Interim report January

Interim report January - June 2011

Third quarter in a row with growth of around 30 percent and strong
development of income.

Second quarter in brief

  · Sales growth increased by 31 percent in local currency in the second
quarter. Sales amounted to SEK 88 (73) million, corresponding to an
increase by 19 percent in SEK.

  · Operating income (EBIT) amounted to SEK 13 (9) million, which
corresponds to an increase by 45 percent. The operating margin amounted
to 14 (12) percent. Operating expenses as a percentage of sales
decreased to 51 (59) percent. Operating income before research and
development costs amounted to SEK 24 (20) million, which corresponds to
an operating margin of 28 (27) percent.

  · Income before tax increased by 51 percent to SEK 15 (10) million.
Net income amounted to SEK 10 (9) million; estimated tax of SEK 5 (0)
million is included. Payment of tax will be made no earlier than in
connection with Q1 2012. Earnings per share amounted to SEK 0.51 (0.48).

  · The cash flow from operating activities was SEK 11 (13) million. The
change compared with the previous year is attributable primarily to the
increase in accounts receivable and raw material inventories as a result
of strongly increasing sales and increased growth for the company as a
whole.

  · Dividend of SEK 0.60 (0.50) per share, in total SEK 11,735,914
(9,776,429).

  · The total number of shares in Vitrolife AB (publ) was increased
during the quarter by 2,912 shares and amounts to 19,562,769 shares. The
increase in the number of shares is due to the utilization of warrants
for subscription for new shares in connection with Vitrolife's personnel
warrants program 2008/2011, which came to an end on May 31, 2011. A
total of 9.912 shares were subscribed for by utilizing the warrants
program.

  · Vitrolife is the first company to receive regulatory approval in
China for a whole series of cultivation media for IVF.

  · Study shows that EmbryoGlue®, a product patented by Vitrolife,
increases the chances of the infertile having children.

  · Launch of new freeze medium for human embryonic stem cells.

  · Clinical study with good results using STEEN Solution™ published in
a prominent scientific journal. A total of more than 90 patients have
now received new lungs through the use of STEEN Solution™.

  · Further European hospitals, amongst other things in Sweden, Italy
and Germany, report on their first clinical transplantations using STEEN
Solution™.

First six months in brief

  · Sales increased by 29 percent in local currency during the first
half of 2011. Sales amounted to SEK 176 (149) million, corresponding to
an increase by 18 percent in SEK.

  · Operating income (EBIT) amounted to SEK 23 (19) million, which
corresponds to an increase by 22 percent. The operating margin amounted
to 13 (13) percent. Operating expenses as a percentage of sales
decreased to 53 (57) percent. Operating income before research and
development costs amounted to SEK 46 (41) million, which corresponds to
an operating margin of 26 (28) percent.

  · Income before tax increased by 33 percent and amounted to SEK 27
(20) million. Net income amounted to SEK 19 (19) million; estimated tax
of SEK 8 (1) million is included. Payment of tax will be made no earlier
than in connection with Q1 2012. Earnings per share amounted to SEK 0.97
(0.98).

Gothenburg, July 14, 2011

VITROLIFE AB (publ)

Magnus Nilsson

CEO

Queries should be addressed to:

Magnus Nilsson, CEO; phone +46 31 721 80 61

Anne-Lie Sveder, CFO, phone +46 31 721 80 13
Interim report January - June 2011

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