Eurofins reports 40% net profit growth with its Annual Results 2006

Brussels/ Nantes, February 28, 2007

• Revenue growth of 58% in 2006 to €368.0m. Revenues have doubled since 2004
• Substantial strengthening of the technological portfolio as more laboratories than expected joined the Group
• Operating profit better than expected for the year at €37.3m
• EPS grows 40% from €0.91 to €1.27
• Increase in ROE from 20.9% to 23.5%
• Sales objective for 2007 raised from €420m to €450m

This has been a year of exceptionally strong growth at Eurofins. Important acquisitions have played a major role in the increase in revenues to €368.0m from €233.1m in 2005 (58% growth). This significantly exceeds the €345m revenue objective which was upgraded for the third time in the Q3 2006 report. These acquisitions have enabled the Company to add breadth and a depth of excellence to its service range around the world which should contribute increasingly to profitability as the process of integration progresses. The number of acquisitions during the year was more than was anticipated at the start of 2006 but the Company believed that in each case they fitted into the long-term strategy of Eurofins and that the price makes value creation possible.

During the year the following major businesses were acquired: Pharmacontrol, Optimed, GAB Biotechnologie, Agrisearch, Focus BioInova, Steins Food, Alcontrol France and Chemical Control. In addition the Group set up a subsidiary in Italy (which subsequently purchased Chemical Control), opened a new 1,100m2 facility in Brazil, achieved approval as a wholly-foreign-owned enterprise in China and started building its Michigan site for the VIRalliance virus phenotyping business. Finally, MWG AG was fully consolidated from the third quarter following the increase in the stake that Eurofins holds in the company to over 80%.

This year's revenue growth has resulted in a doubling of the consolidated sales since 2004. Organic growth was in line with Company targets at around 10%. Quarterly sales increased throughout the year by around 50% but the fourth quarter exceeded expectations even more and grew 73% from €70.8m in 2005 to €122.2m. This puts the Company firmly on target to meet its medium term objective of revenues of €600m in 2010.

In terms of profitability, EBITDA and Operating profit both grew to record levels at €57.0m (2005 €42.5m) and €37.3m (2005 €29.7m) respectively. Basic earnings per share for the Group increased from €0.91 to €1.27. Net profit doubled in Q4 as compared to the same period last year.

In the Q3 report for the first time the performance of the operationally "up to standards" and the "under development" parts of the business were reported. Taking note of the favourable response to this disclosure, these two perimeters are again highlighted:

• The "up to standards" perimeter attained revenues of €273m and an EBITA margin of 15.3%. This margin is above expectations set for 2006 due to one-off food scares. The Company still sees its margin objective for this perimeter as being 15% in the medium term.
• The "under development" perimeter's revenues were €95m with losses of €4.3m. For this part of the business, it is worth noting that full-year proforma losses would have been about €12m on proforma sales of €131m.

Going forward it is planned to report the performance of these two perimeters once a year.

The Group worked hard in the final quarter to address its net working capital position and reduced this to 5.8% of revenues (7.3% in 2005). Net debt at the year end was €119.6m (2005 €60.2m), including a closing cash balance of €80.4m (2005 €41.2m). The Group generated operating cash flow of €43.6m (2005 €34.7m) during the year.

It is Eurofins' objective to generate shareholder value by seeking high returns on increasingly large amounts of capital. In 2005 and 2006 Eurofins deployed €151m additional capital to start up or acquire businesses with the objective of reaching Group ROCE targets on these new investments within three years. Understandably, the relative size of these recent investments (Eurofins has doubled in size since 2004) has had a negative effect on the overall rate of ROCE*. In 2006 ROCE* before tax was 17.6% (2005 22.3%) and ROCE* excluding all intangibles related to acquisitions was 40.9% (2005 45.6%).Return on Equity** improved to 23.5% (2005 20.9%).

Outlook for 2007

Proforma sales for 2006 reached €411m. Based on an ambitious objective of about 10% organic growth in 2007, Eurofins raises its sales objectives for this year from €420m to €450m (assuming constant exchange rates). Approximately €150m corresponds to the "under development" perimeter. The objective is to bring this "under development" perimeter to Group standards within 3 years and close to break even in 2007, including any start up costs.

During 2006 and continuing into 2007 Eurofins has invested in the corporate, IT and business development structures that will enable it to maintain its fast-track expansion. Group costs, which rose to €6.2m in 2006 (2005 €4.1m), will reach approximately €10m when the management structure is fully established.

In 2007 Eurofins will continue in its aim to be the number one or number two service provider in each market in which it operates. In the core countries this means continuing to provide the high quality of testing and advice that customers need and to invest in the productivity and efficiency of the laboratories. In newer markets, through further investment in plant, equipment and personnel and by providing tests at the highest of standards internationally the Group plans to extend its status as a preferred supplier to many of the world's largest companies.

* ROCE = EBITA over last 12 months / average capital employed at start of last 4 quarters
** ROE = Net profit / Equity at beginning of year

For further information please visit www.eurofins.com or contact:

Investor Relations
Investor Relations Tél : +32-2-766 16 22 E-mail : ir@eurofins.com