Burgdorf - After a phase of above average growth in sales and profit the Ypsomed Group is currently in a period of consolidation. In the frist half year 2006/07 (April 1 – September 1 2006) sales fell 8.8% to a total of CHF 129.0 million and a operating loss of CHF 5.3 million. While direct diabetes business posted sales growth above market average, the interruption of the production of OptiClik of eight weeks led to a decline in sales in core business of – 11.2% to CHF 107.3 million. The problems with OptiClik have since been resolved, but have caused additional costs of CHF 14.2 million. This in turn reduced the gross profit margin in the first half of 2006/07 of 20.1% compared with the previous year from 37.8%. We expect results to improve in the second half and the year as a whole to finish with a small profit.