BioGaia AB Year-end report 2009

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(FiFigures in brackets refer to the same period of last year)

-  Net sales amounted to SEK 203.5 million (145.2), an increase of SEK 58.3 million (40%).

-          -  Operating profit was SEK 47.7 million (25.8), an improvement of SEK 21.9 million (85%).

-         -  Profit before tax was SEK 53.1 million (24.0), an increase of SEK 29.1 million (121%).

-         -  Due to the earlier cumulative loss carry forward, BioGaia pays no tax. The period's reported tax expense of SEK 17.1 million refers to a change in the deferred tax asset. Profit after reported tax was SEK 36.0 million (36.1), a decrease of SEK 0.1 million. Profit for the previous year included a deferred tax benefit of SEK 12.1 million.

-          - Earnings per share after tax amounted to SEK 2.11 (2.10). Earnings per share before tax amounted to SEK 3.09 (1.40).

-         - The year's cash flow from operating activities before change in working capital was SEK 52.6 million (32.4). Total cash flow for the year was SEK 42.5 million (14.3).  Cash and cash equivalents at 31 December 2009 amounted to SEK 100.3 million (58.1).

-          -The Board proposes to the upcoming AGM an ordinary dividend of SEK 0.90 and an extraordinary dividend of SEK 0.60, amounting to a total dividend of SEK 1.50 per share.

     Fourth quarter 1 October - 31 December 2009

-         -  Net sales for the fourth quarter amounted to SEK 52.3 million (39.2), an increase of SEK 13.1 million (33%) compared to the same period of last year.

-          - Operating profit was SEK 11.4 million (7.5), an improvement of SEK 3.9 million.

-          - Profit before tax was SEK 10.5 million (3.9), an increase of SEK 6.6 million.

-         -  Due to the earlier cumulative loss carry forward, BioGaia pays no tax. The period's reported tax expense of SEK 3.7 million refers to a change in the deferred tax asset. Profit after reported tax was SEK 6.8 million (5.0), an increase of SEK 1.8 million. Profit for the corresponding period of last year included a deferred tax benefit of SEK 1.1 million.

Key events in the fourth quarter of 2009

-   Agreement with Pharma Nord for the sale of BioGaia's Probiotic tablets and drops in Denmark.

Key events after the end of the financial year

 -Agreement with Nippon Access for the sale in Japan of a large part of BioGaia's product line.

"Both the rapid growth in sales and profit and the enthusiastic reception our products have received in all of the new countries where they have been launched are very satisfying" says President Peter Rothschild.

For additional information contact:

Peter Rothschild, President, telephone +46 8 - 555 293 00

Jan Annwall, Executive Vice President, telephone +46 8 - 555 293 00