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July 28, 2011 at 6:02 AM EDT

DENTSPLY International Reports Record Results for Second Quarter 2011

Jul 28, 2011 (GlobeNewswire via COMTEX) --

- Record Second quarter net sales increased 7.8% and 8.7% excluding precious metals

- Earnings per diluted share grew 6.1% as reported, and were up 10.0% on an adjusted basis

- Raising guidance for fiscal 2011 earnings

YORK, Pa., July 28, 2011 (GLOBE NEWSWIRE) -- DENTSPLY International Inc. (Nasdaq:XRAY) today announced record sales and earnings for the three months ended June 30, 2011. Net sales in the second quarter of 2011 increased 7.8% to $609.4 million compared to $565.1 million reported for the second quarter of 2010. Net sales, excluding precious metal content, were $564.0 million, an 8.7% increase compared to $518.8 million the second quarter of 2010. The net sales growth, excluding precious metal content, was primarily the result of favorable foreign exchange rates, however we also had positive impacts from both recent acquisitions and internal sales growth, despite headwinds from reduced orthodontic supply and lower Japanese sales resulting from the natural disaster in that country.

Net income attributable to DENTSPLY, for the second quarter of 2011 was $74.2 million, or $0.52 per diluted share, representing growth of 6.1% compared to $0.49 per diluted share in the second quarter of 2010. Earnings per diluted share in the second quarter of 2011, on a non-GAAP basis, were $0.55, an increase of 10.0% from $0.50 in the first quarter of 2010. Earnings were positively impacted by organic growth, favorable foreign currency exchange rates and a lower effective tax rate, and were negatively impacted by the supply disruption of orthodontic products sourced from Japan and depressed sales within that region. A reconciliation of the non-GAAP measure to earnings per share calculated according to GAAP is presented on the attached table.

Bret Wise, Chairman and Chief Executive Officer, stated "We are pleased to report record sales and earnings in the second quarter and we are particularly pleased with the early sales performance from a number of new products launched during the first half of the year. Although our results have been negatively impacted by the supply outage of orthodontic products sourced from Japan, we continue to execute our contingency plans to mitigate the impact on both our near-term and long-term results. We expect that the negative impact will increase in the back half of the year and that we should begin to recover early in 2012. Based upon our performance in the first half of the year, our outlook for a stable or improving market in the second half, and our current assessment of our orthodontic contingency plans, we are increasing our guidance for adjusted earnings per diluted share in 2011, to a range of $1.92 to $2.00 from our previous guidance of $1.86 to $1.98 per diluted share."

"We continue to be very excited about our announced transaction to acquire Astra Tech AB from AstraZeneca. We have submitted the transaction for regulatory approval in all countries where it is required and remain optimistic that the transaction will close later this year. The transaction creates some compelling opportunities for us to grow our business and we look forward to welcoming the Astra Tech employees to DENTSPLY, when the transaction closes."

ADDITIONAL INFORMATION

A conference call has also been scheduled for today, Thursday, July 28, 2011 at 8:30 a.m. (Eastern Time). At that time, you will be able to discuss the second quarter earnings with DENTSPLY's Chairman and Chief Executive Officer, Mr. Bret Wise; President and Chief Operating Officer, Mr. Chris Clark; and Senior Vice President and Chief Financial Officer, Mr. William Jellison. A live broadcast is available by accessing DENTSPLY's website at www.dentsply.com. In order to participate in the call, dial (888) 271-8594 (for domestic calls) and (913) 312-1487 (for international calls). The Conference ID # is 8303524.

A rebroadcast of the conference call will be available to the public online at the DENTSPLY website www.dentsply.com. You may also access a dial-in replay for one week following the call at (888) 203-1112 (for domestic calls) or (719) 457-0820 (for international calls), pass code #8303524.

DENTSPLY designs, develops, manufactures and markets a broad range of professional dental products including dental implants, endodontic instruments and materials, orthodontic appliances, restorative materials, preventive materials and devices, and prosthetic materials and devices. The Company distributes its professional dental products in over 120 countries under some of the most well-established brand names in the industry. DENTSPLY is committed to the development of innovative, high quality, cost-effective new products for the professional dental market.

The DENTSPLY International Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4306

This press release contains forward-looking information (within the meaning of the Private Securities Litigation Reform Act of 1995) regarding future events or the future financial performance of the Company that involve substantial risks and uncertainties. Actual events or results may differ materially from those in the projections or other forward-looking information set forth herein as a result of certain risk factors. These risk factors include, without limitation; the continued strength of dental markets, the timing, success and market reception for our new and existing products, uncertainty with respect to governmental actions with respect to dental products, outcome of litigation, continued support of our products by influential dental professionals, and changes in the general economic environment that could affect the business. Changes in such assumptions or factors could produce significantly different results.

For an additional description of risk factors, please refer to the Company's most recent Form 10-K and its subsequent periodic reports on Forms 10-Q filed with the Securities and Exchange Commission.

Non-GAAP Financial Measures

In addition to the results reported in accordance with accounting principles generally accepted in the United States ("GAAP"), the Company provided adjusted operating income, adjusted net income attributable to DENTSPLY International and adjusted earnings per diluted share. These adjusted amounts consist of GAAP amounts excluding (1) certain mark-to-market charges at an unconsolidated affiliated company, (2) acquisition-related charges, (3) income tax-related adjustments and, (4) restructuring and other costs. Adjusted earnings per diluted share are calculated by dividing adjusted net income attributable to DENTSPLY International by diluted weighted-average shares outstanding.

The Company also provided an operational tax rate, which is the Company's effective tax rate, a GAAP measure, adjusted for certain charges. Adjusted operating income, adjusted net income attributable to DENTSPLY International, adjusted earnings per diluted share and operating tax rate are considered measures not calculated in accordance with GAAP, and therefore are non-GAAP measures. These non-GAAP measures may differ from those of other companies.

The Company believes that the presentation of adjusted operating income, adjusted net income attributable to DENTSPLY International, adjusted earnings per diluted share and operating tax rate provides important supplemental information to management and investors seeking to understand the Company's financial condition and results of operations. The non-GAAP financial information should not be considered in isolation from, or as a substitute for, measures of financial performance prepared in accordance with GAAP.

                                 DENTSPLY INTERNATIONAL INC.
                           CONSOLIDATED STATEMENTS OF OPERATIONS
                          (In thousands, except per share amounts)


                                       Three Months Ended           Six Months Ended
                                            June 30,                    June 30,
                                    ------------------------  ----------------------------


                                       2011         2010           2011           2010
                                    -----------  -----------  -------------  -------------

  Net sales                           $ 609,443    $ 565,086    $ 1,179,946    $ 1,111,030
  Net sales, excluding precious
   metal content                        563,990      518,808      1,090,995      1,016,155


  Cost of products sold                 294,592      277,491        565,111        541,397
                                    -----------  -----------  -------------  -------------

  Gross profit                          314,851      287,595        614,835        569,633
  % of Net sales                          51.7%        50.9%          52.1%          51.3%
  % of Net sales, excluding
   precious metal content                 55.8%        55.4%          56.4%          56.1%

  Selling, general and
   administrative expenses              210,984      182,383        411,751        370,417


  Restructuring and other costs           6,863          243          7,496          4,923
                                    -----------  -----------  -------------  -------------

  Operating income                       97,004      104,969        195,588        194,293
  % of Net sales                          15.9%        18.6%          16.6%          17.5%
  % of Net sales, excluding
   precious metal content                 17.2%        20.2%          17.9%          19.1%


  Net interest and other expense          4,574        6,581          9,159         12,459
                                    -----------  -----------  -------------  -------------

  Income before income taxes             92,430       98,388        186,429        181,834

  Provision for income taxes             17,957       25,042         41,669         46,297

  Equity in net income
   attributable to unconsolidated
   affiliated company                       917           --             93             --
                                    -----------  -----------  -------------  -------------

  Net income                             75,390       73,346        144,853        135,537
  % of Net sales                          12.4%        13.0%          12.3%          12.2%
  % of Net sales, excluding
   precious metal content                 13.4%        14.1%          13.3%          13.3%

  Less: Net income (loss)
   attributable to the
   noncontrolling interests               1,154          960          1,533          1,308
                                    -----------  -----------  -------------  -------------

  Net income attributable to
   DENTSPLY International              $ 74,236     $ 72,386      $ 143,320      $ 134,229
                                    ===========  ===========  =============  =============
  % of Net sales                          12.2%        12.8%          12.1%          12.1%
  % of Net sales, excluding
   precious metal content                 13.2%        14.0%          13.1%          13.2%

  Earnings per common share:
   Basic                                 $ 0.53       $ 0.50         $ 1.01         $ 0.92
   Dilutive                              $ 0.52       $ 0.49         $ 1.00         $ 0.91

  Cash dividends declared per
   common share                          $ 0.05       $ 0.05         $ 0.10         $ 0.10

  Weighted average common share
   outstanding:
   Basic                                141,052      144,779        141,331        145,772
   Dilutive                             143,373      146,939        143,694        148,048



                  DENTSPLY INTERNATIONAL INC.
             CONDENSED CONSOLIDATED BALANCE SHEETS
                         (In thousands)


                                    June 30,     December 31,
                                      2011           2010
                                 -------------  -------------
  Assets

  Current Assets:

   Cash and cash equivalents         $ 671,710      $ 540,038
   Accounts and notes
    receivable-trade, net              404,661        344,796
   Inventories, net                    337,200        308,738
   Prepaid expenses and other
    current assets                     138,842        121,473
                                 -------------  -------------
     Total Current Assets            1,552,413      1,315,045

  Property, plant and
   equipment, net                      442,957        423,105
  Identifiable intangible
   assets, net                          86,770         78,743
  Goodwill, net                      1,391,289      1,303,055

  Other noncurrent assets, net         183,214        138,003
                                 -------------  -------------


     Total Assets                  $ 3,656,643    $ 3,257,951
                                 =============  =============



  Liabilities and Equity

  Current liabilities                $ 430,426      $ 360,091
  Long-term debt                       654,873        604,015
  Deferred income taxes                 81,324         72,489

  Other noncurrent liabilities         408,787        311,444
                                 -------------  -------------
     Total Liabilities               1,575,410      1,348,039

  Total DENTSPLY International
   Equity                            2,042,230      1,839,386

  Noncontrolling interests              39,003         70,526
                                 -------------  -------------

     Total Equity                    2,081,233      1,909,912
                                 -------------  -------------

     Total Liabilities and
      Equity                       $ 3,656,643    $ 3,257,951
                                 =============  =============



                   DENTSPLY INTERNATIONAL INC.
             (In thousands, except per share amounts)

  Operating Income Summary:

  The following tables present the reconciliation of reported
   GAAP operating income in total and on a percentage of net
   sales, excluding precious metal content, to the non-GAAP
   financial measures.

  Three Months Ended June 30, 2011


                                                      Percentage

                                                        of Net
                                                        Sales,
                                                          Ex
                                          Operating    Precious
                                            Income       Metal
                                          (Expense)    Content
                                         -----------  ----------

  Income from Operations                    $ 97,004       17.2%

  Acquisition Related Activities               5,866        1.0%

  Restructuring and Other Costs                  997        0.2%

  Orthodontics Business Continuity
   Costs                                         720        0.1%
                                         -----------  ----------


  Adjusted Non-GAAP Operating Earnings     $ 104,587       18.5%
                                         ===========  ==========



  Three Months Ended June 30, 2010


                                                      Percentage
                                                        of Net
                                                        Sales,
                                                          Ex
                                          Operating    Precious
                                            Income       Metal
                                          (Expense)    Content
                                         -----------  ----------

  Income from Operations                   $ 104,969       20.2%


  Restructuring and Other Costs                  243        0.1%
                                         -----------  ----------


  Adjusted Non-GAAP Operating Earnings     $ 105,212       20.3%
                                         ===========  ==========




                           DENTSPLY INTERNATIONAL INC.
                    (In thousands, except per share amounts)

  Earnings Summary:

  The following tables present the reconciliation of reported GAAP net income
   attributable to DENTSPLY International and on a per share basis to the
   non-GAAP financial measures.

  Three Months Ended June 30, 2011


                                                                       Diluted
                                                            Income       Per
                                                           (Expense)   Share
                                                          ----------  --------

  Net Income Attributable to DENTSPLY International         $ 74,236    $ 0.52

  Acquisition Related Activities, Net of Tax                   6,164      0.04

  Restructuring and Other Costs, Net of Tax                      591        --

  Orthodontics Business Continuity Costs, Net of Tax             442        --

  Gain on Fair Value Adjustments at an Unconsolidated
   Affiliated Company                                        (1,181)    (0.01)

  Credit Risk Adjustment to Outstanding Derivatives, Net
   of Tax                                                      (783)        --

  Income Tax-Related Adjustments                               (977)    (0.01)


  Rounding                                                        --      0.01
                                                          ----------  --------

  Adjusted Non-GAAP Net Income Attributable to DENTSPLY
   International                                            $ 78,492    $ 0.55
                                                          ==========  ========



  Three Months Ended June 30, 2010


                                                                       Diluted
                                                            Income       Per
                                                           (Expense)   Share
                                                          ----------  --------

  Net Income Attributable to DENTSPLY International         $ 72,386    $ 0.49

  Credit Risk Adjustment to Outstanding Derivatives, Net
   of Tax                                                        732      0.00

  Restructuring and Other Costs, Net of Tax and
   Noncontrolling Interests                                      219      0.00

  Income Tax-Related Adjustments                                 571      0.00


  Rounding                                                        --      0.01
                                                          ----------  --------

  Adjusted Non-GAAP Net Income Attributable to DENTSPLY
   International                                            $ 73,908    $ 0.50
                                                          ==========  ========




                         DENTSPLY INTERNATIONAL INC.
                                (In thousands)

  Operating Tax Rate Summary:

  The following tables present the reconciliation of reported GAAP effective
   tax rate as a percentage of income before income taxes to the non-GAAP
   financial measure.

  Three Months Ended June 30, 2011



                                                                  Percentage
                                          Pre-tax       Income    of Pre-tax
                                           Income       Taxes       Income
                                         ----------  -----------  ----------

  As Reported - GAAP Operating Results     $ 92,430   $ (17,957)       19.4%

  Acquisition Related Activities              6,265        (488)

  Restructuring and Other Costs                 997        (407)

  Orthodontics Business Continuity
   Costs                                        720        (278)

  Credit Risk Adjustment to Outstanding
   Derivatives                              (1,275)          492


  Income Tax-Related Adjustments                 --        (977)
                                         ----------  -----------  ----------

  As Adjusted - Non-GAAP Operating
   Results                                 $ 99,137   $ (19,615)
                                         ==========  ===========       19.8%





  Three Months Ended June 30, 2010


                                                                  Percentage
                                          Pre-tax       Income    of Pre-tax
                                           Income       Taxes       Income
                                         ----------  -----------  ----------

  As Reported - GAAP Operating Results     $ 98,388   $ (25,042)       25.5%

  Credit Risk Adjustment to Outstanding
   Derivatives                                1,192        (460)

  Restructuring and Other Costs                 243         (59)


  Income Tax-Related Adjustments                 --          571
                                         ----------  -----------  ----------

  As Adjusted - Non-GAAP Operating
   Results                                 $ 99,823   $ (24,990)
                                         ==========  ===========       25.0%




                   DENTSPLY INTERNATIONAL INC.
            (In thousands, except per share amounts)

  Operating Income Summary:

  The following tables present the reconciliation of reported
   GAAP operating income in total and on a percentage of net
   sales, excluding precious metal content, to the non-GAAP
   financial measures.

  Six Months Ended June 30, 2011


                                                    Percentage
                                                      of Net
                                                      Sales,
                                                        Ex
                                        Operating    Precious
                                          Income       Metal
                                        (Expense)    Content
                                       -----------  ----------

  Income from Operations                 $ 195,588       17.9%

  Acquisition Related Activities             5,992        0.6%

  Restructuring and Other Costs              1,505        0.1%

  Orthodontics Business Continuity
   Costs                                       720        0.1%
                                       -----------  ----------


  Adjusted Non-GAAP Operating Income     $ 203,805       18.7%
                                       ===========  ==========



  Six Months Ended June 30, 2010


                                                    Percentage
                                                      of Net
                                                      Sales,
                                                        Ex
                                        Operating    Precious
                                          Income       Metal
                                        (Expense)    Content
                                       -----------  ----------

  Income from Operations                 $ 194,293       19.1%

  Restructuring and Other Costs              4,923        0.4%


  Acquisition-Related Activities               518        0.1%
                                       -----------  ----------


  Adjusted Non-GAAP Operating Income     $ 199,734       19.7%
                                       ===========  ==========




                           DENTSPLY INTERNATIONAL INC.
                     (In thousands, except per share amounts)

  Earnings Summary:

  The following tables present the reconciliation of reported GAAP net income
   attributable to DENTSPLY International and on a per share basis to the
   non-GAAP financial measures.

  Six Months Ended June 30, 2011


                                                                        Diluted
                                                             Income       Per
                                                           (Expense)    Share
                                                          -----------  --------

  Net Income Attributable to DENTSPLY International         $ 143,320    $ 1.00

  Acquisition Related Activities, Net of Tax                    6,241      0.04

  Restructuring and Other Costs, Net of Tax                       874      0.01

  Orthodontics Business Continuity Costs, Net of Tax              442      0.00

  Gain on Fair Value Adjustments at an Unconsolidated
   Affiliated Company                                           (260)    (0.00)

  Credit Risk Adjustment to Outstanding Derivatives, Net
   of Tax                                                       (783)    (0.01)

  Income Tax-Related Adjustments                                (781)    (0.01)


  Rounding                                                         --      0.01
                                                          -----------  --------

  Adjusted Non-GAAP Net Income Attributable to DENTSPLY
   International                                            $ 149,053    $ 1.04
                                                          ===========  ========



  Six Months Ended June 30, 2010


                                                                        Diluted
                                                             Income       Per
                                                           (Expense)    Share
                                                          -----------  --------

  Net Income Attributable to DENTSPLY International         $ 134,229    $ 0.91

  Restructuring and Other Costs, Net of Tax and
   Non-Controlling Interests                                    3,010      0.02

  Credit Risk Adjustment to Outstanding Derivatives, Net
   of Tax                                                         732      0.00

  Acquisition-Related Activities, Net of Tax and
   Non-Controlling Interests                                      388      0.00


  Income Tax-Related Adjustments                                1,007      0.01
                                                          -----------  --------

  Adjusted Non-GAAP Net Income Attributable to DENTSPLY
   International                                            $ 139,366    $ 0.94
                                                          ===========  ========




                            DENTSPLY INTERNATIONAL INC.
                                   (In thousands)

  Operating Tax Rate Summary:

  The following tables present the reconciliation of reported GAAP effective tax
   rate as a percentage of income before income taxes to the non-GAAP financial
   measure.

  Six Months Ended June 30, 2011


                                                                       Percentage
                                                                       of Pre-tax
                                               Pre-tax       Income
                                                Income       Taxes       Income
                                             -----------  -----------  ----------

  As Reported - GAAP Operating Results         $ 186,429   $ (41,669)       22.4%

  Acquisition Related Activities                   6,391        (538)

  Restructuring and Other Costs                    1,505        (631)

  Orthodontics Business Continuity Costs             720        (278)

  Credit Risk Adjustment to Outstanding
   Derivatives                                   (1,275)          492


  Income Tax-Related Adjustments                      --        (781)
                                             -----------  -----------


  As Adjusted - Non-GAAP Operating Results     $ 193,770   $ (43,405)
                                             ===========  ===========       22.4%




  Six Months Ended June 30, 2010

                                                                       Percentage
                                                                       of Pre-tax
                                               Pre-tax       Income
                                                Income       Taxes       Income
                                             -----------  -----------  ----------

  As Reported - GAAP Operating Results         $ 181,834   $ (46,297)       25.5%

  Restructuring and Other Costs                    4,923      (1,803)

  Credit Risk Adjustment to Outstanding
   Derivatives                                     1,192        (460)

  Recent Acquisition-Related Activities              518        (130)


  Income Tax-Related Adjustments                      --        1,007
                                             -----------  -----------  ----------


  As Adjusted - Non-GAAP Operating Results     $ 188,467   $ (47,683)
                                             ===========  ===========       25.3%

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: DENTSPLY International Inc.

CONTACT: Derek Leckow
Vice President
Investor Relations
(717) 849-7863
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