SORIN GROUP REPORTS SECOND QUARTER 2012 RESULTS

Consolidated results for the second quarter of 2012:

• Revenues were €188.2 million;
• Net profit was €7.4 million;
• Free cash flow? was €37.4 million;
• Sorin Group estimates that the negative impact on revenues, net profit and free cash flow related to the manufacturing interruption of the Mirandola plant following the earthquakes of May 2012 was, respectively, around €17 million, €11 million and €3 million. The reported results do not include any recovery from the insurance policy program.

Consolidated results for the first half of 2012:

• Revenues were €379.9 million;
• Net profit was €18.0 million.

For the third quarter of 2012, Sorin Group expects revenues of €145-150 million. The Company estimates that the product segments impacted by the earthquakes would have generated, under normal conditions, additional revenues in the region of €40-45 million.

For full-year 2012, Sorin Group confirms its previous outlook?:

• autotransfusion disposable kits manufacturing operations were resumed on July 17, two weeks ahead of plan;
• oxygenators manufacturing operations are confirmed to start no later than September 1, 2012.

Therefore the Company is confident with the lower end of the previously communicated €90-100 million range of negative impact of the earthquakes on 2012 revenues.

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? Free cash flow: net profit + depreciation, amortization and writedowns ± ? working capital "´ investments. This account is before the impact of special items

? See press release dated June 28, 2012

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At a meeting held today and chaired by Rosario Bifulco, Sorin S.p.A. Board of Directors approved the results for the first half of 2012. In this occasion, the Board of Directors expressed his thanks to all employees, suppliers and related parties of the Mirandola area for the extraordinary commitment in addressing the earthquake emergency and in restoring production in a very short time frame.

"The second quarter 2012 has certainly proven to be one of the most challenging but also one of the most active quarters for the Company. The earthquakes in Emilia-Romagna had a significant impact on our Cardiopulmonary manufacturing site, but thanks to the outstanding commitment and extensive repair efforts of all our employees in the Mirandola area together with the strong leadership of the Cardiopulmonary management team, we are confident to fully restore our operations by the beginning of September. On the M&A front, the closing of two business development initiatives announced in July "´ the acquisition of CalMed and the investment in Cardiosolutions "´ is a further step forward in our long-term growth strategy," stated Sorin´s Chief Executive Officer André-Michel Ballester, "The second quarter was also characterized by positive signs in the other two Business Units: a gradual improvement in our Cardiac Rhythm Management business and the increasing contribution from Perceval in Heart Valves".

Consolidated results for the second quarter of 2012

In the second quarter of 2012 Sorin Group reported revenues of €188.2 million. The Company estimates that the negative impact on revenues related to the earthquakes amounted to approximately €17 million. Revenues as reported decreased by -1.9%. Favourable foreign currency translations versus the second quarter 2011 sales amounted to approximately €9 million.

• The Cardiopulmonary Business Unit (heart-lung machines, extra-corporeal and autotransfusion blood circulation systems) posted revenues of €78.2 million. The heart-lung machines segment, unaffected by the earthquakes, reported a 4.4% sales increase in the quarter, mainly thanks to a good performance in Japan, Canada and Emerging markets. In July the Company restarted manufacturing of its autotransfusion disposable kits, two weeks ahead of plan, whereas oxygenator manufacturing operations are expected to restart no later than September 1, 2012.
  In July 2012, Sorin Group acquired the US-based company, California Medical Laboratories ("CalMed"), a manufacturer of high quality cardiovascular cannulae, catheters and accessories for cardiac surgery, with annual revenues of $8 million. This acquisition comes as a complement to Sorin existing cannulae offering and to the recent acquisition, in July 2011, of the Estech minimally invasive cannulae product line.

(*) For details, see the table "Consolidated revenues by Business Units"

• The Cardiac Rhythm Management Business Unit (implantable devices to manage cardiac rhythm disorders) reported revenues of €75.1 million, a decrease of 0.9%* compared to the second quarter of 2011. The Business Unit realized a good performance in Europe, Emerging markets and the United States, which partially offset the negative impact of the reimbursement adjustment in Japan, effective on April 1, 2012. Excluding such negative impact, revenues for CRM grew more than 5%, reflecting the positive results of the innovative SonRTM system for cardiac resynchronization therapy in Europe and the strong growth in Emerging markets. The Company also improved its performance in the United States with the launch of the new PARADYMTM RF family of implantable defibrillators and the complete new portfolio of leads. During the quarter, Sorin Group and Orange Business Services, a leading global communications solutions integrator, also launched SMARTVIEW TM, a remote monitoring solution for patients with implanted cardiac rhythm management devices in several countries in Europe. In the quarter the full results of the CLEAR study were published in Europace Advance Access, a peer reviewed cardiology journal, and the first patients were enrolled in the DREAM clinical study, aimed at evaluating the sensitivity and positive predictive value of the Sleep Apnea Monitoring feature in implantable pacemakers.

* At comparable exchange rates and perimeter

(*) For details, see the table "Consolidated revenues by Business Units"

• The Heart Valves Business Unit (mechanical, tissue and sutureless heart valves and valve-repair products) realized revenues of €34.3 million, an increase of 2.3%* over the second quarter of 2011. Notwithstanding a strong growth in Emerging markets, the mechanical valves segment witnessed the continued shift of the market toward biological valves in Europe and the United States. The tissue valve segment recorded revenue growth thanks to the solid performance in the United States and the positive contribution of PercevalTM in Europe. The Company expects to receive CE mark approvals for the Perceval MIS introducer (a unique holder to allow minimally invasive procedures) and extended indications for patients over the age of 65 in the third quarter of 2012, slightly later than previously communicated.
  In July 2012, Sorin Group invested in Cardiosolutions, an early-stage company focused on the development of an innovative percutaneous technology to treat patients with mitral valve regurgitation. The investment confirms Sorin´s commitment to less invasive therapies to address cardiac valve pathologies and it represents an important step forward in the execution of its long-term growth strategy.

* At comparable exchange rates and perimeter

(*)For details, see the table "Consolidated revenues by Business Units"

Gross profit was €116.3 million, or 61.8% of revenues, compared to 59.6% in the second quarter of 2011. The improvement is attributable to a more favourable product mix, ongoing manufacturing cost reduction programs and positive impact of foreign-exchange rates.

Selling, general and administrative (SG&A) expenses totalled €78.7 million compared to €70.7 million in the second quarter 2011, corresponding to an 11.2% increase. At constant foreign-exchange rates, these expenses increased by 2.0% or by €1.4 million in absolute terms. In order to preserve the Company´s ability to execute its medium and long-term growth plan, Sorin Group decided not to reduce its sales and marketing activities in the Cardiopulmonary Business Unit, despite the temporary interruption of production following the earthquakes.

Research and development (R&D) expenses rose by 3.8% to €18.7 million, 9.9% of revenues (9.4% in the second quarter of 2011).

EBITDA was €29.5 million (15.7% of revenues) compared to €35.1 million (18.3% of revenues) reported in the second quarter of 2011. The decrease reflects the impact of lower revenues in the Cardiopulmonary segments affected by the earthquakes, while expenses in the Business Unit were not reduced accordingly over the period of reference. The Company estimates that the earthquakes had a negative impact on EBITDA equivalent to approximately €6.5 million.

EBIT was €11.0 million (5.9% of revenues) compared to the €24.9 million (13.0% of revenues) posted in the second quarter of 2011. EBIT before special items was €18.9 million, or 10.1% of revenues (13.4% of revenues in the second quarter of 2011). Special items include non-recurring charges related to the earthquakes in the amount of €6.4 million, such as inventory write-off and initial costs for demolition. The remaining non-recurring costs are mainly attributable to business development initiatives.

Financial charges were €6.6 million compared to €0.8 million in the second quarter of 2011. The second quarter of 2012 incorporates a financial charge of €4.4 million for the unwinding of an over-hedging position caused by a lower revenue level following the earthquakes (while this figure was positive for €1.7 million in the second quarter 2011). On a run-rate basis, interest expenses decreased by €0.5 million compared to the second quarter of 2011, mostly as a result of lower average debt.

Net profit amounted to €7.4 million, or 3.9% of revenues, compared to €17.1 million, or 8.9% of revenues, in the second quarter of 2011. The Company estimates that the negative impact on net profit related to the earthquakes amounted to approximately €11 million. These results do not include any recovery from the insurance policy program.

Adjusted net profit? was €16.4 million, or 8.7% of revenues, compared to €17.6 million, or 9.2% of revenues, in the second quarter of 2011. This figure does not reflect any adjustment for the lower revenues realized following the earthquakes in Emilia-Romagna.

Net financial debt as of June 30, 2012 was down to €80.9 million, compared to €101.7 million as of June 30, 2011 (€102.3 million as of March 31, 2012). Net debt was reduced by €20.8 million in the last 12 months ended June 30, 2012, mainly due to improvement in working capital and growing profitability, partially offset by €47.1 million of special items, including business development initiatives (see attached table for details).

In the second quarter of 2012, the Company´s free cash flow? amounted to €37.4 million, mainly thanks to an improvement in working capital for faster collection of receivables and better inventory rotation. Sorin Group estimates that the negative cash impact related to the earthquakes amounted to around €3 million.

With regards to relevant events following the closing of the second quarter, the Company received a partial recovery payment from the insurance in relation to the earthquakes of €10 million.

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? Adjusted net profit: net profit before the after-tax treatment of non-recurring income and expenses (special items).

? Free cash flow: net profit + depreciation, amortization and writedowns ± ? working capital "´ investments. This account is before the impact of special items

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Consolidated results for the first half of 2012

In the first half of 2012, Sorin Group posted revenues of €379.9 million, reporting a 1.5% increase over the same period last year.

Gross profit rose by 4.0% to €231.4 million equal to 60.9% of revenues, compared to 59.5% for the first half of 2011. The improvement is due to a more favourable product mix, ongoing manufacturing cost reduction programs and positive impact of foreign-exchange rates.

Selling, general and administrative (SG&A) expenses were €157.7 million compared to €144.5 million for the first half of 2011. Excluding the impact of foreign-exchange rates, SG&A rose by 2.2% or by €3.1 million in absolute terms.

Research and development (R&D) expenses grew 6.1% to € 37.3 million, or 9.8% of revenues (9.4% in the first half of 2011).

EBITDA was €57.8 million (15.2% of revenues) compared to €62.6 million (16.7% of revenues) for the first half of 2011.

EBIT was €27.8 million (7.3% of revenues) compared to €45.9 million (12.3% of revenues) for the first half of 2011. EBIT before special items, unfavorable for €8.7 million, amounted to €36.5 million, or 9.6% of revenues (11.5% of revenues in the first half of 2011).

Financial charges were €8.8 million compared to €3.6 million for the first half of 2011, mainly reflecting the unwinding of an over-hedging position caused by a lower revenue level following the earthquakes.

Net profit was €18.0 million, or 4.7% of revenues, compared to €29.9 million, or 8.0% of revenues, for the first half of 2011.

Adjusted net profit? was €27.6 million, or 7.3% of revenues, compared to €27.8 million, or 7.4 % of revenues, in the first half of 2011.

Guidance for the third quarter of 2012

For the third quarter of 2012, Sorin Group expects revenues of €145-150 million. The Company estimates that the product segments impacted by the earthquakes would have generated, under normal conditions, additional revenues in the region of €40-45 million.

Guidance for full year 2012

For full-year 2012, Sorin Group confirms its previous outlook?:

• autotransfusion disposable kits manufacturing operations were resumed on July 17, two weeks ahead of plan;
• oxygenators manufacturing operations are confirmed to start no later than September 1, 2012.

Therefore the Company is confident with the lower end of the previously communicated €90-100 million range of negative impact of the earthquakes on 2012 revenues.

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? Adjusted net profit: net profit before the after-tax treatment of non-recurring income and expenses (special items). The figure does not reflect any adjustment for the lower revenues realized following the earthquakes in Emilia-Romagna.

? See press release dated June 28, 2012

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Today´s Board of Directors also approved the changes to Sorin S.p.A. By Laws pursuant to the recently introduced Law n. 120 of July 12, 2011 which concerns the equality of access to the administrative and controlling bodies of companies listed in regulated markets.

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The Corporate Officer responsible for the company´s financial reports, Demetrio Mauro, declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the documented results, books and accounting records.

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In addition to the conventional indicators recommended by the IFRS, this press release provides alternative performance indicators. These indicators should not be considered as replacements for the conventional indicators recommended by the IFRS, but rather as an additional source of information, representative of the income statement, balance sheet and financial position parameters used internally in the decision-making process. An explanation of the meaning and structure of these alternative performance indicators is provided in the Report on Operations at December 31, 2011.

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This press release contains forward-looking statements. These statements are based on the Group´s current expectations and projections about future events and, by their nature, are subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future, and, as such, undue reliance should not be placed on them. Actual results may differ materially from those expressed in such statements as a result of a variety of factors, including: continued volatility and further deterioration of capital and financial markets, changes in commodity prices, changes in general economic conditions, economic growth and other changes in business conditions, changes in government regulation (both in Italy and abroad), and many other factors, most of which are outside of the Group´s control.

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About Sorin Group

Sorin Group (www.sorin.com) (MIL:SRN) is a global company and a leader in the treatment of cardiovascular diseases. The company develops, manufactures and markets medical technologies and innovative therapies for cardiac surgery and for the treatment of cardiac rhythm disorders. With 3,750 employees worldwide, the Group focuses on three major therapeutic areas: cardiopulmonary bypass (extra-corporeal circulation and autotransfusion systems), cardiac rhythm management, and repair and substitution of heart valves. Each year, over one million patients are treated with the devices of Sorin Group in more than 80 countries.

For additional information, visit: www.sorin.com