ElEn: the group achieved a revenues growth of 31.6%

FLORENCE, ITALY – The Board of directors of El.En. SpA, leader on the laser market and listed on the STAR segment of the Italian Stock exchange, released today the six months financial report as of June 30th, 2012.

In the first half of 2012, the group achieved a revenues growth of 31.6% almost reaching 130 million of euro of consolidated revenues, marking again a good level of profitability. These results are particularly satisfying because they are obtained in adverse economic conditions, with the propensity to purchase in Italy and in many European countries heavily affected by the economic downturn and the long-standing credit crunch. The ability of approaching the markets with innovations of great appeal, the acquisitions completed in the previous year and the ability to operate on international markets less affected by the economic downturn which is affecting Europe in particular, allowed the group to improve its global positioning and achieve the good results we are reporting.

Cynosure is experiencing a brilliant phase, with a 66% sales growth in the period. In addition to the success in the selection and the management integration of the assets acquired – Eleme (laser systems for non-invasive body shaping) and HOYA ConBio ® (laser systems for the removal of tattoos and pigmented lesions) and the tremendous success of the U.S. launch of the Cellulaze, a laser system jointly developed with El.En. Spa for the removal of cellulite – Cynosure has benefited from the improved conditions of the U.S. which are significantly better than those observed currently in Europe and in previous years in the U.S..

Also the other activities of the group have scored positive notes in the first half. Sales of medical systems grew by 14% thanks to the positive performance of all group brands (Deka, Quanta, Asclepion, Esthelogue, Asa), able to strengthen their positions in the main application segments (laser hair removal, skin resurfacing, tattoo and pigmented lesions removal), and most definitely expand into new application areas, such as lithotripsy and ENT surgery. The industrial sector grew by 6%, despite the crisis in the manufacturing sector that plagues our traditional markets and also saw the slowdown in the Chinese market during the period.

Gross Margin was 66.9 million euros, an increase of 27.6% on the 52.4 millions of euro of the corresponding period of the previous year, while showing a slight decrease in the impact on sales from 53.4% in the first half of 2011 to 51.7% in the period under review.

Therefore, also due to the careful control of operating costs and improved productivity of personnel costs, EBITDA increased by 124.7% compared to June 30, 2011: in the first half of 2012 it amounted to 12.7 millions of euro with a 9.8% margin on sales, a significant increase compared to the 5.7 millions of euro of the corresponding period last year.

Also for EBIT the improvement is significant: after depreciations and provisions for 5.3 millions of euro, EBIT was 7.4 million, a level that places the group again at interesting levels compared to half a million of euros of operating profit for the first half of 2011.

Income before taxes was a net profit of 7.1 million euros, at the 30 of June 2011 it had been a loss of 0.5 million euros.

The first half of 2012 closed with a net profit of 4.1 millions of euro, it had been a loss of 2.2 millions of euro as of June 30th, 2011. Net of taxes and minority interests, the Group recorded a net profit of about 1.6 millions of euro, it had been a loss of 1.6 millions of euro as of June 30 2011.

The net financial position of the Group as of June 30th, 2012 was positive for 61.7 millions of euro, up from 53 millions of euro as of December 31st, 2011 due to the group’s ability to generate operating cash flows during the period.

The Group’s financial results excluding Cynosure from consolidation for the first half of 2012 also marked a significant improvement in all the income indicators, with a consolidated turnover up by 11.2% to 74.8 millions of euro, a lower incidence of fixed costs and an EBITDA of 6.3 millions of euros (8.4% impact on sales) compared with 6.1 millions of euro of the first half of 2011, an EBIT of 3.8 millions of euros ( 5.1% on revenues), up from 3.2 millions of euro as of June 30, 2011, a pre-tax profit of 3,6 millions of euros (4.8% on sales ), an improvement of 78% compared with 2 millions euros of the previous year and a positive income before taxes up to 1.5 to from the 0.4 millions of euro of the first half of 2011. Excluding minority interests, the Group excluding Cynosure showed a net profit of 0.7 millions of euro as opposed to the loss of about 0.7 millions of the first half of 2011. Thanks to the operating cash flows generated in the period, the net financial position is positive for 5.3 millions of euros, it was 1.8 millions of euro as of December 31, 2011.

Concerning the performance for the first half we consider it satisfactory, above expectations for Cynosure and the overall consolidated financials, in line with expectations for the consolidated financials without Cynosure.

In view of the half-yearly results and predictable general economic conditions for the second half, the current situation allow, for the sub-consolidated financials drafted with the exclusion of Cynosure, to confirm for the full year the forecasts made at the beginning of the year under the assumption of a more favorable economic environment: 10% increase in turnover and operating profit of 5% on sales.

The manager in charge of preparing the corporate accounting records, Enrico Romagnoli, declares, pursuant to paragraph 2, article 154-bis of the Consolidated Finance Law, that the accounting disclosures provided in this document correspond to the accounting records, books and entries.

As required by Consob, the half yearly report as of June 30th , 2012, together with Independent auditors’ report, will be available for the public at our premises in Calenzano, at Borsa Italiana SpA and in the investor relation section of our website www.elengroup.com section “Investor Relations / Report and financial statements” from August 29th, 2012.

Following the resignation of Dr. Angelo Ferrario, occurred on August 27th 2012 for strictly personal reasons, the Board of Directors resolved to leave to the shareholders any resolution on the possible appointment of a new director and instructed the executive directors to call the shareholders’ meeting according to the terms and conditions provided by the law.