Alapis Consolidated Financial Results -- Fiscal Year 2009 (1/1-31/12/2009)

ATHENS, GREECE--(Marketwire - March 24, 2010) - ALAPIS HOLDING INDUSTRIAL AND COMMERCIAL SOCIETE ANONYME OF PHARMACEUTICAL, CHEMICAL AND ORGANIC PRODUCTS S.A. (ATHEX: ALAPIS) (“Alapis” or the “Group”) announces its consolidated financial results for the fiscal year 2009.

Consolidated turnover for the fiscal year 2009, increased by 8.5% standing at EUR 1,232.5 mil. as opposed to EUR 1,136.3 mil. in fiscal year 2008. The increase is mainly attributed to the consolidation in the Group of PNG GEROLYMATOS SA and MEDIMEQ SA. The increase of the consolidated turnover of the pharmaceuticals division and the medical devices and diagnostic equipment division was partially offset by the decrease of the turnover of the non-health division and specifically the detergents business unit.

Consolidated Earnings before Tax, Interest and Depreciation (EBITDA) increased by 67.8% in the fiscal year 2009 to EUR 308.1 mil. compared to EUR 183.6 mil. in the fiscal year 2008. EBITDA margin increased by 8.9 percentage points at 25% versus 16.2% in fiscal year 2008. The increase is mainly attributed to the increasing focus in the human pharmaceuticals sector and especially the distribution of new pharmaceutical products and the expansion of the activity of the medical devices sector. It is noted that the fiscal year 2009 consolidated Earnings before Tax, Interest and Depreciation (EBITDA) marked lower to EUR 29.4 mil. resulting from the audit for goodwill impairment of the detergent’s business unit (EUR 26.3 mil) and of the Group’s certain foreign subsidiaries (EUR 3.1 mil.), whereas in the fiscal year 2008 consolidated Earnings before Tax, Interest and Depreciation (EBITDA) were also burdened by the amount of EUR 94.6 mil. stemming from the audit for goodwill impairment of the detergents and organic products business units. The additional impairment of the detergents business unit was realized pursuant to the management’s decision that the ongoing adverse financial conditions have contributed materially to the slowdown of the detergents business unit’s fundamentals in FY 2009 as well and its estimation that the recovery will be slow.

Consolidated Earnings before Tax, Interest and Depreciation (EBITDA) from continued operations (excluding discontinued operation of organic products) and excluding goodwill impairment of the detergents division in the fiscal year 2009 increased by 25.6% to EUR 346.8 mil. compared to EUR 276.1 mil in fiscal year 2008.

The consolidated earnings after tax and minorities amounted in fiscal year 2009 to EUR 52.9 mil. versus EUR 51.9 mil. in fiscal year 2008 marking a 1.8% increase.

Human Health Division

The turnover of the human health division in the fiscal year 2009 amounted to EUR 876.3 mil. versus EUR 834.9 mil. in the previous year increasing by 5%. Earnings before Tax, Interest and Depreciation (EBITDA) formed at EUR 252.5 mil. versus EUR 208.9 mil. in the previous year increasing by 20.9%. EBITDA margin increased by 3.8 percentage points standing at 28.8% versus 25% in fiscal year 2008. The aforementioned growth despite the difficult market environment during 2009 is due to the excellent performance of generic products and to new product launches for multinational representations.

Medical Devices and Diagnostics Division

The turnover of the medical devices and diagnostics division in the fiscal year 2009 amounted to EUR 115.5 mil. versus EUR 53.1 mil. in the previous year increasing by 117.4%. Earnings before Tax, Interest and Depreciation (EBITDA) formed at EUR 55.1 mil. versus EUR 19.4 mil. in the previous year increasing by 183.7%. EBITDA margin increased by 11.1 percentage points standing at 47.7% versus 36.5% in fiscal year 2008. The aforementioned increase of sales and profit margins is mainly due to the consolidation of the sales of Medimeq and PNG Gerolymatos diagnostics sector.

Veterinary Division

The turnover of the veterinary division in the fiscal year 2009 amounted to EUR 76.6 mil. versus EUR 60.4 mil. in the previous year increasing by 26.7%. Earnings before Tax, Interest and Depreciation (EBITDA) formed at EUR 21 mil. versus EUR 11.9 mil. in the previous year increasing by 76.1%. EBITDA margin increased by 7.7 percentage points standing at 27.5% versus 19.7% in fiscal year 2008. The aforementioned increase of sales and profit margins is due to the increase of own produced products as well as the consolidation of PNG Gerolymatos veterinary sector.

Non-health Division (Cosmetics and Detergents)

The turnover of the non-health sector in the fiscal year 2009 amounted to EUR 158 mil. versus EUR 172.2 mil. in fiscal year 2008 marking an 8.2% decrease. This is largely attributable to the impact of the ongoing financial crisis and recessionary conditions on sales of detergents and it was partially offset by the consolidation of PNG Gerolymatos cosmetics sector. Results before Tax, Interest and Depreciation (EBITDA) of the sector amounted to losses of EUR 11.3 mil. in fiscal year 2009 versus losses of EUR 38.2 mil. in fiscal year 2008.

Please note that the fiscal year 2009 consolidated Earnings before Tax, Interest and Depreciation (EBITDA) marked lower to EUR 26.3 mil. resulting from the audit for goodwill impairment of the detergent’s business unit, while fiscal year 2008 consolidated Earnings before Tax, Interest and Depreciation (EBITDA) were also burdened by the amount of EUR 74 mil. stemming from the audit for goodwill impairment of the detergents business unit.

Discontinued operations (Organic products)

Pursuant to the management’s decision to discontinue the group’s organic products operations, the turnover of this unit amounted to EUR 6 mil. in fiscal year 2009 versus EUR 15.6 mil. in fiscal year 2008, while results before Tax, Interest and Depreciation (EBITDA) stood at losses of EUR 9.2 mil. versus losses of EUR 18.5 mil. in fiscal year 2008.

CONSOLIDATED FINANCIAL RESULTS FOR 2009

(000 EUR) 1.1-31.12.2009 1.1-31.12.2008 % of change Turnover 1,232,462 1,136,285 + 8.5 Gross Profit 408,532 411,891 - 0.8 EBITDA 308,142 183,602 +67.8 *EBITDA 346,774 276,112 +25.6 Earnings after taxes & minority interests 52,890 51,938 + 1.8 

* Earnings before Tax, Interest and Depreciation from continued operations (excluding the discontinued operation of organic products) and excluding goodwill impairment of the detergents division.

Alapis’ Management will propose to AGM of its shareholders a total dividend payout of EUR 11.34 mil. for fiscal year 2009 (or EUR 0.006 per share) compared to EUR 9.99 mil. (or 0.011 per share) in fiscal year 2008.

Prospects for the year 2010

Alapis after having established its position in the pharmaceuticals industry in Greece, continues its growth and expansion. Its strategic objective remains to be established as one of the largest groups of the pharmaceuticals industry in Southeast Europe.

The Greek market continues to be a market with significant growth opportunities due to the low penetration rate of generics as compared to the rest of Europe. The upcoming reforms in the pricing of pharmaceuticals is expected to have a positive impact in the growth trend of the generics sector as well to enhance Alapis’ competitive position in the industry. Alapis has the largest medical sales representatives unit that captures all of Greece, covering all therapeutic categories with 207 substances in circulation and another 183 under development, 35-40 of which will be launched within 2010 and is expected to significantly improve its competitive position in the market.

Moreover the efficient consolidation of the new acquired entities in conjunction to the synergies and economies of scale that emerge are expected to further enhance the company’s competitive edge.

Also, substantial is the expected growth from the Southeast European market where the company is active. The group’s presence in new markets (Turkey) as well as the ongoing expansion of activity in the current markets where the group is present, are expected to contribute significantly at the group’s growth course over the next few years.

As a partner of choice for Multinational Healthcare Companies Alapis is committed to further increase the number of representations with international partners.

Finally, as a party to out-licensing agreements, the Group expects to start generating income from those activities in the fourth quarter of 2010.