Continued Growth and Record Results in 2011

QUEBEC CITY, Feb. 29, 2012 /PRNewswire/ - Atrium Innovations Inc. (TSX: ATB), a globally recognized leader in the development, manufacturing, and commercialization of innovative, science-based dietary supplements endorsed by health professionals, today released its 2011 full year and fourth quarter results for the period ended December 31, 2011.

2011 and Subsequent Year-End Highlights:

(All amounts are in US dollars.)

• Revenue growth of 16.3% over previous year to reach $414.7 million
• EBITDA of $91.0 million or 21.9% of revenues, an increase of 8.5% compared to last year
• Adjusted diluted EPS of $1.70 for the year, an increase of 18.1% over last year
• Cash flows before working capital and interest were up 22.3% to $75.1 million
• Closing of CAN$100 million issue of 7-year convertible debentures
• Renewal of bank credit facility for a period of 3 years
• German Court ruled in favour of maintaining OTC drug status of Phlogenzym®
• US District Court ruled in favour of GOL in its proceeding against FTC

"We are generally pleased with Atrium's results in 2011 which have reached record levels. Our branded business performed particularly well in the U.S. in both the Healthcare Practitioner and Health Food Store markets. We completed the restructuring of our Direct to Consumer business, an important component for our organic growth going forward. Our Canadian and Dutch operations expanded modestly as growth in those respective markets was restrained in 2011. Last December, in Germany, the Federal Administrative Court ruled in favour of maintaining the OTC drug status of Phlogenzym®, part of the Wobenzym family of products. As a result, more marketing emphasis will be placed on our animal enzymes OTC drug product going forward. We have stabilized our revenue base in Germany and are confident that we can gradually rebuild from the current level with this recent decision" said President and Chief Executive Officer, Pierre Fitzgibbon.

"2011 proved to be a year of important changes for Atrium. After completing a series of strategic acquisitions in the last few years, the time was right to alter our management structure and thereby optimize our business platform with increased emphasis on organic growth. We appointed a Head of Operations in both North America and Europe, and welcomed new corporate executives. This team will provide us with a structure precisely tailored to maximize our synergies and build an effective platform. Atrium's new ERP system implementation will be central to the new platform in North America. In this era of enhanced regulation, Atrium is advantageously positioned to reap the benefits of an industry which is increasingly gaining legitimacy and credibility," concluded Mr. Fitzgibbon.

For the fiscal year ended December 31, 2011, Atrium recorded revenues of $414.7 million representing an increase of 16.3% compared to revenues of $356.6 million in 2010. This increase is mainly attributable to the acquisition of Seroyal, as well as to organic growth of North American branded business and to the favourable impact of exchange rates.

EBITDA increased by 8.5% to $91.0 million or 21.9% of revenues compared to $83.9 million or 23.5% of revenues for the same period in 2010. This EBITDA increase came largely from the acquisition of Seroyal.

Net earnings attributable to shareholders were $55.9 million in 2011 compared to $47.9 million in 2010, representing an increase of 16.7%. Net earnings per share ("EPS") on diluted basis rose to $1.61 per share, as compared to $1.44 per share for the same period in 2010. Without giving the dilutive effect of the potential conversion of the convertible debentures, the adjusted diluted EPS would have been $1.70 in 2011 compared to diluted EPS of $1.44 in 2010.

Cash flows from operating activities before changes in non-cash working capital items and interest expenses were $75.1 million, an increase of 22.3% compared to $61.4 million in 2010. As at December 31, 2011, the Company had a total debt of $283.3 million and a cash position of $22.8 million. During the year, the Company announced the closing of a 7-year convertible debenture offering of CAN$100 million. The net proceeds were used to reduce the Company's outstanding indebtedness.

During the year, primarily under its NCIB (Normal Course Issuer Bid) program, the Company repurchased and cancelled 697,794 common shares for a total consideration of $9.3 million (401,386 common shares and $4.8 million in the fourth quarter of 2011). Furthermore, 79,510 shares were repurchased in January 2012.

"In 2011, we increased our financial flexibility and further optimized our capital structure via a convertible debenture financing and a new bank credit facility in place for a period of three years. In addition, considering our solid cash flow, we continue to repurchase our shares at levels which we consider very attractive for the long-term benefit of our shareholders," said Mario Paradis, Vice President and CFO.

Financial Results for the Fourth Quarter of 2011

For the fourth quarter ended December 31, 2011, Atrium recorded revenues of $104.8 million representing an increase of 13.3% compared to $92.5 million for the corresponding period in 2010. The increase is mainly attributable to the acquisition of Seroyal and to organic growth of branded products.

EBITDA for the fourth quarter of 2011 was $21.7 million or 20.7% of revenue compared to $21.2 million or 22.9% of revenues for the same period in 2010. Net earnings attributable to shareholders were $14.0 million in 2011 compared to $10.5 million in 2010, representing an increase of 33.3%. EPS for the quarter was $0.37 per diluted share compared to $0.31 per diluted share in 2010. Without giving the dilutive effect of the potential conversion of the convertible debentures, the adjusted diluted EPS would have been $0.43 in 2011 compared to $0.31 in 2010.

Cash flows from operating activities before changes in non-cash working capital items and interest expenses were $21.1 million in 2011 compared to $13.8 million in 2010.

About Atrium

Atrium Innovations Inc. is a globally recognized leader in the development, manufacturing , and commercialization of innovative, science-based dietary supplements endorsed by health professionals. The Company distributes its extensive portfolio of products mainly in the healthcare practitioner and health food and specialized store channels, with a primary focus in North America and Europe. Atrium is at the forefront of science, innovation and education in the dietary supplement industry. The Company has over 1,100 employees and operates eight manufacturing facilities. Additional information is available at www.atrium-innovations.com.

Conference Call and Webcast

Atrium will hold its quarterly conference call and webcast to discuss its 2011 fourth quarter and full year results on March 1, 2012 at 9:00 a.m., Eastern Time. Participants may access the call by using the following numbers: 514-807-9895 (Montreal Area), 888-231-8191 (Toll Free) or 647-427-7450 (Toronto area and overseas). A live webcast is also available via the Company's website at www.atrium-innovations.com in the News Center section. A replay of the webcast will also be available on our website for a period of 30 days. A copy of Atrium's financial statements will also be available on the Company's website.

Caution Regarding Non-IFRS Financial Measures

The Company provides non-IFRS financial measures (Gross profit*, EBIT*, EBITDA*, and Adjusted EPS*) as supplemental information regarding its operational performance. These non-IFRS financial measures are directly derived from the Company's financial statements and are presented in a consistent manner. The Company uses these measures for the purposes of evaluating its historical and prospective financial performance, as well as its performance relative to competitors. These measures also help the Company to plan and forecast for future periods as well as to make operational and strategic decisions. The Company believes that providing this information to investors, in addition to IFRS measures, allows them to see the Company's results through the eyes of management, and to better understand its historical and future financial performance.

The presentation of this additional information is not prepared in accordance with IFRS. Therefore, the information may not necessarily be comparable to that of other companies and should be considered as a supplement to, not a substitute for, or superior to, the comparable measures calculated in accordance with IFRS.

*Gross profit means sales less cost of sales. EBIT means earnings before interest and tax. EBITDA means earnings before interest, tax, depreciation, amortization and acquisition costs.

Cautionary Note and Forward-Looking Statements

This press release contains certain forward-looking statements with respect to the Company. These forward-looking statements, by their nature, require the Company to make certain assumptions and necessarily involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements. Forward-looking statements are not guarantees of performance. These forward-looking statements, including financial outlooks, may involve, but are not limited to, comments with respect to the Company's business or financial objectives, its strategies or future actions, its targets, expectations for financial condition or outlook for operations and future contingent payments. Words such as "may", "will", "would", "could", "expect", believe", "plan", "anticipate", "intend", "estimate", "continue", or the negative or comparable terminology, as well as terms usually used in the future and the conditional, are intended to identify forward-looking statements. Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management's perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances. The Company considers theses assumptions to be reasonable based on information currently available to it, but cautions the reader that these assumptions regarding future events, many of which are beyond its control, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affect the Company and its business.

For additional information with respect to these and other factors and assumptions underlying the forward-looking statements made in this press release, see the Company's quarterly and annual Management Discussion and Analysis for the fiscal year ended December 31, 2011 filed with the Canadian securities commissions. The forward-looking information set forth herein reflects the Company's expectations as at the date of this press release and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law.

Atrium Innovations Inc.
Financial Summary (unaudited)
(in millions of US dollars except per share amounts)

Consolidated results for the year ended December 31,

(1) Gross profit means sales less cost of goods sold.
(2) EBITDA means earnings before interest, taxes, depreciation, amortization and acquisition-related costs.
(3) Without giving the dilutive effect of the convertible debentures.

Atrium Innovations Inc.
Financial Summary (unaudited)
(in millions of US dollars except per share amounts)

Consolidated results for the quarters ended December 31,

(1) Gross profit means sales less cost of goods sold.
(2) EBITDA means earnings before interest, taxes, depreciation, amortization and acquisition-related costs.
(3) Without giving the dilutive effect of the convertible debentures.

Atrium Innovations Inc.
Consolidated Balance Sheets
(Expressed in thousands of US dollars)