Forward Looking Information

2. Forward Looking Information Except for historical information discussed, the statements made today are forward-looking statements that involve risks and uncertainties. Investors are cautioned that such statements are only predictions and that actual events or results may differ materially. These forward-looking statements speak only as of this date. We undertake no obligation to publicly release the results of any revisions to the forward-looking statements made today to reflect events or circumstances after today, or to reflect the occurrence of unanticipated events.

3. Vital Signs – Revenue History Over Thirty Years of Growth and Success CAGR: 18%

4. Anesthesia Respiratory/Critical Care Sleep Vital Signs Overview FY 2006 Revenue: $25.5mm 12.5% • Develop own Intellectual • property and market • through major companies • Develop other companies’ • products and manufacture • for them (OEM) 1Source: IMS (2006)

5. enFlow™ • Blood/Fluid Warmer • $60 MM worldwide market • Significant competitive advantages • Leverages call point strength

6. SteeLite™ • Single Patient Use, Stainless Steel Laryngoscope Blade • $100 MM worldwide market (with conversion to SPU) • It is less expensive to use single patient blades than to sterilize a reusable • Provides the best light transmission on market

7. Redi-Tube™ • Endotracheal tube with preloaded Stylet -$25 MM domestic market opportunity - New manufacturing technique allows pricing advantage - Combination provides convenience and safety

8. Strengths in Anesthesia & Respiratory Business Strengths Significant recurring revenue • Large recurring revenue stream from single-use airway management products • Market leading products with strong brand recognition • Longstanding relationships with hospitals, distributors and GPOs • Strong R&D pipeline and state-of-the-art manufacturing Europe 11% Rest of the world 12% U.S. 77% Single-use products contribute over 99% of revenue

9. Infection Control Initiatives • 16 states now required to publicly report infection rates • Legislation pending in virtually all remaining states • 5 Million Lives Campaign (Institute for Healthcare Improvements)

10. Hospital Acquired Infection (HAI) • HAI causes more deaths annually than AIDS, breast cancer, and car accidents combined¹ • 1 in 20 patients will develop a HAI¹ • Hospital infections add over $30 B to the cost of healthcare in the U.S.¹ • Reusable blood pressure cuffs shown to be a vector of infection-genetic link between bacteria on cuff and bacteria that caused infection² ¹Committee to Reduce Infection Deaths (RID), www.hospitalinfection.org ²Infection Control and Hospital Epidemiology September 2006,vol27,no. 9

11. Sleep Overview: Dual Platform Business Overview Sales by geography • Breas, based in Sweden, is a well-recognized brand in Europe • Breas manufactures sleep therapy equipment (iSleep™ line), and ventilators for homecare (Vivo™ line) • Afforded VSI entry into fast-growing sleep market • Sales in U.S. have started though our managed sleep centers 4/3/07 Rest of the world 10% Europe 90%

12. Sleep Services of America Overview • SSA now operates 76 sleep diagnostic centers primarily on the east coast¹ • Improving business fundamentals • Recent acquisitions are accretive immediately • Prestigious Sleep Lab affiliations • Johns Hopkins • University of Maryland • Duke University • Owned by Vital Signs (73%) and Johns Hopkins Medicine (26%)² • Includes labs from 4/3/07 transaction • Reflects change in ownership due to acquisition

13. Sleep Labs as CPAP Distribution Channel

14. Q3 2007 versus Q3 2006 Net Change

15. Net Revenue by Segment

16. Gross Profit by Segment %

17. 9 Month Comparison Ended June 30, Net Change

18. Net Revenue by Segment-9 months

19. Balance Sheet Strengths and Cash Flow • $135.6 million in cash/securities at 6/30/07 ($ 10.22/ share) • No debt • Dividend of $.40 / Share going forward • EBIT Growth of 15.7% over the last 3 years

20. FY 2008 Guidance • FY 2008 Guidance to be issued on December 11th Earnings Call