Sorin Group Announces Strong Second Quarter 2009 Results and Increases Full Year Guidance

Q2 09 Results highlights:

• Consolidated revenues at € 181.5 million, up 9.8% (4.9% at constant exchange rates) versus Q2 08;
• EBITDA at € 25.9 million (14.3% of revenues), up 25.4% versus Q2 08;
• Net Earnings at € 11.1 million (6.1% of revenues).

H1 09 Results highlights:

• Consolidated revenues at € 350.0 million, up 10.4% (5.7% at constant exchange rates) versus H1 08;
• EBITDA at € 48.5 million (13.8% of revenues), up 27.6% versus H1 08;
• Net Earnings at € 13.9 million (4.0% of revenues).

Net Debt as of June 30, 2009 down to € 209.8 million versus € 238.6 million on March 31, 2009 (€ 270.3 million on June 30, 2008).

Full Year guidance for 2009 revised upward: Net sales growth at 3-4%*, EBITDA margin at 13.5-14%, Net profit at € 14-18 million and Net Debt not higher than € 205 million. In Q3 2009 sales are expected to grow by 3-4%^*. Notwithstanding a weak seasonality, EBITDA margin is expected to be at 11.5%-12.0%, Net Earnings to be positive and Net Debt at € 220 million.

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Pursuant to IFRS 5, the first half 2008 results have been reclassified to ensure compatibility of data following the sale of the Vascular Therapy and Renal Care Business Units in 2008.

The Board of Directors of Sorin S.p.A. (MIL:SRN), meeting today under the Chairmanship of Rosario Bifulco, approved results for the First Half of 2009.

"In the second quarter we continued to exceed all our short term financial targets. These results validate our long-term business model based on strict financial discipline combined with an increased focus on innovation”, said Chief Executive Officer André-Michel Ballester.

Results for second quarter 2009

In the period, Sorin Group posted Revenues of € 181.5 million, up 9.8% (4.9% at constant exchange rates) from € 165.2 million in the second quarter 2008. Key drivers of this performance include robust growth in the Japanese and North American markets and the positive sales performance of the CRM business unit.

• The Cardiopulmonary Business Unit (Heart-lung machines, extra-corporeal and autotransfusion blood circulation systems) posted revenues of € 81.1 million, up 0.6%* compared with the same quarter last year. The recently acquired activities in the Endoscopic Vessel Harvesting (EVH) business reported solid quarterly results, which more than offset the results of the other product lines. Sales of Heart-lung machines were down 1.1%* at € 14 million, Oxygenators and Autotransfusion products were down 1.0%* and 3.0%* at € 51 million and € 15 million, respectively, due to a moderate slowdown in open-heart procedures globally. The Business Unit will continue to leverage on its technological know-how and 30 years leading market position, as well as on the positive integration of adjacent segments of business. In June, Sorin Group announced the delivery of the 1000th S5 heart-lung machine to the Mount Sinai Medical Center, one of the world’s leading centers for cardiovascular medicine, based in New York.
• The Cardiac Rhythm Management Business Unit (implantable devices to manage cardiac rhythm disorders) posted revenues of € 67.4 million, with a 9.5%* growth compared with the same period in 2008, helped in particular by strong revenue growth in Japan, North America and in key European countries. Sales in the High Voltage segment (Ovatio^TM and Paradym^TM defibrillators) rose 7.4%^* to € 20 million, whilst in the Low Voltage segment (Symphony^TM, Reply^TM, Esprit^TM and Facil^TM families of pacemaker) sales grew 12.6%^* to € 45 million. In the second quarter, the company announced the European commercial market release and first implantation of its new-generation Paradym^TM DR 8550 dual chamber implantable cardioverter-defibrillator (ICD), the second product from its new platform with cutting-edge performance. Furthermore, the company announced the approval, by the competent authority, to market the Reply™ family of dual and single chamber rate-adaptive pacemakers in Canada, and the authorization to market the new Facil™ single and dual chamber rate responsive pacemakers on the Japanese market. The Business Unit is expected to continue to grow at mid to high single digit in H2 09.
• The Heart Valves Business Unit (mechanical and tissue heart valves, and valve repair products) posted revenues of € 31.9 million, up 8.4%* compared with the same quarter in 2008. Despite the constant market trend towards biological valves, the mechanical valves segment sales increased 2.8%* to € 18 million. Revenues in the tissue heart valves segment grew 17.2%* to € 12 million driven by the continued expansion of the Mitroflow^TM valve in the US. Enrolment in the minimally invasive "Perceval S^TM” aortic tissue heart valve CE mark clinical trial continues to progress on schedule. In the second quarter, the company announced the conclusion of a long-term strategic partnership with Japan Lifeline for the exclusive distribution of Sorin’s complete heart valve and valve repair portfolio in Japan. The Business Unit is expected to continue to capture shares particularly in the tissue heart valve segment.

Gross Profit grew 9.7% to € 98.6 million, 54.4% of revenues (€ 89.9 million, 54.4% in Q2 08). The company expects gross margin in the coming quarters to expand driven by the positive impact from the manufacturing cost reduction programs in progress and from an improved revenue mix.

Selling, General and Administrative (S,G&A) expenses continue their trend downwards to 37.7% of revenues (€ 68.4 million) from 38.4% in Q2 08 (€ 63.4 million).

Research and Development (R&D) represent 8.1% of revenues (€ 14.6 million), from 8.4% in Q2 08 (€ 13.9 million).

EBITDA showed a robust 25.4% growth to € 25.9 million (14.3% of revenues) compared with € 20.6 million (12.5% of revenues) in Q2 08, thanks to leveraged sales growth and improved structural costs.

EBIT amounted to € 17.5 million (9.6% of revenues) compared with € 21.1 million (12.8% of revenues) in Q2 08. Before special items, EBIT grew 23.4% to € 15.6 million (8.6% of revenues) compared with € 12.7 million (7.7% of revenues) in Q2 08. An analysis of special items is provided in the attachments.

Net Earnings were € 11.1 million (6.1% of revenues) versus € 15.0 million in Q2 08. Net earnings before special items and discontinued operations were € 10.9 million, up 24.3% from € 8.8 million posted in the same period last year.

Results for first half 2009

In the first half of 2009 Sorin Group posted Revenues of € 350.0 million, up 10.4% (5.7% at constant exchange rates) compared with € 316.9 million in the first half of 2008.

Gross Profit grew 11.3% to € 192.7 million, or 55.0% of revenues (€ 173.1 million, or 54.6% in the first half of 2008).

Selling, General and Administrative (S,G&A) expenses were down to 38.7% of revenues (€ 135.4 million) compared with 39.8% in the first half of 2008 (€ 126.2 million).

Research and Development (R&D) expenses were € 29.0 million, or 8.3% of revenues (8.4% in the first half 2008).

EBITDA grew 27.6% to € 48.5 million (13.8% of revenues) compared with € 38.0 million (12.0% of revenues) in the first half of 2008.

EBIT grew 4.6% to € 30.1 million (8.6% of revenues) compared with € 28.8 million (9.1% of revenues) in the first half of 2008. Before special items, EBIT grew 39.1% to € 28.3 million (8.1% of revenues) compared with € 20.3 million (6.4% of revenues) in the first half of 2008.

Net Earnings rose to € 13.9 million (4.0% of revenues) compared with € 14.4 million in Q2 2008. Net earnings before special items and discontinued operations were € 14.2 million, up 73.3% from € 8.2 million posted in the first half of 2008.

Net Debt as of June 30, 2009 fell to € 209.8 million, compared with € 238.6 million on March 31, 2009 and € 270.3 million on June 30, 2008. The strong cash generation came mainly from operating activities (improved profitability and more efficient working capital management).

Thanks to the ratchet mechanism applied to the Company’s medium and long term credit agreements, the deleverage of the balance sheet will trigger a reduction in the cost of debt of more than 30 basis points, effective as of July 1^st 2009.

Full Year guidance for 2009 revised upward: Net sales growth at 3-4%*, EBITDA margin at 13.5-14%, Net profit at € 14-18 million and Net Debt not higher than € 205 million. In Q3 2009 sales are expected to grow by 3-4%^*. Notwithstanding a weak seasonality, EBITDA margin is expected to be at 11.5%-12.0%, Net Earnings to be positive and Net Debt at € 220 million.

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The Board of Directors has taken note that on June 26, 2009 Paolo Braghieri, Michele Cappone, Sandro Marco De Poli and Gabriele Casati, appointed by the Shareholder’s Meeting for the three-year period 2009-2011 on the basis of the minority list presented by Bios Interbanca S.p.A., have resigned their positions as Board members, pursuant to application of a new internal policy of Interbanca S.p.A. - whose control was transferred from Banco Santander SA to GE Corporate Financial Services Italia Srl - which does not permit the participation of its representatives in boards of directors of publicly traded companies in which Interbanca does not hold a majority stake. The Sorin S.p.A. Board of Directors has resolved to start the process of selection of potential candidates to the role of Directors, to replace the members which resigned their positions and to appoint Paolo Baessato, Independent Director, in replacement of Michele Cappone as member of the Internal Control Committee.

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Declaration

The manager responsible for preparing 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 document results, books and accounting records.

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Disclaimer

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 (in each case, in Italy or abroad), and many other factors outside of the Group’s control.

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About the Sorin Group

Sorin Group (www.sorin.com) is a global company and a leader in the treatment of cardiovascular diseases. The company develops, manufactures and markets medical technologies for cardiac surgery and for the treatment of cardiac rhythm disorders.

With 3,500 employees worldwide, the Group focuses on three major therapeutic areas: cardiopulmonary bypass (extracorporeal circulation and autotransfusion systems), cardiac rhythm management, and heart valve repair and replacement. Each year, over 1 million patients are treated with the devices of Sorin Group in more than 80 countries.

For more information, please visit: www.sorin.com

^* At comparable exchange rates

RECLASSIFIED INCOME STATEMENT – 2° QUARTER 2009

RECLASSIFIED INCOME STATEMENT – 1° HALF 2009

CONSOLIDATED FINANCIAL STATEMENT AS OF JUNE 30, 2009

(*) In absolute value

SPECIAL ITEMS IMPACT ON EBIT – 1° HALF 2009

(*) In absolute value

SPECIAL ITEMS IMPACT ON NET FINANCIAL DEBT AS OF JUNE 30, 2009

MATURITY ANALYSIS AS OF JUNE 30, 2009