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Guerbet Earnings Release 2010

Feb 11, 2011

1392_iss_2011-02-11_e0c70466-6e96-48bd-bbfa-5497820472c8.pdf

Earnings Release

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P RESS RELEASE

2010 Net Sales

Villepinte, 11 February 2011

Consolidated Group revenue (IFRS)

In thousands of euros 2010 2009 Change
First quarter ……………………………………… 86,684 79,031 +9.6%
Second quarter ………………………………… 92,220 83,485 +10.5%
Third quarter ……………………………………… 82,797 81,997 +1.0%
Fourth quarter ………………………………… 90,878 90,966 -0.1%
Total……………………………………… 352,579 335,479 +5.1%

Consolidated revenue by region

In thousands of euros 2010 2009 Change
European subsidiaries 253,993 259,193 -2.0%
Other markets 98,586 76,286 +29.2%
Total……………………………………… 352,579 335,479 +5.1%

Stronger revenue growth than in 2009 despite disappointing second half

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 that included 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. For the full year, 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 chemoembolization, was granted a temporary authorization for import by the US Food and Drug Administration (FDA). This measure contributed to very robust growth, further boosted by sales in Asia.

Overall, Guerbet's consolidated revenue in 2010 was up 5.1%. Like-for-like (including Falk operations sold at 2009 year-end), this growth would have been 1.5 points higher or 6.6%.

In the area of R&D, the roadmap for the program to register Dotarem in the US which represents an annual budget of approximately 2% of sales is being pursued as planned.

Current operating income in the second half will be impacted by the production incidents in addition to increased resources devoted to R&D compared with 2009.

Debt remains well under control despite major capital expenditures in 2010.

A complete presentation of results for fiscal 2010 with comments will be published on 2 March 2011.

Contact: Finance and Administration Department - Tel: +33 (0)1 45 91 50 69