SORIN GROUP Delivers Solid Results for the First Half Of 2010 And Improves the Guidance for the Full Year

Results of the Second Quarter 2010:

• Consolidated revenues at €197.5 million, up 8.8% (5.1%°^*) compared with the second quarter of 2009;
• Gross profit at €117.3 million, or 59.4% of revenues (54.4% in the second quarter of 2009);
• EBITDA at € 31.9 million, or 16.2% of revenues (14.3% in the second quarter of 2009);

Results of the First Half of 2010:

• Consolidated revenues at €369.9 million, up 5.7% (4.2%^°*) compared with the first half of 2009;
• Gross profit at €217.5 million, or 58.8% of revenues (55.0% in the first half of 2009):
• EBITDA at €56.8 million, or 15.4% of revenues (13.8% in the first half of 2009);
• Net profit up 29.0% to €17.9 million, or 4.8% of revenues (4.0% in the first half of 2009);
• Net financial debt as of June 30, 2010 reduced to € 171.2 million, compared with €209.8 million as of June 30, 2009 (€ 174.5 million as of March 31, 2010)

In the Third Quarter 2010 Sorin Group expects revenues to grow 5-6%°*, EBITDA is seen at 13.5-14.5% of revenues and net profit at € 6-8 million. Net financial debt is expected to decrease further to € 165 million at the end of the quarter.

Guidance for the full year 2010 revised upward: revenue growth 4-6%^°* (from 2-4%^*) compared with 2009, EBITDA at 15-16% of revenues, Net profit at €36-40 million (from €33-37 million); Net financial debt is confirmed at €150 million at the end of the year.

The Board of Directors also approved a Performance Stock Grant program for the Management of the Group and resolved to call an Ordinary and Extraordinary Shareholders’ meeting for September 13^th and 14^th, 2010 (first and second call).

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In application of IAS 39, from January 1st, 2010, the Group has implemented the tools and procedures for the application of hedge accounting on derivative financial instruments to cover the risk of fluctuation of exchange rates on highly probable foreign currency transactions (cash flow hedge).

For a detailed analysis of the impact of the adoption of hedge accounting on the Company’s results, please refer to the attached table.

The Board of Directors of Sorin S.p.A.(MIL:SRN), meeting under the Chairmanship of Rosario Bifulco, approved the results of the First Half of 2010.

"We are pleased to announce the results for another solid quarter fulfilling the strong commitment to meet our ambitious long-term objectives, in particular with further improvement of gross margin and significant strengthening in our core businesses”, said Chief Executive Officer André-Michel Ballester

Consolidated results for the Second Quarter of 2010

In the Second Quarter of 2010 Sorin Group posted Revenues of €197.5 million, up 8.8% compared with the second quarter of 2009; excluding discontinued operations^°, growth would have been of 5.1%*. Revenues were driven in particular by the excellent performance of the CRM Business Unit, by biological valves and heart-lung machines, in line with expectations and with the performance of previous quarters.

• The Cardiopulmonary Business Unit (heart-lung machines, extra-corporeal and autotransfusion blood circulation systems) posted revenues of €86.3 million, up 1.9%*, driven by the excellent performance of the heart-lung machines and the positive performance of main markets. As disclosed in April 2010, during the quarter the sale of non-strategic product lines Angel® and activAT® to US Group Cytomedix Inc for $ 7 million (€5.2 million) was completed. In June the Company bought Gish Biomedical for about $ 1 million, strengthening its commercial presence in the United States. Gish Biomedical develops products for perfusionists that have been marketed in the United States and in the rest of the world for over 25 years and is expected to contribute revenues for some $ 8 –10 million on an annual basis.

In the Heart-Lung Machine segment, in the second quarter there was significant growth in all major markets, in particular in Europe and in the United States, thanks to the growing penetration of the new compact C5™ machine that received Food & Drug Administration (FDA) approval in the first quarter of 2010 and, more generally, the capability of the company to satisfy its clients with more sophisticated configurations, with an increase of average selling prices.

The Oxygenators segment was substantially stable, with a positive performance in the US and in the main European markets.

The Autotransfusion segment posted a positive performance thanks in particular to above market growth in Japan and in emerging markets. During the quarter the Business Unit received the CE mark for the new generation autotransfusion system (Xtra™), whose launch will take place in the second half of 2010.

At an industrial level, the measures directed at improving efficiency and optimizing the logistics among plants is continuing.

The Business Unit’s development of a new line of state-of-the-art oxygenators ("LinOx Project”) is progressing well, in line with previously disclosed plans aimed at consolidating the Group’s long-term leadership position on the oxygenators market.

• The Cardiac Rhythm Management Business Unit (implantable devices to manage cardiac rhythm disorders) posted revenues of €78.3 million, up 12.3%^* compared with the second quarter of 2009, reflecting above-market growth in all main geographic markets in both segments.

In the High-Voltage segment, revenue growth was particularly significant also thanks to the growing penetration of Paradym^TM CRT-D in the US and Europe, while revenues in the Low-Voltage segment reflect the progressive share gains of the Company in particular on the Japanese and on the major European markets.

During the quarter the Business Unit took part in the Heart Rhythm Society Convention in Denver and in the 17^th World Congress in Cardiac Electrophysiology & Cardiac Techniques (Cardiostim) in Nice. During the latter congress, Sorin presented positive results in the CLEAR clinical study that involved 156 patients implanted with a CRT device for cardiac resynchronization with a new technology called SonR^TM, that demonstrated a significant reduction in mortality and heart failure related hospitalization. Sorin Group’s SonR^TM technology consists of a sensor embedded in the tip of a pacing lead implanted with a CRT device that optimizes cardiac resynchronization therapy with an improvement in response rate to 86% compared with 62% for patients receiving standard medical treatment. During the Congress, Sorin received the Cardiostim Innovation Award for this technological innovation.

Finally, in terms of manufacturing and industrial results, the Reply™ pacemaker and the Paradym^TM defibrillator received FDA approval for production at the Clamart (France) plant, uniting manufacturing with the Business Unit’s R&D center.

The Business Unit is on schedule to launch, with its partner Orange, its state-of-the-art remote monitoring system by 2011.

• The Heart Valves Business Unit (mechanical and tissue heart valves and valve repair products) posted revenues of €32.4 million, down 2.1%^* compared with the second quarter of 2009. The drop in revenues was entirely due to mechanical valves, in line with expectations, due to the challenging quarter-over-quarter comparison, for the stocking order associated with the long-term strategic partnership with Japan Lifeline for the mechanical valves product lines.

The tissue valve segment continued its excellent performance with continued gain in market share, in particular on the US and emerging markets.

In the second quarter, the Business Unit took part in international congresses, including the AATS of Toronto in May and ISMICS in Berlin in June, important occasions used to support performance information on the Mitroflow™ tissue valve and on the future launch of the sutureless PercevalS™, which received very positive feedback from the international heart surgeons community. The Company confirms the expected receipt of the CE mark for PercevalS™ in the first half of 2011.

In preparation for the launch of PercevalS™, in May the Company entered into an exclusive strategic agreement with CardioMedical GmbH to distribute at a global level the Cardio Vision^TM portfolio that includes a comprehensive catalogue of minimally invasive cardio surgery instruments and accessories.

Gross Profit in the second quarter of 2010 rose 18.9% to €117.3 million, or 59.4% of sales, compared with 54.4% of the second quarter of 2009. This positive performance was attributable, as in previous quarters, to the positive results from measures to contain industrial costs, to the favorable mix both in terms of geography and of product, as well as to the positive FX impact.

Selling, general and administrative (S,G&A) expenses at €78.7 million, or 39.9% of revenues compared with 37.7% in the second quarter of 2009, mainly due to the negative impact from the adoption of hedge accounting, which contributed in the quarter by some € 2.8 million (see the attached table). The increase also reflects the Company’s strategy to strengthen its direct commercial network in some European countries (Austria, the Netherlands and Switzerland, previously served through independent agents or distributors) and the investments in sales expenses in the US. Moreover, the increase has been affected by accrual associated with the long-term management performance incentive plan.

Research and Development (R&D) expenses grew 17.6% to €17.2 million, or 8.7% of revenues (8.1% in the second quarter of 2009), reflecting the Company’s continued strong commitment to innovation.

EBITDA posted a significant growth of 23.3% to €31.9 million (or 16.2% of revenues) compared with €25.9 million (or 14.3% of revenues) in the second quarter of 2009, thanks to gross margin expansion, more than offsetting the increased R&D expenses, and to the strengthening of the Group’s commercial structure .

EBIT was at €21.7 million (11.0% of revenues) up 24.5% compared with €17.5 million (9.6% of revenues) in the second quarter of 2009. Before special items, EBIT was of €21.3 million, or 10.8% of revenues (8.6% of revenues in the second quarter of 2009).

Net financial charges grew to €4.8 million from €0.7 million in the second quarter of 2009, which benefitted from a positive fair value of the hedging portfolio. On a run rate basis, net financial charges are decreasing thanks to the lower debt servicing costs mainly as a result of the reduction of average net debt in the period.

Net profit was at €11.1 million, or 5.6% of revenues vs. €11.1 million or 6.1% of revenues in the second quarter of 2009, which benefitted from the favorable mark-to-market valuation of the hedging portfolio, as explained above.

Net financial debt to June 30, 2010 fell to €171.2 million compared with €174.5 million to March 31, 2010 despite the strong negative impact, booked in the second quarter, of the fair value of the derivatives portfolio to hedge against exchange rate an interest rate risks. Net financial debt was of €209.8 million as of June 30, 2009. The net debt in the past 12 months fell by a net value of €38.6 million mainly due to the significant increase in profitability and, to a lesser extent, to improved working capital; special items in the period negatively contributed to the reduction of net debt respectively by €9.7 million (see attached table) and by €2.8 million in the past three months.

Consolidated results for the First Half of 2010

In the First Half of 2010 Sorin Group posted Revenues of €369.9 million, up 5.7% compared with the first half of 2009. Excluding discontinued operations^° and at comparable exchange rates revenue growth is 4.2%.

Gross Profit grew 12.9% to €217.5 million, or 58.8% of revenues, compared with 55.0% of the first half of 2009, mainly thanks to industrial efficiency measures and the positive mix both in terms of geography and product and, to a lesser extent, to the positive foreign exchange.

Selling, general and administrative (S,G&A) expenses stood at €148.4 million, or 40.1% of revenues compared with 38.7% of revenues in the first half of 2009 and include € 3.7 million due to the adoption of hedge accounting.

Research and Development (R&D) expenses grew 12.6% to €32.6 million, or 8.8% of revenues (8.3% of revenues in the first half of 2009).

EBITDA grew 17.2% to €56.8 million (15.4% of revenues) compared with €48.5 million (13.8% of revenues) in the first half of 2009 thanks to the expansion of gross margin.

EBIT grew 22.2% to €36.8 million (or 9.9% of revenues) compared with €30.1 million (or 8.6% of revenues) in the first half of 2009. Before special items (€0.3 million, as detailed in the attached table), EBIT was of €36.4 million, or 9.8% of revenues (8.1% of revenues in the first half of 2009).

Net financial charges rose to €7.8 million (including € 3.0 million of negative exchange rate differences) vs. €4.6 million in the first half of 2009 (which included € 3.7 million of positive exchange rate differences). On a run rate basis net financial charges fell compared with the first half of 2009 thanks to the reduction in average debt and the lower spread applied to medium- and long-term debt.

Net profit rose 29.0% to €17.9 million, or 4.8% of revenues (€13.9 million, or 4.0% of revenues in the first half of 2009).

Guidance for the Third Quarter and Full Year 2010

For the Third Quarter of 2010 Sorin Group expects revenues to grow by 5-6%*°, EBITDA at 13.5-14.5% of revenues and net profit at € 6-8 million. Net financial debt is forecasted at €165 million at the end of the quarter (without considering a possible cash-out of some $10 million for the settlement with the US Department of Justice, previously disclosed on March 12, 2010).

Following the strong first half results and the positive business expectations for the rest of the year, the Guidance for the full year 2010 was revised up: revenue growth of 4-6%^°* (from 2-4*%) compared with 2009, EBITDA at 15-16% of revenues, Net Profit at €36-40 million (from €33-37 million); the forecast of a net debt of €150 million at the end of the year has been confirmed.

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The Board of Directors also decided to submit to an Ordinary and Extraordinary Shareholders’ Meeting, that will be called on September 13^th and 14^th, 2010, in first and second call, the proposal to approve a Stock Grant program for the Chairman and the CEO of Sorin S.p.A. and the Group’s managers and employees (the "Plan”) and to give powers to the Board of Directors to execute the plan through an increase in free capital by issuing shares pursuant to art. 2349 of the civil code, or to transfer for free to the beneficiaries drawing from the Company’s own shares portfolio following the execution of a buy-back program.

The Plan, which would be carried out over a period of four years, is aimed at providing incentive-based performance rewards in order to secure the medium- and long-term objectives set by the Strategic Plan. It is designed to confirm the greatest possible alignment between managers and shareholders. The Plan is related and subordinate to the achievement by the Company of preset performance criteria, including EBITDA margin and the consolidated net result.

Specifically, the Board of Directors resolved to propose: i) to the Extraordinary shareholders meeting to approve, pursuant to art. 2443 of the civil code, the conferral, for a period of five years from the date of approval, to the Board of Directors the powers to execute a free share capital increase, once or more than once, for a nominal value of up to €13,000,000 by issuing up to No. 13,000,000 ordinary shares to attribute to employees of Sorin Group in the context of the Company’s current and future stock attribution plans, pursuant to article 2349 of the civil code; ii) to the ordinary Shareholders meeting to approve the Plan and to the give powers to the Board of Directors to execute it and to approve a Plan to buy and sell its own shares, as per articles 2357 and 2357-ter of the civil code and to confer to the Board of Directors powers to execute the program. The maximum amount that can be bought through the plan, for a period of within 18 months from the date of approval, is of 1% of share capital underwritten at a nominal price of € 1 each and therefore a maximum No of 4,704,121 shares at a minimum price that shall not be less than or more than 10% of the reference share price posted in the Stock Exchange session immediately previous to each single purchase transaction. At present the Company does not hold any treasury stock.

The Reports of the Directors containing the proposals of the agenda of the Shareholders Meeting being called will be published with the usual procedure and will be available on the www.sorin.com web site, according to the time limits set out by law.

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The Board of Directors also resolved to appoint Giovanni Pavese Vice President of Sorin S.p.A..

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The manager responsible for preparing the company’s financial reports, Demetrio Mauro, declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the document results, books and accounting records.

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This press release contains forward-looking statements. These statements are based on the Group’s current expectations and projections about future events and, by their nature, are subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future, and, as such, undue reliance should not be placed on them. Actual results may differ materially from those expressed in such statements as a result of a variety of factors, including: continued volatility and further deterioration of capital and financial markets, changes in commodity prices, changes in general economic conditions, economic growth and other changes in business conditions, changes in government regulation (both in Italy and abroad), and many other factors, most of which are outside of the Group’s control.

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About Sorin Group

Sorin Group (www.sorin.com) is a global company and a leader in the treatment of cardiovascular diseases. The company develops, manufactures and markets medical technologies and innovative therapies for cardiac surgery and for the treatment of cardiac rhythm disorders.

With 3,600 employees worldwide, the Group focuses on three major therapeutic areas: cardiopulmonary bypass (extra-corporeal circulation and autotransfusion systems), cardiac rhythm management (CRM), and heart valves. Each year, over 1 million patients are treated with the devices of Sorin Group in more than 80 countries.

For more information, please visit www.sorin.com

^° Excluding discontinued operations: "Angel” (April 2010) and "Endovascular” (March 2010), as better detailed in the half year report as of June 30, 2010

* At constant exchange rates

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The application of hedge accounting does not change the values of the net financial debt, of net invested capital or of the total net equity.