Sirona Reports Fiscal 2007 First Quarter Results.

* First Quarter Revenue Increased 28.6%, up 22.0% on a constant currency basis

* Sirona Reaffirms Fiscal 2007 Guidance

LONG ISLAND CITY, N.Y. -- Sirona (Nasdaq: SIRO), one of the leading global manufacturers of high-quality dental equipment and technologies, today reported its financial results for the quarter ended December 31, 2006.

First Quarter Fiscal 2007 vs. First Quarter Fiscal 2006 Financial Results

Revenue was $174.8 million, an increase of $38.9 million or 28.6% (up 22.0% on a constant currency basis) with growth rates for the Company's business segments as follows: Imaging Systems 99% (up 86% constant currency); Treatment Centers 38% (up 28% constant currency); Instruments 38% (up 28% constant currency); Dental CAD/CAM Systems declined by 11% (down 14% constant currency). Revenue in the United States increased 31%. Outside the United States, revenue increased 27% (up 17% on a constant currency basis). Imaging Systems and United States revenue growth was favorably impacted by the June 2006 acquisition of Schick Technologies Inc.

Gross profit increased by $17.9 million to $84.1 million, up 27.0%. Operating income was $26.1 million compared to $26.8 million. Operating income performance was driven by increased gross profit, offset by higher SG&A and R&D expense. The increase in SG&A and R&D expense as compared to the prior year was mainly a result of the inclusion of the Schick operations, as well as increased expenses following the acquisition including, option expenses, costs related to the preparation and audit of U.S. GAAP financial statements, SEC filings and Sarbanes Oxley compliance.

Net income was $2.3 million compared to net income of $3.3 million. First quarter 2007 net income includes a one time charge related to the early extinguishment of debt of $21.1 million ($13.3 million after tax) and a foreign exchange gain of $3.9 million ($2.5 million after tax) resulting from the re-financing. The effective tax rate represents an estimation of 35% for fiscal year 2007, a significant improvement compared to the prior year.

At December 31, 2006 the Company had cash and cash equivalents of $52.6 million and total debt of $533.8 million, resulting in net debt of $481.2 million. This compares to net debt of $452.8 million at September 30, 2006. Of the $28.4 million increase in net debt, approximately $14 million was due to currency fluctuations. During the quarter, the Company entered into a new credit facility which provides expanded borrowing capacity, reduced borrowing costs, and generally less restrictive covenants.

Chairman, President & CEO Jost Fischer commented, "We are pleased with the overall performance of our business, with especially strong results in our Treatment Center and Instruments segments for the quarter. Dental CAD/CAM revenues declined due to market anticipation of significant new product offerings, and a challenging year-over-year comparison. For Fiscal 2007, we expect that revenue growth will benefit in the second half of the year from our Galileos 3D launch and our new CEREC offerings. Our guidance for Fiscal year ending September 30, 2007 remains unchanged."

Conference Call/Webcast Information

Sirona will hold a conference call to discuss its financial results at 9:00 a.m. Eastern Standard Time on February 9, 2007. The teleconference can be accessed by calling 866 314 4483 (domestic) or [phone] (international) using passcode # 84002106. The webcast will be available via the Internet at www.sirona.com. A replay of the conference call will be available through March 9, 2007 by calling 888 286 8010 (domestic) or [phone] (international) using passcode # 42426610. A web archive will be available for 30 days at www.sirona.com.

About Sirona Dental Systems, Inc.

Recognized as one of the world's leading manufacturers of high quality dental equipment and technologies, Sirona 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. 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 nonhistorical 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.

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EBITDA is a non-GAAP financial measure that is reconciled to net income, its most directly comparable GAAP measure, in the accompanying financial tables. EBITDA is defined as net earnings before interest, taxes, depreciation and amortization. Sirona's management utilizes EBITDA as an operating performance measure in conjunction with GAAP measures, such as net income and gross margin calculated in conformity with GAAP. EBITDA should not be considered in isolation or as a substitute for net income prepared in conformity with GAAP. 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; and

* 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.

In addition, other companies may define EBITDA differently. EBITDA, as well as the other information in this filing, should be read in conjunction with Sirona's financial statements and footnotes contained in the documents that Sirona files with the U.S. Securities and Exchange Commission.

In addition to EBITDA, the accompanying financial tables also set forth certain supplementary information that Sirona believes is useful for investors in evaluating Sirona's underlying operations. This supplemental information includes gains/losses recorded in the periods presented relating to early extinguishment of debt, stock option grants, revaluation of dollar-denominated exclusivity payment and borrowings where the functional currency is Euro, and the Schick acquisition. Sirona's management believes that these items are either nonrecurring or noncash in nature, and should be considered by investors in assessing Sirona's financial condition, operating performance and underlying strength.

Sirona's management uses EBITDA together with this supplemental information as an integral part of its reporting and planning processes and as one of the primary measures to, among other things:

(i) monitor and evaluate the performance of Sirona's business operations;

(ii) facilitate management's internal comparisons of Sirona's historical operating performance of its business operations;

(iii) facilitate management's external comparisons of the results of its overall business to the historical operating performance of other companies that may have different capital structures and debt levels;

(iv) analyze and evaluate financial and strategic planning decisions regarding future operating investments; and

(v) plan for and prepare future annual operating budgets and determine appropriate levels of operating investments.

(vi) review and assess the operating performance of Sirona's management team and as a measure in evaluating employee compensation and bonuses;

Sirona's management believes that EBITDA and theses supplemental information is useful to investors as it provides them with disclosures of Sirona's operating results on the same basis as that used by Sirona's management.

Constant Currency: We have included certain revenue information in this press release on a constant currency basis. This information is a non-GAAP financial measure. We supplementally present revenue on a constant currency basis because we believe it facilitates a comparison of our operating results from period to period without regard to changes resulting solely from fluctuations in currency rates. Sirona calculates constant currency revenue growth by comparing current period revenues to prior period revenues translated at Euro/U.S. $ foreign exchange rate for the current period. Fiscal first quarter 2007 Euro denominated revenues were translated into U.S. $ at an exchange rate of $1.290. Fiscal first quarter 2006 Euro denominated revenues were translated into U.S. $ at an exchange rate of $1.190.