Half-year report January-June 2008

Half-year report January-June 2008

Doubled sales growth and strong cash flow during the first six months.
“We have now had more than 20 quarters in a row with increased sales compared
with the previous year,” says Magnus Nilsson, CEO.


• Sales increased by 19 percent to SEK 115.2 (96.8) million. Calculated in local
sales currencies growth was 21 percent. During the second quarter sales amounted
to SEK 56.6 (47.5) million, corresponding to an increase of 19 percent.
Calculated in local sales currencies growth was 22 percent. This was Vitrolife's
22nd quarter in a row with increased sales compared with the previous year.

• Gross income increased by 19 percent to SEK 79.9 (67.0) million, the gross
margin was 69 percent (69). Gross income for the second quarter increased by 18
percent to SEK 39.3 (33.3) million and the gross margin was 70 (70) percent.

• Operating income increased by 20 percent and amounted to SEK 16.6 (13.8)
million, which gives an operating margin of 14 (14) percent. For the second
quarter operating income amounted to SEK 6.0 (5.9) million.

• Operating income before research and development costs increased by 18 percent
to SEK 31.9 (27.0) million. This corresponds to a margin of 28 (28) percent. For
the second quarter the increase was 10 percent to SEK 13.6 (12.4) million, a
margin of 24 percent (26).

• Consolidated net income was SEK 14.0 (20.5) million, which gives earnings per
share of SEK 0.71 (1.04). Net income increased by 14 percent adjusted for last
year's capitalization of the deferred tax asset in loss carry-forward for tax
purposes to the tune of SEK 8.2 million. For the second quarter net income was
SEK 6.0 (9.5) million and earnings per share were SEK 0.30 (0.48). Last year's
figure includes capitalization of a deferred tax asset in loss carry-forward for
tax purposes to the tune of SEK 4.1 million.

• The cash flow from operating activities increased by 72 percent and amounted
to SEK 21.3 (12.3) million. The cash flow for the second quarter was SEK 14.5
(7.3) million. Vitrolife has net cash and bank balances of SEK 5.5 million (net
debt 7.2).

• The equity/assets ratio amounted to 83 percent (83).

• Very good sales development for fertility products in China, plus 91 percent.

• Start of direct marketing of all fertility products in France.

• Products for the cold storage of embryos approved in Europe. 

• IVF products approved in Russia.

• STEEN Solution™ approved in Australia.

• Acquisition of a further 9 percent of the Italian subsidiary A.T.S. after the
end of the period, according to plan.


July 15, 2008
Kungsbacka, Sweden 

The Board and the CEO


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 in Sweden, USA, Australia and Italy. The Vitrolife share
is listed on the OMX Nordic Exchange Stockholm's Nordic Small Cap list.
________________________________________________________________________________
_________
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.

The information in this report is such as that which Vitrolife is required to
publish in accordance with the Securities Exchange and Clearing Operations Act.
The report was submitted for publication on July 15, 2008 at 11.30 am.

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