A surgical apparatus for application of surgical clips to body tissue isprovided. Thesurgical apparatus includes a housing, a drive assembly, a trigger, and ashaft assembly. Thetrigger is operatively connected with the drive assembly. The drive assemblyis at least partiallypositioned within the housing. The shaft assembly extends distally from thehousing and has afirst tubular member pivotally connected with a second tubular member locateddistally from thefirst tubular member. An articulation mechanism is operatively connectedbetween the first andsecond tubular members, and includes a gear rack, at least one gear, and agear segment,respectfully connected with each other to pivot the second tubular memberabout the pivot axis.The gear rack and at least one gear are located within the first tubularmember. The gearsegment extends proximally from the second tubular member.