2011-07-28 20:40:41 CEST

2011-07-28 20:41:46 CEST


REGULATED INFORMATION

English
Össur hf. - Financial Statement Release

Össur - Second Quarter Report 2011 


RECORD SALES IN THE SECOND QUARTER

Sales - The second quarter delivered record sales above USD 100 million and 17%
sales  growth,  measured  in  USD.  Sales  increased  by  10% measured  in local
currency.  All  regions  and  segments  contribute  to  the  growth. Total sales
amounted  to USD 105 million compared to USD 90 million in the second quarter of
2010. Success  in bracing and  supports in Americas  continues while bracing and
supports  sales in EMEA was weak in the quarter. Overall sales growth of bracing
and supports was 16%, measured in local currency. Sales in prosthetics increased
by 4% measured in local currency.

Profitability - Consolidation of manufacturing operations impacted profitability
in  the quarter.  EBITDA amounted  to USD  20 million or  19% of sales and gross
profit  amounted to USD 63 million  or 60% of sales. Net  profit amounted to USD
10 million or 10% of sales.

Jón Sigurðsson, President & CEO, comments:"The second quarter results are overall good and in line with our guidance for
the year. All product segments show decent growth and some markets delivered
excellent performance. We continue to gain market share in the bracing and
supports segment in Americas, our largest market, and the prosthetics segment in
EMEA shows excellent performance across all product segments and regions."

Highlights of the quarter:

  * Stable flow of new products - Össur's product pipeline has been strong and
    the healthy flow of new products has been an important contributor to the
    Company's growth. In the second quarter five new products were launched, two
    in the bracing and supports segment and three in the prosthetics segment.
  * Consolidation of manufacturing - One of the most important projects in 2011
    is focus on consolidation of manufacturing operations. The new manufacturing
    facility in Mexico for bracing and supports is progressing well and during
    2011 all bracing and supports manufacturing in the US will be moved to the
    Mexico facility.

Guidance  2011 - Management maintains estimates  of local currency organic sales
growth  for 2011 in the range of 4-6%. Adjusted  EBITDA ratio is estimated to be
in  the range of 20-21% of sales for the year, as reported in the 2010 full year
report.

Conference call tomorrow 29 July at 12:00 CET/ 10:00 GMT/ 6:00 EDT

Tomorrow,  Friday 29 July 2011 Jón Sigurðsson, President and CEO, and Hjörleifur
Pálsson,   CFO,  will  host  a  conference  call  for  investors,  analysts  and
shareholders  presenting and  discussing the  results of  the second  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#1534637]