DENTSPLY International Inc. Reports Record Third Quarter 2006 Sales and Earnings.

YORK, Pa. -- DENTSPLY International Inc. (NASDAQ:XRAY) today announced record sales and earnings for the quarter ended September 30, 2006. Net sales increased 4.8% to $435.7 million compared to $416.0 million reported for the third quarter of 2005. Net sales, excluding precious metal content, increased 5.8% in the third quarter of 2006. U.S. dealer-based purchases ahead of price increases, along with continued strength in specialty products, benefited performance for the quarter. This was partially offset by product returns from approximately 200 distributors that were discontinued as part of our previously announced Strategic Partnership Program during the period.

Net income for the third quarter of 2006 was $49.4 million, or $0.31 per diluted share, compared to a net loss of $60.8 million, or $0.39 per diluted share in the third quarter of 2005. Net income in the third quarter of 2006 includes the net of tax impact of both expensing stock options of $3.6 million ($0.02 per diluted share) and of restructuring and other related items of $0.6 million. The third quarter of 2006 includes a net charge to income tax expense of $3.4 million ($0.02 per diluted share) from tax-related adjustments, while the third quarter of 2005 included a net of tax impact of $111.6 million ($0.71 per diluted share) for impairment of intangible assets associated with injectable anesthetic products and a net reduction of income tax expense of $1.1 million ($0.01 per diluted share) related to tax related adjustments.

On an adjusted basis, earnings, excluding restructuring and other related items and tax adjustments, but including the expensing of stock options in both periods, which constitutes a non-GAAP measure, were $52.2 million or $0.33 per diluted share in the third quarter of 2006, compared to $46.9 million or $0.30 per diluted share in the third quarter of 2005. This represents a 10.0% increase in diluted earnings per share on an adjusted basis. For a reconciliation of this non-GAAP measure to earnings per share calculated according to GAAP, see the attached table.

Gary Kunkle, Chairman and Chief Executive Officer, commented that, "We are pleased with the progress we are making on the important growth initiatives that we have implemented as we position the Company for continued growth in the future. During the quarter, we announced our Strategic Partnership Program in the U.S. This action will significantly enhance our customer specific intelligence and allow us to better focus selling and marketing activities on the dental professional, our end-user customer. Also during the quarter, we increased our focus on dental implant sales by combining the implant and endodontic sales organizations in the U.S. This better positions DENTSPLY to take further advantage of the continued rapid growth of the dental implant market."

Mr. Kunkle also stated, "We believe these actions will strengthen our long-term position within the dental industry and provide us with the ability to deliver solid performance in 2007. We are maintaining our previous earnings guidance for 2006 of $1.38-1.42, including the expensing of stock options, but excluding tax adjustments, and restructuring and other related items."

DENTSPLY has reviewed its prior accounting related to the classification of certain short-term investments. Based on this review, the Company has determined that the classification of these short-term investments should be revised from their prior presentation as cash equivalents. The Company plans to reclassify its short-term investments and restate the consolidated balance sheets and consolidated statements of cash flows as of and for the years ended December 31, 2005 and 2004 included in its Form 10-K for the year ended December 31, 2005 and its Form 10Qs for the quarters ended March 31, 2006 and June 30, 2006 to reflect the required change. This restatement has no impact on net sales, net income, earnings per share, current assets, total assets, stockholders' equity, or cash flows from operating activities.

DENTSPLY will hold a conference call on Thursday, November 2, 2006 at 8:30 AM Eastern Time. To access the call, dial 800-289-0529 (for domestic calls) and 913-981-5523 (for international calls). The Conference I.D. # is 7946401. This conference call will be broadcast live on the Internet at www.dentsply.com. An audio replay of the conference call will be available for one week. To access the replay, please dial 888-203-1112 (for domestic calls) and 719-457-0820 for international calls). Conference I.D. # is 7946401.

DENTSPLY designs, develops, manufactures and markets a broad range of products for the dental market. The Company believes that it is the world's leading manufacturer and distributor of dental prosthetics, precious metal dental alloys, dental ceramics, endodontic instruments and materials, prophylaxis paste, dental sealants, ultrasonic scalers, and crown and bridge materials; the leading United States manufacturer and distributor of dental handpieces, dental x-ray film holders, film mounts and bone substitute/grafting materials; and a leading worldwide manufacturer or distributor of dental injectable anesthetics, impression materials, orthodontic appliances, dental cutting instruments and dental implants. The Company distributes its 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 dental market.

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 our 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 Annual Report on Form 10-K and its subsequent periodic reports on Form 10-Qs filed with the Securities and Exchange Commission.

Non-GAAP Financial Measures

DENTSPLY believes that the non-GAAP financial information provided in this release may be useful to investors for comparison purposes because the Company has historically provided similar information. 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.

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