Cybex Posts 16.5% Sales Growth in Fourth Quarter

Cybex International, Inc. reported net sales for the fourth quarter of 2007 increased by 16% to $44.5 million compared to $38.2 million for the corresponding 2006 period. This increase was driven by strong sales of both cardio and strength products and continued growth in the commercial equipment market. The company reported net income for the fourth quarter of 2007 of $3.0 million, or 17 cents per diluted share, compared to net income of $2.8 million, or 16 cents per diluted share, reported for the fourth quarter of 2006.

For the year ended December 31, 2007, net sales increased by 15% to $146.5 million compared to $126.9 million for 2006. Net income for the year ended December 31, 2007 was $9.8 million, or $0.55 per diluted share, compared to net income of $20.1 million, or $1.18 per diluted share for 2006. The 2007 results include the third quarter reduction in the tax valuation reserve which increased net income by $5.2 million, or $0.29 per diluted share. The 2006 results include a second quarter reduction in the tax valuation reserve, which increased 2006 net income by $14.4 million or $0.85 per diluted share.

John Aglialoro, Chairman and CEO of CYBEX, commented, “Q4 2007 showed continued broad-based growth for sales of both cardio and strength products in U.S. and international markets. The commercial business continues to increase. The strong sales from products introduced in 2006 and 2007 confirm that our strategy is effective. The operating efficiencies from the new Minnesota facility have yet to be fully realized but we expect these improvements will be achieved over time. While the 2007 investments in this facility plus our sales, marketing and product development initiatives negatively impacted operating income for the year, these investment initiatives position CYBEX well for 2008 and beyond.”