aap achieves Double-Digit Sales Growth in H1 2010

aap Implantate AG, a medical technology company listed in the Frankfurt Stock Exchange's Prime Standard segment, achieved double-digit first-half year sales growth to EUR 12.8 million at product level, according to preliminary figures. Product sales are up by 11% on the previous year's first-half total of EUR 11.5 million, adjusted by previous year project sales, sales by the Analytics division, which was sold in December 2009, and other one-time effects amounting to EUR 3.2 million. Sales revenue for the second quarters of each year show a 25% increase on product level from EUR 5.6 million (adjusted by one-time effects of EUR 0.7 million) to EUR 7.0 million.

With new product launches, introduction of existing products in new markets and additional project sales on the basis of the targets defined in the Management Agenda 2010, the pace of this sales trend is to be accelerated further. The focus is the WSG System product launch, the expansion of the cannulated screws business in the U.S. market and marketing of the Jason® G collagen fleece impregnated with antibiotics. After a final review and assurance of intellectual property protection, we are currently considering various options for the WSG System market launch. The Company could for instance sell it under aap label or, as a recent option, license it as an OEM product to one of the leading global orthopaedic companies.

Interest in aap's R&D partner program has remained strong. We are involved in talks at an advanced stage with several partners and continue to anticipate the completion of two license agreements for 2010 of which at least one is to be concluded in the third quarter of 2010.

aap's operational success is based on structured and efficient internal processes in IT and organization. Legal restructuring aims to simplify our organizational structure, for which as a next step we plan to merge the German cement and biomaterials production sites in Dieburg by June 2011. In the IT sector, international networking and standardization will be further optimized and the existing ERP system extended systematically.

So as not to lose sight of our critical mass target, aap monitors the market and regularly analyzes interesting companies. To optimize the return from our attractive R&D pipeline and to boost our sales strength and marketing competence, we are evaluating mainly companies that would offer substantial sales synergies.

aap plans to publish the Q2 2010 report in full on August 11, 2010.