PZ CORMAY S.A ESTABLISHED IN 1985

THE FIRST AND BIGGEST MANUFACTURER OF

DIAGNOSTIC REAGENTS IN EASTERN EUROPE

Market OverviewMarket Overview

• 600 mln PLN – IVD market in Poland• 35 - 40 bln USD - Worldwide Total IVD market• 5-7% -yearly market growth • IVD represents stable, defensive and prospective market

U.S. 39%

ROW 18%

JAPAN 9%

EUROPE 34%

Reagents production Biochemistry

Hematology

Coagulation

Electrophoresis gels

Distribution

Vacuette – vacuum blood collection system

Diagnostic instruments for clinical chemistry

Parasitology system

Serology reagents

Cytology – diagnostics that saves life

6

Apparatus of ORPHEE Hematology

Mythic 18

Mythic 22

Mythic 22 Autoloader (2010)

7

Sales structure in 1 half of 2010

31%

55%

0%

0%

4%

1%

2%

4% 3%

Biochemia

Hematologia

Serologia

Analityka Ogólna

ParazytologiaElektroforeza

Koagulologia

Vacuette

Pozostałe

BiochemistryBiochemistry

Biochemistry kits production      

market where Cormay products are present

Poland Russia and other post S oviet markets

CE , North Africa and Arabic Countries

estimated size of the market in mln EUR

40 1 40 300

Cormay present market share 3,5 % 1 % 0,5%

projected Cormay market share in 2012 5% 1 ,5% 1%

We are present in small & mid size labs. We are opening the door to the high volume We are present in small & mid size labs. We are opening the door to the high volume hospital based labs market by introducing high speed closed chemistry instruments in hospital based labs market by introducing high speed closed chemistry instruments in 2009 .2009 .

We are developing new range of reagents for TDM and DOAWe are developing new range of reagents for TDM and DOA

HaematologyHaematology

Haematology solutions production      

market where Cormay products are present

Poland Russia and other post S oviet markets

CE , North Africa and Arabic Countries

estimated size of the market in EUR 15 35 1 00

Cormay market share 3,5% 1,5% 1 %

projected Cormay market share in 2012

5% 3% 5%

We are present in small & mid size labs. We are opening the door to the high volumeWe are present in small & mid size labs. We are opening the door to the high volumehospital based labs market by introducing high speed auto loading haematlogy 5diff cell hospital based labs market by introducing high speed auto loading haematlogy 5diff cell counters in 2009 – produced by C2 / ORPHEE. counters in 2009 – produced by C2 / ORPHEE.

We are developing 5 diff reagentsWe are developing 5 diff reagents

CORMAY WORLDWIDE

Russia (S)

Poland (HQ)

Turkey

Ukraine

Romania

MAIN MARKETSArabic Countries

North Africa

Western Europe

Belarus (S)

Switzerland (S)

Orphée is a Swiss based company developing and marketing instrumentation for the haematology diagnostic market dedicated to small and mid sized laboratories as well as physician cabinets worldwide.Orphée was established in 2002 by a former CEO of a diagnostic corporation.

Aquisition

Executive Summary

Company

Aquisition Reason

Technology Brand Distribution Market Advantage

ORPHEE M ass m ar k et h aem ato l o g y i n st r um en t s;

R ec o g n i z ed Sw i ss b r an d

D i st r b u t i o n i n 80 c o u n t r i es;

T ak eo v er o f d i st r i b t u i o n m ar g i n ;

      Su p p l y c o n t r ac t i n g f o r m ar k et l ead er s

W o r l d w i d e d i st r i b u t i o n A g r eem en t o f C y to l o g y p r o d u c t s - N o v ac y t ;

        H i g h l y ex p er i en c ed an d r ec o g n i z ed team

Aquisitions - Targets and achieves

Orphee Medical:

Change of Cormay market image into Swiss company with production in Poland Takeover of distribution margin Aquisition of distribution channels in 80 countries The acquisition of an experienced sales team and engineers - new projects Accelerated the restructuring and reorganization Orphee

14

Projects 2010

Start of production of reagents OEM Orphee

Consolidating the sales network and Orphee and CORMAY

Introduction to sell the camera to the hematology M22 Autoloader

ISO 14000 certification

New technologies in the reagents to the hematology analyzers, differing 5 populations of leukocytes

New markets: Mexico, Brazil, Indonesia

Introducing a line of reagents for Olympus

Installations of 10 instrumentations BS 400 in Poland

Installations of 3 stations to cytological NPS 25/50 in Poland

Stage design your own biochemical apparatus

15

Projects 2010-2013

Acquisition of the manufacturer-specific reagents for proteins - the U.S. - the entry on the largest market in the world.

Implementation of our own line of apparatus to study biochemistry, apparatus 300 and 450 tests per hour - a grant

Implement our own camera to the performing hematology, more than 80 tests per hour – a grant

Expansion of production base and logistics - the concentration at one location

The project implementation technology of optical tomography in hematology tests of blood

DevelopmentDevelopment

Technology aquisitions – Orphee ...

Distribution channels aquisitions

Organic growth by development of instruments&reagents

PZ Cormay possible consolidation platform in IVD market

17

Financials results of I quarter 2010

Calculation variant– data group of PZ CORMAY 2008 2009 IQ2009 IQ2010 IQ2010/IQ2009

Revenues 31 085 38 451 8 706 15 486 178%

Gross profit / loss on sales 11 670 15 837 3 701 7 505 203%

Profit / loss from operations 1 829 3 211 905 1 258 139%

Gross profit / loss 1 907 3 462 807 1 426 177%

11 670

15 837

10 00011 00012 00013 00014 00015 00016 00017 000

2008 2009

Profit on sale

hundreds PLN

3 701

7 505

2 0003 0004 0005 0006 0007 0008 0009 000

1Q 2009 1Q 2010

Profit from sales

hundreds PLN

18

Financials results of I quarter 2010

Calculation variant– data group of PZ CORMAY 2008 2009 IQ2009 IQ2010 IQ2010/IQ2009

Total sales 31 085 38 451 8 706 15 486 178%

Sales of products 18 459 21 598 5 007 5 275 105%

Cost of products sold 10 688 10 313 2 538 2 766 109%

Margin on the products in% 42% 52% 49% 48% 96%

Sale of goods 12 626 16 853 3 699 10 211 276%

Cost of goods sold 8 746 12 301 2 553 5 215 204%

Margin on the goods in% 31% 27% 31% 49% 158%

42%52% 49% 48%

31% 27% 31%49%

0%10%20%30%40%50%60%70%

2008 2009 1Q 2009 1Q 2010

%Margin

Marża na produktach w % Marża na towarach w %

19

Financials results of I quarter 2010

3,372,79 2,86

2,47

1,52

2,53

3,54

2008 2009 1Q 2009 1Q 2010

PLN/set.

Labour cost for a one set

6,226,61 6,69 6,85

5

5,5

6

6,5

7

2008 2009 1Q 2009 1Q 2010

set/hour

Productivity - the amount of sets per hour

0,18

0,130,15

0,14

0,00

0,02

0,04

0,06

0,08

0,10

0,12

0,14

0,16

0,18

0,20

2008 2009 1Q 2009 1Q 2010

Index of personnel costs (the cost of the person / revenue)

0,010

0,007

0,0120,014

0,000

0,002

0,004

0,006

0,008

0,010

0,012

0,014

0,016

2008 2009 1Q 2009 1Q 2010

Cost index funds (finan. cost / income)

20

Financials results of I quarter 2010

Calculation variant – data of PZ CORMAY .

2008 2009 IQ 2009 IQ 2010 IQ 2010/IQ2009

Revenues from sales 22 790 31 861 7 309 8 684 119%

Gross profit / loss on sales 8 528 11 342 2 821 3 057 108%

Profit / loss from operations 1 577 2 283 835 799 96%

Gross profit / loss 1 640 2 380 782 835 107%

Own costs 14 262 20 519 4 488 5 628 125%

Financial expenses 218 223 89 119 134%

Personnel costs (gross wages + overheads) 4 143 4 227 1 109 1 223 110%

Other Services 3 694 4 069 640 548 86%

Indicator of profitability (gross profit / revenue) 0,07 0,07 0,11 0,10 -

Indicator of profitability (return on sales / revenue) 0,37 0,36 0,39 0,35 -

Index of personnel costs (the cost of the person / revenue) 0,18 0,13 0,15 0,14 -

Cost index funds (financial cost / income) 0,010 0,007 0,012 0,014 -

Foreign service cost index (cost of services / income) 0,16 0,13 0,09 0,06 -

P/L Statement Estimation

Company Revenues in Eur (000')

Year 2008 2009 2010*

CORMAY 8 807 9 600 1 1 000

ORPHEE 5 1 00 6 368 8 1 68

       

CONSOLIDATED 1 2 887 1 4 694 1 7 534

       

GROSS MARGIN 4 768 5 437 6 488

       

NET PROFIT 400 768 1 578

* prognosis

INVESTMENTS

Estimated costs of aquisition in PLN

ORPHEE aquisition of shares 3000 – scheduled 6 000

ORPHEE additional working capital 6 000

Total 9 000

Additional investments

Production facility – hematology 9 000

·         Reagent Production Equipment

·         Hematology instruments assembly line

·         Logistics

Biochemistry instrument development 4000 – scheduled 9 000

Additional working capital of PZ Cormay 5 000

Total 18 000