Sybron Dental Specialties, Inc. Reports Financial Results for First Quarter of Fiscal 2006

NEWPORT BEACH, Calif., Feb. 6  /PRNewswire-FirstCall/ -- Sybron Dental Specialties, Inc. (NYSE:SYD), a leading manufacturer of a broad range of value-added products for the dental profession, including the specialty markets of orthodontics, endodontics and implantology, announced today its financial results for its first fiscal quarter ended December 31, 2005.

FIRST QUARTER RESULTS

Net sales for the first quarter of fiscal 2006 totaled $158.0 million, an increase of 6.0% over the $149.0 million in net sales in the corresponding prior year period.  Sybron's internal net sales, which exclude currency fluctuations and include only the organic growth of acquisitions made in the past twelve months, grew 6.8% in the first quarter over the same period of the prior year.  The internal net sales growth rate of the Company's consumable products was 7.0%.  The sales of these products accounted for approximately 96% of the Company's total net sales in the quarter.  The attached table provides a reconciliation of the Company's internal net sales growth to net sales growth calculated according to generally accepted accounting principles (GAAP).

Net income for the first quarter of fiscal 2006 was $14.5 million, a decrease of 3.4% over net income of $15.0 million in the same period of the prior year.  Fully diluted earnings per share were $0.35 in the first quarter of fiscal 2006, a decrease of 5.4% over fully diluted earnings per share of $0.37 in the same period of the previous year.  Excluding stock compensation expense, which was not recognized in prior years, fully diluted earnings per share were $0.39 in the first quarter of fiscal 2006.  The attached table provides a reconciliation of the Company's fully diluted earnings per share, excluding stock compensation expense, to fully diluted earnings per share calculated according to GAAP.  The First Call consensus estimate of $0.43 per share for the first quarter of 2006 also excludes non-cash compensation charges.

Results for the current quarter included a $2.1 million non-cash amortization charge associated with the correction of the purchase price allocation for two acquisitions previously made by the Company, one made in 2002 and the other in 2003, as well as a change in the estimated useful life of intangibles related to the Innova acquisition made in October 2004. Current quarter results were also negatively impacted by unfavorable currency exchange rates which reduced pre-tax income by $2.8 million when compared to the same period last year.  The $2.1 million charge and the impact of unfavorable currency exchange rates decreased fully diluted earnings per share by $0.03 and $0.05, respectively and $0.08 in total.

In the first quarter of fiscal 2006, Sybron generated $24.7 million in cash flows from operating activities.  This compares with cash flows from operating activities of $19.8 million in the first quarter of fiscal 2005. During the first quarter of fiscal 2006 Sybron made $2.7 million in capital expenditures which compares with capital expenditures of $3.4 million during the same period of fiscal 2005.

"We continued to generate organic growth rates above our historical levels in both the Professional Dental and Specialty Products segments," said Floyd W. Pickrell, Jr., Chief Executive Officer of Sybron Dental Specialties. "However, sales were slightly lower than our expectations due to minor shortfalls in a few Professional Dental product lines.  In addition, sales growth in the Specialty Products segment was slightly lower than expected due to the softness we experienced in our dental implant business."

SEGMENT SALES HIGHLIGHTS

In the first quarter, internal net sales of the Company's Professional Dental segment increased 6.8% over the same period in the prior year. Internal net sales of Professional Dental consumable products increased 5.6%. Net sales in the quarter were positively impacted by strong sales of the Company's MaxCem(TM) self-adhesive cement, infection prevention products, and new products such as the Demetron(R) LED II curing light and the Orascoptic(R) Portable LED Light Source.

During the first quarter, internal net sales of the Company's Specialty Products segment grew 6.7% over the same period in the prior year.  Total net sales were positively impacted by strong sales of the Company's Damon(TM) 3 metal and aesthetic brackets, titanium brackets, Inspire(R) Ice brackets and nickel titanium endodontic files.

FIRST QUARTER FINANCIAL HIGHLIGHTS

Gross margins in the first quarter of 2006 were 56.9%, which is similar to the 57.3% in gross margins in the same period of the prior year.  Foreign currency exchange rates negatively impacted gross margins in the first quarter of 2006 by approximately 60 basis points.

Selling, general and administrative expenses (SG&A) were $64.1 million, or 40.6% of net sales, in the first quarter of 2006, compared with $58.0 million, or 38.9% of net sales, in the same period of the prior year.  In the first quarter of 2006, SG&A included $2.5 million in stock compensation expense as well as the $2.1 million non-cash amortization charge described above. Neither of these expense items were included in the first quarter of fiscal 2005.  Excluding stock compensation expense, SG&A was 39.0% of net sales in the first quarter of 2006.  The attached table provides a reconciliation of the Company's SG&A expense excluding stock compensation expense to SG&A expense according to GAAP.

The increase from 38.9% to 39.0% was the result of a $2.1 million increase in amortization expense which impacted SG&A as a percent of sales by 130 basis points and offset a number of improvements resulting from cost control initiatives.  The $2.1 million non-cash amortization charge recorded in the current quarter includes $1.9 million related to prior periods and approximately $0.2 million related to the current quarter.  As a result of the correction to the Company's intangible assets and their useful lives, Sybron expects to record this additional $0.2 million in amortization expense per quarter, going forward.  The Company's management concluded that the effect of the delay in recording the charges was not material to any of the prior periods in which increased amortization expense should have been recognized and the correcting entries are not material to the first quarter of fiscal 2006.

Research and development expenditures were $2.9 million in the first quarter of 2006, an increase of 4.7% over the $2.8 million of expenditures in the same period of the prior year.

Operating income for the first quarter of 2006 was $25.9 million, or 16.4% of net sales, compared to $27.4 million, or 18.4% of net sales, in the first quarter of 2005.  Excluding stock compensation expense, operating income was 18.0% of net sales in the first quarter of 2006.  The attached table provides a reconciliation of the Company's operating income excluding stock compensation expense to operating income according to GAAP.  The $2.1 million amortization charge negatively impacted operating income as a percent of sales by approximately 130 basis points.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first quarter of 2006 was $32.8 million, or 20.8% of net sales, compared with EBITDA of $31.5 million, or 21.1%, in the first quarter of 2005. The attached table provides a reconciliation of the Company's EBITDA to its net income.  Stock compensation expense, which was not recognized in the first quarter of fiscal 2005, negatively impacted first quarter 2006 EBITDA as a percent of net sales by approximately 160 basis points.

Sybron's effective tax rate in the first quarter of fiscal 2006 was 33.0%, compared with 32.0% in the first quarter of fiscal 2005.  The higher effective tax rate is primarily the result of lower extraterritorial income exclusion benefit and an increase in the percentage of earnings coming from higher tax rate jurisdictions.  The Company expects its annual effective tax rate, including any potential discrete adjustments to be approximately 32% to 34%. Discrete adjustments could include the reversal of tax contingency reserves due to the expiration of statutory limitations as well as certain foreign tax exposures.  Further, the Company is evaluating the amount of foreign earnings to repatriate under the American Jobs Creation Act of 2004, which allows companies to repatriate cash into the United States at a special, temporary effective tax rate of 5.3%.  Sybron's current analysis indicates that between $10.0 million and $60.0 million may be repatriated with a potential tax expense of between $2.0 million and $5.0 million.  This expense is not included in the annual rate estimates provided.  The Company expects to be in a position to finalize its assessment later this year.

Net trade receivables were $97.6 million and days sales outstanding (DSOs) were 57.9 days at December 31, 2005, compared to 61.7 days at December 31, 2004.

Net inventory was $95.2 million at December 31, 2005 and inventory days were 119 days, compared to 149 days at December 31, 2004 and 118 days at September 30, 2005.

Please refer to the supplemental schedules, provided on the Financial Report's section of Sybron's Investor Relations web site for a detailed calculation of the Company's DSOs and inventory days.  The web site address is: (http://investors.sybrondental.com/phoenix.zhtml?c=124926&p=irol-reportsOther)

The average debt outstanding for the quarter was $208.5 million with an average interest rate of 8.4%.  The Company reduced its debt during the quarter by $2.1 million, leaving total debt outstanding at December 31, 2005 of $209.7 million.

Sybron's cash and cash equivalents balance was $70.6 million at December 31, 2005, compared with $58.6 million at September 30, 2005.

Sybron's capital structure was 33.4% debt and 66.6% equity at December 31, 2005, compared to 42.0% debt and 58.0% equity at December 31, 2004.

OUTLOOK

For the second quarter of fiscal 2006, Sybron expects revenue to range from $175 million to $180 million, and diluted earnings per share to range from $0.43 to $0.48, which reflects the adoption of SFAS 123R, "Share-Based Payment." Stock compensation expense includes employee stock compensation expense of $2.6 million and a charge of $1.2 million related to the granting of stock options to the Company's directors.  Since the options granted to the directors will vest on the grant date, the entire amount of their expense will be recognized in the second quarter of fiscal 2006.  Therefore, no expense related to director stock options is expected to be incurred in the third or fourth quarter of fiscal 2006.  On a pro forma basis, excluding tax-effected stock compensation expense, diluted earnings per share is expected to range from $0.49 to $0.54.  For additional information, please see the attached reconciliation of pro forma and GAAP results.

For the full fiscal year 2006, Sybron continues to expect revenue to range from $685.0 million to $705.0 million (with internal net sales growth between 6% and 9%).  The Company's revenue estimate for fiscal 2006 excludes the impact of potential acquisitions.  Sybron also updated its full year, fiscal 2006 diluted earnings per share expectations, which it now expects to range from $1.75 to $1.90 (which also reflects the adoption of SFAS 123R). On a pro forma basis, excluding tax-effected stock compensation expense, diluted earnings per share is expected to range from $1.93 to $2.08.  For additional information, please see the attached reconciliation of pro forma and GAAP results.

Commenting on the outlook for Sybron, Mr. Pickrell said, "We expect to see our sales results strengthen as we move through the year to result in the achievement of our financial targets.  During the coming quarters, we expect to benefit from increasing production volumes of the Damon 3 metal bracket, the initiation of cross-selling efforts with the Oraltronics product line, and new product introductions in our endodontics, visualization and dental adhesive areas.  In addition, our management team remains highly committed to controlling our expense levels, and we are optimistic that we will see improvement in our operating margin as sales increase."

CONFERENCE CALL AND WEBCAST

The Company will host a conference call on Tuesday, February 7th, 2006 at 10:00 a.m. Pacific Time to review the information in this press release and respond to questions.  The dial-in number for the call is [phone] for domestic callers and [phone] for international callers, passcode 815397.

A recorded replay of the conference call will be offered beginning at 1:30 p.m. Pacific Time on Tuesday, February 7th via both the Company's website and a telephone dial-in number.  The telephone dial-in number for the recorded replay is [phone], passcode 815397 for domestic callers and [phone], passcode 815397 for international callers.  The telephone replay will be available through 11:59 p.m. Pacific Time on February 10th, 2006.

The live webcast and archived replay may be accessed in the Investor Relations section of Sybron Dental's website at http://www.sybrondental.com/.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

Statements made in this press release regarding future matters are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements, including those dealing with the Company's expectations as to its future revenue; earnings per share; organic growth; stock compensation expense; the demand for its products; the development, introduction and sales of new products; and the Company's ability to reduce its manufacturing, selling, general and administrative expenses are based on the Company's current expectations.  Our actual results may differ materially from those currently expected or desired because of a number of risks and uncertainties, including the level of demand for the Company's products; its ability to develop and introduce new products; regulatory requirements; currency exchange rate fluctuations; distributor inventory adjustments; the intensity of competition; changes in the number of stock options granted or the number of options forfeited; and other factors affecting the Company's business prospects discussed in filings made by the Company, from time to time, with the SEC including the factors discussed in the "Cautionary Factors" section in Item 7 of the Company's most recent Annual Report on Form 10-K and its periodic reports on Form 10-Q.  We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

BUSINESS DESCRIPTION

Sybron Dental Specialties and its subsidiaries are leading manufacturers of both a broad range of value-added products for the dental profession, including the specialty markets of orthodontics, endodontics and implantology, and a variety of infection prevention products for use by the dental and medical professions.

               SYBRON DENTAL SPECIALTIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF INCOME
                   (in thousands, except per share amounts)
                                 (unaudited)

                                                       Three Months Ended
                                                          December 31,
                                                        2005       2004

  Net sales                                           $158,031   $149,040
  Cost of sales
    Cost of products sold                               68,031     63,673
    Restructuring charges                                   10         --
      Total Cost of sales                               68,041     63,673

  Gross profit                                          89,990     85,367
    Selling, general and administrative expenses        61,254     57,488
    Restructuring charges                                   16         --
    Amortization of intangible assets                    2,814        497
      Total selling, general and administrative
       expenses                                         64,084     57,985

  Operating income                                      25,906     27,382
  Other income (expense)
    Interest expense, net                               (3,857)    (4,817)
    Amortization of deferred financing fees               (413)      (415)
    Other, net                                              47        (34)

  Income before income taxes                            21,683     22,116
  Income taxes                                           7,155      7,077
    Net income                                         $14,528    $15,039

  Earnings per share:
    Basic earnings per share                             $0.36      $0.38
    Diluted earnings per share                           $0.35      $0.37

  Weighted average basic shares outstanding             40,407     39,479
  Weighted average diluted shares outstanding           42,029     41,068



               SYBRON DENTAL SPECIALTIES, INC. AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS
                   (in thousands, except per share amounts)
                                 (unaudited)

                                             December 31,    September 30,
                                                 2005            2005
                    ASSETS
  Current assets
    Cash and cash equivalents                  $70,609          $58,572
    Accounts receivable (less allowance
     for doubtful receivables of $2,946
     and $3,007 at December 31, 2005 and
     September 30, 2005, respectively)          97,630          112,500
    Inventories                                 95,162           92,840
    Deferred income taxes                        6,572            7,788
    Prepaid expenses and other current assets   11,123           12,261
      Total current assets                     281,096          283,961
  Property, plant and equipment, net of
   accumulated depreciation of $120,411
   and $117,252 at December 31, 2005 and
   September 30, 2005, respectively             85,863           87,762
  Goodwill                                     293,433          295,306
  Intangible assets, net                        59,169           50,882
  Other assets                                  32,852           32,507
      Total assets                            $752,413         $750,418

      LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities
    Accounts payable                           $19,566          $20,135
    Current portion of long-term debt              607              733
    Income taxes payable                        12,547           11,822
    Accrued payroll and employee benefits       19,657           31,537
    Accrued rebates                              9,696            9,336
    Accrued interest                               609            3,519
    Other current liabilities                   13,148           15,412
      Total current liabilities                 75,830           92,494
  Long-term debt                                59,105           61,099
  Senior subordinated notes                    150,000          150,000
  Deferred income taxes                         29,166           16,405
  Other liabilities                             19,253           28,267
    Total liabilities                          333,354          348,265
  Commitments and contingent liabilities
  Stockholders' equity
    Preferred stock, $.01 par value;
     authorized 20,000 shares, no shares
     outstanding                                    --               --
    Common stock, $.01 par value;
     authorized 250,000 shares, 40,489
     and 40,395 shares issued and
     outstanding at December 31, 2005
     and September 30, 2005, respectively          405              404
  Additional paid-in capital                   123,637          118,448
  Retained earnings                            279,369          264,841
  Accumulated other comprehensive income        15,648           18,460
       Total stockholders' equity              419,059          402,153
       Total liabilities and
        stockholders' equity                  $752,413         $750,418



               SYBRON DENTAL SPECIALTIES, INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (in thousands)
                                 (unaudited)

                                                       Three Months Ended
                                                          December 31,
                                                       2005          2004
  Cash flows from operating activities:
    Net income                                       $14,528       $15,039
    Adjustments to reconcile net income
     to net cash provided by operating
     activities:
       Depreciation                                    4,043         3,635
       Amortization of intangible assets               2,814           497
       Amortization of deferred financing fees           413           415
       Loss on sales of property, plant and equipment      6            93
       Provision for losses on doubtful receivables      193           483
       Inventory provisions                              635         1,377
    Deferred income taxes                              4,158          (525)
    Tax benefit from issuance of stock under
     employee stock option plan                          419         4,051
    Changes in assets and liabilities, net of
     effects of businesses acquired:
       Decrease in accounts receivable                14,931         8,707
       Increase in inventories                        (2,736)       (7,616)
       Decrease in prepaid expenses and other
        current assets                                 1,138         1,149
       Decrease in accounts payable                     (569)         (926)
       Increase (decrease) in income taxes payable       409        (3,112)
       Decrease in accrued payroll and employee
        benefits                                     (11,880)       (3,753)
       Increase in accrued rebates                       360         1,774
       Decrease in accrued interest                   (2,910)       (2,684)
       Decrease in other current liabilities          (2,264)       (1,093)
       Net change in other assets and liabilities        994         2,295
         Net cash provided by operating activities    24,682        19,806

  Cash flows from investing activities:
    Capital expenditures                              (2,713)       (3,398)
    Proceeds from sales of property, plant,
     and equipment                                         7           146
    Net payments for businesses acquired                  --       (45,975)
    Payments for intangibles                            (201)         (274)
         Net cash used in investing activities        (2,907)      (49,501)

  Cash flows from financing activities:
    Proceeds from credit facility                     48,700        59,000
    Principal payments on credit facility            (50,758)      (34,160)
    Settlement of derivative instruments              (8,384)           --
    Principal payments on long-term debt                 (62)         (219)
    Proceeds from exercise of stock options            1,032         7,868
    Proceeds received from employee stock
     purchase plan                                     1,149           748
         Net cash provided by (used in) financing
          activities                                  (8,323)       33,237

  Effect of exchange rate changes on cash and
   cash equivalents                                   (1,415)        5,503
  Net increase in cash and cash equivalents           12,037         9,045
  Cash and cash equivalents at beginning of year      58,572        40,602
  Cash and cash equivalents at end of year           $70,609       $49,647



        Reconciliation of First Quarter 2006 Internal Net Sales Growth
                                (in millions)
                                 (unaudited)

                                           Professional   Specialty
                                               Dental      Products    SDS

  Net sales growth                              4.3%         7.8%      6.0%

  Add: sales decrease due to currency           2.4%         3.2%      2.8%

  Less: non-organic increase due to
   acquisitions made in the previous
   twelve months                                0.0%         4.2%      2.1%

  Internal net sales growth                     6.8%         6.7%      6.8%

      Less: internal net sales growth
       from equipment                           1.1%        -1.6%     -0.2%

      Internal net sales growth of
       consumable products                      5.6%         8.3%      7.0%


  Domestic and international sales by
   segment
      Domestic                                 $46.4        $36.1     $82.4
      International                             32.8         42.8      75.6
      Total sales                              $79.2        $78.8    $158.0

  Internal net sales growth
      Foreign                                                          7.5%
      Domestic                                                         6.1%
      Total                                                            6.8%


  Internal net sales growth is a non-GAAP measure and should not be
  considered a replacement for GAAP results.

  Our management uses internal net sales growth to evaluate the underlying
  results and trends in the business.  We also use internal net sales growth
  as a metric for evaluating the performance of members of senior management
  in the operating units. The difference between reported net sales growth
  (the most comparable GAAP measure) and internal net sales growth (the non-
  GAAP measure) consists of the impact of foreign currency and the non-
  organic growth related to acquisitions.  Organic growth in acquisitions
  includes only the pro-forma growth which would have been realized if we
  had owned the acquired business in the prior period.

  Internal net sales growth is a useful measure of our performance because
  it excludes items that: i) are not completely under management's control,
  such as the impact of foreign currency exchange; or ii) do not reflect our
  underlying growth, such as acquisitions.  The limitation of this measure
  is that it excludes items that have an impact on our sales.  This
  limitation is best addressed by using internal net sales growth in
  combination with the GAAP numbers.



         Reconciliation of First Quarter 2006 and First Quarter 2005
                            EBITDA and Net Income
                                (in millions)
                                 (unaudited)

                                                      Q1 2006     Q1 2005

  Net income                                           $14.5       $15.0

  Add: income taxes                                      7.2         7.1

  Add: net interest expense                              4.2         5.3

  Add: depreciation and amortization                     6.9         4.1

  Earnings before interest taxes depreciation
   & amortization                                      $32.8       $31.5

  We view EBITDA as an operating performance measure, and as such we believe
  that the GAAP financial measure most directly comparable to it is net
  income or net loss.  In calculating EBITDA, we exclude from net income or
  net loss the financial items that we believe have less significance to the
  day-to-day operation of our business.  We have outlined below the type and
  scope of these exclusions and the limitations on the use of this non-GAAP
  financial measure as a result of these exclusions.  EBITDA is not an
  alternative to net income, operating income or cash flows from operating
  activities as calculated and presented in accordance with GAAP.  Investors
  and potential investors in our securities should not rely on EBITDA as a
  substitute for any GAAP financial measure.  In addition, our calculation
  of EBITDA may or may not be consistent with that of other companies.  We
  strongly urge investors and potential investors in our securities to
  review the reconciliation of EBITDA to the comparable GAAP financial
  measures that are included in this press release and our financial
  statements, including the notes thereto, and the other financial
  information contained in our SEC filings and not to rely on any single
  financial measure to evaluate our business.

  Our management uses EBITDA as a supplemental financial measure to evaluate
  the performance of our business that, when viewed with our GAAP results
  and the accompanying reconciliations, we believe provides a more complete
  understanding of factors and trends affecting our business than the GAAP
  results alone.  We also regularly communicate our EBITDA to the public
  through our earnings releases because it is the financial measure commonly
  used by analysts that cover our industry and our investor base to evaluate
  our performance.  We understand that analysts and investors regularly rely
  on non-GAAP financial measures, such as EBITDA, to provide a financial
  measure by which to compare a company's assessment of its operating
  performance against that of other companies in the same industry.  This
  non-GAAP financial measure is helpful in more clearly reflecting the sales
  of our products and services, as well as highlighting trends in our core
  businesses that may not otherwise be apparent when relying solely on GAAP
  financial measures, because this non-GAAP financial measure eliminates
  from earnings financial items that have less bearing on our performance.

  The term EBITDA as used in this press release refers to, for any period,
  net income (loss) before interest, taxes, depreciation, amortization, loss
  (gain) on disposition of assets, minority interest in (income) loss of
  subsidiaries and income from equity investments.

  Set forth below are descriptions of the financial items that have been
  excluded from our net loss to calculate EBITDA and the material
  limitations associated with using this non-GAAP financial measure as
  compared to the use of the most directly comparable GAAP financial
  measure:

      * The amount of interest expense we incur is significant and reduces
        the amount of funds otherwise available to use in our business and,
        therefore, is important for investors to consider.  However,
        management does not consider the amount of interest expense when
        evaluating our core operating performance.

      * Management does not consider income tax (benefit) expense when
        considering the profitability of our core operations.  Nevertheless,
        the amount of taxes we are required to pay reduces the amount of
        funds otherwise available for use in our business and thus may be
        useful for an investor to consider.

      * Depreciation and amortization are important for investors to
        consider, even though they are non-cash charges, because they
        represent generally the wear and tear on our property, plant and
        equipment, which produce our revenue.  We do not believe these
        charges are indicative of our core operating performance.

      * (Loss) gain on the disposition of assets may increase or decrease
        the cash available to us and thus may be important for an investor
        to consider.  We are not in the business of acquiring or disposing
        of assets and, therefore, the effect of the disposition of assets
        may not be comparable from year-to-year.  We believe such gains or
        losses recorded on the disposition of an asset do not reflect the
        core operating performance of our business.

  Management compensates for the above-described limitations of using a
  non-GAAP financial measure by using this non-GAAP financial measure only
  to supplement our GAAP results to provide a more complete understanding of
  the factors and trends affecting our business.



       Reconciliation of First Quarter 2006 GAAP and Pro Forma Results
                   (in millions, except per share amounts)
                                 (unaudited)

                                            GAAP        Stock      Pro-Forma
                                           Results     Comp Exp     Results

  Net sales                                $158.0                   $158.0

  Cost of good sold                          68.0       (0.1)         67.9
    Cost of goods sold as a percent
     of net sales                           43.1%                    43.0%

  Gross profit                               90.0        0.1          90.1
    Gross profit as a percent of
     net sales                              56.9%                    57.0%

  Selling, general and administrative        64.1       (2.5)         61.6
    Selling, general and administrative
     as a percent of net sales              40.6%                    39.0%

  Operating Income                           25.9        2.6          28.5
    Operating income as a percent of
     net sales                              16.4%                    18.0%

  Net income                                $14.5       $1.7         $16.3

  Earnings per share                        $0.35                    $0.39

  Shares used in computing fully
   diluted earnings per share                42.0                     42.0

  Operating income before stock option expense is a non-GAAP measure and
  should not be considered a replacement for GAAP results.

  Operating income before stock option expense is a financial measure we use
  to evaluate the underlying results and operating performance of the
  businesses.  The difference between operating income (the most comparable
  GAAP measure) and operating income before stock option expense (the
  non-GAAP measure) reflects the impact of adopting SFAS 123R on the current
  period results.  The limitation of this measure is that it excludes an
  item that impacts the company's current period operating income.  This
  limitation is best addressed by using this measure in combination with
  operating income (the most comparable GAAP measure) because operating
  income before stock option expense does not reflect the impact of adopting
  SFAS 123R and may be higher than operating income (the most comparable
  GAAP measure).  We believe operating income before stock option expense is
  a useful measure that allows investors to draw comparisons between
  operating results reported prior to adoption of SFAS 123R and the current
  period, which may mask underlying trends and make it difficult to give
  investors perspective on underlying business results.



               Reconciliation of Estimated Second Quarter 2006
          and Estimated Fiscal Year 2006 Pro Forma and GAAP Results
                   (in millions, except per share amounts)
                                 (unaudited)

                                          Q2 2006            FY 2006
                                       Low       High      Low      High

  Net sales                           $175.0    $180.0    $685.0   $705.0

  Pro forma net income                  20.7      22.8      81.9     88.2

  Less: employee stock compensation
   expense                               2.6       2.6      10.2     10.2

  Less: director stock grant expense     1.2       1.2       1.2      1.2

  Plus: tax effect of including stock
   compensation expense                  1.2       1.2       3.8      3.8

  Net income, according to GAAP        $18.1     $20.2     $74.3    $80.6

  Pro forma fully diluted earnings
   per share                            0.49      0.54      1.93     2.08

  Tax-effected impact of pro-forma
   stock compensation                   0.06      0.06      0.18     0.18

  Fully diluted earnings per share
   according to GAAP                   $0.43     $0.48     $1.75    $1.90

  Shares used in computing fully
   diluted earnings per share           42.2      42.2      42.4     42.4

  Stock compensation expense indicated in the reconciliation table is based
  on the Company's current expectations.  The actual expense may differ
  materially from the Company's estimate due to changes in the number of
  options granted or in the number of options forfeited.  See the section of
  this Press Release entitled CAUTION REGARDING FORWARD-LOOKING STATEMENTS
  for a discussion of risks and uncertainties which may cause the Company's
  actual stock compensation expense, as well as all other actual results, to
  differ materially from the estimates provided above.


First Call Analyst: 

FCMN Contact: [e-mail] 

DATASOURCE: Sybron Dental Specialties, Inc.



CONTACT:  Bernard J. Pitz, Chief Financial Officer of Sybron Dental

Specialties, Inc., [phone]



Web site:  http://www.sybrondental.com/ 

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