* Revenues: CHF 65.0 million, up 2.7% * EBITDA: CHF 6.5 million, down 5.9% * EBIT: CHF 3.0 million, down 25.6% For the first three months of the fiscal year 2006/2007, which ended on August 31, 2006, Unilabs (SWX: ULB) achieved revenues of CHF 65.0 million, an increase of 2.7% compared to the same period of the previous financial year. At constant exchange rates, revenues grew by 2.2%. Earnings before interest, taxes, depreciation and amortisation (EBITDA) declined by 5.9% to reach CHF 6.5 million, or 9.9% of revenues while operating profit decreased by 25.6%. This result reflects largely the impact of the Swiss Federal Council to impose a 10% linear reduction in the reimbursement prices for tests, beginning January 1, 2006. Net income attributable to Unilabs shareholders decreased by 91.9% mainly as a result of the lower operating income and increased interest expenses recorded in the first quarter. First quarter Swiss revenues decreased by 10.1% to CHF 38.1 million, versus CHF 42.4 million in the previous year, largely as a result of the 10% linear reduction in the reimbursement prices for tests which took effect on January 1, 2006. The cost-cutting measures implemented by Unilabs partially compensated this impact. First quarter revenues grew by 9.0% in Spain to CHF 9.0 million and by 1.3% in France to CHF 10.3 million. As a result of its successful entry in the Portuguese market in the previous fiscal year, Unilabs posted first quarter revenues of CHF 5.1 million in this country. For the first three months 2006/2007, operating profit (EBIT) reached CHF 6.5 million, or 9.9% of revenues, compared with CHF 6.9 million, or 10.9% of revenues, in the previous fiscal year, a decrease of 5.9%. In connection with a swap contract, which purports to protect the company against an increase in interest rates, in accordance with accounting rule IAS 39, an amount of CHF 1.1 million remains, as of August 31, 2006, out of the previously-established provisions. As indicated previously, such balance will be written back to profit at the latest upon termination of the contract on April 1, 2007. Net income attributable to shareholders amounted to CHF 0.1 million (or CHF 0.01 per bearer share), compared with CHF 1.2 million (or CHF 0.12 per bearer share) in the comparable period of the previous financial year. During the three months ended August 31, 2006, Unilabs: * Further reinforced its presence in Portugal, one of its key markets, by completing in September 2006 two acquisitions, with annualized revenues for both laboratories of ¤ 3 million, in the Northern part of the country * Announced the signature of new contracts with 3 Spanish hospitals representing total annual revenues of approximately ¤ 3 million * Extended its brand name to all its laboratories in German-speaking Switzerland, thus enabling all the group's Swiss laboratories to carry the Unilabs name and benefit from the brand's scientific reputation * Announced the opening of its first laboratory in Basel in June 2006 and signed a partnership contract with a Geneva hospital, effective September 1, 2006. Unchanged outlook For the current fiscal year, ending May 31, 2007, Unilabs expects an unchanged organic Group revenue growth between 2.0 and 2.5% in local currencies and anticipates an EBITDA margin between 17-18% of revenues. This outlook takes into account the full year impact of the Swiss price reduction as well as the cost-cutting measures that are implemented by the Company to achieve savings to a level close to the expected loss of margin. The Company pursues this effort by developing and implementing a number of additional cost savings measures for the next three years. Through select acquisitions, Unilabs intends to further take advantage of the European consolidation process of the clinical laboratory market. Proposals for the upcoming Shareholders' Meeting of November 28, 2006 At the next Annual Shareholders Meeting, taking place in Geneva on November 28, 2006, the Board of Directors will submit a number of proposals for the approval of shareholders. The measures are intended to support the growth strategy of Unilabs by further taking advantage of the European consolidation process of the clinical laboratory market. The measures submitted for the approval of shareholders include the authorization given to the Board of Directors, valid up to November 28, 2008, to increase the share capital up to a maximum of 2 million shares, divided into a maximum of 1'520'000 bearer shares of a par value of CHF 1.00 and a maximum of 960'000 registered shares of a par value of CHF 0.50. In addition, the Board will propose not to distribute a dividend this year, in order to allocate these resources to the growth of the Company. Conference call To discuss the financial results for the first quarter 2006/2007, Unilabs will hold a conference call today at 3:00 p.m. CET. To participate, dial: +41 (0)91 610 5600 (Europe and Switzerland), +44 207 107 06 11 (UK), +1 866 291 41 66 (US/Canada). Digital playback is available for 48 hrs from November 7th at 18:00 pm CET until November 9th until 18:00 pm CET. Dial: +41 (0)91 612 4330 (Europe); +44 207 108 62 33 (UK); +1 866 416 2558 (USA/Canada); Conference ID: 912 followed by #. In order to view the slide presentation, please go to the home page of Unilabs at www.unilabs.com, select "Investors" and "Q1 2006/2007 Earnings Results Conference Call" where a link to the presentation will be provided immediately prior to the event. Please note that sound will only be provided through the telephone conference. About Unilabs The Unilabs Group (SWX: ULB) is the European leader of clinical testing laboratories. With over 50 laboratories and over 1500 employees operating in 6 countries, Unilabs tests over 3.5 million samples per year using more than 1500 different tests. Unilabs' clinical testing services are used by over 60 public and private hospitals in France, Spain and Switzerland. Unilabs has been listed on the SWX Swiss Stock Exchange since 1997. Edgard Zwirn, Executive Chairman, is at your disposal for any further query (tel. +4122 909 77 77). Our press releases are also available on the Internet at our web site www.unilabs.com --- End of Message --- WKN: 906648; ISIN: CH0012561640; Index: SPI, SSCI, SBIOM, SLIFE, SPIEX; Listed: Main Market in SWX Swiss Exchange;