2013-02-06 16:00:00 CET

2013-02-06 16:01:10 CET


REGULATED INFORMATION

English
Össur hf. - Financial Statement Release

Össur - Full Year Report 2012 


2012 results in line with guidance - Q4'12 a record quarter in bionics

Sales  - Sales growth  for 2012 was 3% measured  in local currency,  which is in
line  with guidance of 2-3%. Total sales amounted to USD 399 million compared to
USD 398 million in 2011. Growth remains good across all segments and key markets
in  Europe, while prosthetics  in Americas have  been affected by adverse market
conditions. Sales growth in prosthetics was 4%, and sales growth for bracing and
supports  was  3%, both  measured  in  local  currency. The fourth quarter was a
record quarter in bionic sales, accounting for 17% of prosthetics sales.

Profitability  - Gross profit margin  remains stable. The manufacturing facility
in Mexico is contributing as well as other lean initiatives within manufacturing
and  operations. The slow prosthetic sales  in Americas affects the gross profit
margin  negatively. Gross  profit amounted  to USD  248 million or 62%, the same
ratio as in 2011. EBITDA amounted to USD 70 million corresponding to a margin of
18%, which is in line with guidance of 18-19%.

Net  profit increased by 9% in 2012, and amounted to USD 38 million, compared to
USD 35 million in 2011.

Össur's  cash flow continues to be strong and cash flow from operations was 18%
of sales in 2012, up from 17% in 2011.

Through  consistent profitability  and strong  cash flows,  Össur has built up a
strong  balance sheet.  The Company  is now  in a  position to return capital to
shareholders.  The Board of Directors will thus propose a new dividend policy to
the shareholders at the Annual General Meeting.

Jón Sigurðsson, President & CEO, comments:""This year has been yet another strong year in EMEA while it has been
challenging in the US due to adverse market conditions. The fourth quarter was a
record quarter in bionic sales and prosthetics sales in EMEA have been very
strong during the year. Despite turbulence in the reimbursement systems in the
US we experience the acceptance of our high-end solutions. One of our most
advanced bionic products, POWER KNEE, was accepted into the reimbursement system
in the US as of 1 January 2013. We are pleased to see the continued demand for
high-end and quality solutions based on clinical and a health economical
outcome".

Amputees make history - In 2012 Oscar Pistorius made history when he became the
first amputee to participate in the Olympics, competing against able body
athletes. Oscar who is often called "Blade Runner",competes on Össur's Flex-Foot
Cheetah prosthetic legs. Again at the Paralympics disabled athletes inspired
people all around the world and took one step closer to change the perception of
what people with disability can accomplish.

New  products - During  the year, 29 products  were launched with  a healthy mix
between bracing and supports and prosthetics. Within bracing and supports, focus
has been on further establishing and broadening successful product segments such
as  the Unloader One, treating knee  osteoarthritis, spinal support products and
the  Rebound Walker. In prosthetics the highlight of the year was SYMBIONIC LEG,
the  first complete bionic  leg. SYMBIONIC LEG  has been successful and received
positive  feedback from users.  Other major projects  in prosthetics include the
Balance  line which is primarily for elderly  users and people with low activity
level.

Mexico  - This year is  the first full year  of operation in the Mexico facility
which opened in September 2011. The transfer of products previously manufactured
in  other Össur locations to the Mexico facility has been successful and without
any  major complications.  The facility  is well  equipped and  will continue to
strengthen Össur's manufacturing capabilities.

Guidance  2013 - Management estimates LCY organic sales growth for 2013 to be in
the  range of 2-4%. EBITDA margin is  estimated to be in  the range of 18-19% of
sales for the year.

Conference call tomorrow 7 February at 12:00 CET/ 11:00 GMT/ 6:00 EST

Tomorrow, Thursday 7 February  Jón Sigurðsson, President and CEO, and Hjörleifur
Pálsson,  CFO, will host a conference call presenting and discussing the results
of  the fourth quarter  and the full  year of 2012. The  conference call will be
conducted    in    English    and    can    be   heard   on   Össur's   website:
www.ossur.com/investors

To participate in the meeting please call one of the following telephone
numbers:
Europe:+ 44 (0) 1452 555131 or + 46(0)8 506 307 79
The United States: + 1 866 682 8490
Iceland: 800 9300


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