Guerbet — Earnings Release 2010

Mar 2, 2011

Villepinte, 02 March 2011

P RESS RELEASE

2010 Annual results

Consolidated data (€m) IFRS	2010	2009	Change
Net sales	352.6	335.5	+5.1%
R&D expenses	38.4	32.7	+17.5%
EBITDA(*)	37.0	43.5	-14.7%
Current operating income	11.2	28.3	-60.3%
Current operating margin	3.2%	8.4%
Net income	5.9	20.5	-71.3%
Net margin	1.7%	6.1%
Net debt	89.7	78.9	+13.7%

Note: Percentages are calculated on the basis of exact figures in thousands of euros EBITDA (*): Earning before interests, tax, depreciation and amortisation

Revenue growth stronger than in 2009 despite disappointing second half

Guerbet's consolidated revenue in 2010 was up 6.6 % like-for-like or 5.1% including the operations of Falk in 2009.

Dotarem, Guerbet's flagship magnetic resonance imaging (MRI) product delivered a solid performance. In the 2010 fourth quarter, Dotarem sales grew 10.4% or 11% for the full year with gains of 6.2% in Europe and 47% growth in other markets.

Xenetix (x-ray imaging) experienced mixed trends for the year. After 12% growth in the first half, Xenetix sales declined 4.2% and 4.1% in the third and fourth quarters, mainly in Europe, in response to production incidents before and after the summer shutdown that have since been resolved. Sales worldwide for Xenetix expanded 3.7%. This performance included a 1.8% decline in Europe and 18.6% growth in other markets.

Finally, Lipiodol, the Group's long-established product, currently used primarily for chemical embolization, was granted a temporary authorisation for import by the US Food and Drug Administration (FDA). This measure contributed to very robust growth that was further boosted by sales in Asia.

Results

In the area of R&D, the roadmap for registering Dotarem in the US is being pursued as planned. The recruitment of patients for the angiographic study of the cervical region is completed and the inclusions relating to the Central Nervous System study are now in line with expectations.

EBITDA(\*) reflected increased R&D expenditures (+€5.7 million) primarily in connection with the programme to register Dotarem in the US in addition to the production incidents that occurred before and after the summer shutdown.

Current operating income in the second half was furthermore reduced by an increase in provisions recorded in the period in relation to fiscal 2009.

Net income for 2010 was €5.9 million, impacted by allowances for the impairment of intangibles and down from €20.5 million in the prior year.

Capital expenditures amounted to €40.8 million. This included €13 million for a new pharmaceutical filling unit at our Aulnay-sous-Bois site.

Net debt amounted to €89.7 million, increasing €10.8 million reflecting major capital expenditures undertaken in 2010.

A strategy for maximising growth and profitability

Strongly focused on the needs of practitioners, Guerbet has adapted its positioning with respect to pathologies/products in each major geographical market to ensure the highest quality medical service while optimising profitability from sales.

In light of the increasing utility of imaging technologies in preventing and treating pathologies, growth in 2011 is expected to equal or exceed 2010.

The Executive Board will ask the General meeting of 27 May to approve the distribution of a dividend of €1.80 per share compared to the prior year of €2.25 representing a payout ratio of 2.8% based on the share price of 31 December 2010.

About Guerbet

Guerbet (www.guerbet.com) is the only pharmaceutical group fully dedicated to medical imaging. It has a complete offering of contrast products for x-ray, MRI and nuclear medicine imaging for the worldwide market. These products assist medical professionals (radiologists, oncologists, cardiologists, etc.) in better diagnosing and treating the pathologies of their patients (cardiovascular, cancer, inflammatory and neurodegenerative diseases).

To develop new products and assure future growth, Guerbet devotes every year significant resources to research and development with 210 R&D employees and an amount equivalent to approximately 11% of sales.

Guerbet is solidly positioned in Europe with a market share of 25% and is expanding its presence in the United States and Japan.

Guerbet, listed on Eurolist Euronext Paris in compartment B had sales in 2010 of €352.6 million with a total workforce of 1,300 employees.

For further information: www.guerbet.com

^(*)EBITDA : Earning before interests, tax, depreciation and amortisation