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Economy Affects Cybex Sales for Quarter, Year 2009

MEDWAY, MA -- Net sales for Cybex International, Medway, MA, continued to be down in the fourth quarter 2009 and for the full year due to the economy, according to the company’s CEO, John Aglialoro.

Net sales in the fourth quarter 2009 were $34.8 million compared to $39.3 million for the corresponding 2008 period, a 12 percent decrease. Cybex reported net income for the fourth quarter of 2009 of $1 million compared to a net loss of $10.9 million for the corresponding 2008 period. Fourth quarter 2008 results included a goodwill impairment charge.

For the year 2009, net sales were $120.5 million compared to $147.9 million for 2008, a 19 percent decrease. The net loss for the year was $2.4 million compared to a net loss of $9.1 million for 2008.

The 2008 results include a fourth quarter non-cash non-deductible goodwill impairment charge of $11.3 million, principally triggered by declines in Cybex’s stock price in the period.

In a conference call with stockholders and analysts, Aglialoro said that the company’s balance sheet had greatly improved, allowing the company to have some cash on hand during what he called a “still uncertain time as far as visibility in the market.”

He said that while some operators are ready to buy equipment again, many are still holding off due to the economy.

Health clubs and hotel fitness centers make up just half the Cybex market now, Aglialoro said, as the company has started to focus more on specialty markets, such as university and military fitness centers.

"We will continue to make cost-effective investments to reach these markets, which we believe will generate profitable incremental sales in the years to come,” he said.

Aglialoro also reiterated that Cybex will continue with its value pricing and stay away from bidding wars. He said that the science that backs the Cybex equipment justifies the pricing strategy.

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