Report on operations 2011

A quarter of record sales and one-time expenses

Fourth quarter

• Sales increased by 19 percent in local currency. Sales were the highest ever for a single quarter and amounted to SEK 95 (81) million, corresponding to an increase of 18 percent in SEK.
• Operating income (EBIT) amounted to SEK 4 (9) million. The operating margin was 4 (11) percent. One-time expenses of SEK 7 million are included and consist of remuneration to the former CEO, write-down for a development project and disposal of production equipment. EBIT excluding one-time expenses amounted to SEK 11 million, corresponding to an operating margin of 11 percent.
• Income before tax amounted to SEK 4 (11) million. Net income amounted to SEK 2 (-1) million, which gave earnings per share of SEK 0.11 (-0.04).
• The cash flow from operating activities was SEK 10 (21) million.
• Magnus Nilsson handed over responsibility for the Group in order to be able to completely focus on Vitrolife’s transplantation area, Xvivo, which will be a more independent unit within Vitrolife. Thomas Axelsson was appointed Acting CEO.

Whole year

• Sales increased by 27 percent in local currency. Sales amounted to SEK 365 (298) million, corresponding to an increase of 20 percent in SEK.
• Operating income (EBIT) increased by 24 percent and amounted to SEK 41 (33) million. The operating margin was 11 (11) percent. One time expenses of SEK 7 million are included and consist of remuneration to the former CEO, write-down for a development project and disposal of production equipment. EBIT excluding one-time expenses amounted to SEK 48 million, corresponding to an operating margin of 13 percent.
• Income before tax increased by 9 percent to SEK 45 (41) million. Net income amounted to SEK 31 (29) million.
• Vitrolife was the first company to obtain regulatory approval in China for a whole series of cultivation media for IVF.
• A study showed that EmbryoGlue®, a product patented by Vitrolife, increases the chances of infertile women having children.
• A clinical study showing good results when using STEEN Solution™ was published in a prominent scientific journal. In all more than 100 patients have now received new lungs through the use of STEEN Solution™.
• Increased growth potential for Vitrolife in China – regulatory approval was obtained for instruments used in IVF treatment.
• Regulatory approval of aspiration needles in Japan, the second largest IVF market in the world.
• American study on STEEN Solution™ was begun and so far 7 out of a total number of 12 planned transplantations have been carried out.
• Magnus Nilsson handed over responsibility for the Group in order to be able to completely focus on Vitrolife’s transplantation area, Xvivo, which will be a more independent unit within Vitrolife. Thomas Axelsson was appointed Acting CEO.

After the end of the year

• The Board’s proposal for dividend amounts to SEK 0.60 (0.60) per share.

Gothenburg, February 7, 2012

VITROLIFE AB (publ)

The Board of Directors

Queries should be addressed to:

Thomas Axelsson, CEO, phone +46 708 17 99 76

Mikael Engblom, CFO, phone +46 31 721 80 14

Vitrolife is required to publish the information in this press release in accordance with the Swedish Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication on February 7, 2012 at 8:30 a.m.

This is a translation of the Swedish version of the press release. When in doubt, the Swedish wording prevails.

Vitrolife is a global biotechnology/medical device Group that works in the areas of Fertility and Transplantation. The Fertility product area works with nutrient solutions (media), cryopreservation products and advanced consumable instruments such as needles and pipettes, for the treatment of human infertility. Work is also carried out to enable the use and handling of stem cells for therapeutic purposes. The Transplantation product area works with solutions and systems for assessing and preserving organs outside the body, so as to be able to select usable organs and keep them in optimal condition pending transplantation.

Vitrolife today has approximately 220 employees and its products are sold in almost 90 markets. The company is headquartered in Gothenburg, Sweden, and there are also offices in USA, Australia, France, Italy, United Kingdom, China and Japan. The Vitrolife share is listed on NASDAQ OMX Stockholm, Small Cap.

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Vitrolife AB (publ), Box 9080, SE-400 92 Göteborg, Sweden. Corporate identity number 556354-3452.

Tel: 46 31 721 80 00. Fax: 46 31 721 80 90. E-mail: info@vitrolife.com. Website: www.vitrolife.com/

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