_______________________________________________

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D. C. 20549

                                    FORM 10-Q


               QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                      THE SECURITIES EXCHANGE ACT OF 1934.

                 For the quarterly period ended October 31, 1998


     Commission File Number 001-12567


                              POSSIS MEDICAL, INC.

                            9055 Evergreen Boulevard

                        Minneapolis, Minnesota 55433-8003

                                 (612) 780-4555


     A Minnesota Corporation               IRS Employer ID No. 41-0783184

                        _________________________________


     Indicate  by check mark  whether the  Registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
Registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes X No___

     The number of shares outstanding of the Registrant's Common Stock, $.40 par
value, as of December 9, 1998 was 12,389,975.


                        ________________________________

<PAGE>

                              POSSIS MEDICAL, INC.

                                      INDEX

 
                                                                         PAGE


PART I.   FINANCIAL INFORMATION

 ITEM 1.  Financial Statements

          Consolidated Balance Sheets, October 31, 1998
          and July 31, 1998.............................................. 3

          Consolidated Statements of Operations for the three
          months ended October 31, 1998 and 1997......................... 4

          Consolidated Statements of Cash Flows for the
          three months ended October 31, 1998 and 1997 .................. 5

          Notes to Consolidated Financial Statements..................... 6
 
 ITEM 2.  Management's Discussion and Analysis of Financial
          Condition and Results of Operations............................ 7-11

 ITEM 3.  Quantitative and Qualitative Disclosure about
          Market Risks .................................................. 11



PART II.  OTHER INFORMATION


 ITEM 6.  Exhibits and Reports on Form 8-K............................... 12
 
          SIGNATURES..................................................... 13

<PAGE>

                      POSSIS MEDICAL, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)

<TABLE>
<CAPTION>

 
                                                 October 31, 1998  July 31, 1998 

<S>                                                 <C>            <C>
ASSETS
CURRENT ASSETS:
    Cash and cash equivalents.......................$10,118,926     $13,841,793
    Receivables:
       Trade (less allowance for doubtful accounts 
       and returns:
       $190,000 and $150,000, respectively).........  1,212,918       1,144,472
       Other........................................      --              3,091
    Inventories:
       Parts........................................  1,075,225       1,085,236
       Work-in-process..............................  1,841,439       1,740,834
       Finished goods...............................  2,016,246       1,913,084
    Prepaid expenses and other assets...............    238,196         313,158
          Total current assets...................... 16,502,950      20,041,668
PROPERTY:
    Leasehold improvements..........................  1,210,984       1,210,984
    Machinery and equipment.........................  3,735,181       3,720,772
    Assets-in-construction..........................    264,057         113,094
          Total property............................  5,210,222       5,044,850
       Less accumulated depreciation................  2,492,793       2,343,691
          Property - net............................  2,717,429       2,701,159
OTHER ASSETS:
    Deferred debt issue costs.......................    871,202         884,105
    Goodwill .......................................    251,922         269,922
TOTAL ASSETS........................................$20,343,503     $23,896,854
 
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
    Trade accounts payable..........................$   360,311     $ 1,245,552
    Accrued salaries, wages, and commissions........  1,016,674       1,060,687
    Current portion of long-term debt ..............     97,474          97,713
    Clinical trials accrual.........................    550,107         335,067
    Litigation settlement...........................      --            200,000
    Other liabilities...............................    732,024         504,624
         Total current liabilities..................  2,756,590       3,443,643
 
LONG-TERM DEBT ..................................... 11,534,074      11,492,661
OTHER LIABILITIES ..................................    108,100         216,200

SHAREHOLDERS' EQUITY:
  Common stock-authorized, 100,000,000 shares of 
    $.40 par value each; issued and outstanding, 
    12,254,941 and 12,218,622 shares, respectively..  4,901,976       4,887,449
  Additional paid-in capital........................ 42,767,185      42,476,257
  Unearned compensation.............................   (361,957)       (489,060)
  Retained deficit..................................(41,362,465)    (38,130,296)
  Total shareholders' equity........................  5,944,739       8,744,350
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY..........$20,343,503     $23,896,854

<FN>
See notes to consolidated financial statements.

</FN>
</TABLE>

<PAGE>

                      POSSIS MEDICAL, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
              FOR THE THREE MONTHS ENDED OCTOBER 31, 1998 AND 1997
                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                         1998           1997
<S>                                                   <C>            <C>
Product sales........................................ $1,859,560     $1,367,983
Cost of sales and other expenses:
  Cost of medical products...........................  1,534,259      1,478,039
  Selling, general and administrative................  2,054,840      1,515,376
  Research and development...........................  1,486,637      1,371,463
  Interest...........................................    177,055            548
      Total cost of sales and other expenses.........  5,252,791      4,365,426

Operating loss....................................... (3,393,231)    (2,997,443)
Interest income......................................    161,062        180,880
Net loss.............................................$(3,232,169)   $(2,816,563)

Weighted average number of common shares outstanding. 12,252,543     12,149,544
Basic and dilutive net loss per common share:
      Net loss.......................................      $(.26)         $(.23)

<FN>
See notes to consolidated financial statements.

</FN>
</TABLE>

<PAGE>

                      POSSIS MEDICAL, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
              FOR THE THREE MONTHS ENDED OCTOBER 31, 1998 AND 1997
                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                                                                                                 
                                                           1998         1997  
<S>                                                    <C>          <C>  
OPERATING ACTIVITIES:
Net loss ............................................. $(3,232,169) $(2,816,563)
Adjustments to reconcile net loss to net
  cash used in operating activities:
     Gain on asset disposal...........................      (1,820)      (2,100)
     Depreciation.....................................     227,102      122,714
     Amortization.....................................      80,157       18,000
     Stock compensation...............................     127,103       22,200
     Increase in receivables..........................     (65,355)    (195,710)
     Increase in inventories..........................    (246,756)    (314,097)
     Decrease in other assets.........................      74,962       46,969
     Increase (decrease) in trade accounts payable....    (885,241)      63,866
     Increase (decrease) in accrued and other 
       liabilities....................................     326,095      (32,090)
Net cash used in operating activities.................  (3,595,922)  (3,086,811)

INVESTING ACTIVITIES:
Additions to plant and equipment......................    (166,352)    (172,294)
Proceeds from the disposal of assets..................       2,800        2,100
Purchase of marketable securities.....................        --         (3,116)
Proceeds from sale/maturity of marketable securities..        --      2,000,000
Net cash (used in) provided by investing activities...    (163,552)   1,826,690

FINANCING ACTIVITIES:
Proceeds from notes payables..........................      21,074      175,000
 Repayment of long-term debt..........................      (4,899)     (11,695)
Proceeds from issuance of stock and exercise of 
  options.............................................      44,687       55,000
Deferred debt issues costs............................     (24,255)        --
Net cash provided by financing activities.............      36,607      218,305

DECREASE IN CASH AND CASH EQUIVALENTS.................  (3,722,867)  (1,041,816)
CASH AND CASH EQUIVALENTS AT BEGINNING OF QUARTER.....  13,841,793    3,849,194
CASH AND CASH EQUIVALENTS AT END OF QUARTER........... $10,118,926   $2,807,378

SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid......................................... $        87   $      548
Issuance of restricted stock..........................        --        808,600
 
Accrued payroll taxes related to restricted stock.....     (35,768)     283,000
Issuance of stock to settle litigation................     225,000         --

<FN>
See notes to consolidated financial statements.

</FN>
</TABLE>

<PAGE>



                      POSSIS MEDICAL, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

1.   BASIS OF PRESENTATION
 
     The  accompanying  unaudited  consolidated  financial  statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  information and with the  instructions to Form 10-Q and Article 10 of
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 adjustments (consisting
of normal recurring accruals)  considered necessary for a fair presentation have
been included.  The  accompanying  consolidated  financial  statements and notes
should be read in conjunction  with the audited  financial  statements and notes
thereto included in the Company's 1998 Annual Report.


2.   INTERIM FINANCIAL STATEMENTS

     Operating results for the three month period ended October 31, 1998 are not
necessarily  indicative  of the results that may be expected for the year ending
July 31, 1999.


3.   RECENTLY ISSUED ACCOUNTING STANDARD

     Effective  August 1, 1998,  the  Company  adopted  Statement  of  Financial
Accounting  Standards No. 130 "Reporting  Comprehensive Incom" (SFAS 130), which
establishes  standards  for  the  reporting  of  comprehensive  income  and  its
components.  Comprehensive  income is defined as the change in equity during the
period from  transactions  and other  events and  circumstances  from  non-owner
sources.  Implementation  of SFAS 130 did not have an  effect  on the  Company's
consolidated  financial  statements because  comprehensive  income (loss) is the
same as the Company's net income (loss).


4.   EARNINGS (LOSS) PER SHARE

     The  Company's  outstanding  stock  options  and  stock  warrants  were not
included in the  computation  of earnings  per share since the impact would have
been anti-dilutive because of the net loss.

<PAGE>

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


RESULTS OF OPERATIONS

Quarters Ended October 31, 1998 and 1997

     Total  product  sales for the three months ended  October 31, 1998 and 1997
were $1,860,000 and  $1,368,000,  respectively.  The significant  revenue growth
resulted  from  growing  physician  acceptance  and  sales  of  the  AngioJet(R)
Rheolytic(TM) Thrombectomy System drive units and disposable catheters and pumps
in the United  States.  Sixteen  drive  units were sold in the  current  quarter
compared to four in the same quarter in 1997, and 1,522  catheters and pump sets
were sold in the most  recent  three month  period,  compared to 877 in the same
quarter in 1997. In December 1996 the Company received FDA clearance to commence
U.S.  marketing of the AngioJet  Rheolytic  Thrombectomy  System,  with labeling
claims  for  removal of blood  clots  from  grafts  used by  patients  on kidney
dialysis.


Revenue - AngioJet Systems

     Since the U.S. market  introduction of the AngioJet System, the Company has
listed its AngioJet System drive unit, considered capital equipment,  at $80,000
to hospitals.  Despite  employing a variety of flexible  drive unit  acquisition
programs including outright purchase,  rental, lease and fee-per-procedure,  the
Company only sold 4 drive unit during the first quarter of fiscal 1998. In April
1998,  the AngioJet  System drive unit list price was reduced to $25,000 after a
successful  test of the lower price.  The Company sold 16 AngioJet  System drive
units during the first quarter of fiscal 1999. A lower drive unit sales price is
intended to improve the competitive position of the AngioJet System,  facilitate
evaluation  of the  technology,  ease  sale  closure  on units  currently  under
evaluation  and  provide  added time for the  Company's  direct  sales  force to
encourage use of the systems currently in the field.

     In December 1997 the Company received approval to commence a clinical study
of the AngioJet  System for use in the treatment of stroke caused by blockage of
the carotid arteries, the main vessels supplying blood to the brain. The Company
believes that the treatment of  neurovascular  stoke is a significant  marketing
opportunity for the AngioJet System. In May 1998 the Company introduced its AV60
AngioJet  Catheter.  The AV60  Catheter has been designed  specifically  to more
effectively and efficiently remove blood clots from dialysis access grafts - the
indication for use for which Possis received FDA marketing  approval in December
1996.  In September  1998,  Possis  submitted  to the FDA a pre-market  approval
("PMA")  application  seeking  approval to market its AngioJet  System to remove
blood  clots from  coronary  blood  vessels and bypass  grafts.  The FDA targets
completion of its review and a response to the Company within 180 days. However,
recent actual average elapsed time from Company submission to FDA approval is 12
months.  In November 1998 the FDA granted the Company expedited review status to
its pending PMA. In addition, the FDA indicated that no panel meeting will be

<PAGE>

necessary to evaluate device safety and effectiveness. The coronary PMA presents
the  results  of a  349  patient  randomized  trial  comparing  AngioJet  System
treatment to intracoronary  infusion of the blood clot-dissolving drug urokinase
for patients with  demonstrated  clot in native coronary  arteries and saphenous
vein bypass grafts.  The randomized  trial showed that AngioJet System treatment
had  significantly  better  outcomes than the urokinase  treatment for procedure
success and device success. AngioJet System treatment also had lower in-hospital
major cardiac complications, including fewer bleeding complications and vascular
complications.  Also, the preliminary results of a cost-effectiveness  trial run
concurrently with the coronary AngioJet trials show that the AngioJet  treatment
costs are on average $3,000 - $3,500 lower than those associated with the use of
urokinase.  The Company  believes  that the treatment of blood clots in coronary
vessels  and  bypass  grafts  is a  significant  marketing  opportunity  for the
AngioJet System.  The Company expects that U.S.  AngioJet System sales will grow
primarily  through the  addition of sales  people,  the  completion  of clinical
trials  designed  to yield  additional  FDA  label-approved  product  uses,  the
publication  of  clinical  performance  and  cost  effectiveness  data  and  the
introduction of additional catheter designs.

     Foreign sales of the AngioJet System for the three months ended October 31,
1998 and 1997 were $29,000 and $78,000,  respectively. The Company is evaluating
its European AngioJet System distribution options. Distribution outside the U.S.
is currently done through 15 independent  distributors.  Actions the Company are
taking to improve  AngioJet System sales in Europe include  conducting  European
cost  effectiveness  studies,  a carotid  artery  study in Germany,  a deep vein
thrombosis study in Italy and developing  European  physician  advocates for the
AngioJet  System.   In  Japan,  the  coronary  AngioJet  System  clinical  study
enrollment  was  completed in April 1998 and a regulatory  filing is planned for
early 1999 with the Japanese Ministry of Health and Welfare.


Revenue - Vascular Grafts

     There were no  vascular  graft sales in the  current  quarter and  vascular
graft sales for the three months ended October 31, 1997 were $1,000. The Company
has a Perma-Flow(R)  Coronary Bypass Graft Distribution  Agreement which expires
in March  1999.  On  December  14,  1998,  the Company  announced  an  exclusive
worldwide Supply and Distribution Agreement with Horizon Medical Products,  Inc.
for its Perma-Sea(R)  Dialysis Access Graft. The Agreement is subject to minimum
sales performance requirements and has an initial term of three years.

     In April 1998, the Company received  Humanitarian  Device Exemption ("HDE")
approval  from the FDA,  clearing the way for U.S.  marketing of the  Perma-Flow
Coronary  Bypass Graft for patients who require  coronary bypass surgery but who
have inadequate blood vessels of their own for use in the surgery.  In September
1998,  the Company  received a PMA from the FDA for its  Perma-Seal  Graft.  The
Perma-Flow and  Perma-Seal  Grafts have received CE Mark approval to allow sales
in the European  Community.  In December  1998,  the Company  submitted a 510(k)
application  to the  FDA  requesting  marketing  clearance  for  three  expanded
polytetrafluoroethylene  ("ePTFE")  synthetic vascular grafts. The FDA generally
responds to 510(k)  submissions in  approximately 90 days. ePTFE vascular grafts
are the primary  synthetic  graft used for peripheral  grafting today  including
dialysis access grafts.

<PAGE>

     In January 1998, the Company  engaged the  investment  banking firm Salomon
Smith Barney to assist in the development and implementation of a strategic plan
designed to maximize the value of the Company's  vascular graft  business.  This
plan and ensuing third party discussions have involved exploring a wide range of
options,  including the possible  sale of the entire  vascular  graft  business.
Based on results  from those  discussions,  we have  decided to first  establish
independent worldwide  distribution for each graft product,  while continuing to
explore other options.

     The  Company is  planning  for  continued  growth in product  sales for the
remainder of fiscal 1999 and beyond and  believes  that most of this growth will
come from AngioJet System sales in the U.S. marketplace.


Cost of Medical Products

     Cost of medical  products in the  current  period  increased  4% or $56,000
compared to the same period a year ago.  The  increase is  primarily  due to the
significant  growth in the AngioJet System product sales.  Medical product gross
margins  improved  by  $435,000  compared  to the same  period a year ago.  This
resulted in a positive  gross  margin of 17% for the quarter  ended  October 31,
1998. The Company believes that manufacturing costs per unit will be reduced and
gross margins will  continue to improve as product sales and related  production
volumes continue to grow.


Selling, General and Administrative Expense

     Selling,  general and  administrative  expenses  for the three months ended
October 31, 1998 increased  $539,000 compared to the same period a year ago. The
primary  factors  are  increased  sales and  marketing  expenses  related to the
establishment  of a direct sales  organization  to sell the AngioJet  System and
expenses  of  marketing  the  product  in the  United  States.  Based upon early
physician  interest,  the Company has grown the U.S.  AngioJet  System sales and
marketing  organization  from 26  employees  in October  1997 to 36 employees in
October 1998.  Concurrent  with the AngioJet  System  receiving FDA approval for
coronary use, the Company plans to further  increase the direct U.S. sales force
to meet the expected demand for the Company's AngioJet System. The Company plans
on increasing its sales and marketing expenditures in the current year.


Research and Development Expense

     Research  and  development  expenses  increased  8% or $115,000 in the most
recent three-month period,  compared to the same period a year ago. The increase
is primarily due to increased expenses in the development of new AngioJet System
thrombectomy applications.  This increase was partially offset by a reduction of
expenses  relating to the  Perma-Seal  Graft and the  Coronary  AngioJet  System
clinical  trials.  The Company  believes that research and development  expenses
will  continue at its  current  level as it  completes  the  development  of its
current  products,  invests in development of new AngioJet  Thrombectomy  System
applications and new AngioJet technology-based products.

<PAGE>

Interest Income and Expense

     Interest income decreased slightly in the most recent period due to the use
of the Company's  cash reserves to fund the Company's  operations.  The decrease
was partially offset by interest earned on the $12,000,000 received in July 1998
from the issuance of 5% convertible  subordinated  debentures.  Interest expense
increase was due to issuance of the 5% convertible subordinated debentures.


Liquidity and Capital Resources

     Cash, cash equivalents,  and marketable  securities totaled  $10,119,000 at
October 31, 1998 versus $13,842,000 at July 31, 1998.

     Net cash  usage  for the three  months  ended  October  31,  1998  averaged
$1,241,000 per month,  consistent with the Company's  expectations.  Most of the
$3,596,000 cash used in operations in the most recent three month period was due
to the  $3,232,000  net loss.  The other  primary  use of cash is the payment of
$720,000  in  transaction  fees and  expenses  relating  to the  issuance of the
convertible  debentures  issued in July 1998. The Company  believes that product
sales of the AngioJet System, primarily in the U.S., will yield meaningful sales
growth going forward. Concurrently, sales and marketing expenditures are planned
to increase with the sales growth.  Research and  development  expenditures  are
expected to continue at its current level.  The Company expects to report a loss
for the current fiscal year. In addition,  the Company  expects that  increasing
working capital  investments in trade receivables and inventory will be required
to support growing product sales.

     The Company is  currently  evaluating  its  options  for  raising  capital.
Additional capital will likely be sought in fiscal 1999.


Year 2000 ("Y2K")

     The  Company  established  a team in May 1998 to  assess  and  address  the
possible  exposures  related to the Y2K  issue.  The areas  under  investigation
include product issues, business computer systems,  production equipment, vendor
readiness and contingency plans.  Products currently sold by the Company are Y2K
compliant.  The Company does not use internally  developed computer software and
is therefore not anticipating major reprogramming efforts. The Company's primary
financial  and  operational  system  has been  assessed  and is  certified  "Y2K
Compliant."  There are several personal  productivity  applications that are not
currently  Y2K  compliant.   The  Company   expects  them  to  be  compliant  by
mid-calendar  1999.  Various personal computers are not currently Y2K compliant.
These  computers are planned to be replaced as part of the Compan's  technology
update strategy.  None of these replacements have been accelerated and they have
no material effect on the Company consolidated  financial statements.  Equipment
used for production or quality control does not use dates to control operations.

<PAGE>

     The Company mailed  questionnaires  to each of its  significant  vendors in
October 1998 to determine the extent to which the Company is vulnerable to those
third parties'  failure to remediate their own Y2K issues.  This assessment will
be  completed  by the  end of  calendar  1998.  In  addition,  the  Company  has
investigated its utility providers and believes they will be Y2K compliant.  The
Company  anticipates  developing a  contingency  plan once it has  completed its
assessment  of  significant  vendor  compliance  which will be no later than the
first quarter of calendar 1999. A contingency plan will be developed to minimize
the Company's exposure to work slowdowns or business  disruptions.  In the event
any vendors are not Y2K  compliant the Company will seek new vendors to meet its
production needs.

     The Company  has  budgeted  approximately  $50,000  for  expenses  directly
related to Y2K identification  and remediation of internal systems.  It has also
purchased  continuation of business and director's  liability related to the Y2K
issue.

     Although the Company does not at this time expect a  significant  impact on
its consolidated  financial position,  results of operations and cash flows, our
internal  review has not been  completed and there can be no assurance  that the
systems  of  other  companies  or the  systems  of the  Company  itself  will be
converted on a timely basis and will not have a corresponding  adverse effect on
the Company.


Forward-Looking Statements

     This  Management's  Discussion  and  Analysis of  Financial  Condition  and
Results of Operations,  including the discussion regarding Year 2000 compliance,
contain  certain   "forward-looking   statements"  as  defined  in  the  Private
Securities  Litigation  Reform Act of 1995. Such  statements  relating to future
events and financial  performance,  including the submission of  applications to
the FDA,  revenue  and  expense  levels and  future  capital  requirements,  are
forward-looking  statements that involve risks and uncertainties,  including the
Company's ability to meet its timetable for FDA submissions,  the review time at
the FDA, changes in the Company's marketing strategies, the Company's ability to
establish  product  distribution  channels,  changes in  manufacturing  methods,
market  acceptance  of the  AngioJet  System,  changes  in the levels of capital
expenditures  by hospitals,  the levels of sales of the Company's  products that
can be achieved,  ability to raise additional  capital and other risks set forth
in the cautionary  statements  included in Exhibit 99 to the Company's report on
Form  10-Q  dated  April  30,  1998,  filed  with the  Securities  and  Exchange
Commission.


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     The Company  invests  its excess cash in money  market  mutual  funds.  The
market risk on such investments is minimal.

     The product sales for the Company's foreign  subsidiary are in U.S. Dollars
("USD").  At the end of October  1998,  the amount of  currency  held in foreign
exchange was approximately  $1,000 USD. The market risk on the Company's foreign
subsidiary operations is minimal.

<PAGE>

     At October 31, 1998, all of the Company's  outstanding long-term debt carry
interest at a fixed  rate.  There is no  material  market  risk  relating to the
Company's long-term debt. The Company's 5% convertible  subordinated debentures,
issued July 15, 1998,  carry a fixed interest rate of 5%; are due July 15, 2004;
and are convertible  into common stock at a price  calculated per  predetermined
formulas  based  on the  market  price  of the  Company's  common  stock  over a
specified period of time.

<PAGE>


                           PART II. OTHER INFORMATION


ITEM 6.   Exhibits and Reports on Form 8-K

     (a)  Exhibits

     Certain of the following  exhibits are incorporated by reference from prior
filings.  The form with which each  exhibit was filed and the date of filing are
indicated below.

  Exhibit     Form        Date Filed                   Description  
                    

   3.1        10-K     Fiscal year ended   Articles of incorporation as amended
                       July 31, 1994       and restated to date.

   3.2        S-2      Amendment No. 1     Bylaws as amended and restated
                       August 9, 1994      to date.

   27                                      Financial Data Schedule







     (b)  Reports on Form 8-K

     Possis Medical,  Inc. filed no reports on Form 8-K during the quarter ended
October 31, 1998.

<PAGE>


SIGNATURES

     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.



                                      POSSIS MEDICAL, INC.


DATE:  December 14, 1998              BY:      /s/     
                                          ROBERT G. DUTCHER
                                          President and Chief Executive Officer



DATE:  December 14, 1998              BY:      /s/   
                                          RUSSEL E. CARLSON 
                                          Vice President of Finance and
                                          Chief Financial Officer