SRT Sartorius AG

Sartorius, a leading international laboratory and process equipment provider, successfully closed the year 2010, with strong gains in revenue and earnings. At the annual press conference, Group CEO Dr. Joachim Kreuzburg, satisfied with the company’s 2010 results, stated: “The year 2010 was a highly successful year for Sartorius. The Group has grown significantly and is operating at a strong level of profitability. Also in view of our very solid key financials, we see ourselves in a position to further develop our company at a dynamic pace.” For the current fiscal year, Dr. Kreuzburg expects Group sales to grow organically by 6% to 8% in constant currencies and the operating EBITA margin to reach approximately 14%.

“Besides taking further strides in achieving sales and earnings growth, we have also set out to accomplish a number of challenging structural and strategic projects in 2011,“ continued Dr. Kreuzburg. These include transforming the Group into a management holding company, intermeshing the lab business activities of both divisions and further growing this business based on our cross-divisional strategy, as well as further enhancing operational excellence. “We are creating structures that will enable us to achieve further growth, also over the medium and long term, and that foster transparent and flexible management.”

Essential Figures on the Business Development of the Group and Its Divisions

Dynamic development of sales, order intake and earnings in the Sartorius Group Sartorius generated consolidated sales revenue of 659.3 million in fiscal 2010. This equates to an increase of 9.5% (constant currencies: 6.4%). The gain in order intake was even stronger: It jumped 10.7% to 681.1 million euros (constant currencies: 7.5%). Both Group divisions and all regions contributed to this dynamic business development.

Regionally, Sartorius grew the strongest in Asia/Pacific. Here, sales revenue surged 17.6% in constant currencies; order intake soared 26.8%. These figures reaffirm the company's strategy of actively participating in growth regions such as China and India early on. In North America as well, Sartorius posted significant gains: Sales rose at a double-digit rate of 11.0% in constant currencies; order intake, at 4.5%. Because of an extraordinary effect on business in the year before, sales revenue in Europe edged up only by 0.3% in constant currencies; order intake in this region grew 4.9%.

Strong development of sales revenue was accompanied by overproportionate gains in earnings and in the division’s operating EBITA margin. Sartorius uses earnings before interest, taxes and amortization (EBITA) as the key profitability measure. To enable a more meaningful comparison with the year-earlier figures, the company reports earnings adjusted for extraordinary items (= operating EBITA or operating earnings) in addition to EBITA.

In the reporting period, the Group’s operating earnings surged 40.4% to 85.5 million euros from 60.9 million euros a year ago. Its respective margin climbed by nearly three percentage points from 10.1% to 13.0% and thus reached a new high. Both Group divisions contributed to this strong development of earnings. The Biotechnology Division further increased its already high profitability. The Mechatronics Division achieved substantial improvements following a weak 2009 due to the global economic crisis. Favorable exchange rates had a positive impact of half of a percentage point on the Group margin.

Extraordinary items stood at -6.3 million euros compared with the previous year’s figure of -30.0 million euros, which were predominantly expenses incurred for restructuring. Including these extraordinary items, consolidated EBITA increased more than 2.5 times from 30.9 million euros to 79.2 million euros.

The Group’s relevant net profit rose 87.7% from 20.8 million euros to 39.0 million euros. The corresponding earnings per share are 2.29 euros, well up from 1.22 euros a year ago. The unadjusted consolidated net profit after minority interest totals 31.0 million euros. In the previous year, it was negative, at -7.3 million euros, on account of the considerable expenses incurred for restructuring the Mechatronics Division.

Further improved, strong key financials Despite the share buyback program for its biotechnology subgroup, Sartorius was able to pare back its net debt in the reporting year by a good 12% from 224.7 million euros to 196.9 million euros based on its strong operating cash flow of 96.0 million euros. The key debt service coverage ratio, or the ratio of net debt to underlying EBITDA, significantly improved and was at 1.8 at year-end compared with 2.6 as of December 31, 2009. The equity ratio also showed positive development and was at 40.5%, up from 38.9% a year ago.

R&D expenditures rose In fiscal 2010, Sartorius spent 42.6 million euros on research and development, up 6.2% compared to the year-earlier figure of 40.2 million euros. Its ratio of R&D costs to sales revenue was thus at 6.5% and at the level of the previous reporting years.

Workforce slightly increased As of December 31, 2010, the Sartorius Group employed 4,515 people, 192 persons or 4.4% more than in the previous year. This increase in head count was focused in particular on the Biotechnology Division, which strengthened its staff in the growth region of Asia and added formerly independent sales representatives in North America to the regular Sartorius workforce.

Dividends set to rise approximately 50% The Supervisory Board and the Executive Board will submit a proposal to the Annual Shareholders’ Meeting on April 20, 2011, to raise dividends to 0.62 euro per preference share (prv. yr. 0.42 euro) and 0.60 euro per ordinary share (prv. yr. 0.40 euro). Compared with the previous year, the total amount disbursed would thus increase 48.8% from 7.0 million euros to 10.4 million euros.

Business Development of the Divisions

Sartorius Stedim Biotech The Biotechnology Division, which operates under the name of Sartorius Stedim Biotech (SSB), increased its sales revenue in the reporting period by 8.0% from 400.4 million euros to 432.6 million euros (constant currencies: 5.1%). Order intake also considerably jumped 8.1% from 409.2 million euros to 442.3 million euros (constant currencies: 5.0%). Again, the company’s business with single-use products for the biopharmaceutical industry substantially fueled this growth. Business with bioreactors and other biotechnological production systems also added positive momentum. Relatively large orders for these products were received from the Asian region, where local biopharmaceutical companies in particular have been investing in the installation of new systems.

A regional comparison shows that primarily in Asia/Pacific, business expanded very dynamically, with order intake up 51.7% and sales revenue up 25.4%. In North America as well, sales grew strongly by 12.1% and order intake rose 3.8%. In Europe, by contrast, business was flat (order intake: +0.2%; sales revenue:-3.3% / all regional figures given in constant currencies). This development was not only the result of sluggish demand. It was also significantly due to a base effect: The comparative year-earlier figures were higher than average as a result of extraordinary business generated with producers of the H1N1 vaccine.

Overall positive development of sales revenue is reflected by the division’s earnings. The Biotechnology Division succeeded in further increasing its already high profitability. Its operating earnings improved overproportionately by 16.6% from 60.2 million euros to 70.2 million euros. The division’s respective margin rose from 15.0% to 16.2%.

Sartorius Mechatronics While the global economy recovered, business for the Mechatronics Division expanded dynamically in all segments and regions. The division increased its sales revenue in 2010 by 12.4% from 201.7 million euros to 226.7 million euros (constant currencies: 8.9%). The gain in order intake was even stronger. It jumped 16.0% to 238.8 million euros (constant currencies: 12.4%). Both of the division's businesses with laboratory instruments and industrial weighing and control equipment, respectively, contributed to this encouraging development. Service business, which was hardly impacted by the economic crisis in 2009, also grew.

Regarding regional development, the Mechatronics Division reported high growth rates in all of its business regions. In Europe, order intake climbed 14.8% and sales revenue rose 7.9%. In North America, order intake increased 6.6%, and sales were up 7.5%. In Asia/Pacific, the division’s order intake grew 9.8% and its revenue rose 9.6% (all regional figures given in constant currencies).

After the year of crisis in 2009, the Mechatronics Division substantially improved its earnings in the reporting year and returned to robust profitability. In addition to the significant rise in volume, efficiency gains made during restructuring in 2009 also contributed to this strong rebound in profitability. The division’s operating earnings soared, reaching 15.3 million euros compared with 0.7 million euros the year before. Accordingly, the division’s operating EBITA margin improved from 0.4% a year ago to 6.8%.

Positive Outlook for 2011

Positive business development is anticipated to continue in the current year as well. For 2011, Sartorius expects sales to grow between 6% and 8% in constant currencies for both divisions and thus for the entire Group. Along with growth in sales, profitability is projected to further increase. Without any currency effects considered, the operating EBITA margin at Group level is forecasted to increase to around 14%. The Biotechnology Division is expected to contribute an operating margin of approximately 17% and the Mechatronics Division a margin of around 8% to this result. Furthermore, management anticipates a significantly positive operating cash flow.

Key Figures at A Glance

€ in millions(unless otherwise specified)   Sartorius Group       Biotechnology Division   Mechatronics Division   2010   2009   Change

in %

2010   2009   Change

in %

2010   2009   Change

in %

Order intake 681.1 615.1 10.7 442.3 409.2 8.1 238.8 205.9 16.0 Sales revenue 659.3 602.1 9.5 432.6 400.4 8.0 226.7 201.7 12.4 Operating earnings

(underlying EBITA)1)

85.5 60.9 40.4 70.2 60.2 16.6 15.3 0.7   EBITA margin1) 13.0% 10.1%   16.2% 15.0%   6.8% 0.4%   Extraordinary items 6.3 30.0               Net profit1)2) 39.0 20.8 87.7             Earnings per share1)2) in € 2.29 1.22 87.7             Balance sheet     Balance sheet total 807.7 820.4   Equity 327.2 319.2   Equity ratio (in %) 40.5 38.9   Gearing ratio 0.6 0.7   Financials   Capital expenditures 24.4 23.9   As a % of sales revenue 3.7 4.0   Depreciation and amortization3) 31.9 33.4   Net cash flow from operating activities 96.0 143.4   Net debt 196.9 224.7   Ratio of net debt to EBITDA 1.81) 2.61)   Employees as of Dec. 31 4,515 4,323  

1) Adjusted for extraordinary items

2) Excluding non-cash amortization and, in 2009, additionally excluding interest for share price warrants

3) Excluding goodwill amortization

Current Image Files:

Dr. Joachim Kreuzburg, CEO and Executive Board Chairman of Sartorius AG:http://www.sartorius.com/media/content/press/support/Kreuzburg_2011.jpg

Sartorius | Biotechnology Division (Sartorius Stedim Biotech):http://www.sartorius.com/media/content/press/support/Sartoflow_2011.jpg

Sartorius | Mechatronics Division:http://www.sartorius.com/media/content/press/support/Laboratory_2011.jpg

Upcoming Financial Dates: April 20, 2011 Annual Shareholders’ Meeting in Goettingen, GermanyApril 2011 Publication of the first-quarter results (Jan. – March 2011)

This press release contains statements about the future development of the Sartorius Group. The content of these statements cannot be guaranteed as they are based on assumptions and estimates that harbor certain risks and uncertainties.

This is a translation of the original German-language press release. Sartorius shall not assume any liability for the correctness of this translation. The original German press release is the legally binding version. Furthermore, Sartorius reserves the right not to be responsible for the topicality, correctness, completeness or quality of the information provided. Liability claims regarding damage caused by the use of any information provided, including any kind of information which is incomplete or incorrect, will therefore be rejected.

A Profile of Sartorius The Sartorius Group is a leading international laboratory and process technology provider covering the segments of biotechnology and mechatronics. In 2010, the technology group earned sales revenue of 659.3 million euros. Founded in 1870, the Goettingen-based company currently employs more than 4,500 persons. The major areas of activity in its biotechnology segment focus on filtration, fluid management, fermentation and cell cultivation, purification, and laboratory applications. In the mechatronics segment, the company primarily manufactures equipment and systems featuring weighing, measurement and automation technology for laboratory and industrial applications. Key Sartorius customers are from the pharmaceutical, chemical and food industries and from numerous research and educational institutes of the public sector. Sartorius has its own production facilities in Europe, Asia and America as well as sales subsidiaries and local commercial agencies in more than 110 countries.