Report on operations 2010

Report on operations 2010

A quarter with record sales concluded a year that set the stage for an
increased potential in growth.

Fourth quarter

  · Sales growth was 29 percent (in local currency). Sales amounted to
SEK 81 (67) million, corresponding to an increase of 20 percent in SEK.
This includes sales of SEK 5 million for the business in San Diego
acquired during the fourth quarter.
  · Operating income (EBIT) increased by 28 percent and amounted to SEK
9 (7) million. The operating margin was 11 (10) percent. One-time
expenses of SEK 0.3 million regarding the acquisition of Conception
Technologies are included. Operating income before research and
development costs increased by 9 percent and amounted to SEK 18 (16)
million.
  · Income before tax amounted to SEK 11 (7) million. Net income
amounted to SEK -1 (11) million, which gave earnings per share of SEK
-0.04 (0.56).
  · The operative cash flow was SEK 21 (17) million.
  · Acquisition of products and manufacturing unit from Conception
Technologies Inc., San Diego, USA.
  · Launch of new generation of growth factors and cytokines for stem
cell cultivation.

The year in brief

  · Sales growth was 17 percent (in local currency). Sales amounted to
SEK 298 (275) million, corresponding to an increase of 8 percent in SEK.
This includes sales of SEK 5 million for the acquired business in San
Diego.
  · Operating income (EBIT) increased by 9 percent and amounted to SEK
33 (30) million. The operating margin was 11 (11) percent. Adjusted for
one time-time expenses of SEK 2 million regarding the acquisition of
Conception Technologies, operating income increased by 15 percent and
amounted to SEK 35 (30) million, corresponding to an operating margin of
12 percent. Operating income before research and development costs
increased by 10 percent and amounted to SEK 76 (69) million.
  · Income before tax increased by 32 percent to SEK 41 (31) million.
Net income amounted to SEK 29 (34) million.
  · Dividend paid SEK 0.50 (0.40) per share.
  · A collaboration agreement was entered into with Finn-Medi Research
Ltd concerning the Stem Cell area.
  · The clinical study on STEEN Solution™ presented good treatment
results.
  · Collaboration agreement with University of Melbourne regarding
development of stem cell media.
  · Collaboration agreement with the Danish company HertART Aps
regarding development of fertility products. Launching is estimated to
the first quarter of 2011. A participating interest in HertART Aps was
acquired by Vitrolife.
  · Good clinical results from Swemed Sense™ multicenter study
presented.
  · New study shows better survival with Perfadex®.

After the end of the period:

  · The Board's proposed dividend is SEK 0.60 (0.50) per share.

Gothenburg, February 9, 2011

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