22.01.2009 – 10:26

Novozymes A/S

Novozymes Reports Strong 2008 Results

Bagsvaerd, Denmark (ots/PRNewswire)

Leading
biotechnology company Novozymes reports 13% sales growth in 2008.
Earnings were also very satisfactory. Growth outlook for 2009 of
8-13% in DKK in an uncertain market. Strong long-term trends lead to
new, increased targets and higher investments to support higher
future growth level.

- 2008 sales up by 13% in local currencies (LCY), 10% in DKK, ending at
    DKK 8,146m
    - Sales growth of 5% in LCY and 10% in DKK in the fourth quarter
    - Operating profit of DKK 1,504m, a 7% increase

(Logo: http://www.newscom.com/cgi-bin/prnh/20090122/335356 )

"2008 was a strong year for Novozymes. I'm very pleased with our
performance," says Steen Riisgaard, President and CEO. "Lower growth
in the fourth quarter may point to a slowdown going into 2009. But
further ahead there are favorable trends and opportunities for our
business, so we have upped our level of ambition and increased our
long-term targets."

Enzymes for fuel ethanol production were the strongest 2008
growth contributor, outperforming growth in North American fuel
ethanol output.

In view of the economic environment, Novozymes considers its 2009
growth outlook satisfactory:

- 2009 sales growth of 8-13% in DKK and 3-8% in LCY
    - Growth in operating profit of 10-15% in DKK and in net profit of 5-10%
    in DKK
    - Free cash flow of around DKK 100-300m, reduced by a high level of
    investments

Total expected investments in 2009 are DKK 1.3-1.5 billion. This
includes the building of a new enzyme plant in Nebraska, USA, at a
cost of USD 160-200 million in 2009-2010. Compared to the initial
announcement, this roughly represents a doubling of the capacity to
be built as well as investment cost, in order to ensure that future
demand from the growing biofuels market can be met in the years to
come.

In the light of last year's performance and the expected
long-term trends, Novozymes has increased its long-term financial
targets to:

- Organic sales growth of more than 10% p.a.
    - Operating profit margin of more than 20%
    - Return on invested capital of more than 22%

Read the full financial statement at:

http://www.novozymes.com/en/MainStructure/Investor/Company+Announ
cements/2009/Group+financial+statement+for+2008.htm

Read Novozymes Annual Report 2008 at:
http://www.report2008.novozymes.com/

Contacts
    Johan Melchior
    Tel.: +45-4446-0690
    Mobile: +45-3077-0690
     jmel@novozymes.com
    Paige Donnelly
    Tel.: +1-919-494-3209
    Mobile: +1-919-218-4501
     pagd@novozymes.com

Contact:

Contacts: Johan Melchior, Tel.: +45-4446-0690, Mobile: +45-3077-0690,
jmel@novozymes.com; Paige Donnelly, Tel.: +1-919-494-3209, Mobile:
+1-919-218-4501, pagd@novozymes.com