Report on operations 2007

Report on operations 2007

Q4: Sales growth for Fertility 20 percent in local currencies

• Sales increased by 14 percent to SEK 47.5 (41.8) million during the fourth
quarter. However, the underlying sales growth was 17 percent, corrected for
negative currency effects. Net sales amounted to SEK 188.9 (171.3) million for
the whole of 2007, an increase of 10 percent. Calculated in local sales
currencies growth was 13 percent. 

• Sales growth of 20 percent in local currencies within the Fertility area
during the fourth quarter.

• Gross income increased by 11 percent to SEK 32.1 (28.9) million for the fourth
quarter, and the gross margin was 68 percent (69). Gross income for the quarter
has been affected by extra expenses in connection with the launch of a new
series of products. Gross income for the whole of 2007 increased by 11 percent
to SEK 129.7 (116.5) million and the gross margin improved to 69 (68) percent.

• Operating income for the fourth quarter amounted to SEK 3.2 (3.9) million,
corresponding to an operating margin of 7 (9) percent. A provision of SEK 1
million has been made for uncertainty regarding  import tariff coding, for the
whole of 2007.
Operating income for the whole of 2007 increased by 5 percent and amounted to
SEK 21.0 (20.0) million, which gives an operating margin of 11 (12) percent.

• Operating income for the fourth quarter before research and development costs
amounted to SEK 10.4 (10.0) million, corresponding to a margin of 22 (24)
percent. For the whole of 2007 operating income before research and development
costs increased by 8 percent to SEK 47.9 (44.2) million. This corresponds to a
margin of 25 (26) percent.

• Continued strong focus on research and development activities, 15.3 (14.6)
percent of sales for the fourth quarter, 14.2 (14.1) percent for the whole of
2007.

• Consolidated net income increased to SEK 7.9 (2.1) million for the fourth
quarter, SEK 36.1 (15.2) million in total for 2007. Capitalization of the
deferred tax asset in loss carry-forward for tax purposes has been carried out
to the tune of SEK 4.1 (-) million for the fourth quarter, SEK 16.4 (-) million
in total for the year.

• The cash flow from operating activities amounted to SEK 3.3 (5.4) million for
the fourth quarter, SEK 21.3 (23.8) million for the whole of 2007.

• Earnings per share increased to SEK 0.40 (0.11) for the fourth quarter. For
the whole of 2007 earnings per share increased to SEK 1.82 (0.77).

• The equity/assets ratio amounted to 85 percent (81).

• Products for cold storage of embryos approved in Canada.

• Acquisition of majority shareholding in Italian distributor after the end of
the period. 

• Start of direct marketing of all fertility products in France announced after
the end of the period.


February 7, 2008
Kungsbacka, Sweden 

The Board


Queries should be addressed to: 
Magnus Nilsson, CEO, phone +46 31 721 80 00 or +46 708 22 80 61.
Anna Ahlberg, CFO, phone +46 31 721 80 13 or +46 708 22 80 13.


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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) 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 maintain tissue in optimal
condition outside the body for the required time 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 140 employees and the company's products
are sold in more than 80 markets. The head office is in Kungsbacka, Sweden, and
there are subsidiaries outside Gothenburg, Sweden and in Denver, USA. The
Vitrolife share is listed on the OMX Nordic Exchange's Nordic Small Cap list.
________________________________________________________________________________
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Vitrolife AB (publ), Faktorvägen 13, SE-434 37 Kungsbacka, Sweden. Corporate
identity number 556354-3452.
Tel: +46 31 721 80 00. Fax: +46 31 721 80 90. E-mail: info@vitrolife.com.
Homepage: www.vitrolife.com.

This is a translation of the Swedish version of the report on operations. When
in doubt, the Swedish wording prevails.