Vitrolife: Report on Operations 2009

Q4: A Strong Conclusion to a Record Year for Vitrolife

GOTHENBURG, Sweden--(BUSINESS WIRE)--Regulatory News:

Vitrolife (STO:VITR):

• Sales increased by 14 percent during the fourth quarter and amounted to SEK 67 (59) million. Calculated in local currency growth was 15 percent. Sales for the year amounted to SEK 275 (225) million, corresponding to an increase of 22 percent. Calculated in local currencies growth was 10 percent.

• Gross margin for the fourth quarter was 70 percent (70). Gross income increased by 15 percent and amounted to SEK 47 (41) million. Gross margin for the year was 70 percent (69) and gross income amounted to 193 SEK (156) million, corresponding to an increase of 23 percent.

• In the fourth quarter operating income (EBIT) increased by 21 percent and amounted to SEK 7 (5) million. Operating margin was 10 (9) percent. Operating income for the year was SEK 30 (27) million, corresponding to an operating margin of 11 (12) percent. The increase was 12 percent. Adjusted for one-time expenses relating to the move and to the bid for MediCult during the first half year the increase was 18 percent.

• Operating income before research and development costs increased during the fourth quarter by 23 percent and amounted to SEK 16 (13) million, corresponding to a margin of 24 percent (22). For the whole of 2009 the corresponding increase was 19 percent and amounted to SEK 69 (58) million, and the margin was 25 percent (26).

• The Group’s net income increased by 14 percent during the fourth quarter, adjusted for capitalization of the deferred tax asset in loss carry-forward for tax purposes to the tune of SEK 4 (4) million. Net income was SEK 12 (10) million, which gives earnings per share of SEK 0.56 (0.51). Net income for the whole year was SEK 34 (30) million, which gives earnings per share of SEK 1.75 (1.52)

• The cash flow from operating activities was SEK 17 (16) million for the fourth quarter. Cash flow for the year amounted to SEK 42 (43) million.

• Net equity amounted to SEK 6 (7) million

• The equity/assets ratio amounted to 87 percent (85).

• Vitrolife acquired its distributor in Great Britain and Ireland, IVF Limited.

• VINNOVA announced that they will provide Vitrolife’s stem-cell research project with support of SEK 3.6 million.

• The patient recruitment of the clinical study in Canada on STEEN Solution™ completed after the period.

• The Board’s proposed dividend is 0.50 SEK per share.

February 10, 2010

Magnus Nilsson CEO

Vitrolife is a global biotechnology/medical device Group that works with developing, manufacturing and selling advanced products and systems for the preparation, cultivation and storage of human cells, tissue and organs. The company has business activities within three product areas: Fertility, Transplantation and Stem Cell Cultivation.
The Fertility product area works with nutrient solutions (media), cryopreservation products and advanced consumable instruments such as needles and pipettes, for the treatment of human infertility. The Transplantation product area works with solutions and systems to evaluate and maintain organs outside the body order to select usable organs and keeping them in optimal condition while waiting for transplantation. The Stem Cell Cultivation product area works with media and instruments to enable the use and handling of stem cells for therapeutic purposes.
Vitrolife today has approximately 160 employees and the company’s products are sold in more than 85 markets. The company is headquartered in Gothenburg, Sweden, and there are subsidiaries in USA, Australia, France, Italy, United Kingdom and Japan. Production facilities are located in Sweden and USA.
The Vitrolife share is listed on NASDAQ OMX Stockholm, Small Cap.

Vitrolife AB (publ), Box 9080, SE-400 92 Göteborg, Sweden. Corporate identity number 556354-3452.
Tel: [phone]. Fax: [phone]. E-mail: [e-mail]. Website: www.vitrolife.com.

Vitrolife is required to publish the information in this press release in accordance with the Swedish Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication on Wednesday February 10, 2010 at 08:30 am CET.

This is a translation of the Swedish version of the notice. When in doubt, the Swedish wording prevails.

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