Young Innovations, Inc. Announces Results for the Third Quarter Ended September 30, 2007 and Declares Quarterl...(st 152007. Diluted earnings per share we...),Health

The results for the quarter were affected by the acquisition of the assets of Microbrush, Inc. and Microbrush International, Ltd. (collectively "Microbrush"), completed on July 31, 2006, and August 18, 2006, respectively. Microbrush contributed approximately $3.6 million in sales in the third quarter of 2007, as compared to $2.0 million in the third quarter of 2006. For the nine months ended September 30, 2007, Microbrush contributed $11.0 million in sales, as compared to $2.0 million in the prior year period.

The sales growth in the quarter reflected the incremental sales from Microbrush offset by lower sales of certain products to distributors. While end-user demand for these products appears stable, volatile distributor purchase patterns continue to impact quarterly sales.

As productivity in our Earth City facility has increased faster than market demand, we reduced production in the quarter to bring inventory levels more in line with demand. In addition, we maintained staffing levels and incurred costs related to preparing for future consolidations. We believe this activity impacted our diluted earnings per share by approximately $0.04 in the quarter.

Commenting on the quarter, Alfred E. Brennan, Chief Executive Officer, said, "During the quarter, we managed through a difficult operating environment as we continued to integrate the acquisition of Microbrush, completed the repurchase of 1 million shares from our Chairman, adjusted production and inventory levels at our Earth City facility and prepared for future facilities consolidations. We believe we have made good progress in expanding our sales and marketing capacity and executing on the consolidation plans outlined earlier in the year."

On October 22, 2007, the Board of Directors declared a quarterly dividend
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