BioGaia Sales Hit $16.9 Million

Interim period, 1 January - 30 June 2010

The Net sales of BioGaia AB Interim amounted to $16.9 million (SEK 124.4 million), an increase of $1.6 million (SEK 12.0 million) (11%). Excluding foreign exchange effects and early deliveries in the previous year, the increase in net sales was 27%*.

Operating profit was SEK 31.5 million (29.9), an improvement of SEK 1.6 million (5 %). Excluding foreign exchange effects and early deliveries in the previous year, operating profit rose by 49%*.

Profit before tax was SEK 38.1 million (31.3), an increase of SEK 6.8 million (22%).

Profit after tax was SEK 26.3 million (21.6), an improvement of SEK 4.7 million (22%).

Earnings per share amounted to SEK 1.53 (1.26).

The period's cash flow from operating activities before changes in working capital was SEK 32.5 million (32.1). Total cash flow for the period was SEK 9.2 million (10.9). Dividends of SEK 25.8 million (6.9) were paid during the period. Cash and cash equivalents at 30 June 2010 amounted to SEK 109.4 million (69.0).

The Board has decided to change the financial target to an operating margin of 30% from the previous net margin of 25%.

Second quarter, 1 April - 30 June 2010

Net sales amounted to SEK 65.9 million (60.2), an increase of SEK 5.7 million (9%). Excluding foreign exchange effects and early deliveries in the previous year, the increase in net sales was 30%*.

Operating profit was SEK 17.4 (16.6) million, an improvement of SEK 0.8 million (5%). Excluding foreign exchange effects and early deliveries in the previous year, operating profit rose by 61%*.

Profit before tax was SEK 20.0 million (16.2), an increase of SEK 3.8 million (23%).

Profit after tax was SEK 14.1 (11.2), an improvement of SEK 2.9 million (26%).

Key events in the second quarter of 2010

A study showing that Reuteri reduced gastrointestinal symptoms and hospital stay in premature newborns was published in Journal of Perintology.

Agreement with Asia United Medical in China for the sale of BioGaia Probiotic drops in China.

A study showing that Lactobacillus reuteri Protectis reduced crying time in infants with colic was presented at ESPGHAN in Istanbul.

Key events after the end of the second quarter

A study showing that Lactobacillus reuteri Protectis was effective in infants with chronic constipation was published in Journal of Pediatrics.

"Despite negative currency exchange effects, we continue to generate a very strong result and cash flow, and the underlying trend continues to be very positive.

We are pleased to note that Nestlé has now started the launch of infant formula with Reuteri in a number of countries. We have delivered significant volumes of Reuteri cultures to Nestlé in the first six months of 2010 and count on that this will continue throughout the rest of the year" says Peter Rothschild, President of BioGaia.

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