2011-10-27 20:00:00 CEST

2011-10-27 20:01:03 CEST


REGULATED INFORMATION

English
Össur hf. - Financial Statement Release

Össur - Third Quarter Report 2011 


                                              Announcement Össur hf. No. 11/2011
                                                     Reykjavik, 27 October  2011

STRONG SALES GROWTH

Sales  - Sales  growth was  strong, 12% measured  in local currency. Total sales
amounted  to USD 101 million compared to USD  87 million in the third quarter of
2010. All  markets and product segments contribute to the growth. Performance in
bracing  and supports was excellent, delivering sales growth of 17%, measured in
local  currency.  Sales  growth  in  prosthetics  was good, 7% measured in local
currency.

Profitability  - Össur  continues to  deliver good  profits and  compared to the
third quarter 2010, net profit has increased by 165%. EBITDA amounted to USD 21
million  or 21% of sales and  gross profit amounted to  USD 64 million or 63% of
sales. Net profit amounted to USD 11 million or 11% of sales.

Jón Sigurðsson, President & CEO, comments:"The  sales  in  the  third  quarter  are  excellent and we are pleased with the
overall  performance. All regions and product segments are growing. Healthy flow
of new products fuels the growth and amongst products launched in 2010 and 2011
are  strong contributors to  this success. During  the quarter we introduced yet
another bionic product, the SYMBIONIC LEG, which is the first of its kind in the
world,  combining seamlessly the function of the  Rheo Knee and the Proprio Foot
offering  unprecedented  functionality  for  above  knee  amputees.  This latest
addition  to  our  bionic  platform  confirms  our technology leadership in this
segment."

Highlights of the quarter:

  * Introduction of the SYMBIONIC LEG - In September the SYMBIONIC LEG was
    introduced at the AOPA trade show in the US. SYMBIONIC LEG unites the proven
    capabilities of RHEO KNEE and PROPRIO FOOT into a single integrated unit
    offering unprecedented functionality for above knee amputees. This
    revolutionary product is the first of its kind in the market.
  * Mexico facility - The Mexico facility in Tijuana was officially opened in
    September. Össur started to build up the Mexico facility in September 2010
    and has since then transferred manufacturing of a number of product lines
    from the US to Mexico. The facility has state of the art equipment,
    employees are highly qualified, and manufacturing is based on lean
    processes.
  * Healthy flow of new products - During the quarter six new products were
    launched, four bracing and supports products and two prosthetic products.
     The pipeline of new products has been very active during the year with a
    good mix of new products and redesign of existing products.
Guidance  2011 - Management maintains estimates of  LCY organic sales growth for
2011 in  the range  of 4-6%. EBITDA margin  adjusted is  estimated to  be in the
range of 20-21% of sales for the year, as reported in the 2010 Annual Report.

Conference call tomorrow 28 October at 12:00 CET/ 10:00 GMT/ 6:00 EDT

Friday  28 October   2011  Jón  Sigurðsson,  President  and  CEO, and Hjörleifur
Pálsson,  CFO, will host a conference call presenting and discussing the results
of  the third quarter of 2011. The conference  call will be conducted in English
and can be heard on Össur's website: www.ossur.com

To  participate  in  the  meeting  please  call  one  of the following telephone
numbers:
Europe: +44 (0)20 3043 2436 or +46 (0)8 505 598 53
The United States: +1 866 458 40 87
Iceland: 800 8660

[HUG#1558938]