Q4'07 - Interim Report by Riccardo Fava

iagnostic Speci

Fourth quarter

2007

The Diagnostic

Specialist

2007

DIASORIN GROUP QUARTERLY REPORT AT DECEMBER 31, 2007

DiaSorin S.p.A Via Crescentino (no building No.)- 13040 Saluggia (VC) - Tax I.D. and Vercelli Company Register No. 13144290155

Fourth quarter

Contents Governative bodies Consolidated financial highlights

p. 5 p. 6

Report on operations 1.1. Review of the Groupâ&#x20AC;&#x2122;s operating performance and financial position 1.1.1. The foreign exchange market 1.1.2. Operating performance in the fourth quarter of 2007 1.1.3. Analysis of consolidated cash flow 1.1.4. Analysis of consolidated net borrowings 1.1.5. Operating performance in 2007

p. p. p. p. p. p. p.

Transactions with related parties

p. 17

Significant events occurring after december 31, 2007

p. 19

Consolidated financial statements at december 31, 2007 Income statement Balance sheet Statement of cash flow Statement of changes in shareholdersâ&#x20AC;&#x2122; equity

p. p. p. p. p.

21 21 22 24 25

Notes to the consolidated financial statements - Accounting principles and scope of consolidation - Segment information - Income statement - Balance sheet

p. p. p. p. p.

26 26 28 29 31

7 7 7 7 12 13 14

2007

Fourth quarter

GOVERNATIVE BODIES

Board of directors

(ELECTED ON MARCH 26, 2007)

Chairman Executive deputy Chairman

Gustavo Denegri Antonio Boniolo

Chief executive officer

Carlo Rosa1

Directors

Giuseppe Alessandria 2 Chen Menachem Even Enrico Mario Amo Ezio Garibaldi 2 Michele Denegri Franco Moscetti 2

Board of statutory auditors Chairman

Luigi Martino

Statutory auditors

Bruno Marchina Vittorio Moro

Alternates

Alessandro Aimo Boot Maria Carla Bottini

Independent auditors

1 2

Deloitte & Touche S.p.A.

General Manager Independent Director

2007

CONSOLIDATED FINANCIAL HIGHLIGHTS Fourth quarter 2007

as a % of

2006

Full year as a % of

2007

as a % of

2006

as a % of

(in thousands of euros) Net revenues

51,161

100.0%

43,100

100.0%

202,324

100.0%

179,756

100.0%

EBITDA

14,918

29.2%

10,475

24.3%

60,011

29.7%

54,489

30.3%

Operating result (EBIT)

11,403

22.3%

6,740

15.6%

46,056

22.8%

40,210

22.4%

6,143

12.0%

3,315

7.7%

25,197

12.5%

22,294

12.4%

Adjusted EBITDA

14,918

29.2%

10,475

24.3%

64,004

31.6%

52,557

29.2%

EBIT before nonrecurring income/expense

11,403

22.3%

6,740

15.6%

50,049

24.7%

38,278

21.3%

6,143

12.0%

3,315

7.7%

27,703

13.7%

21,082

11.7%

Net result

Net result before nonrecurring income/expense

(in thousands of euros) Total assets Net borrowings Shareholdersâ&#x20AC;&#x2122; equity

reve-nues

At december 31, 2007

at december 31, 2006

208,430

194,081

12,151

34,730

120,294

87,737

Fourth quarter

1. REPORT ON OPERATIONS 1.1. Review of the Group’s operating performance and financial position Pursuant to Article 3 of Legislative Decree No. 38 of February 28, 2005, which governs the selection of the alternatives provided in Article 5 of EC Regulation No. 1606/2002 of the European Parliament and Council dated July 19, 2002 concerning the adoption of the International Financial Reporting Standards, the Company voluntarily elected to adopt the International Financial Reporting Standards (hereinafter also referred to as “IFRS”), as published by the International Accounting Standards Board (“IASB”) and officially approved by the European Union, for the preparation of its consolidated financial statements, starting with the year ended December 31, 2006. This quarterly report was prepared in accordance with the provisions of IAS 34 – Interim Financial Reporting. The data at December 31, 2006 have been restated in accordance with International Financial Reporting Standards (IFRS). With regard to the composition of gross profit, some of the items that were included in last year’s computation have been reclassified in accordance with the presentation criteria adopted this year, which reflect a more accurate allocation of such items, consistent with sound management criteria. Lastly, this quarterly report was not audited.

1.1.1. The foreign exchange market The average exchange rates for the fourth quarter of 2007 show that the euro appreciated significantly versus the currencies that have an impact on the Group’s operations. The table below provides a comparison between the exchange rates for the fourth quarter of 2007 and the same period last year (source: Italian Foreign Exchange Office): Fourth quarter

Currency U.S. dollar (USD) Brazilian real (BRL) British pound (GBP) Swedish kronor (SEK) Mexican peso (MXN) Israeli shekel (ILS)

full year

2007

2006

2007

2006

1.4494

1.2902

1.4721

1.3170

2.5873

2.7767

2.6108

2.8133

0.7086

0.6731

0.7334

0.6715

9.2981

9.1306

9.4415

9.0404

15.7301

14.0516

16.0547

14.2937

5.7142

5.4943

5.6651

5.5501

1.1.2. Operating performance in the fourth quarter of 2007 The results reported in the fourth quarter of 2007 confirm and strengthen the success of the strategy of geographic and technological expansion pursued by the DiaSorin Group. In the last three months of 2007, the rate of revenue growth continued to accelerate compared with the same period the previous year. More specifically, fourth quarter revenues totaled 51.2 million euros in 2007, for a gain of 18.7% over the same period a year earlier. The increase was achieved despite the appreciation of the euro versus the other currencies used by the DiaSorin Group, particularly the U.S. dollar. If the data are restated at constant exchange rates (fourth quarter of 2006), revenues show an increase of 22.4%. The gains achieved in the fourth quarter of 2007 were made possible by further progress in the Group’s pursuit of both technological and geographic expansion. In terms of technology, growth was driven mainly by higher sales of CLIA technology products, which were up 34.5% in the final quarter of 2007. This improvement reflects a steady expansion of the installed base of LIAISON systems, with about 110 new systems installed during the quarter and about 2,070 units in place at December 31, 2007. As of the same date, sales of CLIA technology reagents accounted for 53.4% of total revenues. An analysis in geographical terms shows that the best gains were achieved in Europe and the United States, where the rates of revenue increase were, respectively, 20.8% (Europe excluding Italy) and 28.1%. Italy and the rest of the world also reported double-digit improvements in consolidated revenues.

2007

All profitability indicators show a further improvement compared with the fourth quarter of 2006. The operating result (EBIT) grew by 69.1%, rising from 6.7 million euros in 2006 to 11.4 million euros in 2007. EBITDA increased to 14.9 million euros, or 42.4% more than the 10.5 million euros earned in the fourth quarter of 2006. Lastly, the net result reported by the DiaSorin Group jumped by 85.4% to 6.1 million euros, up from 3.3 million euros in the fourth quarter of 2006. During the closing quarter of 2007, building on its 2003 acquisition of the Gamida Sense Ltd. assets and the resulting start of a research program in molecular diagnostics, DiaSorin took another decisive step forward in this market, when it signed a non-exclusive licensing agreement with Eiken Chemical Co. Ltd. for the use of LAMP (Loop-mediated Isothermal Amplification) technology. DiaSorin thus gained access to the technologies and competencies it needs to develop an innovative equipment platform that can be used to automate molecular diagnostics tests. The main focus will be on infectious diseases, which is an area where DiaSorin already has a strong commercial base. A line of these tests, which will be available on a new equipment platform starting in 2011, will round out the vast spectrum of products that DiaSorin already offers on its LIAISON system. The table that follows shows the consolidated income statement for the quarters ended December 31, 2006 and 2007.

CONSOLIDATED INCOME STATEMENT Note No.

(in thousands of euros) Net revenues Cost of sales Gross profit

Fourth quarter 2007(*)

2006(*)

Full year 2007(*)

2006

(1)

51,161

43,100

202,324

179,756

(2)

(19,427)

(16,927)

(74,283)

(70,552)

31,734

26,173

128,041

109,204

62.0%

60.7%

63.3%

60.8% (39,589)

Sales and marketing expenses

(3)

(10,672)

(10,188)

(42,441)

Research and development costs

(4)

(3,253)

(2,470)

(11.397)

(9,161)

General and administrative expenses

(5)

(6,873)

(5,666)

(24,564)

(20,262)

-40.7% 467 11,403 22.3% (413) 10,990 (4,847) 6,143 0.11 0.11 14,918 29.2%

-42.5% (1.109) 6,740 15.6% (1.127) 5,613 (2,298) 3,315 0.07 0.07 10,475 24.3%

-38.8% (3.583) (4,508) 46,056 22.8% (3.277) 42,779 (17,582) 25,197 0.46 0.46 60,011 29.7%

-38.4% 18 1,932 40,210 22.4% (3.934) 36,276 (13,982) 22,294 0.45 0.45 54,489 30.3%

Other operating income (expenses)

(6)

nonrecurring amount Operating result (EBIT) Net financial expense

(7)

Result before taxes Income taxes

(8)

Net result Basic earnings per share (in euros)

(9)

Diluted earnings per share (in euros)

(9)

EBITDA(1)

(*)

Unaudited data

(1)

The Board of Directors defines EBITDA as the â&#x20AC;&#x153;result from operationsâ&#x20AC;? before amortization of intangibles and depreciation of property, plant and

equipment.

Fourth quarter

1.1.2.1. Breakdown of revenues by geographic region The table below provides a breakdown of the consolidated revenues of the DiaSorin Group by geographic region of destination: Fourth quarter

(in thousands of euros) Italy Rest of Europe North America (United States and Canada) Rest of the world Total

2007

2006

11,285

10,193

% change 10.7%

19,304

15,983

20.8%

11,935

9,315

28.1%

8,637

7,608

13.5%

51,161

43,100

18.7%

Italy In the fourth quarter of 2007, the revenues generated in Italy totaled 11,285,000 euros, or 10.7% more than in the same period a year ago, accounting for 22.1% of the Groupâ&#x20AC;&#x2122;s total revenues.

Rest of Europe In the three months ended December 31, 2007, business volume in other European countries showed a significant acceleration of the growth rate with revenues rising from 15,983,000 euros in 2006 to 19,304,000 euros in 2007 (+20.8%). As a result of the growth described above, the rest of Europe (excluding the Italian market) raised to 37.7% its contribution to the consolidated revenues of the DiaSorin Group.

North America In the fourth quarter of 2007, sales in North America grew in line with expectations, even though the gains achieved during the period under review are not fully reflected in the consolidated revenues due to the change in the euro/U.S. dollar exchange rate discussed earlier in this Report. Stated at current exchange rates, the revenues booked in North America in the fourth quarter show an increase of 28.1%, rising from 9,315,000 euros in 2006 to 11,935,000 euros in 2007. However, when the data for the last quarter of 2007 are compared with those in the same period in 2006 using amounts stated in local currencies, unaffected by fluctuations in foreign exchange rates, revenues show increases of 43.2%. In the fourth quarter of 2007, North American sales accounted for 23.3% of the DiaSorin Groupâ&#x20AC;&#x2122;s total revenues.

2007

Rest of the world Outside Europe and North America, the Group’s revenues increased by 13.5% compared with the fourth quarter of 2006, as the impact of slowing demand in Brazil, after a period of sustained growth, was more than offset by the gains reported by the Mexican and Israeli operations, which reported revenues that were 41.6% and 150% higher, respectively, than in the last three months of 2006. In the other regions, where the Group lacks a direct presence, operating instead through independent distributors, revenues were up 41.1% compared with the fourth quarter of 2006. The outstanding results achieved in China, where a joint venture with a local partner has been operating since 2006, and strong sales of ETI MAX and LIAISON equipment account for this improvement. The revenues booked in the Chinese market were up sharply in the fourth quarter, rising from 249,000 euros in 2006 to 917,000 euros in 2007. However, it is worth noting that a large one-time sale that resulted from a successful bid submitted in response to a call for tenders contributed to this gain. A successful bid submitted by the Group’s Austrian distributor in response to a major call for tenders and LIAISON sales activities in Russia account for the increase in equipment sales.

1.1.2.1.1. Breakdown of revenues by technology Concurrently with its geographic expansion, the Group increased the revenues generated by the LIAISON closed platform. The table below, which is provided merely for information purposes, shows the percentage of consolidated revenues contributed by each technology in the fourth quarter of 2006 and 2007.

% of revenues contributed RIA ELISA CLIA Equipment sales and other revenues Total

Fourth quarter 2007

Fourth quarter 2006

11.0

13.6

24.0

31.4

53.4

47.1

11.6

7.8

100.0

In the fourth quarter of 2007, revenues generated by LIAISON products were up 34.5% compared with the same period the previous year. In fourth quarter 2007, sales of products based on CLIA technology accounted for 53.4% of total revenues in 2007 (6.3 percentage points more than in 2006). At December 31, 2007, about 2,070 automated LIAISON analyzers had been installed at facilities operated by direct and indirect customers of the Group. At December 31, 2007, the average revenues generated by each system was about 54,900 euros, compared with 53,600 euros the previous year, reflecting the positive impact of a gradual optimization of the installed base. Eight new LIAISON products were launched in 2007. Seven of these products were specialty items that helped differentiate the LIAISON product line even further compared with the products offered by the Group’s competitors. Lastly, in the final quarter of 2007, equipment sales accounted for a larger share of total revenues than in the same period a year earlier, due mainly to the impact of a successful bid submitted by the Group’s Austrian distributor in response to a major call for tenders.

Fourth quarter

1.1.2.2. Operating result (EBIT) In the fourth quarter of 2007, the Groupâ&#x20AC;&#x2122;s gross profit was higher than in the same period last year, showing that the upward trend of previous periods is continuing. The ratio of gross profit to total revenues also improved, rising from 60.7% in the last three months of 2006 to 62.0% in the same period in 2007, a percentage consistent with the performance reported in earlier quarters. The increase in the contribution provided to total revenues by LIAISON products, which have higher margins than those based on the RIA and ELISA technologies, continued to drive this improvement in profitability. Another positive factor was a decrease in depreciation expense, both as a percentage of revenues and in absolute terms, made possible by optimizing sales to the installed base and by a gradual decrease over time of the price paid for equipment, with a resulting removal from the amortizable base of more expensive systems purchased in earlier years. These favorable developments were offset in part by an increase in the percentage of revenues generated by sales of systems to distributors, which generate smaller margins than sales of reagents, reflecting the impact of the abovementioned successful bid submitted by the Groupâ&#x20AC;&#x2122;s Austrian distributor in response to a major call for tenders and of the LIAISON launch strategy chosen in Russia. In addition, the improvement compared with the fourth quarter of 2006 was attained despite a significant increase in the impact of obsolescence-related and product-refurbishing costs incurred at manufacturing locations. Lastly, unexpected sales discounts were recognized in December in Italy and Belgium due to the achievement of sales targets. As a result of these factors, the gross profit increased by 21.3% compared with the fourth quarter of 2006, rising to 31.7 million euros, an amount equal to 62% of revenues, a percentage in line with the previous quarter but 1.3 percentage points greater than in the last six months of 2006. In the three months ended December 31, 2007, operating expenses totaled 20.8 million euros (equal to 40.7% of revenues), or 13.5% more than in the same period the previous year. Higher research and development costs and general and administrative expenses account for most of this increase. The increase in general and administrative expenses is related in part to the completion in the fourth quarter of projects carried out in Italy to assess the effectiveness of the internal control systems (pursuant to Legislative Decree No. 262 and Legislative Decree No. 231) and to the automated input of accounting data into the consolidation system (Linking Project) implemented to ensure the security and integrity of the financial data disclosed to the market. In addition, a major upgrade of the fire prevention systems at the German plant was completed in December. The charges discussed above represented a nonrecurring burden that helped swell general and administrative expenses. Research and development costs incurred in the fourth quarter of 2007 amounted to 2.5 million euros, or 20.8% more than in the same period in 2006. The increase in the amount invested in research and development also reflects the cost of a project to study the potential of the LAMP technology, which resulted in the signing of the licensing agreement mentioned earlier in this Report. Other operating income recognized in the fourth quarter of 2007 included the amount generated by a reduction in the allowance for doubtful accounts of DiaSorin S.p.A. made possible by a decrease in the risk level of the accounts receivable pool following the assignment of receivables with recourse through a factoring transaction. In the fourth quarter of 2007, the consolidated operating result (EBIT) totaled 11.4 million euros, equal to 22.3% of revenues (15.6% of revenues in the last three months of 2006). EBITDA for the same period were 14.9 million euros, or 29.1% of revenues, up from 24.3% of revenues in the fourth quarter of 2006.

2007

1.1.2.3. Financial transactions Stated in absolute terms, the impact of financial transactions on the Groupâ&#x20AC;&#x2122;s reported result was smaller than in the fourth quarter of 2006. In the three months ended December 31, 2007, net financial expense totaled 0.4 million euros, down from 1.1 million euros in the same period the previous year.

1.1.2.4. Result before taxes and net result The Group ended the fourth quarter of 2007 with a result before taxes of 11.0 million euros and a tax liability of 4.8 million euros. The pretax amount was greater than in the same period in 2006, when it totaled 5.6 million euros, subject to a tax liability of 2.3 million euros. The tax liability recognized in the fourth quarter of 2007 reflects in part the derecognition of deferred-tax assets carried by the Groupâ&#x20AC;&#x2122;s Parent Company and DiaSorin GmbH on their balance sheets, which was required in response to a reform of the tax systems in force in both countries and a resulting reduction of the respective corporate income tax rates. As a result, the tax rate applied in the fourth quarter of 2007 was higher than usual. The consolidated net result for the last three months of 2007 amounted to 6.1 million euros, compared with 3.3 million euros in the same period in 2006.

1.1.3. Analysis of consolidated cash flow The table below shows the highlights of the consolidated cash flow statement and the changes that occurred compared with the previous year. ANALYSIS OF CASH FLOW Fourth quarter

(in thousands of euros) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD Net cash from operating activities Cash used for investing activities Cash from (used for) financing activities Net change in cash and cash equivalents CASH AND CASH EQUIVALENTS AT END OF PERIOD (*)

(*)

Full year (*)

2007

2006

22,483

16,453

(*)

2007

2006

8,718

6,116

6,563

7,213

30,322

33,976

(4,319)

(4,719)

(15,526)

(16,952)

(16,361) (14,117) 8,366

(10,229)

(15,148)

(14,422)

(7,735) 8,718

(352) 8,366

8,718

2,602

Unaudited data.

In the fourth quarter of 2007, cash flow from operating activities totaled 6,563,000 euros, down from 7,213,000 euros in the same period in 2006, owing mainly to a change in the structure of working capital. More specifically, trade receivables and inventories grew during the closing quarter of 2007 reflecting an increase both in revenues and in manufacturing activity. Inventory levels were also up due to an increase in emergency stockpiles of some strategic materials.

Fourth quarter

Cash used in investing activities totaled 4,319,000 euros in the fourth quarter of 2007, down from 4,719,000 euros in the same period in 2006. This decrease was due mainly to a reduction in investments in property, plant and equipment, but there was a rise in the percentage of LIAISON systems that are sold to independent distributors compared with the systems that are loaned to customers free of charge and are capitalized by the Group, which contributed to the increase of the installed base during the reporting period. On the other hand, intangible assets increased slightly compared with the final quarter of 2006 reflecting the completion of the installation of the ERP SAP system on the Groupâ&#x20AC;&#x2122;s common platform. The cash flow used for financing activities in the fourth quarter of 2007 reflects the utilization of excess liquidity generated during the year to repay ahead of schedule a portion of 13.5 million euros of a medium-term facility received from Interbanca. The fourth quarter of 2007 ended with cash and cash equivalents amounting to 8,366,000 euros and net borrowings totaling 12,132,000 euros.

1.1.4. Analysis of consolidated net borrowings At December 31, 2007

At December 31, 2006

Cash and cash equivalents

(8,366)

(8,718)

Liquid assets

(8,366)

(8,718)

(28)

Current financial receivables Current bank debt

2,977

7,224

Other current financial obligations

2,098

2,696

Current indebtedness

5,075

9,920

Net current indebtedness

(3,291)

1,174

Non-current bank debt

12,616

29,715

2,826

3,841

Non-current indebtedness

15,442

33,556

Net borrowings

12,151

34,730

Other non-current financial obligations

2007

1.1.5. Operating performance in 2007 CONSOLIDATED INCOME STATEMENT

(in thousands of euros)

Full year 2007(*)

2006

Net revenues

202,324

179,756

Cost of sales

(74,283)

(70,552)

Gross profit

128,041

109,204

Sales and marketing expenses Research and development costs General and administrative expenses Other operating income (expenses)

nonrecurring amount Operating result (EBIT) Net financial expense Result before taxes Income taxes Net result Basic earnings per share (in euros) Diluted earnings per share (in euros) EBITDA(1)

63.3% (42,441) (11,397) (24,564) -38.8% (3,583) (4,508) 46,056 22.8% (3,277) 42,779 (17,582) 25,197 0.46 0.46 60,011 29.7%

60.8% (39,589) (9,161) (20,262)

-38.4% 18 1,932 40,210 22.4% (3,934) 36,276 (13,982) 22,294 0.45 0.45 54,489 30.3%

(*)

Unaudited data.

(1)

The Board of Directors defines EBITDA as the â&#x20AC;&#x153;result from operationsâ&#x20AC;? before amortization of intangibles and depreciation of property, plant and equipment.

Fourth quarter

The DiaSorin Group performed particularly well in 2007. Revenues were up significantly compared with the previous year, despite the dampening effect of the appreciation of the euro, which is the Group’s consolidation currency, versus other currencies, particularly the U.S. dollar. More specifically, consolidated revenues totaled 202.3 million euros in 2007, or 12.6% more than the 179.8 million euros booked the previous year. When the data are restated using a constant exchange rate, the revenue increase is 15.1%. All profitability indicators improved compared with the data reported at December 31, 2006, particularly when the impact of extraordinary items, which had opposite effects in 2006 and 2007, is eliminated. The cumulative gross profit earned in 2007 totaled 128 million euros, equal to 63.3% of revenues (60.8% in 2006). The improvement in the ratio of gross profit to revenues is chiefly due to a shift in the technology mix in favor of the CLIA technology and to an optimization of the installed equipment base. Consolidated EBIT and EBITDA totaled 46.1 million euros and 60.0 million euros, respectively, in 2007. If the data for the year are restated to eliminate the impact of extraordinary items, 2007 consolidated EBIT amount to 50.1 million euros, or 30.7% more than the previous year, and EBITDA for the same period total 64 million euros, for a gain of 21.8% compared with 2006. In 2007, extraordinary items included charges of 4.5 million euros incurred to list the Company’s shares and a gain of 0.5 million euros generated by the impact of legislative changes on the Parent Company’s provision for employee severance indemnities. Lastly, the Group reported a net result of 25.2 million euros (27.7 million euros, restated to eliminate the impact of nonrecurring items, net of the applicable tax effect), compared with 22.3 million euros at December 31, 2006 (21.1 million euros, restated to eliminate the impact of nonrecurring items, net of the applicable tax effect).

2007

Fourth quarter

2. Transactions with related parties In the normal course of business, DiaSorin S.p.A. engages on a regular basis in commercial and financial transactions with its subsidiaries, which are also Group companies. These transactions, which are executed on standard market terms, consist of the supply of goods and services, including administrative, information technology, personnel management, technical support and consulting services, which produce receivables and payables at the end of the year, and financing and cash management transactions, which produce income and expenses. These transactions are eliminated in the consolidation process and, consequently, are not discussed in this section of the Report. Transactions with DiaSorin LTD, an unconsolidated Chinese subsidiary, at December 31, 2007 are summarized below:

• payables of 133,000 euros • receivables of 21,000 euros • costs totaling 734,000 euros for sales and technical support services provided to local distributors. The Group provides additional benefits to a certain number of eligible employees of DiaSorin S.p.A. and other Group companies through stock option plans. Following the listing of the Company’s shares on the online stock market, the options granted under the 2004-2008 Stock Option Plan became exercisable. The costs attributable to 2007 that were recognized in the income statement in connection with this stock option plan amounted to 1,200,000 euros. Moreover, within the context of the 2007-2012 Stock Option Plan approved by the Ordinary Shareholders’ Meeting of March 26, 2007, the Board of Directors designated a first batch of beneficiaries that includes key executives and employees of DiaSorin S.p.A. and its subsidiaries, awarding a total of 745,000 options (out of a maximum 1,000,0000 available options). These options can be exercised to purchase an equal number of newly issued DiaSorin S.p.A. common shares, par value 1.00 euro each. The exercise price of the options was set at 12.193 euros, which is equal to the simple average of the closing prices for the shares of DiaSorin S.p.A. on the online stock market for the period between the date of award of the options and the same day in the previous calendar month (fair value). At December 31, 2007, costs totaling 124,000 euros had been recognized in connection with this stock option plan. The compensation payable to senior managers and eligible employees (key management) is consistent with standard market terms for compensation offered to employees with a similar status. Employees are also awarded incentive payments tied to the achievement of corporate or personal targets and bonuses predicated on the achievement of a predetermined length of service.

2007

Fourth quarter

3. Significant events occurring after december 31, 2007 and business outlook No significant events occurred after December 31, 2007.

Saluggia (VC), February 14, 2008

The Board of Directors By: Carlo Rosa Chief Executive Officer

2007

Fourth quarter

4. Consolidated financial statements of the DiaSorin Group at december 31, 2007 CONSOLIDATED INCOME STATEMENT (in thousands of euros)

Note No.

Fourth quarter 2007(*)

Full year

2006(*)

2007(*)

2006

Net revenues

(1)

51,161

43,100

202,324

179,756

Cost of sales

(2)

(19,427)

(16,927)

(74,283)

(70,552)

31,734

26,173

128,041

109,204

62.0% (10,672) (3,253) (6,873) -40.7% 467 11,403 22.3% (413) 10,990 (4,847) 6,143 0.11 0.11 14,918 29.2%

60.7% (10,188) (2,470) (5,666) -42.5% (1,109) 6,740 15.6% (1,127) 5,613 (2,298) 3,315 0.07 0.07 10,475 24.3%

63.3% (42,441) (11,397) (24,564) -38.8% (3,583) (4,508) 46,056 22.8% (3,277) 42,779 (17,582) 25,197 0.46 0.46 60,011 29.7%

60.8% (39,589) (9,161) (20,262) -38.4% 18 1,932 40,210 22.4% (3,934) 36,276 (13,982) 22,294 0.45 0.45 54,489 30.3%

Gross Profit Sales and marketing expenses

(3)

Research and development costs

(4)

General and administrative expenses

(5)

Other operating income (expenses)

(6)

nonrecurring amount Operating result (EBIT) Net financial income (expense)

(7)

Result before taxes Income taxes

(8)

Net Result Basic earnings per share (in euros)

(9)

Diluted earnings per share (in euros)

(9)

EBITDA

(*)

Unaudited data.

2007

CONSOLIDATED BALANCE SHEET (in thousands of euros) ASSETS Non-current assets Property, plant and equipment Goodwill Other intangibles Equity investments Deferred-tax assets Other non-current assets Total non-current assets Current assets Inventories Trade receivables Accounts receivable from Group companies Other current assets Cash and cash equivalents Total current assets TOTAL ASSETS (*)

Unaudited data.

Note No.

12/31/07(*)

31/12/06

35,502

(10)

34,068

(11)

48,055

(11)

17,186

14,750

123

8,747

8,357

345

245

108,524

107,032

(12)

35,485

30,891

(13)

52,316

44,671

21 3,718

2,769

8,366

8,718

99,906

87,049

208,430

194,081

Fourth quarter

LIABILITIES AND SHAREHOLDERS’ EQUITY (in thousands of euros) LIABILITIES Shareholders’ equity Share capital Additional paid-in capital Statutory reserve Other reserves Retained earnings (Accumulated deficit) Net result for the year Total shareholders’ equity Non-current liabilities Long-term borrowings Provisions for employee severance indemnities and other employee benefits Deferred-tax liabilities Other non-current liabilities Total non-current liabilities Current liabilities Trade payables Accounts payable to Group companies Other current liabilities Income taxes payable Current portion of long-term debt Total current liabilities Total liabilities TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY (*)

Note No.

12/31/07(*)

31/12/06

(14)

55,000

50,000

(14)

5,925

4,425

(14)

639

207

(14)

778

2,854

(14)

32,755

7,957

(14)

25,197

22,294

120,294

87,737

(15)

15,442

33,556

(16)

19,026

19,154

929

672

(17)

2,140

3,047

37,537

56,429

27,537

22,854

133

(15)

13,992

12,508

3,862

4,633

5,075

9,920

50,599

49,915

88,136

106,344

208,430

194,081

Unaudited data.

2007

CASH FLOW STATEMENT (in thousands of euros)

Fourth quarter

Full year

2007(*)

2006(*)

2007(*)

2006

6,143

3,315

25,197

22,294

- Income taxes

4,847

2,298

17,582

13,982

- Depreciation and amortization

3,515

3,735

13,955

14,279

- Financial expense

413

1,127

3,277

3,934

- Additions to/Utilizations of provisions and reserves

(79)

1,496

(293)

2,057

(13)

(49)

(27)

(819)

295

(896) (515)

972

124

200

1,324

800

Cash flow from operating activities Net result for the period Adjustments for:

- (Gains)/Losses on sales of non-current assets - Contributions to/Utilizations of provisions for employee severance indemnities and other employee benefits

nonrecurring amount - Changes in shareholdersâ&#x20AC;&#x2122; equity reserves - Stock option reserve - Cumulative translation adjustment from operating activities - Change in other non-current assets/liabilities Cash flow from operating activities before changes in working capital (Increase) Decrease in current receivables (Increase) Decrease in inventories Increase (Decrease) in trade payables (Increase) Decrease in other current items Cash from operating activities Income taxes paid Interest paid Net cash from operating activities Investments in intangibles Investments in property, plant and equipment Proceeds from the sale of non-current assets Cash used in investing activities Repayment of loans Repayment of other financial obligations Proceeds from new borrowings Share capital increase Foreign exchange translation differences Cash used in financing activities Change in net cash and cash equivalents CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD CASH AND CASH EQUIVALENTS AT END OF PERIOD (*)

Unaudited data.

(309)

(1,465)

(768)

(1,605)

802

(1,172)

(566)

(1,894)

14,699

9,816

58,763

54,792

(1,337)

3,897

(7,914)

(1,690)

(1,754)

(632)

(5,427)

(3,760)

3,352

136

4,851

2,694

(225)

1,676

(410)

2,590

14,735

14,893

49,863

54,626 (16,382)

(6,956)

(5,549)

(15,800)

(1,216)

(2,131)

(3,741)

(4,268)

6,563

7,213

30,322

33,976

(1,327)

(1,037)

(4,387)

(3,438)

(3,517)

(4,027)

(12,672)

(14,331)

525

345

1,533

817

(4,319)

(4,719)

(15,526)

(16,952)

(17,558)

(39,937)

(20,806)

(45,577)

(468)

(5,175)

(3,388)

(7,094)

221

35,076

1,780

39,304

6,500

1,444

(193)

766

(1,055) (14,422)

(16,361)

(10,229)

(15,148)

(14,117)

(7,735)

(352)

2,602

22,483

16,453

8,718

6,116

8,366

8,718

8,366

8,718

Fourth quarter

STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS’ EQUITY Share capital

Additional Statutory paid-in reserve capital

Cumulative translation reserve

Stock option reserve

Retained earnings (Accumulated deficit)

3,175

1,402

(in thousands of euros) Shareholders’ equity at 12/31/05

50,000

4,425

Appropriation of previous year’s profit

79 128

Stock options and other changes

Net result for the year

Group interest in share-holders’ equity

-2,270

10,355

67,166

10,227

(10,355)

800

Translation adjustment

(2,523)

Net result for the period Shareholders’ equity at 12/31/06

50,000

4,425

207

652

2,202

Shareholders’ equity at 12/31/06

50,000

4,425

207

652

2,202

Appropriation of previous year’s profit Share capital increase

432 5,000

22,294

87,737

7,957

22,294

87,737

21,862

(22,294)

7,957

1,500 1,324

Translation adjustment

2,936

(3,400)

Net result for the period

(*)

4,260

(3,400) 55,000

5,925

6,500

Stock options and other changes

Shareholders’ equity at 12/31/07(*)

800

639

(2,748)

3,526

32,755

25,197

120,294

Unaudited data.

2007

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER 31, 2007 ACCOUNTING PRINCIPLES AND SCOPE OF CONSOLIDATION General information

The DiaSorin Group is specialized in the development, manufacture and distribution of products in the immunochemistry and infectious immunology product groups. These product classes can also be grouped into a single family called immunodiagnostics. DiaSorin S.p.A., the Group’s Parent Company, has its headquarters at Via Crescentino, in Saluggia (VC) 13040. Principles for the preparation of the quarterly report

Pursuant to Article 3 of Legislative Decree No. 38 of February 28, 2005, which governs the selection of options available under Article 5 of EC Regulation No. 1606/2002, issued by the European Parliament and Council on July 19, 2002 in connection with the adoption of the International Financial Reporting Standards, the Company has chosen to adopt voluntarily the International Financial Reporting Standards (hereinafter also referred to as the “IFRS”), as issued by the International Accounting Standards Board (“IASB”) and adopted by the European Union, for the preparation of its consolidated financial statements beginning with the year ended December 31, 2006. Consequently, the consolidated quarterly report of the DiaSorin Group at December 31, 2007 was prepared in accordance with the requirements of the relevant international accounting standard (IAS 34 – Interim Financial Reporting). In order to provide a comparison between homogeneous data, the amounts at December 31, 2006 have been restated in accordance with IFRS rules. These notes provide information in summary form, in order to avoid duplicating information published previously, as required by IAS 34. Specifically, these notes discuss only those components of the income statement and balance sheet the composition or change in amount of which require comment (due to the amount involved or the type of transaction or because an unusual transaction is involved) in order to understand the Group’s operating performance, financial performance and financial position. The accounting principles applied to prepare the consolidated quarterly report are consistent with those used for the annual consolidated financial statements at December 31, 2006, since it has been determined that the revisions and interpretations published by the IASB and applicable as of January 1, 2007 did not require any material changes in the accounting principles adopted by the Group the previous year. When preparing interim financial statements, management is required to develop estimates and assumptions that affect the amounts shown for revenues, expenses, assets and liabilities in the financial statements and the disclosures provided with regard to contingent assets and liabilities on the date of the interim financial statements. If such estimates and assumptions, which were based on management’s best projections, should differ from actual events, they will be modified appropriately when the relevant events produce the abovementioned differences. Certain evaluation processes, particularly the more complex processes such as determining whether the value of noncurrent assets has been impaired, are carried out fully only in connection with the preparation of the annual financial statements, when all the necessary information is available, except when there are impairment indicators that require an immediate evaluation of any impairment losses that may have occurred. Some of the data in the balance sheet at December 31, 2006, which is included in this report for comparison purposes, have been reclassified to make them consistent with the data at December 31, 2007. These reclassifications did not have an impact on the shareholders’ equity and the 2006 result. With regard to the composition of gross profit, some of the items that were included in last year’s computation have been reclassified in accordance with the presentation criteria adopted this year, which reflect a more accurate allocation of such items, consistent with sound management criteria. The Group engages in activities that, taken as a whole, are not subject to significant seasonal or cyclical shifts in revenue generation during the year.

Fourth quarter

The income tax liability is recognized using the best estimate of the weighted average tax rate projected for the entire year. In the consolidated quarterly report, all amounts are in thousands of euros unless otherwise stated. This quarterly report was not audited.

Scope of consolidation

The consolidated quarterly report includes the financial statements of DiaSorin S.p.A., the Groupâ&#x20AC;&#x2122;s Parent Company, and those of its subsidiaries. The scope of consolidation did not change compared with December 31, 2006. Subsidiaries are companies over which the Group is able to exercise control, i.e., it has the power to, directly or indirectly, govern their operating and financial powers so as to obtain benefits from the results of their operations. Subsidiaries are consolidated line by line from the date the Group obtains control until the moment when control ceases to exist. Dormant subsidiaries and subsidiaries that generate an insignificant volume of business are not consolidated. Their impact on the Groupâ&#x20AC;&#x2122;s total assets and liabilities, financial position and bottom-line result is not material. A list of the subsidiaries included in the scope of consolidation, complete with information about head office locations and the percentage interest held by the Group, is provided in Annex I.

2007

EBIT

Other income (expense), net

Financial income (expense)

Result before taxes

Income taxes

Net result

Total amortization and depreciation

53,163

Shareholders' equity

Total liabilities and shareholders' equity

53,163

103,369

Unallocated liabilities

Segment liabilities

Total assets

Unallocated assets

Segment assets

BALANCE SHEET

2006

(5,420)

(6,573)

Depreciation

(in thousands of euros)

(1,153)

Amortization

OTHER INFORMATION

21,339

Unallocated common costs

Segment result

47,835

107,494

Inter-segment revenues

Total revenues

59,659

2006

Revenues from outsiders

INCOME STATEMENT

(in thousands of euros)

SEGMENT INFORMATION

2007

60,865

105,444

ITALY

(6,418)

(5,063)

(1,355)

18,966

117,104

46,374

70,730

ITALY

(4,432)

(4,250)

(182)

24,695

49,625

2006

7,454

72,643

9,314

63,329

29,832

56,956

2007

EUROPE

(4,618)

(4,414)

(204)

5,667

66,034

8,306

57,728

2007

EUROPE 2006

(1,765)

(1,557)

(208)

3,961

48,256

2006

18,811

59,529

8,293

51,236

4,972

61,145

2007

UNITED STATES

(1,746)

(1,552)

(194)

13,572

53,494

8,230

45,264

2007

UNITED STATES 2006

(2,456)

(2,366)

(90)

1,434

18,862

2007

8,248

14,856

2006

7,951

15,342

2007

REST OF THE WORLD

(2,026)

(1,949)

(77)

1,602

17,105

2006

REST OF THE WORLD

1,115

1,116

(32,294)

(39,949)

2006

(609)

(65,814)

(63,981)

(1,833)

(40,793)

(47,694)

2007

ELIMINATIONS

684

(1,970)

(64,371)

2007

ELIMINATIONS 2006

(13,955)

(12,120)

(1,835)

25,197

(17,582)

42,779

(3,277)

194,081

87,737

48,571

57,773

194,081

17,924

176,157

2006

46,056

202,324

208,430

120,294

25,309

62,827

208,430

17,237

191,193

2007

CONSOLIDATED

(14,279)

(12,651)

(1,628)

22,294

(13,982)

36,276

(3,934)

40,210

179,756

2007

CONSOLIDATED 2006

Fourth quarter

COMPONENTS OF THE FINANCIAL STATEMENTS AND MAIN CHANGES DURING THE PERIOD Consolidated income statement The notes to the consolidated income statement are provided below. More detailed information about the components of the income statement is provided in the Report on Operations. (1) Net revenues In the fourth quarter of 2007, net revenues, which are generated mainly through the sale of diagnostic kits, totaled 51,161,000 euros, or 18.7% more than in the same period in 2006, boosting revenues for all of 2007 to 202,324,000 euros (179,756,000 euros at December 31, 2006). Revenues for the fourth quarter of 2007 include equipment rentals and technical support revenues totaling 1,008,000. (2) Cost of sales In the fourth quarter of 2007, the cost of sales amounted to 19,427,000 euros, compared with 16,927,000 euros in the three months ended December 31, 2006. The cost of sales for the 12 months ended December 31, 2007 amounted to 74,283,000 euros (70,552,000 euros in 2006). The cost of sales for the fourth quarter of 2007 includes 1,171,000 euros paid for royalties (1,044,000 euros in 2006) and 1,092,000 euros in costs incurred to distribute products to end customers (820,000 euros in 2006). (3) Sales and marketing expenses Sales and marketing expenses increased to 10,672,000 euros in the fourth quarter of 2007, up from 10,188,000 euros in the same period the previous year, bringing the total at December 31, 2007 to 42,441,000 euros (39,589,000 euros in 2006). This item consists mainly of marketing costs incurred to promote and distribute DiaSorin products, costs attributable to the direct and indirect sales force and the cost of the technical support offered together with the Group-owned equipment provided to customers in accordance with gratuitous loan contracts. (4) Research and development costs In the fourth quarter of 2007, research and development costs, which totaled 3,253,000 euros (2,470,000 euros in the same period in 2006), included all of the research and development outlays (including the costs incurred to register the products offered for sale and meet quality requirements) that were not capitalized and the amortization of capitalized development costs (129,000 euros, compared with 132,000 euros in the fourth quarter of 2006). During the fourth quarter of 2007, the Group capitalized new development costs amounting to 530,000 euros, compared with 623,000 euros in the same period in 2006. (5) General and administrative expenses General and administrative expenses, which totaled 6,873,000 euros in the fourth quarter of 2007 (5,666,000 euros in the last three months of 2006) and 24,637,000 euros at December 31, 2007 (20,262,000 euros in 2006), include expenses incurred for corporate management activities, Group administration, finance and control, information technology, corporate organization, and insurance.

2007

(6) Other operating income (expenses) Net other operating income totaled 467,000 euros, compared with net other operating expense of 1,109,000 euros in the fourth quarter of 2006. This item includes operating income and expenses that cannot be allocated to specific functional areas. (7) Net financial income (expense) The table below provides a breakdown of financial income and expense: (in thousands of euros) Interest and other financial expense

Fourth quarter 2007

Fourth quarter 2006

2007 full year

2006 full year (5,509)

(1,388)

(1,876)

(5,416)

Interest and other financial income

313

245

670

562

Net translation adjustment

662

504

1,469

1,013

(413)

(1,127)

(3,277)

(3,934)

Net financial income (expense)

In the fourth quarter of 2007, net financial expense totaled 413,000 euros, compared with net financial expense of 1,127,000 euros in 2006. Interest and other financial expense includes 328,000 euros in interest on loans (659,000 euros in the fourth quarter of 2006) and 463,000 euros in fees on factoring transactions (374,000 euros in the fourth quarter of 2006). (8) Income taxes The income tax expense recognized in the income statement for the fourth quarter of 2007 amounted to 4,847,000 euros, compared with 2,298,000 euros in the same period in 2006, as the tax rate increased from 40.9% to 44.1%. The income taxes recognized in the income statement for the 12 months ended December 31, 2007 amounted to 17,582,000 euros (13,982,000 euros in 2006). The tax liability recognized in the fourth quarter of 2007 reflects in part the derecognition of deferred-tax assets carried by the Groupâ&#x20AC;&#x2122;s Parent Company and DiaSorin GmbH on their balance sheets, which was required in response to a reform of the tax systems in force in both countries and a resulting reduction of the respective corporate income tax rates. (9) Earnings per share Basic and diluted earnings per share, which were computed by dividing the net result attributable to shareholders by the average number of shares outstanding, amounted to 0.11 euros in the fourth quarter of 2007, compared with 0.07 euros in the same period last year. The corresponding figures for the full year are 0.46 euros for 2007 and 0.45 euros for 2006.

Fourth quarter

Consolidated balance sheet (10) Property, plant and equipment The table below shows the changes that occurred in this account as of December 31, 2007: Net carrying

(in thousands of euros) value at 12/31/06 Land and buildings 9,755 Plant and machinery 6,948 Equipment held by outsiders 18,799 Total prop., plant and equipment 35,502

Retirements and

Net carrying value at 12/31/07

Additions

Depreciation

other changes

461

(702)

(244)

9,270

3,462

(2,293)

(334)

7,783

8,749

(9,125)

(1,408)

17,015

12,672

(12,120)

(1,986)

34,068

(11) Intangible assets The table below provides a breakdown of intangible assets at December 31, 2007 and shows the changes that occurred in 2007: Translation Net carrying

(in thousands of euros) Goodwill Development costs Other intangibles Total intangible assets

adjustment and

Net carrying

value at 12/31/06

Additions

Amortization

other changes

value at 12/31/07

48,055

6,517

2,533

(515)

(47)

8,488

8,233

1,854

(1,320)

(69)

8,698

62,805

4,387

(1,835)

(116)

65,241

Additions to development costs reflect the investments made in the project for the new Liaison XL, analyzer, which amounted to 510,000 euros in the fourth quarter of 2007 and 2,168,000 euros at December 31, 2007. The increase in other intangibles refers primarily to the costs incurred to expand the SAP R/3 information system used by the Group and to purchase licenses.

2007

(12) Inventories A breakdown of inventories at December 31, 2007 and a comparison with the data at December 31, 2006 is as follows: at 12/31/07

(in thousands of euros Raw materials and supplies Work in progress Finished goods Total

at 12/31/06

Gross

Provisions for

Net

Gross

Provisions for

Net

amount

writedowns

amount

writedowns

amount

11,783

(1,195)

10,588

8,290

(1,162)

7,128

15,726

(1,380)

14,346

13,262

(1,375)

11,887

11,698

(1,147)

10,551

12,846

(970)

11,876

39,207

(3,722)

35,485

34,398

(3,507)

30,891

(13) Trade receivables Trade receivables totaled 52,316,000 euros at December 31, 2007. As of the same date, the allowance for doubtful accounts amounted to 5,764,000 euros. The table below shows the changes that occurred in the allowance during the period: (in thousands of euros) Opening balance Additions for the period Utilizations/Reversals during the period Currency translation differences and other changes Closing balance

at 12/31/07

at 12/31/06

5,934

5,644

547

532

(946)

(175)

229

(67)

5,764

5,934

Fourth quarter

(14) Shareholders’ equity Shareholders’ equity totaled 120,294,000 euros at December 31, 2007. The table below shows the changes that occurred in 2007: Share capital

Additional paid-in capital

Statutory reserve

Cumulative translation reserve

Stock option reserve

50,000

4,425

207

652

2,202

(in thousands of euros) Shareholders’ equity at 12/31/06 Appropriation of previous year’s profit Share capital increase

432 5,000

Retained earnings (Accumulated deficit)

Net result for the year

Group interest in share-holders’ equity

7,957

22,294

87,737

21,862

(22,294)

1,500

Stock options

1,324

Translation adjustment

2,936

4,260

(3,400)

Net result for the period Shareholders’ equity at 12/31/07

55,000

5,925

6,500

639

-2,748

3,526

32,755

25,197

120,294

Shareholders’ equity reflects the recognition of the tax benefit received by the DiaSorin Inc. subsidiary as a result of the exercise of stock options awarded to its employees.

2007

(15) Borrowings The table below lists the borrowings outstanding at December 31, 2007 and provides a comparison with the data at December 31, 2006 (amounts in thousands of euros): Lender institution

At December 31, 2007

At December 31, 2006

Change in 2007

Interbanca 2006 USD

5,647

7,563

(1,916)

Interbanca 2006 Euro

7,626

25,342

(17,716)

IMI/Italian Ministry of Education CRT Unicredit for 2000 Flood Wells Fargo Bank (U.S. mortgage)

947

889

1,374

1,634

(260)

1,511

(1,511)

Lessors

4,746

5,801

(1,055)

Factors

177

736

(559)

20,517

43,476

(22,959)

Total

A breakdown of borrowings by maturity is as follows (amounts in thousands of euros): Lender institution Interbanca 2006 USD

Currency

Short-term

Long-term

Amount due

portion

after 5 years

Total

USD

1,666

6,647

Amount in EUR

1,132

4,515

8,313 5,647

Interbanca 2006 Euro

EUR

1,537

6,089

7,626

IMI/Italian Ministry of Education

EUR

947

703

947 1,374

CRT Unicredit for 2000 Flood

EUR

333

1,041

Wells Fargo Bank (U.S. mortgage)

USD

Amount in EUR

Lessors

EUR

1,896

2,850

4,746

Factors

EUR

Total

177

5,075

15,442

703

20,517

Fourth quarter

(16) Provisions for employee severance indemnities and other employee benefits These provisions totaled 19,026,000 euros at December 31, 2007. The table that follows shows the changes that occurred in these provisions in 2007. (in thousands of euros) Balance at December 31, 2006 Financial expense/(income) Actuarial losses/(gains) Additions for employee benefit costs Contributions/Benefits paid Currency translation differences Impact of the reforms of the provision for severance benefits broken down as follows: - Impact of the reform on defined-benefit obligations at 12/31/06 - Recognition of actuarial losses not recorded at 12/31/06 Other changes Balance at December 31, 2007

Total employee benefits 19,154 844 (41) 301 (869) (76) (515)

(832) 317 228 19,026

(17) Other non-current liabilities Other non-current liabilities totaled 2,140,000 euros at December 31, 2007. They include provisions for risks and charges. The table below shows the changes that occurred in these provisions: (in thousands of euros) Opening balance Additions for the year Utilizations for the year Currency translation differences and other changes Ending balance

at 12/31/07

at 12/31/06

2,818

2,072

587

1,564

(1,358)

(801)

(17)

2,140

2,818

Utilizations in 2007 refer mainly to DiaSorin S.p.A. and refer to a tax audit and settlement that took place in 2006 and concerned income taxes for 2004. The decrease is also due to the utilization of the reserve for returns of products under warranty.

2007

Annex I LIST OF EQUITY INVESTMENTS

Company

Head office

Currency

location

Par value per share

% interest

No. of shares

capital

or partnership

held directly

or partnership

interest

interests held

Diasorin S.A.

Bruxelles (Belgium)

EUR

1,674,000

6,696

99.99%

250

Diasorin Ltda

San Paolo (Brazil)

BRL

10,011,893

99.99%

10,011,892

Diasorin S.A.

Antony (France)

EUR

960,000

99.99%

62,494

Diasorin S.A.

Madrid (Spain)

EUR

1,453,687

99.99%

241,878

Diasorin Ltd

Wokingham (Great Britain)

GBP

500

100.00%

500

Diasorin Inc.

Stillwater (United States)

USD

0.01

100.00%

100

Mexico City (Mexico)

MXN

100,000

99.99%

50,000

Diasorin SAdeCV Diasorin GmbH

Dietzenbach (Germany)

EUR

275,000

100.00%

Diasorin AB

Bromma (Sweden)

SEK

5,000,000

100.00%

Diasorin Ltd

Rosh Haayin (Israel)

ILS

100

100.00%

100

EUR

120,000

80.00%

EUR

5,000

Equity Investments Valued at Cost Diasorin Ltd

Shanghai (China)

Equity Investments in Other Companies Consorzio Sobedia

Saluggia (Italy)

20.00%

Fourth quarter

Declaration Required Pursuant to Article 154/bis, Paragraph 2 – Part IV, Title III, Chapter II, Section V-bis, of Legislative Decree No. 58 of February 24, 1998: “Uniform Law on Financial Intermediation Enacted Pursuant to Articles 8 and 21 of Law No. 52 of February 6, 1996”

I, the undersigned, Andrea Senaldi, Corporate Accounting Documents Officer of DIASORIN S.p.A.

ATTEST as required by Paragraph Two of Article 154/bis, Part IV, Title III, Chapter II, Section V-bis, of Legislative Decree No. 58 of February 24, 1998, that, to the best of my knowledge, this Quarterly Report is consistent with the data in the supporting documents and in the Company’s other documents and accounting records.

_____________ Andrea Senaldi Accounting Documents Officer DIASORIN S.p.A.

2007

The Diagnostic

Specialist

Via Crescentino snc - 13040 Saluggia (VC)