>


(5)      CONCENTRATIONS OF CREDIT AND OTHER RISKS

         Financial instruments that potentially subject the Company to
         concentrations of credit risk consist primarily of cash and cash
         equivalents and accounts receivables. The Company maintains its
         accounts for cash and cash equivalents principally at one major bank
         and two investment firms in the United States. The Company has a formal
         written investment policy that restricts the placement of investments
         to issuers evaluated as creditworthy. The Company has not experienced
         any losses on its deposits of its cash and cash equivalents.

         With respect to accounts receivable, the Company performs credit
         evaluations of its customers and does not require collateral. Sales by
         geographic destination as a percentage of total net sales for the nine
         months ended September 30, 2001 and 2000 were 90% and 51% in the United
         States, respectively, and 10% and 49% in international markets,
         respectively. There have been no material losses on accounts
         receivable.

         The Company operates in a single industry segment and sells its product
         directly to hospitals and clinics in the United States and Germany. In
         Germany, the Company sells its product in the local currency. In all
         other international markets, the Company sells its product in United
         States dollars to distributors who, in turn, sell to medical clinics in
         the local currency. Loss, termination or ineffectiveness of
         distributors to effectively promote the Company's product would have a
         material adverse effect on the Company's financial condition and
         results of operations.

         No single customer represented greater than 10% of the total net sales
         for the three and nine months ended September 30, 2001. Sales to
         significant customers as a percentage of total net sales are as follows
         for the nine months ended September 30, 2000:

<TABLE>
<S>                                                                   <C>
            Customer A...........................................     15.4%
            Customer B...........................................     13.8%
            Customer C...........................................      9.0%
</TABLE>



                                       6
<PAGE>

                            VASCULAR SOLUTIONS, INC.
         NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS-CONTINUED


 (6)     INITIAL PUBLIC OFFERING

         On July 25, 2000, the Company completed the initial public offering of
         its common stock. Upon the closing of the initial public offering, the
         Company issued 3,500,000 shares of its common stock at an offering
         price of $12.00 per share and all of the Company's Series A and Series
         B preferred stock automatically converted into 3,777,777 shares of
         common stock. On August 15, 2000, the underwriters exercised in full
         their over-allotment option to purchase an additional 525,000 shares of
         common stock at $12.00 per share. Cash proceeds from the sale of the
         4,025,000 shares of common stock, net of underwriters' discount and
         offering expenses, totaled approximately $44.0 million. Upon closing of
         the Company's initial public offering, the authorized capital stock of
         the Company consisted of 40,000,000 shares of common stock, par value
         $.01 per share, with no shares of preferred stock outstanding or
         designated.




                                       7
<PAGE>



ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

OVERVIEW

      We develop, manufacture and market the Vascular Solutions Duett(TM)
sealing device. Our Duett sealing device is designed to provide a complete seal
of the puncture site following catheterization procedures such as angiography,
angioplasty and stenting. We commenced operations in February 1997, and during
1998 and 1999 we received regulatory approvals to market our Duett sealing
device in several international markets, principally in Europe. On June 22,
2000, we received approval from the FDA of our PMA application for the sale of
our Duett sealing device in the United States. As a result, during the third
quarter of 2000 we commenced sales of our product in the United States through
our direct sales force.

      We have a limited history of operations and have experienced significant
operating losses since inception. As of September 30, 2001, we had an
accumulated deficit of $31.6 million. We commenced international sales in
February 1998. From inception through June 2000, we generated substantially all
of our revenue from sales to international distributors who resell the device to
medical clinics.

      Although we have experienced revenue growth in recent periods, this growth
may not be sustainable and, therefore, these recent periods should not be
considered indicative of future performance. We may never achieve profitability,
or if we achieve profitability it may not be sustained in future periods.

RESULTS OF OPERATIONS

THREE MONTHS ENDED SEPTEMBER 30, 2001 COMPARED TO THREE MONTHS ENDED SEPTEMBER
30, 2000

      Net sales increased 24% to $2,528,994 for the three months ended September
30, 2001 from $2,037,251 for the three months ended September 30, 2000. The
increase in net sales was attributable to the United States market launch of our
Duett sealing device which began in July 2000. As a result, 92% of net sales for
the three months ended September 30, 2001 were to customers in the United States
while 8% of the net sales were to customers in international markets.

       Gross profit as a percentage of net sales was 57% for the three months
ended September 30, 2001 which is equivalent to the three months ended September
30, 2000. Beginning July 1, 2001, a royalty expense of 2.5% of net sales is
included in our cost of goods sold related to an agreement that settled all
existing intellectual property litigation with St. Jude Medical, Inc. (See
"Legal Proceedings" in Item 1 of Part II of this Form 10-Q).

      Research and development expenses increased 21% to $1,101,759 for the
three months ended September 30, 2001 from $913,545 for the three months ended
September 30, 2000. This increase was attributable to continued work on product
improvements and exploring new product line extensions. Our first product line
extension under development is the Duett hemostat which is a blood clotting
material using the procoagulant components of the Duett sealing device. The
Duett hemostat is intended to be used to control active bleeding in a variety of
invasive medical procedures. Our second product line extension under development
is the Duett pseudoaneurysm closure, which is intended to be a simple delivery
system to close pseudoaneurysms. A pseudoaneurysm is a complication which occurs
in approximately 1-3% of patients following a catheterization procedure and
often requires a surgical procedure to repair. Our third product line extension
under development is a biopsy tract sealing project. The biopsy device is
intended to seal the puncture tract left behind following a solid organ or lung




                                       8
<PAGE>

biopsy. We expect our research and development expenses to increase slightly in
the future as we continue work on product improvements and product line
extensions.

      Clinical and regulatory expenses increased 28% to $314,662 for the three
months ended September 30, 2001 from $246,330 for the three months ended
September 30, 2000. These expenses consist primarily of payments to clinics for
participation in marketing and clinical studies, company personnel related to
clinical study administration and payments to regulatory agencies as part of the
product approval process. The increase in expense from the previous year is
attributed to the timing of research and development projects and marketing
studies in the current year. We expect clinical and regulatory expenses to
increase modestly in the future as we pursue new products and incur expenses for
additional marketing studies.

      General and administrative expenses increased 10% to $576,086 for the
three months ended September 30, 2001 from $524,674 for the three months ended
September 30, 2000. This increase is attributable to an increase in legal fees
associated with litigation items (See "Legal Proceedings" in Item 1 of Part II
of this Form 10-Q). We expect general and administrative expenses to be
approximately $600,000 per quarter for the next few quarters.

      Sales and marketing expenses increased 59% to $3,342,840 for the three
months September 30, 2001 from $2,107,292 for the three months ended September
30, 2000. This increase was due primarily to increased personnel costs
associated with hiring, training and deploying a direct United States sales
force and costs associated with travel, marketing and physician training for the
domestic and international distribution of our Duett sealing device. We
currently anticipate that sales and marketing expenses will increase modestly in
the future as we continue to hire, train and deploy our direct sales force in
the United States.

      Interest income decreased to $369,794 for the three months ended September
30, 2001 from $530,756 for the three months ended September 30, 2000 primarily
as a result of lower interest rates in 2001 and higher cash balances from the
cash proceeds received upon the closing of our initial public offering in July
2000.

NINE MONTHS ENDED SEPTEMBER 30, 2001 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30,
2000

      Net sales increased 171% to $9,192,179 for the nine months ended September
30, 2001 from $3,388,046 for the nine months ended September 30, 2000. The
increase in net sales was attributable to the United States market launch of our
Duett sealing device which began in July 2000. As a result, 90% of net sales for
the nine months ended September 30, 2001 were to customers in the United States
while 10% of the net sales were to customers in international markets.

      Gross profit as a percentage of net sales increased to 60% for the nine
months ended September 30, 2001 from 53% for the nine months ended September 30,
2000. This increase as a percentage of net sales resulted from the initiation of
United States sales of the Duett sealing device, increased volume and improved
manufacturing processes. Beginning July 1, 2001, a royalty expense of 2.5% of
net sales is included in our cost of goods sold related to an agreement that
settled all existing intellectual property litigation with St. Jude Medical,
Inc. (See "Legal Proceedings" in Item 1 of Part II of this Form 10-Q).

      Research and development expenses increased 28% to $3,144,412 for the nine
months ended September 30, 2001 from $2,460,031 for the nine months ended
September 30, 2000. This increase was attributable to continued work on product
improvements of the Duett sealing device and exploring new



                                       9
<PAGE>

product line extensions, including the Duett hemostat, the Duett pseudoaneurysm
closure and the biopsy tract sealing device.

      Clinical and regulatory expenses increased 24% to $961,358 for the nine
months ended September 30, 2001 from $772,937 for the nine months ended
September 30, 2000. The increase is attributed to additional regulatory
approvals for product improvements and the initial clinical work related to the
new product line extensions.

      General and administrative expenses increased 18% to $2,068,509 for the
nine months ended September 30, 2001 from $1,753,353 for the nine months ended
September 30, 2000. This increase was primarily attributable to a $350,000
expense incurred in connection with the settlement of patent litigation with St.
Jude Medical, Inc. (See "Legal Proceedings" in Item 1 of Part II of this Form
10-Q) but was partially offset by slightly lower personnel costs from the prior
year.

      Sales and marketing expenses increased 114% to $9,471,270 for the nine
months ended September 30, 2001 from $4,418,204 for the nine months ended
September 30, 2000. This increase was due to in increased personnel costs and
associated with travel, marketing and physician training for the United States
market launch of the Duett sealing device which began in July 2000.

INCOME TAXES

      We have not generated any pre-tax income to date and therefore have not
paid any federal income taxes since inception in December 1996. No provision or
benefit for federal and state income taxes has been recorded for net operating
losses incurred in any period since our inception.

      As of September 30, 2001, we had approximately $28.0 million of federal
net operating loss carryforwards available to offset future taxable income which
begin to expire in the year 2013. As of September 30, 2001, we also had federal
and state research and development tax credit carryforwards of approximately
$1.6 million which begin to expire in the year 2013. Under the Tax Reform Act of
1986, the amounts of and benefits from net operating loss carryforwards may be
impaired or limited in certain circumstances, including significant changes in
ownership interests. Future use of our existing net operating loss carryforwards
may be restricted due to changes in ownership or from future tax legislation.

      We have established a valuation allowance against the entire amount of our
deferred tax asset because we have not been able to conclude that it is more
likely than not that we will be able to realize the deferred tax asset, due
primarily to our history of operating losses.

LIQUIDITY AND CAPITAL RESOURCES

      We have financed all of our operations since inception through the
issuance of equity securities. Through September 30, 2001, we had sold common
stock and preferred stock generating aggregate net proceeds of $69.9 million. At
September 30, 2001, we had $35.9 million in cash and cash equivalents on-hand.
During the three months ended September 30, 2001, we used $2.8 million of cash
and cash equivalents in operating activities primarily to fund our net loss for
the period of $3.5 million. Our capital expenses to acquire manufacturing and
office equipment totaled $77,000 during the three months ended September 30,
2001.

      We do not have any significant cash commitments related to supply
agreements, nor do we have any commitments for capital expenditures.



                                       10
<PAGE>

      We currently anticipate that we will continue to experience significant
growth in our expenses for the foreseeable future and our expenses will be a
material use of our cash resources. We anticipate that our operating losses will
continue through at least 2002, as we plan to spend substantial amounts hiring
and training a direct United States sales force, funding sales and marketing
activities and creating and expanding research and development initiatives. We
believe that current cash balances along with cash generated from the future
sales of products will be sufficient to meet our operating and capital
requirements through at least the end of 2004. Our liquidity and capital
requirements beyond 2004 will depend on numerous factors, including the extent
to which our Duett sealing device gains market acceptance and competitive
developments.

CAUTIONARY STATEMENT PURSUANT TO THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995

         The Private Securities Litigation Reform Act of 1995 (the "Act")
provides a "safe harbor" for forward-looking statements to encourage companies
to provide prospective information about their business, so long as those
statements are identified as forward-looking and are accompanied by meaningful
cautionary statements identifying important factors that could cause actual
results to differ materially from those discussed in the statement. Vascular
Solutions, Inc. desires to take advantage of the safe harbor provisions with
respect to any forward-looking statements it may make in this filing, other
filings with the Securities and Exchange Commission and any public oral
statements or written releases. The words or phrases "will likely," "is
expected," "will continue," "is anticipated," "estimate," "projected,"
"forecast," or similar expressions are intended to identify forward-looking
statements within the meaning of the Act. Such statements are subject to certain
risks and uncertainties that could cause actual results to differ materially
from those projected. The Company cautions readers not to place undue reliance
on any such forward-looking statements, which speak only as of the date made. In
accordance with the Act, the Company identifies the following important general
factors which if altered from the current status could cause the Company's
actual results to differ from those described in any forward-looking statements:
risks associated with our limited operating history, defense of patent
infringement lawsuits, adoption of our new sealing methodology, reliance on a
sole product, lack of profitability, lack of experience with a direct sales
force, exposure to possible product liability claims, the development of new
products by others, dependence on third party distributors in international
markets, doing business in international markets, limited manufacturing
experience, the availability of third party reimbursement, actions by the FDA
related to the Duett sealing device, the loss of key vendors and those factors
set forth under the heading "Risk Factors" in the Company's Annual Report on
Form 10-K for the year ended December 31, 2000. This list is not exhaustive, and
the Company may supplement this list in any future filing with the Securities
and Exchange Commission or in connection with the making of any specific
forward-looking statement.


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISKS

      Financial instruments that potentially subject us to concentrations of
credit risk consist primarily of cash and cash equivalents and accounts
receivables. We maintain our accounts for cash and cash equivalents principally
at one major bank and two investment firms in the United States. We have a
formal written investment policy that restricts the placement of investments to
issuers evaluated as creditworthy. We have not experienced any losses on our
deposits of our cash and cash equivalents.

      With respect to accounts receivable, we perform credit evaluations of our
customers and do not require collateral. There have been no material losses on
accounts receivables.


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      In the United States and Germany, we sell our products directly to
hospitals and clinics in the local currency. Revenue is recognized upon shipment
of products to customers.

      In all other international markets, we sell our products to independent
distributors who, in turn, sell to medical clinics. We sell our product in these
countries through independent distributors denominated in United States dollars.
Loss, termination or ineffectiveness of distributors to effectively promote our
product would have a material adverse effect on our financial condition and
results of operations.


                           PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         In July 1999, we were named as the defendant in a patent infringement
lawsuit brought by Datascope Corp., a competitor, in the United States District
Court of the District of Minnesota. The complaint requested a judgment that our
Duett sealing device infringes and, following FDA approval, will infringe, a
United States patent held by Datascope and asks for relief in the form of an
injunction that would prevent us from selling our product in the United States
as well as an award of attorneys' fees, costs and disbursements. In August 1999,
we filed our answer to this lawsuit and moved for summary judgment to dismiss
Datascope's claims. On March 15, 2000, the court granted summary judgment
dismissing all of Datascope's claims, subject to the right of Datascope to
recommence the litigation after our receipt of FDA approval of our Duett sealing
device. On July 12, 2000, after our receipt of FDA approval, Datascope
recommenced this litigation, alleging that the Duett sealing device infringes a
United States patent held by Datascope and requesting relief in the form of an
injunction that would prevent us from selling our product in the United States,
damages caused by our alleged infringement, and other costs, disbursements and
attorneys' fees. It is not possible to predict the timing or outcome of this
lawsuit, including whether we will be prohibited from selling our Duett sealing
device in the United States or internationally, or to estimate the amount or
range of potential loss, if any.

         On July 3, 2000, we were named as the defendant in a patent
infringement lawsuit brought by the Daig division of St. Jude Medical, Inc., a
competitor, in the United States District Court of the District of Minnesota.
The complaint requested a judgment that our Duett sealing device infringed a
series of four patents held by St. Jude Medical and asked for relief in the form
of an injunction that would prevent us from selling our product in the United
States, damages caused by the manufacture and sale of our product, and other
costs, disbursements and attorneys' fees. On July 12, 2001, we entered into an
agreement that settled all existing intellectual property litigation with St.
Jude Medical, Inc. (See "Exhibits and Reports on Form 8-K" in Item 6 of Part II
of this Form 10-Q). Under the terms of the settlement agreement, we agreed to
pay a royalty of 2.5% of net sales of our Duet sealing device to St. Jude
Medical, up to a maximum amount over the remaining life of the St. Jude Medical
Fowler patents. In exchange, St. Jude Medical granted to us a non-exclusive
license to its Fowler patents and has released us from any claim of patent
infringement based on sales of the Duett sealing device. We granted a
non-exclusive cross-license to our Gershony patents to St. Jude Medical, subject
to a similar royalty payment if St. Jude Medical utilizes our Gershony patents
in any future device. Beginning on July 1, 2001, a royalty expense of 2.5% of
net sales is included in our cost of goods sold until the maximum royalty is
attained.





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<PAGE>


ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

        (a) Not applicable

        (b) Not applicable

        (c) Not applicable

        (d) On July 25, 2000, we sold 3,500,000 shares of our common stock, at
            an initial public offering price of $12.00 per share, pursuant to a
            Registration Statement on Form S-1 (Registration No. 333-84089),
            which was declared effective by the Securities and Exchange
            Commission on July 19, 2000. The managing underwriters of our
            initial public offering were Salomon Smith Barney Inc., Stephens
            Inc. and William Blair & Company, L.L.C. On August 15, 2000, the
            underwriters exercised in full their over-allotment option to
            purchase an additional 525,000 shares of common stock at $12.00 per
            share. Our net proceeds from the offering were approximately $44.0
            million. To date, we have spent approximately $13.8 million of the
            net proceeds to hire, train and deploy a direct sales force in the
            United States, and $2.3 million for general corporate purposes.


ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

        None.


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

        None.


ITEM 5.  OTHER INFORMATION

        None.


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

        (a)      Exhibits:

                 None.

        (b)      Reports on Form 8-K:

                 We filed a Form 8-K on July 12, 2001 to report the settlement
                 of patent litigation with St. Jude Medical (see "Legal
                 Proceedings" in Item 1 of Part II of this Form 10-Q). There
                 were no financial statements required to be filed with the Form
                 8-K.




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                                    SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                       VASCULAR SOLUTIONS, INC.

Date:  October 26, 2001                    By: /s/ Richard J. Buchholz
                                               --------------------------
                                               Richard J. Buchholz
                                               Chief Financial Officer
                                               (Duly authorized officer and
                                               principal financial and
                                               accounting officer)



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