Sorin Group Reports Preliminary Consolidated Results for 2009. Strong Improvement in Profitability. Further Significant Reduction in Net Debt

• Consolidated full year revenues at 689.0 million euros (+5.2%^* vs. 2008), EBITDA at 99.4 million euros (14.4% of revenues, up from 12.4% in 2008) and EBIT at 59.2 million euros (8.6% of revenues, compared with 7.0% in 2008).
• Net profit at 28.0 million euros, or 4.1% of revenues, versus a net loss of 37.1 million euros in 2008. Net profit from continuing operations at 31.5 million euros (0.5 million euros in 2008).
• Net debt of 181.7 million euros as of December 31, 2009, down from 253.1 million euros at the end of 2008 and 198.6 million euros as of September 30, 2009.
• In the fourth quarter of 2009, consolidated revenues increased 3.5%* to 176.8 million euros, with EBITDA of 30.8 million euros, or 17.4% of revenues, EBIT of 19.4 million euros, or 11.0% of revenues and net profit of 10.2 million euros, or 5.8% of revenues.
• For 2010, the Company expects year-over-year revenue growth of 2-4%^*, an EBITDA margin improvement to 15-16% and an increase in net profit of 20-30% compared with 2009. Net debt is expected to be further reduced to 150 million euros by the end of 2010.

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Unaudited preliminary data.

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The Board of Directors of Sorin S.p.A. (MIL:SRN), meeting today under the chairmanship of Rosario Bifulco, reviewed the results for the fourth quarter of 2009 and the preliminary results for the full year. The final draft of the 2009 Annual Report will be presented for approval by the Board of Directors at a meeting scheduled for March 19, 2010.

"In 2009, we successfully completed the turnaround of the Company and we have restored a strong financial basis to build from. Our main focus in 2010 will remain financial discipline and cost containment in line with our strategic plan. In addition, we are now completing the development of a number of exciting new technologies that will be launched in the next 12 to 18 months including our PercevalS^TM new valve concept, as well as our first Remote Monitoring system for Cardiac Rhythm Management,” said André-Michel Ballester, Sorin Group’s CEO.

REVENUE PERFORMANCE IN THE FOURTH QUARTER OF 2009

Sorin Group reported revenues of 176.8 million euros in the fourth quarter of 2009. The gain of 3.5%* compared with the last three months of 2008 reflects strong performance by heart-lung machines, tissue heart valves and defibrillators. At actual exchange rates, revenues grew 0.1% versus last year.

• The Cardiopulmonary Business Unit (Heart-Lung Machines and Systems for Extracorporeal Circulation and Autotransfusion) posted revenues of 83.3 million euros, a 2.6%^* growth over the fourth quarter of 2008. This performance was driven once again by market share gains in the HLM segment. Revenues were down slightly in the Oxygenator and Autotransfusion segments, as global market shares were maintained.
  

  
  

• The Cardiac Rhythm Management Business Unit (Implantable Devices that manage cardiac rhythm disorders) posted revenues of 64.6 million euros, up 4.8%* compared with the last three months of 2008, thanks primarily to higher sales in the defibrillator and CRT-D segment. Pacemaker sales growth was impacted by a challenging year-over-year comparison in Japan.

  
  

• The Heart Valves Business Unit (Mechanical and Tissue heart valves and valve Repair products) revenues increased to 28.1 million euros, up 3.8%* versus the fourth quarter of 2008. Mitroflow^TM valve penetration in the US continues to drive tissue valve segment growth. The mechanical valve segment was impacted by the continuing market conversion to tissue valves.

  
  

PRELIMINARY FULL-YEAR CONSOLIDATED RESULTS FOR 2009

In 2009, Sorin Group reported revenues of 689.0 million euros, up 5.2%^* (+7.1% at actual exchange rates) compared with the previous year.

• The Cardiopulmonary Business Unit reported revenues of 316.7 million euros, up 2.4%* (+4.6% at actual exchange rates) versus 2008, driven by an increase in the penetration of our heart-lung machines in all major European markets, the United States and Japan. Sales of oxygenators and autotransfusion systems held steady, in this mature and highly competitive segment.
  
  In 2009, the Business Unit continued to pursue exciting research and development programs that will enable it to launch numerous new products in all of its three business segments in 2010. In addition, several programs were introduced during the year to improve the manufacturing and logistics organization, increase gross margin and optimize inventory management. The Business Unit continued to pursue growth in new markets and in adjacent businesses. In February 2009, as part of this effort, the Company completed the acquisition of the Clearglide® endoscopic vessel harvesting product line. These procedures, which enable less-invasive harvesting of vessels for use in coronary artery bypass grafting, will strengthen the Business Unit’s product portfolio, particularly in the United States.

• The Cardiac Rhythm Management Business Unit increased revenues to 255.6 million euros in 2009, up 9.1%* compared with 2008 (+10.7% at actual exchange rates), thanks to a positive performance in the main European markets and in Japan.

  
  Several new products that helped broaden the Paradym^TM family of implantable defibrillators and the Reply^TM and Facil^TM pacemaker families were introduced in 2009. More recently, the Company announced FDA market approval and the first implant of its Paradym™ CRT Model 8750 defibrillator in the United States, featuring new, state-of-the-art technology. This approval, together with the worldwide launch in December 2009 of the Clepsydra clinical trial, illustrate Sorin’s commitment to strengthen its leadership position in the hemodynamic management of heart failure. In 2009 significant progress was also made in the development of technological innovations for remote monitoring systems, following the strategic alliance with Orange Business Services previously announced in March 2009. In November 2009 both companies were named winners in the Best Change-Maker category of the World Communication Awards. At the end of 2009, the Company finalized the acquisition of an important distributor in the Netherlands, which will enable the Business Unit to strengthen its direct sales presence in this key market. In the second half of 2009, the company started to operate in its new R&D and manufacturing facility established in Clamart (France).

• The Heart Valves Business Unit posted revenues of 112.8 million euros. The year-over-year increase of 5.6%^* (7.5% at actual exchange rates) reflects market share gains in the tissue valve segment, thanks to the successful penetration of the Mitroflow valve in the US. In the mechanical valve segment sales continued to decline, in line with expectations.
  
  Sorin’s leadership in research and development in this area was confirmed with the PercevalS^TM project, a highly innovative bovine pericardium self-expandable surgical valve. In February, following completion of a pilot clinical study (First-In-Man) that involved 30 patients, the Company began the enrollment of 150 high-risk surgery patients in a clinical trial conducted at eight centers in Europe. This clinical trial, which is aimed at obtaining CE market approval, was completed in January 2010. The Company plans to start marketing this valve in Europe in the early months of 2011.
  In Japan, Sorin signed in April 2009 a long-term strategic alliance giving Japan LifeLine, its current CRM distributor, exclusive distribution rights for the Sorin heart valve product range.

Gross Profit grew to 384.3 million euros, or 55.8% of revenues, compared with 347.1 million, 54.0% of revenues, in 2008. This significant improvement was due to reduction in manufacturing costs and reflects the positive impact of a better geographic and product mix.

Selling, general and administrative expenses (SG&A) were 266.1 million euros, 38.6% of revenues, from 254.6 million euros, 39.6% of revenues, in 2008.

As further evidence of Sorin’s commitment to innovation, Research and Development expenses grew to 59.1 million euros, or 8.6% of revenues, compared with 52.4 million euros, or 8.1% of revenues, in 2008.

EBITDA increased to 99.4 million euros, 14.4% of revenues, compared with 80.0 million euros, 12.4% of revenues, in 2008.

EBIT rose 31.2% to 59.2 million euros, 8.6% of revenues, versus 45.1 million euros, 7.0% of revenues, in 2008. Excluding special items, EBIT was up 47.5% at 59.1 million euros (40.1 million euros in 2008).

Net profit rose to 28.0 million euros (4.1% of revenues), compared to a net loss of 37.1 million euros in 2008. Profit from continuing operations was 31.5 million euros in 2009 vs. 0.5 million euros in 2008. The improvement reflected a significant reduction in financial expenses, at 10.5 million euros, down from 26.8 million euros a year earlier. This 16.3 million euros decrease is due to a positive mark-to-market of our hedging portfolio (10.6 million euros) and to a reduction in the cost of servicing the debt (8.5 million euros), partially offset by other net financial expenses.

Net debt was 181.7 million euros as of December 31, 2009, down from 253.1 million euros at the end of 2008 and 198.6 million euros as of September 30, 2009. The net cash flow of 71.4 million euros generated in 2009 reflects the positive impact of an improvement in profitability and a reduction in working capital. Special items had a positive impact of 3.0 million euros in 2009.

Outlook for 2010

For 2010, the Company expects year-over-year revenue growth of 2-4%^*, an EBITDA margin improvement to 15-16% and an increase in net profit of 20-30% compared with 2009. Net debt is expected to be further reduced to 150 million euros by the end of 2010.

In the first quarter of 2010, revenues should increase by approximately 2%^* compared with the same period in 2009, with EBITDA at 13.5-14.5% of revenues. As of March 31, 2010, net debt is expected to be flat, as compared with the end of 2009.

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The Board of Directors was informed of the results of the mandatory tender offer for all Sorin S.p.A. shares launched by BH Holding S.p.A. (a corporate vehicle jointly controlled, pursuant to Article 2359, Section 1, No. 1, of the Italian Civil Code, by Mittel and Equinox, whose shareholders include Bootes S.r.l., a company controlled by the Chairman of the Board of Directors of Sorin S.p.A., and Hopa S.p.A., through its Earchimede S.p.A. subsidiary) as required by Article 102, Article 106, Section 1, and Article 109 of Legislative Decree No. 58/98. During the share tender period, which ended on January 22, 2010, a total of 275,948 shares, equal to 0.05866% of the share capital of Sorin S.p.A., were tendered.

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Demetrio Mauro, the Corporate Accounting Documents Officer of Sorin S.p.A., declares, pursuant to Article 154 bis, Section, 2, of the Uniform Financial Code, that the accounting information contained in this press release is consistent with the data in the supporting documents, the books of accounts and other accounting records.

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In addition to the conventional indicators recommended by the IFRSs, this press release provides alternative performance indicators. These indicators should not be considered as replacements for the conventional indicators recommended by the IFRSs, 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 Interim Report on Operations at June 30, 2009.

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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 the capital and financial markets, changes in commodity prices, changes in general economic conditions, economic growth and other changes in business conditions, changes in government regulations (both in Italy or 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) 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 3,500 employees worldwide, the Group focuses on three major therapeutic areas that include: cardiopulmonary bypass (extracorporeal circulation and autotransfusion systems), cardiac rhythm management, and heart valve repair and replacement. Every 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.}