Össur - Second Quarter Report 2010

Announcement Össur hf. No. 19/2010

Reykjavik, 27 July 2010

EXCELLENT SALES GROWTH

Sales - Sales growth in the second quarter was very good, 12% measured in local currency. Total sales amounted to USD 90 million compared to USD 81 million in the second quarter of 2009. Both major product segments show double digit growth, prosthetics 15% and bracing and supports 11%, measured in local currency.

Profitability - Profits remain strong and EBITDA amounted to USD 20 million or 22% of sales and gross profit amounted to USD 56 million or 62% of sales. Overall margins remain stable and increased profits are driven by good sales growth. Net profit amounted to USD 14 million compared to USD 2 million for the same period in 2009. Net profit is significantly impacted by positive exchange gains flowing through financial items.

Jon Sigurdsson, President & CEO, comments:

"Overall performance in the second quarter was strong across all markets, and main product segments delivered double digit growth. New product launches in bracing and supports, in the first half of the year, have created excitement and are contributing to the growth in the B&S segment. The sales growth in prosthetics in the quarter is fuelled by good sales across all major product lines as well as the continued success of the bionic products."   

Highlights of the quarter:

• Good performance in bracing and supports - Sales of bracing and supports products were excellent in the Americas in the second quarter. This is the second consecutive quarter showing positive results in the Americas and sales growing above the market growth. Sales of bracing and supports in EMEA grew in line with the market.
  
  
• Growth across all product lines in prosthetics - Sales of prosthetics in both the Americas and EMEA continue to perform well and grow above the market growth rate. Sales of bionic products accounted for 15% of the prosthetics sales in the quarter. More moderate growth is expected in the second half of the year.

Guidance - Management estimates LCY organic sales growth will be at the top end, or even slightly above the previously guided range of 4-6% for the full year.  LCY organic EBITDA growth is expected to be above 10%.

Conference call at 12:00 CET/ 10:00 GMT/ 6:00 EST

Today, Tuesday 27 July 2010 Jon Sigurdsson, President and CEO, and Hjörleifur Palsson, CFO, will host a conference call for investors, analysts and shareholders presenting and discussing the results of the second quarter of 2010. The conference call will be conducted in English and can be heard on Össur's website: www.ossur.com/investors

To participate in the meeting please call one of the following telephone numbers:

Europe: +44 (0)20 3043 2436 or +46 (0)8 505 598 53

The United States: +1 866 458 40 87

Iceland: 800 8660

Further information 

NOTE: This page only includes the highlights of the quarter. For the full press release please visit www.ossur.com/investors