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Empresas y finanzas

Sorin Group Announces Results for the Fourth Quarter Ended December 31, 2007


    Q4 results slightly exceeding guidance:

    -- Revenues at 202.2 million Euro, up 1.2%* compared to the same
    period in 2006;

    -- EBIT at -23.7 million Euro (materially impacted by
    non-recurring items for 35,3 million Euro) compared to 12.8
    million Euro in the fourth quarter of 2006;

    -- EBITDA at 26.6 million Euro (13.2% of revenues) up from 26.1
    million Euro in the same quarter 2006 (12.6% of revenues)
    despite significant negative impact of foreign exchange;

    -- Net Debt at 292.8 million Euro as of December 31, 2007, down
    from 328.9 million Euro as of September 30, 2007.

    Preliminary full-year 2007: revenues at 785.4 million Euro
    (+2.0%(*)), EBIT at -44.3 million Euro (down from 30.6 million Euro in
    2006), due to non-recurring items for 71,9 million Euro, EBITDA at
    82.0 million Euro (from 85.8 million Euro in 2006), Net Debt
    substantially in line with prior year.

    2008 full-year guidance confirmed; in the First Quarter revenues
    are expected to reach 185 to 190 million Euro, EBITDA is expected to
    be between 10.5% and 11.0% of revenues and Net Debt is expected to be
    below Q1-07 level.

    The Board of Directors of Sorin S.p.A. (MIL:SRN) meeting today
    under the chairmanship of Umberto Rosa, approved the consolidated
    financial statements for the fourth quarter of 2007, ending December
    31, presented by Chief Executive Officer Andre-Michel Ballester.

    "Sorin Group recorded a solid quarter, slightly exceeding most
    recently given guidance. We believe we are building a good foundation
    to start transforming our company in order to consistently deliver
    strong financial performance," said Ballester.

    In the period, Sorin Group posted revenues of 202.2 Euro million,
    up 1.2%(*) over the same year-ago period. Foreign exchange negatively
    impacted sales by over 5 million Euro.

    -- The Cardiac Rhythm Management Business Unit (implantable
    devices that manage cardiac rhythm) reported revenues of 60.1
    million Euro in the quarter, up 5.0%* from the fourth quarter
    in 2006. Sales rose 8.7%* in the High Voltage segment
    (Ovatio(TM) defibrillators and CRT-D) to 16.7 million Euro
    whilst the Low Voltage segment (Symphony(TM) and Reply(TM)
    pacemakers) grew 0.8%* in the quarter to 39.9 million Euro.
    The Company continued to gain share in its key markets in
    Europe as well as in North America, both in the High Voltage
    and the Low Voltage segments. However, this strong performance
    was partially offset by weaker sales in a limited number of
    countries. The Company recently announced the FDA approval for
    commercial release in the U.S. of two new Isoline(TM) ICD
    leads whose proven design will help facilitate penetration of
    the High Voltage segment in the U.S..

    -- The Cardiopulmonary Business Unit reported revenues at 82.3
    million Euro, down 3.6%* from the same period in 2006,
    impacted by a one-time sales reversal in Japan. Before this
    impact, the Cardiopulmonary Business Unit sales were
    substantially flat*. The continued solid performance of the
    S5(TM) Heart-Lung Machine was offset by weaker sales of
    disposables.

    -- The Heart Valves Business Unit (including mechanical and
    tissue heart valves, as well as valve repair products)
    reported revenues of 26.0 million Euro, up 5.8%*. In the
    Mechanical Heart Valves segment revenues have declined by
    1.6%*: the Company maintained its global share in an eroding
    market. In the Tissue Heart Valves segment revenues were up
    25.7%*, reflecting continued and significant market share
    gains in all main geographies and the first positive impact of
    the Mitroflow(TM) valve in the U.S..

    -- The Vascular Therapy Business Unit (drug-eluting and
    bare-metal coronary stents, endovascular stents and catheters
    for angioplasty) posted revenues of 7.0 million Euro, down
    3.6%*. The Bare Metal Stents (Chrono(TM)) reported a double
    digit growth in the period. However, this was more than offset
    by the declining sales of the Drug Eluting Stents. The Renal
    Care Business Unit (biomedical devices used to treat patients
    with kidney diseases) had revenues in the fourth quarter of
    26.5 million Euro, up 5.9%*. As previously announced, the
    Company is currently exploring a number of strategic options
    for these two businesses.

    Gross Profit was 102.1 million Euro, or 50.5% of revenues
    (compared to 102.1 million Euro, or 49.5% of revenues, in the fourth
    quarter of 2006), thanks to a marked improvement in manufacturing cost
    more than offsetting negative foreign exchange rates impact.

    Sales and Marketing expenses in the quarter were 58.8 million
    Euro, compared to 60.5 million Euro in the same period of 2006.
    Research and Development expenses grew to 13.5 million Euro (from 11.4
    million Euro prior year) while General and Administrative expenses
    decreased to 14.0 million Euro (from 16.7 million Euro prior year),
    reflecting the Company´s commitment to both innovation and
    profitability improvement.

    EBIT in the quarter was -23.7 million Euro, compared to 12.8
    million Euro in 2006, heavily impacted by non recurring items
    including: write-off on discontinued projects (6,8 million Euro),
    charges related to restructuring and cost reduction initiatives (27,6
    million Euro) and other non recurring provision (0,9 million Euro). As
    a consequence, EBIT before non-recurring items was 11.6 million Euro,
    compared to 12.5 million Euro in the same period of 2006.

    EBITDA amounted to 26.6 million Euro (13.2% of revenues) in the
    quarter, compared to 26.1 million Euro (12.6% of revenues) in the same
    quarter of 2006. Foreign exchange negatively impacted the quarter by
    over 2 million Euro.

    The Group´s Net Debt as of December 31, 2007 was 292.8 million
    Euro, compared to 328.9 million Euro as of September 30, 2007 and was
    substantially flat versus December 31, 2006. The decrease in the
    quarter was mainly attributable to cash generated from operating
    activities, including lower absorption in primary components of
    working capital, partially offset by cash-out for cost reduction
    initiatives.

    Preliminary full-year financial data for 2007 show revenues at
    785.4 million Euro (+2.0% vs. 2006 at comparable exchange rates) with
    a negative foreign exchange impact by over 10 million Euro, EBIT at
    -44.3 million Euro (with a significant impact of non-recurring items
    for 71.9 million Euro) compared to 30.6 million Euro in 2006. EBIT
    before non recurring was 27.6 million Euro versus 35.8 million Euro in
    2006. EBITDA was 82.0 million Euro compared to 85.8 million Euro in
    2006. Foreign exchange negatively impacted both EBIT and EBITDA by
    approximately 3 million Euro. Net Debt at year-end 2007 is
    substantially in line with year-end 2006.

    In 2007 Revenues were equal to 232.2 million Euro for Cardiac
    Rhythm Management (up 9,3%*), 322.6 million Euro for Cardiopulmonary
    (up 2%*), 99.3 million Euro for Heart Valves (down 3.3%*), 29.8
    million Euro for Vascular Therapy (down 7.3%*), 99.8 million Euro for
    Renal Care (down 4.6%*).

    The Company confirms guidance previously communicated for
    full-year 2008. In the first quarter of 2008 revenues are expected to
    reach 185 to 190 million Euro, EBITDA is expected to be between 10.5%
    and 11.0% of revenues and Net Debt is expected to be below Q1-07
    level.

    About the Sorin Group

    The Sorin Group (Bloomberg: SRN.IM; Reuters: SORN.MI), a world
    leader in the development of medical technologies for cardiac surgery,
    offers innovative therapies for cardiac rhythm dysfunctions,
    interventional cardiology and the treatment of chronic kidney
    diseases. The Sorin Group includes these brands: Dideco, CarboMedics,
    COBE Cardiovascular, Stockert, Mitroflow, ELA Medical, Sorin
    Biomedica, Bellco and Bellco-Soludia. At the Sorin Group 4,500
    employees work to serve over 5,000 public and private treatment
    centers in more than 80 countries throughout the world. For more
    information, please visit: www.sorin.com

    -0-
    *T
    SORIN GROUP

    CONSOLIDATED OPERATING RESULT
    (amounts in millions of euros)

    4th quarter 4th quarter 12.31.2007 12.31.2006
    2007 2006

    ----------------------------------------------------------- ----------

    202,2 206,4 Net revenues 785,4 791,7

    ----------------------------------------------------------- ----------

    Other revenues and
    3,5 6,1 income 8,1 9,5

    Change in inventory of
    work in progress,
    semifinished goods and
    (15,3) (10,3) finished goods -10,5 (0,3)

    Increases in company
    produced additions
    9,2 9,4 to fixed assets 28,0 23,8

    ----------------------------------------------------------- ----------

    199,6 211,6 Production value 811,0 824,7

    ----------------------------------------------------------- ----------

    Cost of raw materials,
    outside services
    and miscellaneous
    (113,7) (121,6) operating costs (468,2) (476,8)

    (59,3) (63,9) Personnel expense (260,8) (262,1)

    ----------------------------------------------------------- ----------

    26,6 26,1 EBITDA 82,0 85,8

    ----------------------------------------------------------- ----------

    Depreciation,
    amortization and
    (20,8) (12,6) writedown (78,5) (47,6)

    Provisions for risks
    (2,0) (1,0) and charges (12,4) (2,4)

    Gains/(losses) on
    disposal of investments
    0,1 -- in subsidiaries 3,4 --

    Charges and provisions
    for
    (27,6) (8,1) restructuring (1) (38,8) (13,6)

    Gains/(losses) from
    significant non
    -- 8,4 recurring events -- 8,4

    ----------------------------------------------------------- ----------

    Net production value
    (23,7) 12,8 (EBIT) (44,3) 30,6

    ----------------------------------------------------------- ----------

    (1) Net of surplus of restructuring provisions set aside in past
    years.

    PRELIMINARY DATA SUBJECT TO AUDIT
    *T

    -0-
    *T
    SORIN GROUP

    CONSOLIDATED FINANCIAL POSITION
    (amounts in millions of euros)

    12.31.2006 09.30.2007 12.31.2007

    ---------------------------------------------------------- -----------

    -- Non current financial assets -- --

    Current financial assets:
    - Receivables from derivative
    1,8 financial instruments 9,2 3,2
    13,8 - Other financial assets 39,9 31,9
    42,9 - Cash and cash equivalents 16,5 23,5

    ---------------------------------------------------------- -----------

    58,5 Total financial assets 65,6 58,6

    ---------------------------------------------------------- -----------

    Non current financial
    (200,5) liabilities (191,9) (198,8)

    Current financial
    liabilities:
    - Payables from derivative
    -- financial instruments -- --
    (149,0) - Other financial liabilities (202,6) (152,6)

    ---------------------------------------------------------- -----------

    (349,5) Total financial liabilities (394,5) (351,4)

    ---------------------------------------------------------- -----------

    (291,0) Net Indebtedness (328,9) (292,8)
    - of which current
    (90,5) indebtedness (137,0) (94,0)
    - of which non current
    (200,5) indebtedness (197,9) (198,8)

    ---------------------------------------------------------- -----------

    PRELIMINARY DATA SUBJECT TO AUDIT
    *T

    (*) At comparable foreign exchange rates