Sorin Group Announces Strong Second Quarter 2009 Results and Increases Full Year Guidance

MILAN--(Business Wire)--
Q2 09 Results highlights:

* Consolidated revenues at € 181.5 million, up 9.8% (4.9% at constant exchange
rates) versus Q2 08;
* EBITDA at € 25.9 million (14.3% of revenues), up 25.4% versus Q2 08;
* Net Earnings at € 11.1 million (6.1% of revenues).

H1 09 Results highlights:

* Consolidated revenues at € 350.0 million, up 10.4% (5.7% at constant exchange
rates) versus H1 08;
* EBITDA at € 48.5 million (13.8% of revenues), up 27.6% versus H1 08;
* Net Earnings at € 13.9 million (4.0% of revenues).

Net Debt as of June 30, 2009 down to € 209.8 million versus€ 238.6 million on
March 31, 2009 (€ 270.3 million on June 30, 2008).

Full Year guidance for 2009 revised upward: Net sales growth at 3-4%*, EBITDA
margin at 13.5-14%, Net profit at € 14-18 million and Net Debt not higher than €
205 million. In Q3 2009 sales are expected to grow by 3-4%*. Notwithstanding a
weak seasonality, EBITDA margin is expected to be at 11.5%-12.0%, Net Earnings
to be positive and Net Debt at € 220 million.

* * *

Pursuant to IFRS 5, the first half 2008 results have been reclassified to ensure
compatibility of data following the sale of the Vascular Therapy and Renal Care
Business Units in 2008.

The Board of Directors of Sorin S.p.A. (MIL:SRN), meeting today under the
Chairmanship of Rosario Bifulco, approved results for the First Half of 2009.

"In the second quarter we continued to exceed all our short term financial
targets. These results validate our long-term business model based on strict
financial discipline combined with an increased focus on innovation", said Chief
Executive Officer André-Michel Ballester.

Results for second quarter 2009

In the period, Sorin Group posted Revenues of € 181.5 million, up 9.8% (4.9% at
constant exchange rates) from € 165.2 million in the second quarter 2008. Key
drivers of this performance include robust growth in the Japanese and North
American markets and the positive sales performance of the CRM business unit.

* The Cardiopulmonary Business Unit (Heart-lung machines, extra-corporeal and
autotransfusion blood circulation systems) posted revenues of € 81.1 million, up
0.6%* compared with the same quarter last year. The recently acquired activities
in the Endoscopic Vessel Harvesting (EVH) business reported solid quarterly
results, which more than offset the results of the other product lines. Sales of
Heart-lung machines were down 1.1%* at € 14 million, Oxygenators and
Autotransfusion products were down 1.0%* and 3.0%* at € 51 million and € 15
million, respectively, due to a moderate slowdown in open-heart procedures
globally. The Business Unit will continue to leverage on its technological
know-how and 30 years leading market position, as well as on the positive
integration of adjacent segments of business. In June, Sorin Group announced the
delivery of the 1000th S5 heart-lung machine to the Mount Sinai Medical Center,
one of the world`s leading centers for cardiovascular medicine, based in New
York.
* The Cardiac Rhythm Management Business Unit (implantable devices to manage
cardiac rhythm disorders) posted revenues of € 67.4 million, with a 9.5%* growth
compared with the same period in 2008, helped in particular by strong revenue
growth in Japan, North America and in key European countries. Sales in the High
Voltage segment (OvatioTM and ParadymTM defibrillators) rose 7.4%* to € 20
million, whilst in the Low Voltage segment (SymphonyTM, ReplyTM, EspritTM and
FacilTM families of pacemaker) sales grew 12.6%* to € 45 million. In the second
quarter, the company announced the European commercial market release and first
implantation of its new-generation ParadymTM DR 8550 dual chamber implantable
cardioverter-defibrillator (ICD), the second product from its new platform with
cutting-edge performance. Furthermore, the company announced the approval, by
the competent authority, to market the Reply family of dual and single chamber
rate-adaptive pacemakers in Canada, and the authorization to market the new
Facil single and dual chamber rate responsive pacemakers on the Japanese market.
The Business Unit is expected to continue to grow at mid to high single digit in
H2 09.
* The Heart Valves Business Unit (mechanical and tissue heart valves, and valve
repair products) posted revenues of € 31.9 million, up 8.4%* compared with the
same quarter in 2008. Despite the constant market trend towards biological
valves, the mechanical valves segment sales increased 2.8%* to € 18 million.
Revenues in the tissue heart valves segment grew 17.2%* to € 12 million driven
by the continued expansion of the MitroflowTM valve in the US. Enrolment in the
minimally invasive"Perceval STM" aortic tissue heart valve CE mark clinical
trial continues to progress on schedule. In the second quarter, the company
announced the conclusion of a long-term strategic partnership with Japan
Lifeline for the exclusive distribution of Sorin`s complete heart valve and
valve repair portfolio in Japan. The Business Unit is expected to continue to
capture shares particularly in the tissue heart valve segment.

Gross Profit grew 9.7% to € 98.6 million, 54.4% of revenues (€ 89.9 million,
54.4% in Q2 08). The company expects gross margin in the coming quarters to
expand driven by the positive impact from the manufacturing cost reduction
programs in progress and from an improved revenue mix.

Selling, General and Administrative (S,G&A) expenses continue their trend
downwards to 37.7% of revenues (€ 68.4 million) from 38.4% in Q2 08 (€ 63.4
million).

Research and Development (R&D) represent 8.1% of revenues (€ 14.6 million), from
8.4% in Q2 08 (€ 13.9 million).

EBITDA showed a robust25.4% growth to € 25.9 million (14.3% of revenues)
compared with € 20.6 million (12.5% of revenues) in Q2 08, thanks to leveraged
sales growth and improved structural costs.

EBIT amounted to € 17.5 million (9.6% of revenues) compared with € 21.1 million
(12.8% of revenues) in Q2 08. Before special items, EBIT grew 23.4% to € 15.6
million (8.6% of revenues) compared with € 12.7 million (7.7% of revenues) in Q2
08. An analysis of special items is provided in the attachments.

Net Earnings were € 11.1 million (6.1% of revenues) versus € 15.0 million in Q2
08. Net earnings before special items and discontinued operations were € 10.9
million, up 24.3% from € 8.8 million posted in the same period last year.

Results for first half 2009

In the first half of 2009 Sorin Group posted Revenues of € 350.0 million, up
10.4% (5.7% at constant exchange rates) compared with € 316.9 million in the
first half of 2008.

Gross Profit grew 11.3% to € 192.7 million, or 55.0% of revenues (€ 173.1
million, or 54.6% in the first half of 2008).

Selling, General and Administrative (S,G&A) expenses were down to 38.7% of
revenues (€ 135.4 million) compared with 39.8% in the first half of 2008 (€
126.2 million).

Research and Development (R&D) expenses were € 29.0 million, or 8.3% of revenues
(8.4% in the first half 2008).

EBITDA grew 27.6% to € 48.5 million(13.8% of revenues) compared with € 38.0
million (12.0% of revenues) in the first half of 2008.

EBIT grew 4.6% to € 30.1 million (8.6% of revenues) compared with € 28.8 million
(9.1% of revenues) in the first half of 2008. Before special items, EBIT grew
39.1% to € 28.3 million (8.1% of revenues) compared with € 20.3 million (6.4% of
revenues) in the first half of 2008.

Net Earnings rose to € 13.9 million (4.0% of revenues) compared with € 14.4
million in Q2 2008. Net earnings before special items and discontinued
operations were € 14.2 million, up 73.3% from € 8.2 million posted in the first
half of 2008.

Net Debt as of June 30, 2009 fell to € 209.8 million, compared with € 238.6
million on March 31, 2009 and € 270.3 million on June 30, 2008. The strong cash
generation came mainly from operating activities (improved profitability and
more efficient working capital management).

Thanks to the ratchet mechanism applied to the Company`s medium and long term
credit agreements, the deleverage of the balance sheet will trigger a reduction
in the cost of debt of more than 30 basis points, effective as of July 1st 2009.

Full Year guidance for 2009 revised upward: Net sales growth at 3-4%*, EBITDA
margin at 13.5-14%, Net profit at € 14-18 million and Net Debt not higher than €
205 million. In Q3 2009 sales are expected to grow by 3-4%*. Notwithstanding a
weak seasonality, EBITDA margin is expected to be at 11.5%-12.0%, Net Earnings
to be positive and Net Debt at € 220 million.

* * *

The Board of Directors has taken note that on June 26, 2009 Paolo Braghieri,
Michele Cappone, Sandro Marco De Poli and Gabriele Casati, appointed by the
Shareholder`s Meeting for the three-year period 2009-2011 on the basis of the
minority list presented by Bios Interbanca S.p.A., have resigned their positions
as Board members, pursuant to application of a new internal policy of Interbanca
S.p.A. - whose control was transferred from Banco Santander SA to GE Corporate
Financial Services Italia Srl - which does not permit the participation of its
representatives in boards of directors of publicly traded companies in which
Interbanca does not hold a majority stake. The Sorin S.p.A. Board of Directors
has resolved to start the process of selection of potential candidates to the
role of Directors, to replace the members which resigned their positions and to
appoint Paolo Baessato, Independent Director, in replacement of Michele Cappone
as member of the Internal Control Committee.

* * *

Declaration

The manager responsible for preparing the company`s financial reports, Demetrio
Mauro, declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated
Law on Finance, that the accounting information contained in this press release
corresponds to the document results, books and accounting records.

* * *

Disclaimer

This press release contains forward-looking statements. These statements are
based on the Group`s current expectations and projections about future events
and, by their nature, are subject to inherent risks and uncertainties. They
relate to events and depend on circumstances that may or may not occur or exist
in the future, and, as such, undue reliance should not be placed on them. Actual
results may differ materially from those expressed in such statements as a
result of a variety of factors, including: continued volatility and further
deterioration of capital and financial markets, changes in commodity prices,
changes in general economic conditions, economic growth and other changes in
business conditions, changes in government regulation (in each case, in Italy or
abroad), and many other factors outside of the Group`s control.

* * *

About the Sorin Group

Sorin Group (www.sorin.com) is a global company and a leader in the treatment of
cardiovascular diseases. The company develops, manufactures and markets medical
technologies for cardiac surgery and for the treatment of cardiac rhythm
disorders.

With 3,500 employees worldwide, the Group focuses on three major therapeutic
areas: cardiopulmonary bypass (extracorporeal circulation and autotransfusion
systems), cardiac rhythm management, and heart valve repair and replacement.
Each year, over 1 million patients are treated with the devices of Sorin Group
in more than 80 countries.

For more information, please visit: www.sorin.com

* At comparable exchange rates

RECLASSIFIED INCOME STATEMENT - 2° QUARTER 2009

(€ million)

2° quarter 2° quarter Change
2009 2008 %

Net revenues 181.5 165.2 9.8%

Cost of product sold (82.9) (75.3) 10.0%

Gross profit 98.6 89.9 9.7%
% of net revenues 54.4% 54.4%

SG&A (68.4) (63.4) 7.9%
% of net revenues (37.7%) (38.4%)

R&D (14.6) (13.9) 5.4%
% of net revenues (8.1%) (8.4%)

Special items 1.8 8.4 -

EBIT 17.5 21.1 (17.3%)
% of net revenues 9.6% 12.8%

Interests (0.7) (0.9) (21.2%)

Taxes (4.0) (3.0) 34.3%

Net Result from continued operations 12.8 17.3 -

Results from discontinued operations - (2.3) -

Net Result 12.8 15.0 -

EBITDA 25.9 20.6 25.4%
% of net revenues 14.3% 12.5%

EBIT before special items 15.6 12.7 23.4%
% of net revenues 8.6% 7.7%

RECLASSIFIED INCOME STATEMENT - 1° HALF 2009

(€ million)

1° half 1° half % Change
2009 2008

Net revenues 350.0 316.9 10.4%

Cost of product sold (157.4) (143.8) 9.4%

Gross profit 192.7 173.1 11.3%
% of net revenues 55.0% 54.6%

SG&A (135.4) (126.2) 7.3%
% of net revenues (38.7%) (39.8%)

R&D (29.0) (26.6) 8.8%
% of net revenues (8.3%) (8.4%)

Special items 1.8 8.4 -

EBIT 30.1 28.8 4.6%
8.6% 9.1%

Interests (4.6) (3.8) 20.0%

Taxes (9.4) (8.3) 14.0%

Net Result from continued operations 16.1 16.7 -

Results from discontinued operations (2.2) (2.3) -

Net Result 13.9 14.4 -

EBITDA 48.5 38.0 27.6%
% of net revenues 13.8% 12.0%

EBIT before special items 28.3 20.3 39.1%
'% of net revenues 8.1% 6.4%

CONSOLIDATED FINANCIAL STATEMENT AS OF JUNE 30, 2009

(€ million)
30.6.2009 31.12.2008 Change
(*)

Non current financial assets - - -

Current financial assets
- Receivables for derivative financial instruments 4.8 2.1
- Other financial assets 5.8 41.4 (35.6)
- Liquid funds 10.3 22.9 (12.6)

Total financial assets 20.9 66.4 (45.5)

Non current financial liabilities
- Liabilities for derivative financial instruments (6.0) - 6.0
- Other non current financial statements (146.4) (4.8) 141.6

Current financial liabilities
- Liabilities for derivative financial instruments (0.1) (4.7) (4.6)
- Other current financial statements (78.2) (310.0) (231.8)

Total financial liabilities (230.7) (319.5) (88.8)

Net financial Indebtedness (209.8) (253.1) (43.3)

- of which current financial indebtedness (57.4) (248.3) (190.9)
- of which non current financial indebtedness (152.4) (4.8) 147.6

(*) In absolute value

SPECIAL ITEMS IMPACT ON EBIT - 1° HALF 2009

(€ million) 1° half 1° half Change (*)
2009 2008

EBIT 30.1 28.8

-- Disposal endovascular business -- (8.9) -8.9

-- Acquisition EVH business (0.7) -- +0.7

-- JLL agreement (0.9) -- +0.9

-- Adjustments personnel funds (0.3) 0.4 +0.7

-- Others 0.1 -0.1

Total special items - (Income)/Charges (1.8) (8.4) -6.6

EBIT before special items 28.3 20.3

(*) In absolute value

SPECIAL ITEMS IMPACT ON NET FINANCIAL DEBT AS OF JUNE 30, 2009

(€ million) 30.06.2009 30.6.2008 Change
(Decrease) /
Increase

Net financial Debt 209.8 270.3 (60.5)

Special items
•Factoring pro-soluto (5.0)
•Restructuring charges 10.1
•Clearglide acquisition 0.8
•JLL agreement (0.9)
•Discontinued activities (3.5)
•Net proceeds for Renal Care e Vascular Therapy disposals (11.8)
•Acquisitions/Disposals/Litigation/Others 0.8

Total special items (9.5)

Change in net financial debt before special items (51.0)

MATURITY ANALYSIS AS OF JUNE 30, 2009

(€ million)

H2 2014-
2010 2011 2012 2013 TOTAL
2009 onward

EIB Loan (94.8) (94.8)
Syndicated loan (15.7) (31.3) (40.7) (1.1) (88.8)
Other MLT loans (0.4) (0.7) (0.6) (0.5) (0.4) (1.9) (4.5)
Factoring (0.5) (16.9) (17.4)
Other short term debt (19.3) (19.3)
Derivatives ( payable) / receiv. 4.8 (0.2) (1.9) (3.9) (1.2)
Other financial assets 5.8 5.8
Cash and cash equivalents 10.3 10.3

TOTAL (14.9) (48.9) (41.5) (3.5) (0.4) (100.5) (209.8)

AVERAGE DURATION Years 3.03

Martine Konorski
Director, Corporate Communications
Sorin Group
Tel: +33 (0)1 46 01 33 78
Mobile: +33 (0)6 76 12 67 73/+3902438114218
e-mail: martine.konorski@sorin.com
or
Carla Vidra
Investor Relations
Sorin Group
Tel: +39 02 69969716
e-mail: carla.vidra@sorin.com
or
Press Office
Image Building
Simona Raffaelli
Tel. + 39 02 89011300
e-mail: sorin@imagebuilding.it

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