Straumann Posts 19 Percent Rise in Sales in First Nine Months of 2005



 -- Sales expansion in the high-teens across all regions

 -- New SLActive implant surface technology launched in Europe and 
    Asia 

 -- Straumann(r) Bone Ceramic launched in the U.S. ahead of schedule

 -- Australian subsidiary opened; Straumann to take over distribution 
    in Mexico and to establish first subsidiary in Central American 
    region

BASEL, Switzerland, Oct. 20, 2005 (PRIMEZONE) -- In the first nine months of 2005, Straumann Group sales grew 19% both in Swiss francs and in local currencies to CHF 371 million, in line with the company's expectations. Approximately 5 percentage points of overall sales growth came from recently acquired distribution channels, namely in Italy and Australia. A slightly stronger U.S. dollar in the third quarter resulted in an overall currency effect on 9-month sales growth of less than 1 percentage point.

Sales growth in high-teens across all regions

European sales rose 19% (19% in CHF) to CHF 233 million, lifted by the sustained recovery in Germany and the contribution from the new Italian subsidiary. German sales, which account for more than a third of Straumann's business in Europe, grew in the mid-teens in the third quarter as Straumann outpaced the German market, which has been impacted by the implementation of healthcare reforms. Elsewhere in Europe, performances were generally solid and in line with expectations.

North American revenues grew 18% (15% in CHF) from the first nine months of 2004 to CHF 94 million. The set-up of the new production facility in Andover is proceeding according to plan, and Straumann has just obtained the recommendation for ISO 13485 certification for its Quality Management System in the U.S.

In the Asia/Pacific region, sales increased 19% (in CHF) to CHF 36 million, gaining some additional lift from Straumann's new subsidiary in Australia, which opened at the beginning of the third quarter this year. Third-quarter sales in Japan picked up after a soft second quarter following exceptional ordering earlier in the year ahead of price increases.

Elsewhere, in the rest of the world, Group 9-month sales climbed 44% to CHF 8 million, in comparison with the same period of 2004.

Key launches at international events

At the annual meeting of the European Association for Osseointegration (EAO) in Munich in September, Straumann presented an update on its broad clinical trial program supporting SLActive, the new generation implant surface technology that further reduces healing times. Most importantly, clinical findings were presented showing a highly significant change in implant stability patterns with SLActive compared with the current gold-standard SLA surface. At the same time, Straumann initiated the European and Asian launches of SLActive, with the U.S. launch slated for March 2006.

Across the Atlantic, the Group used the annual meeting of the American Association of Periodontology to present its dental tissue regeneration products. The event provided an excellent platform for the U.S. launch of the Straumann Bone Ceramic, a fully-synthetic bone augmentation material used in patients with insufficient bone for implant-based tooth replacement. This launch was earlier than expected owing to the very positive reception from clinicians in market acceptance tests. The full global roll-out is planned for 2006.

First subsidiary in Central American region

In the third quarter, Straumann achieved further progress with its strategy to gain direct access and proximity to customers. The Group initiated a process to take over distribution of its products in Mexico and to establish a local subsidiary there in the New Year. This will be the company's first subsidiary in Central America and will provide the full range of Straumann products, services and training courses to a growing number of dental professionals. Although it is a small, emerging market for implant dentistry and oral tissue regeneration, Mexico offers attractive growth potential.

New talent added

As Straumann advances into a new phase of its corporate development, it continues to create further job opportunities. Almost 200 new positions were added over the first nine months of 2005, bringing the global workforce to approximately 1300.

Management appointments

Martin Gertsch, Executive Vice President, Finance Division, has decided to leave Straumann in the New Year in order to pursue a new challenge outside the company. Mr. Gertsch has been with Straumann since 1997 and has served as Chief Financial Officer since the beginning of 2002. His appointed successor will take over in the first half of 2006 and will be announced in due course.

Patrick Louvel will join Straumann on 1 January 2006 as Executive Vice President, Sales Asia/Pacific and Distributors. In this capacity he will oversee sales in all countries outside Europe and North America. Mr. Louvel is currently Head of GE Healthcare Bio-Sciences in Asia/Pacific and previously held regional general management positions at Amersham Health and Nycomed. He is a medical doctor and holds an MBA. He succeeds Thomas Jaberg, who takes on the new responsibility of strengthening education, training and ITI relationships in North America.

Outlook (barring unforeseen circumstances)

On the basis of developments over the first nine months, the Group reiterated its expectation for 2005 full-year sales to grow in the region of 20% in local currencies, with operating and net profit margins expanding by about one percentage point.

About Straumann

Headquartered in Basel, Switzerland, Straumann (SWX:STMN) is a global leader in implant dentistry and oral tissue regeneration. In collaboration with the International Team for Implantology (ITI), leading clinics, research institutes and universities, the Group researches, develops, produces and distributes implants, instruments and tissue regeneration products for use in tooth replacement solutions or to prevent tooth loss. Straumann also provides training and services to the dental profession worldwide. The Group manufactures implant system components and instruments in Switzerland and the USA, and dental tissue regeneration products in Sweden. Straumann's products and services are available in more than 60 countries worldwide through the Group's 16 distribution subsidiaries and a broad network of distribution partners. Straumann employs 1,293 people worldwide, and generated sales of CHF 420 million and a net income of CHF 101 million in 2004.


 Straumann Holding AG, Peter Merian-Weg 12, 4002 Basel, Switzerland.
 Phone: +41 (0)61 965 11 11 / Fax: +41 (0)61 965 11 01
 E-mail: investor.relations@straumann.com or 
 corporate.communication@straumann.com
 Homepage: www.straumann.com

Disclaimer

This release contains certain "forward-looking statements", which can be identified by the use of terminology such as "to take over", "to establish", "expectations", "sustained recovery", "according to plan", "reduces healing times", "slated", "is planned", "continues to create", "strategy", "will", "growing", "emerging", "growth potential", "outlook", "to grow", "expanding" or similar wording. Such forward-looking statements reflect the current views of management and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Group to differ materially from those expressed or implied. These include risks related to the success of and demand for the Group's products, the potential for the Group's products to become obsolete, the Group's ability to defend its intellectual property, the Group's ability to develop and commercialize new products in a timely manner, the dynamic and competitive environment in which the Group operates, the regulatory environment, changes in currency exchange rates, the Group's ability to generate revenues and profitability, and the Group's ability to realize its expansion projects in a timely manner. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this report. Straumann is providing the information in this release as of this date and does not undertake any obligation to update any forward-looking statements contained in it as a result of new information, future events or otherwise.

Key reporting dates in 2006


 16 February 2006   Full-year results 2005
 24 March 2006      Annual General Meeting
 26 April 2006      Q1 sales 2006
 10 August 2006     Q2 sales and H1 results 2006
 25 October 2006    Q3 and 9M sales 2006

 Quarterly sales by region

 (in CHF million)               Q1, 2005 Q2, 2005  Q3, 2005   9M, 2005
 Europe                             79.6     84.7      68.6     232.9
  Growth in %                       12.9     25.4      19.5      19.1
  Growth in local currencies in %   14.0     25.0      18.8      19.3
  In % of Group sales               63.4     65.0      59.5      62.7
 North America                      28.9     31.6      33.6      94.1
  Growth in %                       11.4     12.7      20.5      15.0
  Growth in local currencies in %   18.5     15.7      18.4      17.5
  In % of Group sales               23.0     24.3      29.1      25.4
 Asia / Pacific                     14.1     11.5      10.8      36.4
  Growth in %                       46.7     (5.0)     21.4      18.9
  In % of Group sales               11.2      8.8       9.4       9.8
 Rest of the world                   3.0      2.5       2.3       7.9
  Growth in %                       64.0     53.8      18.2      44.4
  In % of groups sales               2.4      1.9       2.0       2.1
 Total                             125.6    130.3     115.4     371.3
  Growth in %                       16.4     19.2      19.9      18.5
  Growth in local currencies in %   18.9     19.7      18.7      19.1
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