Fagron N.V. — Earnings Release 2007

Oct 22, 2007

PRESS RELEASE

18 OCTOBER 2007

TRADING UPDATE THIRD QUARTER 2007

DOUBLE DIGIT GROWTH DESPITE OF PREPARATIONS OF A SUCCESSFUL IPO

Wargem (Belgium), 18 October 2007 – The Arseus consolidated turnover amounts to 68.4 million Euro for the third quarter of 2007 and is as such 11% higher than the consolidated turnover figure for the same period last year. Notwithstanding the time consuming preparations of the Arseus IPO, which was realized on October 5, 2007, Arseus has shown a strong performance on operational level. For the second consecutive quarter Arseus realizes a double digit turnover growth. The internal growth (excluding the turnover realized by the Italian company Polichimica, which has been included in this quarter), amounts to 7%.

Non audited management figures in EUR million	Q3/2007	Q3/2006	% evolution 2007 / 2006	YTD 2007	YTD 2006	% evolution 2007 / 2006
Fagron Group	25,9	22,0	+ 18%	76,7	69,4	+ 11%
Arseus Dental	24,6	22,7	+ 8%	82,3	73,3	+ 12%
Arseus Medical	11,6	11,4	+ 2%	36,4	33,6	+ 8%
Corilus	6,3	5,7	+ 11%	18,7	18,4	+ 2%
TOTAL	68,4	61,8	+ 11%	214,1	194,7	+ 10%

The turnover evolution per reporting segment is as follows:

Fagron Group realizes an organic growth of 7%. This growth is well balanced between all countries but, especially on the Dutch and Hispanic market, Fagron has been able to realize high growth figures by further focusing on innovations such as ' Third Party Compounding'. Including the activities of Polichimica, the sales growth amounts to 18% during the third quarter. This Italian entity, acquired in July 2007, is now being adapted to and integrated into the Fagron European purchase platform and brand policy. Furthermore, management is actively investigating several acquisition opportunities to further expand the Fagron business model in European markets.

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• Arseus Dental realizes a full organic turnover growth of 8% in the third quarter. This remarkable achievement was obtained in a traditionally weak quarter, while normally during the fourth quarter approx. 1/3 of the yearly sales is realized. Especially sales of dental equipment in France and in the Netherlands have shown a strong growth. Activities in Switzerland grew double digit as well. In September Arseus Dental has reached a partnership with ES Tooling, a Belgian company located in Beringen, which enables Arseus Dental to offer universal CAD-CAM solutions under the name ISUS (Implant Supra Structures). An suprastructure implant is a construction on an implant on which a prostheses or bridge can be placed. Consequently, Arseus Dental is able to offer her own services for scanning and modeling of implant-suprastructures. Arseus Dental will take charge of commercial aspects while ES Tooling will produce (mill) tailor-made suprastructures. This will make Arseus Dental a full-fledged party on the fast growing market of CAD-CAM applications.
• Arseus Medical obtained, after an exponential growth of 20% during the second quarter, an organic growth of 2% in a traditionally slow third quarter. Arseus Medical realized a healthy organic growth of over 8% on a yearly basis. The most recent integrations have been concluded successfully, which will further strengthen the commercial drive in Belgium as well as in the Netherlands and will enable Arseus Medical to attract new partners.
• Corilus has, as expected, now also reached a turning point in the sales evolution. After stabilizing turnover during the second quarter, Corilus has realized a strong organic growth of 11% during the third quarter. Due to a new sales and marketing approach, which focuses on selling overall solutions for medical data processing, Corilus creates added value which is highly appreciated by its customers. In Belgium Corilus has gained significant success in a fast growing market through the official homologation of the package for homecare Infi+Mobile ('VINCA' project). Homecare nurses receive a subvention from the RIZIV when they buy the package. Obviously, Corilus will cooperate intensively with Arseus Medical with a view of accelerated expansion of the Corilus' market share in this segment.

PROGNOSES [1]

For 2007 Arseus has projected a turnover growth of 6%, but focuses at this moment on realizing the ambitious target of minimum 300 million Euro, a growth of 8% compared to 2006. Furthermore, Arseus management investigates acquisition targets which will accelerate growth in 2008. The solid balance sheet after IPO makes this possible.

For more information, please contact:

_______________________________________________________

Ger van Jeveren, CEO: ger.van.jeveren@arseus.com – Tel. +31 88 33 11 200 Jan Peeters, CFO: jan.peeters@arseus.com – Tel. +31 88 33 11 200

^[1] Disclaimer: This press release contains forward-looking information, which is based on current internal estimations and expectations. Forward-looking statements contain inherent risks and apply exclusively on the date on which they are made. The actual results may differ substantially from those included in forward-looking statements.