DiaSorin S.P.A. (DiaSorin) has reported sales and service revenues of EUR244.6 million for the year-end 2008, compared with the sales and service revenues of EUR202.3 million in the previous year-end. It has also reported a net profit of EUR37.6 million, or EUR0.68 per share, for the year-end 2008, compared with the net profit of EUR10.4 million, or EUR0.49 per share, in the previous year-end.

Fourth Quarter Financial Highlights

Consolidated net revenues increase by 33.9% to EUR68.5 million (+32.9% at constant exchange rates);

EBITDA grow to EUR24.2 million, up 62.0% compared with the 14.9 million euros earned in the fourth quarter of 2007;

EBIT increase to EUR19.9 million euros, for a gain of 73.5% over the EUR11.4 million reported for the three months ended December 31, 2007;

Consolidated net profit jumps to EUR10.2 million, or 66.1% more than in the fourth quarter of 2007;

Consolidated net indebtedness decreases to EUR19.8 million, compared with EUR23.3 million at September 30, 2008.

Operating performance in the fourth quarter of 2008

The Diasorin Group reported extremely satisfactory results in the fourth quarter of 2008, with revenues and profitability improving at a faster rate than in previous quarters.

The fourth quarter of 2008 ended with revenues up 33.9% compared with the same quarter in 2007. This improvement was made possible by the quality and breadth of the product line, a successfully implemented geographic expansion program, the revenues generated by Biotrin products (the contribution of this newly acquired company accounts for 4.2 percentage points of the increase) and the renewed strength of the U.S. dollar, offset in part by weakness in all other invoicing currencies.

CLIA technology products continued to provide the momentum driving the Group’s revenue growth: specifically, sales of these products were up 46% compared with the fourth quarter of 2007 and accounted for 58.3% of total revenues, while the installed base of LIAISON systems reached 2,510 units, with about 120 systems added in the final quarter of 2008. At December 31, 2008, the average annual revenues per system amounted to about 61,300 euros, up from 54,900 euros at the end of the previous year.

A geographic breakdown shows double-digit revenue increases in all regions, with the best gains in the United States (+67.8%) and the Rest of the world region (+52.9%), which consists mainly of emerging countries.

The increase in unit sales was matched by an improvement of all profitability indicators.

The increased contribution provided to total revenues by LIAISON products, the growing contribution provided by high-margin Vitamin D tests and Biotrin products and a reduction in the impact of the expense recognized for equipment depreciation, which reflects in percentage terms the optimization of the installed base and in absolute terms the steady reduction over time of the price paid for systems, produced a significant increase in gross profit, which rose from 32.1 million euros in 2007 to 45.6 million euros in 2008 (+41.8%), and was equal to 66.5% of revenues, up from 62.8% in the fourth quarter of 2007.

Operating expenses totaled EUR24.7 million in the fourth quarter of 2008. Charges incurred in connection with new companies, such as the recently acquired Biotrin and Diasorin Austria, which commenced operations during the final quarter of the year, largely account for the 17.3% increase compared with 2007.

EBIT, which totaled EUR19.8 million, or 73.5% more than the EUR11.4 million earned in the fourth quarter of 2007, were equal to 28.9% of revenues (22.3% in the same period a year earlier). EBITDA increased by 62.0% to EUR24.2 million, or 35.3% of revenues (up from 29.2% in the last quarter of 2007).

In the fourth quarter of 2008, net financial expense amounted to 3.6 million euros, compared with 0.4 million euros in the same period in 2007. This increase is due in its entirety to the different U.S. dollar/euro exchange rates that prevailed during these two periods and to their impact on the Group’s borrowings in foreign currency. Specifically, currency translation differences were negative by EUR2.4 million in the fourth quarter of 2008 and positive by EUR0.7 million in the same period in 2007. While currency translation differences have an impact on the net profit for the period, the corresponding charge is recognized for valuation purposes and does not entail a cash outlay. This is because the Group’s financial policy is designed to match the strong cash flow in foreign currency generated by the expansion of the U.S. operations with indebtedness in the same currency, thus balancing cash inflows and outflows. The existence of timing differences between cash flow generation and changes in debt exposure during periods of sudden fluctuations in exchange rates, as was the case in the second half of 2008, affects the income statement in the manner described above.

The net profit for the fourth quarter of 2008 amounted to EUR10.2 million, for a gain of 66.1% compared with the same period in 2007.

Consolidated net indebtedness totaled EUR19.8 million at December 31, 2008, compared with 23.3 million euros at September 30, 2008 and EUR12.1 million at December 31, 2007.

During the quarter that just ended, the Group completed the integration of Biotrin’s operations into those of the Diasorin Group, folding the organization that distributes Biotrin products into the Group’s sales network. In some cases, this process required the cancellation of existing distribution agreements with third parties..

During the same period, the Group continued to implement its strategy based on broadening its geographic footprint and innovating and expanding its product portfolio.

Specifically, it established a new branch in the Czech Republic and began direct sales in Austria in the fourth quarter of 2008.

During the same period, the Group continued to implement its strategy based on broadening its geographic footprint and innovating and expanding its product portfolio.

Specifically, it established a new branch in the Czech Republic and began direct sales in Austria in the fourth quarter of 2008.

Lastly, during the last two months of 2008, Diasorin received FDA approval to market in the United States five LIAISON products to diagnose such infectious diseases as Hepatitis A and the Type I and Type II Herpes Virus. These latest approvals brought to 19 the number of LIAISON-technology assays, all of them specialty tests, that Diasorin can offer in the US. Until now, no diagnostic company was able to offer in the United States such a broad panel of infectious disease tests based on fully automated CLIA (Liaison) technology systems.