Sirona Reports Fiscal 2006 Third Quarter and Year-to-Date Results; Provides Financial Guidance for Fiscal Year 2006 Ending September 30, 2006.

LONG ISLAND CITY, N.Y. & BENSHEIM, Germany -- Sirona (Nasdaq: SIRO):

--Revenues for the quarter and year-to-date increased 10.2% and 7.5%, respectively, and on a constant currency basis,10% and 11.9%

--Operating income increased 48.3% for the quarter and 27.1% Year-to-Date (excluding an In-Process R&D charge related to the Schick merger)

--Merger with Schick Technologies Inc. completed on June 20, 2006

Sirona (Nasdaq: SIRO), one of the leading global manufacturers of high-quality dental equipment and technologies, today reported its financial results for the third fiscal quarter ended June 30, 2006.

On June 20, 2006, the merger with Schick Technologies Inc. was completed and Schick's operating results have been included in Sirona's consolidated statement of operations since that date.

Commenting on the quarter, Sirona Dental Systems, Inc. Chairman, President & CEO Jost Fischer said, "We experienced continued solid performance in our businesses, with particularly strong growth in our Instruments and Imaging Systems segments of 22% and 19%, respectively. U.S. sales grew at 29%. Dental CAD/CAM Systems sales were essentially unchanged compared to the third quarter last year which had been positively impacted by the bi-annual IDS trade show, the largest show in the industry. Dental CAD/CAM Systems sales grew 12% for the first nine months and we are confident about the growth opportunity in this marketplace."

Mr. Fischer added, "With our global presence and comprehensive product range, we believe we are well positioned for further growth. Our continuous flow of new products is expected to remain a driving force in growing our business around the world. Our innovative SIROLaser, successfully launched in February 2006, and the GALILEOS, our ground breaking 3-D panoramic imaging system, which is expected to be launched in the January-February 2007 timeframe, are just two examples of our product pipeline."

Commenting on the recent closing of the acquisition of Schick Technologies, Mr. Fischer stated, "We have successfully completed the acquisition of Schick, which will strengthen our position in the U.S. market as well as our research and development competencies in the Imaging Systems segment. I am very pleased to report that the integration is proceeding smoothly and both organizations are very excited about our future opportunities."

Third Quarter Fiscal 2006 Financial Results

Revenues for the quarter were $117.3 million, an increase of $10.9 million or 10.2%, compared to $106.4 million for the same period last year. On a constant currency basis revenues increased 10.0% with growth rates for the Company's business segments as follows: Instruments 22.0%; Imaging Systems 19%; Treatment Centers 9%; and Dental CAD/CAM Systems 1%. Revenues in the United States increased 29% for the quarter. Outside the United States, revenues increased 4% on a constant currency basis.

Operating income for the quarter, excluding the charge of $6.0 million from the write-off of in-process research and development (IPR&D) expense in connection with the Schick acquisition, increased 48.3% to $9.7 million from $6.5 million in the same quarter last year. Adjusted EBITDA increased 55.1% to $29.0 million from $18.7 million in the same quarter last year. The increase in both measures was primarily due to higher volumes, a positive product mix and the resulting improvement in gross profit margins. Adjusted EBITDA was also positively impacted by foreign currency gains. A reconciliation of Adjusted EBITDA to EBITDA and EBITDA to net income is attached to this press release.

Net loss for the quarter was $5.5 million compared to a net loss of $9.8 million in the same period last year. The improvement was primarily due to non-cash foreign currency exchange gains partly off-set by increased interest expenses as a result of the higher average debt balances following the leveraged buy-out in June 2005, the one-time charge from the write-off of IPR&D and increased provisions for taxes on income. The tax provision for the quarter was impacted by several items including the non-tax deductible expense related to the write-off of the acquired IPR&D.

Year-to-Date Fiscal 2006 Financial Results

Revenues for the nine month period ended June 30, 2006 were $385.1 million, an increase of $26.8 million or 7.5%, compared to $358.3 million last year. On a constant currency basis revenues increased 11.9%, with growth rates for the Company's business segments as follows: Imaging Systems 23%; Instruments 19%; Dental CAD/CAM Systems 12%; and Treatment Centers unchanged. Revenues in the United States increased 15% for the nine month period. Outside the United States, revenues increased 11% on a constant currency basis.

Operating income for the nine months, excluding the charge of $6.0 million from the write-off of IPR&D, increased 27.1% to $56.4 million from $44.4 million in the same period last year. Adjusted EBITDA increased 19.8 % to $ 104.7 million, compared to $87.4 million in the same period last year. The increase in both measures was primarily due to higher volumes, a positive product mix and the resulting improvement in gross profit margins. Adjusted EBITDA was also positively impacted by foreign currency gains. A reconciliation of Adjusted EBITDA to EBITDA and EBITDA to net income is attached to this press release.

Net income for the nine months was $2.2 million compared to $11.1 million for the same period last year. The decrease was primarily due to increased interest expenses as a result of the higher average debt balances following the leveraged buy-out in June 2005, write-off of IPR&D expenses, and increased provisions for taxes on income which were partially off-set by foreign currency exchange gains. The tax provision for the nine months was impacted by several items including the non-tax deductible expense related to the write-off of the acquired IPR&D.

At June 30, 2006 the Company had cash and cash equivalents of $75.7 million and long term debt (including current portion) of $539.3 million, resulting in net financial debt of $463.6 million as compared to $65.9 million of cash and cash equivalents and long term debt (including current portion) of $586.7 million, resulting in net financial debt of $520.8 million at September 30, 2005. Sirona prepaid long term debt in the amount of $74.0 million for the nine months ended June 30, 2006.

Simone Blank, Executive Vice President and Chief Financial Officer, commented, "The third quarter was a solid quarter for Sirona. Among other achievements, the Company strengthened its financial position during the nine months ending June 30, 2006. Operating cash flow increased by 41.2% to $77.4 million and we prepaid $74.0 million of bank debt during that period."

Pro-forma Information

The pro-forma information set forth below gives effect to the acquisition of Schick Technologies which closed in fiscal year 2006 and to the leveraged buy-out which closed in fiscal year 2005 as if they had occurred at the beginning of fiscal year 2005.

On a pro-forma basis revenues for the three months ended June 30, 2006 were $132.3 million, an increase of $10.2 million or 8.4%, compared to $122.1 million for the same period last year. Pro-forma revenues increased 10.4% on a constant currency basis. Pro-forma adjusted EBITDA for the three months was $34.0 million, an increase of 31.1%, compared with the same period last year. Pro-forma net income for the three months ended June 30, 2006 was $2.6 million, compared to a pro-forma loss of $16.2 million in the previous year.

On a pro-forma basis revenues for the nine months ended June 30, 2006 were $440.4 million, an increase of $35.8 million or 8.8%, compared to $404.6 million for the same period last year. Pro-forma revenues increased 12.8% on a constant currency basis. Pro-forma adjusted EBITDA for the nine months was $127.5 million, an increase of 21.7%, compared with the same period last year. Pro-forma net income for the nine months ended June 30, 2006 was $17.4 million, compared to a pro-forma loss of $ 8.3 million in the previous year.

A reconciliation of pro-forma Adjusted EBITDA to pro-forma EBITDA and pro-forma EBITDA to pro-forma net income is attached to this press release.

Guidance for Fiscal Year 2006

The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. The pro-forma guidance below is calculated on the same basis as the historical pro-forma information included in this release.

Pro-forma revenue for Sirona's fiscal year ending September 30, 2006, is expected to grow in the range of 8.5%-10.0% compared to fiscal year 2005, assuming a comparable foreign currency exchange rate going forward as for the third quarter of fiscal year 2006. On a constant currency basis, pro-forma revenue is expected to grow in the range of 11.5%-12.5% for fiscal year 2006.

Pro-forma operating income is expected to grow in excess of 100% for fiscal year 2006 compared to fiscal year 2005. Pro-forma operating income is impacted by items resulting from the leveraged buy-out in fiscal year 2005 and the Schick acquisition. Pro-forma adjusted EBITDA is expected to grow in the range of 17.5%-19.0% for fiscal year 2006 compared to fiscal year 2005.

Conference Call/Webcast Information

Sirona will hold a conference call to discuss its financial results at 9:00 a.m. Eastern Daylight Time on August 9, 2006. The teleconference can be accessed by calling 866 383 8108 (domestic) or [phone] (international), passcode # 71447150. The webcast will be available via the Internet at www.sirona.com, www.fulldisclosure.com or www.streetevents.com. A replay of the conference call will be available through August 16, 2006 by dialing 888 286 8010 (domestic) or [phone] (international), passcode # 48531850. A web archive will be available for 30 days at www.sirona.com, www.fulldisclosure.com or www.streetevents.com.

About Sirona Dental Systems, Inc.

Recognized as one of the world's leading manufacturers of high quality dental equipment and technologies, Sirona (formerly Siemens Dental) has served equipment dealers and dentists worldwide for more than 125 years. Sirona develops, manufactures, and markets a complete line of dental products, including the CAD/CAM restoration equipment (CEREC), digital and film-based intra-oral, panoramic and cephalometric X-ray imaging systems, dental treatment centers and handpieces. On June 20, 2006, Sirona completed its acquisition of Schick Technologies, an ISO 9001 certified company, which designs, develops, and manufactures innovative digital x-ray imaging systems for the dental markets, based on proprietary digital imaging technologies. Sirona's worldwide headquarters are located in Bensheim, Germany, with U.S. headquarters in Long Island City, New York. Visit http://www.sirona.com for more information about Sirona and its products.

This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are information of a non-historical nature and are subject to risks and uncertainties that are beyond the Company's ability to control. The matters discussed in this news release are subject to various factors which could cause actual events and results to differ materially from such statements. Such factors include uncertainties as to the future sales volume of the Company's products, the possibility of changing economic, market and competitive conditions, dependence on products, dependence on key personnel, technological developments, intense competition, market uncertainties, dependence on distributors, ability to manage growth, dependence on key suppliers, and other risks and uncertainties including those detailed in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release.

Management's reasons for presenting non-GAAP financial measures

The results of operations of Sirona have been materially affected by the leveraged buy-out in fiscal year 2005 and by the Schick acquisition. Sirona management evaluates and makes operating decisions using various measures. These measures are generally based on the revenues generated by its products and certain costs of producing that revenue, such as cost of product sales, research and development and selling, general and administrative expenses. One such measure is Adjusted EBITDA, which is a non-GAAP financial measure under Section 101 of Regulation G under the Securities Exchange Act of 1934, as amended. Adjusted EBITDA consists of non-GAAP EBITDA plus transaction related charges and non-cash items.

EBITDA is defined as net income (loss) before interest, taxes, depreciation, and amortization. As EBITDA is a non-GAAP measure, it should not be viewed in isolation and does not purport to be an alternative to net income (loss) as an indicator of operating performance or an alternative to cash flows from operating activities as a measure of liquidity. There are material limitations associated with making the adjustments to Sirona's earnings to calculate EBITDA and using this non-GAAP financial measure as compared to the most directly comparable GAAP financial measure. For instance, EBITDA does not include:

--interest expense, and because Sirona has borrowed money in order to finance its operations, interest expense is a necessary element of its costs and ability to generate revenue;

--depreciation and amortization expense, and because Sirona uses capital assets, depreciation and amortization expense is a necessary element of its costs and ability to generate revenue;

--tax expense, and because the payment of taxes is part of Sirona's operations, tax expense is a necessary element of costs and impacts Sirona's ability to operate.

Transaction related and non-cash items represent: (a) the amounts related to the fair value increases in inventory and in-process research and development resulting from the Schick acquisition, (b) the non-cash foreign exchange (gain) loss on bank debt resulting from transaction adjustments to the carrying value of a portion of Sirona's U.S. dollar denominated debt and the U.S. dollar denominated deferred income due to currency fluctuations, (c) transaction related costs incurred in connection with the leveraged buy-out and the Schick acquisition and (d) share-based compensation expense under SFAS No. 123R.

Sirona believes that Adjusted EBITDA provides useful supplemental information to management and investors regarding the performance of the Company's business operations and facilitates comparisons to our historical operating results. Note, however that Adjusted EBITDA is not intended to be a measure of cash flow for Sirona's discretionary use, as it does not consider certain cash requirements, such as capital expenditures, contractual commitments, interest payments, tax payments and debt service requirements. As all companies do not use identical calculations, this presentation of Adjusted EBITDA may not be comparable to other similarly titled measures for other companies. Non-GAAP financial measures should not be considered as a substitute for measures of financial performance in accordance with GAAP. A reconciliation of non-GAAP financial measures is attached to this press release.

Sirona Dental Systems, Inc. and Subsidiaries
                Condensed Consolidated Balance Sheets


                                           June 30,      September 30,
                                             2006            2005
(U.S. $ in thousands)                     (unaudited)
                                         -------------   -------------

ASSETS

Current assets
    Cash and cash equivalents           $      75,685   $      65,941
    Restricted cash                               604             674
    Restricted short term investments               -             745
    Accounts receivable, net of
     allowance for doubtful accounts of
     $502 and $402, respectively               62,275          47,631
    Inventories, net                           61,111          47,340
    Deferred tax assets                         8,482           3,242
    Prepaid expenses and other current
     assets                                    19,748          33,856
                                         -------------   -------------
Total current assets                    $     227,905   $     199,429

    Property, plant and equipment, net         53,161          49,180
    Goodwill                                  615,621         468,769
    Intangible assets, net                    636,480         489,442
    Other non-current assets                   16,849          21,981
    Deferred tax assets                           307           9,874
                                         -------------   -------------

Total assets                            $   1,550,323   $   1,238,675
                                         =============   =============

LIABILITIES, MINORITY INTEREST AND
SHAREHOLDERS' EQUITY

Current liabilities
    Trade accounts payable              $      27,732   $      22,173
    Current portion of long-term debt          13,922          10,103
    Income taxes payable                       17,143           1,531
    Deferred tax liabilities                    4,920           3,219
    Accrued liabilities and deferred
     income                                    58,019          63,757
                                         -------------   -------------
Total current liabilities               $     121,736   $     100,783
    Long term debt                            525,406         576,622
    Deferred tax liabilities                  253,551         196,392
    Other non-current liabilities              14,852           9,585
    Indebtedness to related parties                 -         184,712
    Pension related provisions                 48,601          43,847
    Deferred income                           100,000         100,000
                                         -------------   -------------
Total liabilities                       $   1,064,146   $   1,211,941

Minority interest                                 113              42

Shareholders' equity
    Common share capital                          546              30
    Additional paid-in capital                579,050         123,696
    Excess of purchase price over
     predecessor basis                        (49,103)        (49,103)
    Accumulated deficit                       (45,918)        (48,161)
    Accumulated other comprehensive
     income                                     1,489             230
                                         -------------   -------------

Total shareholders' equity              $     486,064   $      26,692
                                         -------------   -------------

Total liabilities, minority interest and
 shareholders' equity                   $   1,550,323   $   1,238,675
                                         =============   =============



             Sirona Dental Systems, Inc. and Subsidiaries
      Unaudited Condensed Consolidated Statements of Operations

                        Three months ended        Nine months ended
                       June 30,    June 30,     June 30,    June 30,
                          2006        2005         2006        2005
(U.S. $ in thousands)             Predecessor              Predecessor
                      ----------- -----------  ----------- -----------
Revenue              $   117,337 $   106,372  $   385,062 $   358,285
Cost of sales             65,565      61,046      202,045     199,463
                      ----------- -----------  ----------- -----------

Gross profit         $    51,772 $    45,326  $   183,017 $   158,822

Operating expenses
 (income):
Selling, general and
 administrative
 expense                  33,470      32,677      101,112      93,236
Research and
 development               8,166       6,740       23,139      21,700
Write off of in-
 process research and
 development               6,000                    6,000
Provision for doubtful
 accounts and notes
 receivables                (138)       (130)          44        (127)
Other operating
 expense (income),
 net                         622        (471)       2,306        (384)
                      ----------- -----------  ----------- -----------

Operating income           3,652       6,510       50,416      44,397
Foreign currency
 transactions (gain)
 loss                    (11,361)      8,578       (9,481)        749
Unrealized (gain)
 loss on derivative
 instruments              (2,397)      4,304       (3,769)      4,383
Interest expense, net     14,893       7,035       43,893      22,774
Other income                   -        (129)           -        (129)
                      ----------- -----------  ----------- -----------

Income (loss) before
 income taxes and
 minority interest         2,517     (13,278)      19,773      16,620
Income tax provision
 (benefit)                 7,983      (3,234)      17,463       5,444
Minority interest             45        (236)          67          50
                      ----------- -----------  ----------- -----------

Net (loss) income    $    (5,511)$    (9,808) $     2,243 $    11,126
                      =========== ===========  =========== ===========


(Loss) income per
 share - basic       $     (0.14)$       N/A  $      0.06 $       N/A
(Loss) income per
 share - diluted     $     (0.14)$       N/A  $      0.06 $       N/A

Weighted average
 shares - basic       38,908,289         N/A   37,617,750         N/A
Weighted average
 shares - diluted     38,908,289         N/A   38,085,232         N/A



              Sirona Dental Systems, Inc. and Subsidiary
      Unaudited Condensed Consolidated Statements of Cash Flows

                                               Nine months ended
(U.S. $ in thousands)                    June 30, 2006   June 30, 2005
                                                          Predecessor
                                         -------------   -------------
Cash flows from operating activities
Net income                              $       2,243   $      11,126
Adjustments to reconcile net income to
 net cash provided by operating
 activities
Depreciation and amortization                  45,967          44,155
Gain on disposal of property, plant and
 equipment                                          2             (45)
Unrealized (gain) loss on derivative
 instruments                                   (3,769)          4,383
Foreign currency transactions (gain)
 loss                                          (9,481)            749
Accreted interest on long term debt            15,317           3,115
Deferred income taxes                          (3,817)         (2,546)
Write off of in-process research and
 development                                    6,000               -
Amortization debt issuance cost                 5,283           1,807
Compensation expense from stock options           347               -

Changes in assets and liabilities

Accounts receivable                            (4,798)         (1,547)
Inventories                                    (4,039)         (2,869)
Prepaid expenses and other current
 assets                                        13,029             (13)
Restricted Cash                                   103            (276)
Changes in other non-current assets             8,853             (51)
Trade accounts payable                         (4,200)         (6,701)
Accrued liabilities                           (11,357)          8,068
Other non-current liabilities                   6,740          (6,809)
Income taxes payable                           15,014           2,260
                                         -------------   -------------
Net cash provided by operating
 activities                             $      77,437   $      54,806

Cash flows from investing activities
Investment in property, plant and
 equipment                                    (10,184)        (11,041)
Proceeds from sale of property, plant
 and equipment                                    700             191
Restricted short term investments                 753            (272)
Purchase of intangible assets                  (1,469)           (586)
Deferred purchase price payment                     -         (25,700)
Acquisition of a business, net cash
 acquired                                      14,279               -
                                         -------------   -------------
Net cash provided by (used in) investing
 activities                             $       4,079   $     (37,408)

Cash flows from financing activities
Repayment of shareholder loans                      -           2,596
Repayments of long-term debt                  (73,962)        (17,220)
Proceeds from shares under share-based
 compensation plans                                 -               -
                                         -------------   -------------

Net cash used in financing activities   $     (73,962)  $     (14,624)
                                         -------------   -------------

Change in cash and cash equivalents             7,554           2,774
Effect of exchange rate change on cash &
 cash equivalents                               2,190             877
Cash and cash equivalents at beginning
 of period                                     65,941          38,877
                                         -------------   -------------

Cash and cash equivalents at end of
 period                                 $      75,685   $      42,528
                                         =============   =============




Supplemental information
Interest paid                                  23,420          22,274
Interest capitalized                              122              51
Income taxes paid (received)                    4,744          (1,393)
Acquisition of businesses, net cash
 acquired
Current assets                                 19,450
Property, plant and equipment and other
 non-current assets                           207,961
Goodwill and intangible assets                289,412
Current liabilities                           (75,579)
Shares and options exchanged                 (455,523)
                                         -------------
                                              (14,279)



             Sirona Dental Systems, Inc. and Subsidiaries

Set forth below is a reconciliation of net (loss)/income to EBITDA

                            Three months ended     Nine months ended
                            June 30,   June 30,   June 30,   June 30,
                              2006       2005       2006       2005
(U.S. $ in thousands)                Predecessor           Predecessor
                           --------------------- ---------------------

Net (loss)/income             (5,511)    (9,808)     2,243     11,126
Provision/(Benefit) for
 income taxes                  7,983     (3,234)    17,463      5,444
Interest expense, net         14,893      7,035     43,893     22,774
Depreciation                   2,651      4,375      9,570     12,738
Amortization                  13,281     10,201     36,397     31,417
                           --------------------- ---------------------

EBITDA                        33,297      8,569    109,566     83,499
                           ===================== =====================


Set forth below is a reconciliation of EBITDA to Adjusted EBITDA

                            Three months ended     Nine months ended
                           June 30,   June 30,   June 30,   June 30,
                              2006       2005       2006       2005
(U.S. $ in thousands)                Predecessor           Predecessor
                           --------------------- ---------------------

EBITDA                        33,297      8,569    109,566     83,499


Transaction related costs
 and non-cash charges
 included in EBITDA are
 detailed below:
---------------------------
Transaction related costs          -          -          -         35
Write-off of IPR&D             6,000          -      6,000          -
Fair value increase in
 inventory                       441          -        441        844
Option expense                   279          -        279          -
Unrealized, non-cash gain
 on the revaluation of the
 $ denominated exclusivity
 fee                          (4,949)         -     (5,123)         -
Unrealized, non-cash
 (gain)/loss on the
 revaluation of the $
 denominated bank loan        (6,053)    10,133     (6,496)     2,999
                              (4,282)    10,133     (4,899)     3,878
                           --------------------- ---------------------

Adjusted EBITDA               29,015     18,702    104,667     87,377
                           ===================== =====================



             Sirona Dental Systems, Inc. and Subsidiaries

Set forth below is a reconciliation of pro-forma net (loss)/income to
 pro-forma EBITDA

                             Three months ended    Nine months ended
                             June 30,  June 30,    June 30,  June 30,
                                2006      2005       2006      2005
(U.S. $ in thousands)                 Predecessor          Predecessor
                            --------------------- --------------------

Pro-forma net income
 (loss)/income                  2,633    (16,233)   17,438     (8,252)
Provision/(Benefit) for
 income taxes                   8,352     (5,487)   20,754     (1,869)
Interest expense, net          11,359     10,029    32,823     32,463
Depreciation                    2,795      4,537    10,038     13,226
Amortization                   17,020     17,053    48,089     48,356
                            --------------------- --------------------

Pro-forma EBITDA               42,159      9,899   129,142     83,924
                            ===================== ====================


Set forth below is a reconciliation pro-forma EBITDA to adjusted
 pro-forma EBITDA

                             Three months ended    Nine months ended
                             June 30,  June 30,    June 30,  June 30,
                                2006      2005       2006      2005
(U.S. $ in thousands)                 Predecessor          Predecessor
                            --------------------- --------------------

Pro-forma EBITDA               42,159      9,899   129,142     83,924

Transaction related costs
 and non-cash charges
 included in EBITDA are
 detailed below:
---------------------------
Fair value increase in
 inventory                          -      2,813       911      8,552
Option expense                  2,806      3,063     9,104      9,361
Unrealized, non-cash gain on
 the revaluation of the $
 denominated exclusivity fee   (4,949)         -    (5,123)         -
Unrealized, non-cash
 (gain)/loss on the
 revaluation of the $
 denominated bank loan         (6,053)    10,133    (6,496)     2,999
                               (8,196)    16,009    (1,604)    20,912
                            --------------------- --------------------

Adjusted pro-forma EBITDA      33,963     25,908   127,538    104,836
                            ===================== ====================