"31 percent sales growth and record strong operating income"

Third quarter

  · Sales increased by 31 percent in local currency during the third quarter. Sales amounted to SEK 85 (68) million, corresponding to an increase of 25 percent in SEK.

  · Operating income (EBIT) amounted to SEK 14 (6) million, which is more than double compared to last year. Vitrolife's operating income is the strongest ever for one specific quarter. The operating margin amounted to 17 (9) percent. Operating expenses as a percentage of sales decreased to 51 (60) percent. Operating income before research and development costs amounted to SEK 24 (17) million, which corresponds to an operating margin of 28 (26) percent.

  · Income before tax increased by 37 percent to SEK 15 (11) million. Net income amounted to SEK 10 (11) million, estimated tax of SEK 5 (0) million is included. Payment of tax will be made no earlier than during the first quarter of 2012. Earnings per share amounted to SEK 0.49 (0.55).

  · The cash flow from operating activities was SEK 14 (7) million. The change compared with the previous year is attributable primarily to the increase in accounts receivable as a result of increasing sales and increased growth for the company as a whole.

  · Increased growth potential for Vitrolife in China - regulatory approval of instruments used in IVF treatment.

  · Regulatory approval of aspiration needles in Japan, the second largest IVF market worldwide.

  · American study on STEEN Solution? begun and four clinics have so far performed transplants.

  · The development of new clinical stem cell media is ongoing.

January-September

  · Sales increased by 30 percent in local currency during the first three quarters of the year. Sales amounted to SEK 261 (217) million, corresponding to an increase of 20 percent in SEK.

  · Operating income (EBIT) amounted to SEK 37 (25) million, which corresponds to an increase of 51 percent. The operating margin amounted to 14 (11) percent. Operating expenses as a percentage of sales decreased to 52 (57) percent. Operating income before research and development costs amounted to SEK 70 (58) million, which corresponds to an operating margin of 27 (27) percent.

  · Income before tax increased by 35 percent and amounted to SEK 41 (30) million. Net income amounted to SEK 29 (30) million, estimated tax of SEK 13 (0) million is included. Payment of tax will be made no earlier than during the first quarter of 2012. Earnings per share amounted to SEK 1.45 (1.54).

Gothenburg, October 27, 2011

VITROLIFE AB (publ)

Magnus Nilsson

CEO