Vascular Solutions Inc.

Vascular Solutions Inc. announced that it has entered into an agreement that settles all patent litigation with VNUS Medical Technologies Inc. Under the terms of the settlement agreement, Vascular Solutions has agreed to pay VNUS Medical a royalty in the aggregate amount of $3.1 million for Vari-Lase(r) products shipped within the U.S. through the end of the first quarter of 2008, and a royalty on on-going U.S. shipments of Vari-Lase products payable quarterly during the remaining life of the applicable patents. In exchange, VNUS Medical has granted to Vascular Solutions a non-exclusive and non-sublicensable license to the applicable patents for use in endovenous laser therapy. All litigation between the parties will be dismissed. As a result of the settlement, Vascular Solutions will incur a litigation expense in the amount of $3.1 million in the second quarter of 2008 related to the royalties on Vari-Lase products shipped within the U.S. between 2003 when the products were launched and the end of the first quarter of 2008. Beginning with the second quarter of 2008, royalty payments will be included in the cost of goods sold for Vari-Lase products shipped within the U.S. during the quarter. The amount of the on-going royalty is considered confidential information.