Cybex International, Inc. posted net sales of $29.8 million for the third quarter, a 12% increase from $26.7 million during the year-ago quarter. On a GAAP basis, the company reported net income for the third quarter of 2006 of $817,000, or 5 cents per diluted share, compared to a net loss of $3,535,000, or 23 cents per diluted share, for the corresponding period of 2005. Excluding a third quarter 2005 litigation-related charge, and after an adjustment to the tax provision, the company's third quarter 2005 non-GAAP net income was $346,000, or 2 cents per diluted share.

For the nine months ended September 30, 2006, net sales were $88.7 million compared to $78.6 million for 2005, an increase of 13%. On a GAAP basis, the company reported net income for the nine months ended September 30, 2006 of $17,592,000, or $1.05 per diluted share, compared to a net loss of $2,378,000, or $(.16) per diluted share, for the corresponding period of 2005. Excluding a second quarter 2006 reduction of the valuation reserve for deferred taxes and the third quarter 2005 litigation-related charge, and after adjustments to the Company's tax provision for each period as described below, the Company's non-GAAP net income for the nine months ended September 30, 2006 was $2,287,000, or $.14 per diluted share, compared to non-GAAP net income of $1,073,000, or $.07 per diluted share, for the corresponding 2005 period.

Actual GAAP results for the nine months ended September 30, 2006, include a $14,421,000 reduction in the Company's deferred tax valuation reserve, resulting in a net tax benefit of $13,735,000 for the nine months ended September 30, 2006. Actual GAAP results for the third quarter and nine months ended September 24, 2005 included an increase in the Company's litigation reserve resulting in a pre-tax charge of $4,101,000. This increase in the litigation reserve reflected the jury verdict in a patent infringement case and the reversal on appeal of a summary judgment in favor of the Company in another patent infringement case. The Company's appeal of the jury verdict is pending and it continues to vigorously defend the other patent infringement suit which has since returned to the trial level.

The Company's deferred tax valuation reserve was reduced effective July 1, 2006, and the GAAP results for the quarter and nine months ended September 30, 2006 include a third quarter 2006 tax provision reflecting an effective tax rate of approximately 41%. The 2006 non-GAAP results include a tax provision calculated as though the Company's effective tax rate for the third quarter 2006 was applicable for all of the first nine months of 2006, while the 2005 non-GAAP results include a tax provision at approximately the same effective rate. The non-GAAP adjustments have been made to provide a basis for reviewing the Company's operating performance on a consistent basis for all of the periods presented.

John Aglialoro, Chairman and CEO, stated, “We are excited about our re-entry into the high-end consumer market with our recent introduction of our Consumer Arc Trainer. The Company is aggressively advancing our new product development pace and CYBEX is poised for an exciting new product line-up for 2007.”