Young Innovations, Inc. Announces Record Results For The Second Quarter Ended June 30, 2006

ST. LOUIS, July 24 /PRNewswire-FirstCall/ -- Young Innovations, Inc. today announced record sales and diluted earnings per share for the second quarter and six months ended June 30, 2006. Sales for the second quarter were $21.5 million, increasing 2.7% over the $20.9 million reported for the second quarter of 2005. Net income decreased 0.3% to $3.5 million, compared with $3.6 million in the second quarter of 2005. Diluted earnings per share for the second quarter of 2006 were $0.39, an increase of 2.6% over the $0.38 reported in the prior year quarter.

For the six months ended June 30, 2006, sales were $42.1 million, increasing 1.5% from the prior year period. Net income was $7.1 million, increasing 1.5% from $7.0 million in the year earlier six-month period. Diluted earnings per share were $0.78 for the six months ended June 30, 2006, an increase of 4.0% from $0.75 in the same period of 2005.

Sales for the quarter were negatively affected by the suspension of the manufacture of certain chemical products, which represented approximately $2.4 million in annual sales.

Commenting on these events, Alfred E. Brennan, Chief Executive Officer, said, "During the second quarter, we made good progress in preparing for the product launches in the back half of the year and exercised solid expense control. While unit shipments of diagnostic equipment increased in the quarter, sales declined due to a shift toward increased rental shipments. The performance of the second quarter was achieved while continuing to invest in the long-term growth of the business."

A conference call has been scheduled for Tuesday, July 25 at 11:00 A.M. Central Time and can be accessed through InterCall at http://audioevent.mshow.com/304761/ or on the Company's website, http://www.ydnt.com .

Young Innovations develops, manufactures and markets supplies and equipment used by dentists, dental hygienists, dental assistants and consumers. The Company's product offering includes disposable and metal prophy angles, prophy cups and brushes, panoramic X-ray machines, moisture control products, infection control products, dental handpieces (drills) and related components, endodontic systems, orthodontic toothbrushes, flavored examination gloves, and children's toothbrushes. The Company believes it is the leading manufacturer and distributor of prophy angles and cups (used in teeth cleaning and polishing procedures) in the United States. The Company also believes it is the leading provider of panoramic X-ray equipment and dental surface disinfectants in the United States.

Investors are cautioned that this press release as well as other reports and oral statements by Company officials may contain certain forward-looking statements as defined in the Private Securities Litigation and Reform Act of 1995. Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions and which include words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," or similar expressions. These statements are not guaranties of future performance and the Company makes no commitment to update or disclose any revisions to forward-looking statements, or any facts, events or circumstances after the date hereof that may bear upon forward-looking statements. Because such statements involve risks and uncertainties, actual actions and strategies and the timing and expected results thereof may differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, those disclosed in the Company's Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission.

Young Innovations, Inc. Condensed Consolidated Statements of Income (In Thousands, Except Earnings Per Share Data) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2006 2005 Change 2006 2005 Change Net Sales $21,466 $20,906 2.7% $42,149 $41,540 1.5% Cost of Goods Sold 9,881 9,368 5.5% 19,086 19,118 -0.2% Gross Profit 11,585 11,538 0.4% 23,063 22,422 2.9% % of Net Sales 54.0% 55.2% 54.7% 54.0% Selling, General and Administrative Expense 6,050 5,916 2.3% 11,944 11,293 5.8% % of Net Sales 28.2% 28.3% 28.3% 27.2% Income from Operations 5,535 5,622 -1.5% 11,119 11,129 -0.1% % of Net Sales 25.8% 26.9% 26.4% 26.8% Other Income 188 143 383 255 Income Before Taxes 5,723 5,765 -0.7% 11,502 11,384 1.0% Provision for Income Taxes 2,175 2,205 4,367 4,354 Net Income $3,548 $3,560 -0.3% $7,135 $7,030 1.5% % of Net Sales 16.5% 17.0% 16.9% 16.9% Basic Earnings Per Share $0.40 $0.40 0.0% $0.80 $0.78 2.6% Basic Weighted Average Shares Outstanding 8,937 8,980 8,930 9,010 Earnings Per Share (Diluted) $0.39 $0.38 2.6% $0.78 $0.75 4.0% Diluted Weighted Average Shares Outstanding 9,170 9,363 9,176 9,371 Young Innovations, Inc. Consolidated Balance Sheet June 30, 2006 and December 31, 2005 (In Thousands) (Unaudited) June 30 December 31 Assets 2006 2005 Current assets Cash $11,117 $10,227 Accounts receivable, net 9,603 9,538 Inventories 12,175 10,796 Other current assets 3,849 3,796 Total current assets 36,744 34,357 Property, plant and equipment, net 22,799 21,567 Other assets 3,423 2,401 Intangible assets 7,096 7,074 Goodwill 54,154 52,690 Total assets $124,216 $118,089 Liabilities and Equity Current liabilities Accounts payable and accrued liabilities $5,864 $6,171 Total current liabilities 5,864 6,171 Deferred income taxes 8,354 8,354 Stockholders' equity Common stock 90 90 Deferred stock compensation (339) (262) Additional paid-in capital 29,274 29,184 Retained earnings 104,175 97,767 Common stock in treasury, at cost (23,202) (23,215) Total stockholders' equity 109,998 103,564 Total liabilities and stockholders' equity $124,216 $118,089

CONTACT: Alfred E. Brennan, Chief Executive Officer, or Arthur L. Herbst,Jr., President, or Christine R. Boehning, Chief Financial Officer, all ofYoung Innovations, Inc., +1-314-344-0010, Ext. 3133

Web site: http://www.ydnt.com/