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Young Innovations, Inc. Announces Results for 4th Quarter and the Year and Declares Dividend
Date:2/5/2008

attractive source for financing. In addition, the Company recorded a reserve against the collectibility of certain loans to X-ray customers in the fourth quarter of 2007, which reduced diluted earnings per share by approximately $0.01.

During 2007, we worked to facilitate the transition of the former owners of Microbrush while supporting the growth of the product line. We experienced solid growth in sales of branded products and OEM relationships throughout 2007 and are optimistic about the prospects for this product line in 2008.

Throughout the year, we made considerable investments in personnel and physical infrastructure to support our long-term growth objectives. We substantially enhanced our sales and marketing team and product development efforts across our product offering, adding approximately 30 people in these areas, while keeping company-wide headcount relatively unchanged. We expanded manufacturing capacity and office space in key facilities across the Company and opened a new warehouse and distribution facility to support both our growth and consolidation activities. We consolidated six facilities in 2007 and plan to complete several more in 2008. These consolidation activities should positively contribute to earnings in late 2008 and 2009.

In 2007, we made good progress in building infrastructure to support the growth of the business. While uncertainty in distributor ordering patterns may continue to impact our business, we believe these issues are transitory and opportunities for growth are good. We are enthusiastic about the long-term prospects for the business.

The Company also announced today that Christine Boehning, Vice President and Chief Financial Officer, has decided to resign from her officer position in order to have more time to raise her family. Ms. Boehning plans to remain with the Company and will help transition her responsibilities. Effective immediately, Arthur Herbst, President and former Chief Financial
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