Solid growth in net income and activity in 2006 - New acquisition underway

In EUR millions 31/12/2005* 31/12/2006 Change Proforma
Revenue 50.1 66.2 + 31.9% 73.8
Gross margin
 as a % of revenue
+40.4% 48.4
Operating income
 as a % of revenue
+ 4.3% 6.7
Cost of net financial debt (1.1) (1.8) +63.6% (2.3)
Other financial income and expenses 0.5 2.2 +340.0% 2.2
Consolidated net income
 as a % of revenue
+40.4% 5.1
Net income attributable to equity
 holders of the parent
 as a % of revenue
+41.6% 5.1

* Consolidation of Pure World over 6 months
 ** New consolidation scope with the integration of Hammer Pharma over a full year.

 2006 results
 Naturex posted revenues of EUR 66.2 million in 2006, representing an increase of 31.9%. At constant USD rates, growth came out at 31.6%.

Excluding the impact of the gradual closure of its non-strategic business lines, organic growth stood at 12.9% at constant USD rates, once again confirming Naturex’s ability to maintain its sustained organic growth rate while continuing to pursue an ambitious acquisitions program.

Naturex Group’s operating margin, which remains very satisfactory at 10.3%, was impacted both by the gradual depreciation of the dollar in 2006 and by the increase in team numbers linked to both past and present acquisitions. However, these two factors were offset by the significant exchange rate gains (EUR 2 million) generated by the depreciation of the dollar.

Naturex’s net income increased by 40.4% to EUR 5.6 million and the Group’s net margin rose by 0.5 points to stand at 8.5%.

 2007: a new dimension
 Acquisition of Hammer Pharma
 Last January’s acquisition of Italian company, Hammer Pharma, which specializes in plant extracts for the pharmaceutical and neutraceutical industries, represents three major advantages for Naturex Group. It affords Naturex access to the pharmaceutical industry, heightens the Group’s presence on two of Europe’s key markets, Germany and Italy, and lastly, given the regulatory changes in the neutraceutical industry in Europe, reinforces its position as a top-of-the-range market player.

Strengthening of sales coverage overseas
 Having created a subsidiary in Oxford (United Kingdom) in the first quarter of 2007, Naturex Group purchased a 34.8% minority stake in the Swiss company, Sanavie, which distributes Naturex products in Russia and Ukraine.

Continued sustained growth in the first quarter of 2007
 Naturex posted revenues of EUR 21.2 million in the first quarter of 2007, up 15.6% and up 22.9% at constant USD rates. Pro forma growth came out at 5.4% and 12.1% at constant USD rates.

A new acquisition underway
 On the back of a pro forma consolidation scope of EUR 73.8 million following the purchase of Hammer Pharma, Naturex is continuing its acquisitions program. In fact, the Group has just signed a letter of intent for the acquisition of a North American company which produces natural extracts and which generated almost USD 10 million in revenues in 2006.

Naturex will publish its revenue figures for the first half of 2007 in mid-July

About our company
 Naturex manufactures and sells 100% natural ingredients for the food, flavor, nutraceutical and cosmetics industries.The Group is based in Avignon, France, and is an international company with over 90% of its sales coming from 30 countries outside France, of which 68% generated on the US market.It has facilities in France, Morocco and the United States and a representative office in Singapore.

NATUREX has been listed in Paris since October 1996 - Eurolist B
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  Your contacts

 Jacques Dikansky – President and CEO
 Tel : +33 (0)4 90 23 96 89
 Thierry Lambert – Vice President and CFO
 Tel : +33 (0)4 90 23 96 89
 Agnès Gilbert – Press Relation
 Tel : +33 (0)1 53 67 36 33
 Laurence Marquézy – Investor Relation
 Tel : +33 (0)1 72 74 82 23
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