Good Morning. My name is Brook, and I will be your conference operator today. At this time, I would like to welcome everyone to the Trinity Biotech second quarter 2008 Earnings Call. (Operator Instruction) Thank you. I’ll now turn the call over to Mr. Joe Dorame. You may begin your conference.

Good Morning. Thank you for joining us today to review the financial results for Trinity Biotech for the second quarter ended June 30th 2008. As Brook indicated, my name is Joe Dorame. I’m with Lytham Partners and we are the financial relations consulting firm for Trinity Biotech. With us today on the call representing the company the company are Mr. Brendan Farrell, Chief Executive Officer, and Mr. Kevin Tansley Chief Financial Officer. At the conclusion of today's prepared remarks, we will open the call for a Q&A session. Before we begin, I would like to remind everyone this conference call includes statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including but not limited to the results of research and development efforts, the effects of regulations by the United States Food and Drug Administration and other agencies, the impact of competitive products, product commercialization and technological difficulties and other risks detailed in the company's periodic reports filed with the Securities and Exchange commission. The company can give no assurance as such forward-looking statements will prove to be correct. We undertake no obligation to affirm publically update or revise any forward-looking statements whether as a result of information of future events or otherwise. With that having been said, I would like to turn the call over to Mr. Brendan Farrell, Chief Executive Officer of Trinity Biotech. Brendan?

Thank you very much. Good day everybody and welcome. This is Brendan Farrell speaking. I would like to start first by asking Kevin Tansley as CFO to review the results of our quarter two and year to date, thank you Kevin.

Thanks Brendan. Today I will take you through the review of the income statement for the quarter and secondly the key movements in the balance sheet from the end of the 2007 to date. Starting with our revenue performance, as usually you will note in the press release an analysis of revenues broken down by our key product areas, clinical laboratory, point-of-care, and also with geographic location for the quarter. Looking at the total revenues, you will note that this quarter's revenues are $36.3 million. This represents a 6% increase over quarter one this year. Within this, there was a 21% increase in point-of-care revenue. Our clinical laboratory revenues also increased during the quarter growing by 4.3% from $30.1 million to almost $32.3 million. Looking at this quarter's revenues compared to same period last year, we see a decrease of 3%. As can be seen in the table contained in the press release, this is attributable to our point-of-care division and specifically sales of HIV products in Africa. In previous calls, we've highlighted the fact that the nature of African markets has and will result in fluctuating sales quarter-and-quarter in this segment. We would also point to the fact that quarter two 2007 represented a very strong quarter for African HIV’s sales, and hence it's not most representative benchmark. Again, I will point out that HIV sales this quarter represented 21% increase over last quarter. From our clinical laboratory perspective, sales this quarter were over 4% higher than the equivalent period last year. Rather than getting into the detail on the movement by product category and geographic location, I will move on to our gross margin of performance. Brendan will shortly take you through a more detailed analysis of this quarter's revenue. Our gross margin for the quarter was approximately…

Thank you, Kevin. As Kevin has indicated, I'd like to provide you with a brief update on the business and then take you into the Q&A session. Let's start up with research and development. As you know, the key program for Trinity Biotech today is the development of the Destiny Max haemostasis analyzer, which is our high throughput instrument platform targeted at the large hospital segment of the haemostasis market. Just to remind you, the haemostasis market is a $1 billion market growing at about 7% per annum and large hospitals represents 50% of this market. With our existing Destiny Plus platform, which has a throughput of around a 100 patients samples per hour, we are able to address the small and medium-sized hospital segment. Today, we do not have an instrument which is suitable through to both for the $500 million large hospital segment. And this is why we made the decision three year ago to develop the Destiny Max instrument. The instrument has now completed its formal development phase and is currently undergoing extensive validation testing. Clinical trials will commence next months in three laboratories - one in the United States, one in Canada, and one here in Europe. Our sales and marketing, people have been presetting the instruments and customers have been visiting the Bray, Ireland site to see the instrument in operation. The feedbacks have been very positive and customers have noticed some key competitive advantages of our all platforms, which is capable of processing more than 300 patient samples per hour. This will be the only haemostasis instrument on the market other than our own Destiny Plus, which is capable of processing patient samples in both mechanical and optical mode. It also enjoys other significant advantages over our competitors and we're extremely exited about what…

Brook, could you please prepare everyone for Q&A?

Hi, guys, good morning.

Good morning.

First on the point-of-care business could you help us break out, what Africa was versus the US?

I certainly could Matt. If you are looking at the first half of the year, US HIV was something around the $3 million in revenue and Africa was over $4 million in revenue.

Okay, great. And then, going forward, you've got a competitive scenario here in the US, you have got some nice clinical data, what are you expecting in terms of US as a segment of that business for the second half of the year?

Well, we would expect to see our sales continuing to increase at the pace that they have been increasing. Matt I think, that’s the best way that I would like to pace, and I certainly wouldn't had to quote an exact number, and I think you are going to see it. As I mentioned, we increased 26% over, same period last year. I think, we're going to see that rate of increase to remain the same for the rest of the year.

Okay. On the R&D side, first with Destiny Max and the launch coming here potentially in the near future, what's your ability to manufacture? What's your capacity at this stage and how many of those can you produce assuming demand?

Well, we are already producing instruments. We have a number of instruments here in Bray's that we're using for testing. You obviously have the instruments produced already that are going to the clinical trial sites, and we are perfectly capable of producing what we believe will be the demand for the instrument over the next five years. So capacity is not an issue for us in relation to Destiny Max.

Okay. And then on Tristat, can you define what the enhancements are, and is there any chance that these might require an additional regulatory cycle for that product.

No, they won't require an additional regulatory cycle, but the enhancements focused mainly around the software and also around the self-cycle for product. But, they are not major enhancements as such. They are literally enhancements.

Okay. And then finally on the last call, you mentioned that you provided some commentary on your expectations for the year relative to where the consensus stood, could you provide us any update on your thoughts here now that we’re a few more months into the year.

Well, I think I would reiterate that we’re comfortable Matt with your numbers for the year, overall.

Okay, thank you.

Thanks Matt.

Your next question comes from Cillian Murphy with Goodbody Stockbrokers.

Good afternoon, gentlemen. Thanks for taking my call. Just inquiring about the HIV Incidence Assay, I was wondering could you give us update report on that please.

Yeah, that product as you know has completed its research and development program, and we are getting ready for the launch phase, but as we mentioned previously this is not a high volume product, because this is not a routine test procedure. This is used more for epidemiological purposes, and the sales level of that when it’s fully out there in the market with respect to be somewhere around, an additional revenues around a $1 to $1.5 million per annum.

Great, thank you very much.

Thank you

(Operator Instruction). Your next question comes from Mark Healy with Davy Stockbrokers.

Just a couple of questions, first is on cash generation. I was just wondering if you can give us any indication over the last few quarter. The cash generation you've earned, and secondly just on the Uni-Gold HIV product, are there, more generally the point-of-care division in general, how soon do you expect to see an uptick or benefit from new funding enhanced by Bush coming through on that one? Thanks.

Yeah, hi Mark, this is Brendan here. I’ll take the second part of that question, first, while I mentioned that congress has passed a resolution, but that resolution has to be actually signed by President Bush before it's enacted and then the money won't flow until you get into the relevant fiscal year, which is fiscal '09 or fiscal ‘10 I believe of the United States, which is next year. So you won't see those moneys flowing for about twelve months from now.

Mark, I will just take the second part and then remuneration just for the cash, I'll turn for the quarter. As you know, the opening balance was about $3.1 million and we've closed about $6.2 million. So, the net inflow has been about $3.1 million, as I mentioned during the call there. Also the equity rates are significant part of that and it's about 6.6. So of this, of the $3 million or so difference there, you are seeing that the repayment to bioMerieux was a significant factor. So, take out the equity rates, take out the bioMerieux payment, you're probably seeing us reasonably cash neutral this quarter, which is not also gathering earning ventures, because as I pointed out before, we are now at the cash intensive phase in relation to our development projects particularly Destiny Max. The cash is neutral this quarter.

Hey great, thanks a lot. And just finally on the SG&A front, I have seen improvement this quarter in terms of cost. Do you expect that to continue or just see it's going to continue along? Last call you had said, you're expecting a run rate of about $12.5 million per quarter, do you think that will go back up to that level?

I will tell you, it's got to be in around the $12.5 million. We've two very good quarters that's $12 million or $11 million. Last years, as you know I think, we were averaging in around the $12.5 million, so I do believe that the certain marketing expenditure coming up for the second half of this year, talk about the payments as timing wise, so I see us being in around the 12.5 last year.

Okay, great, that's great thing sir.

Thanks.

Your next question comes from Neal Goldman with Goldman Capital Management.

Two quick questions. One, in terms of the cash and balance of year, do you expect to be cash flow neutral at this point, you know, assuming the earnings estimates that you are giving out and the heavy investments still in Destiny Max?

From a cash flow point of view, I would imagine by the end of the year, our projections are showing -- are probably having in around $6 million to $7 million towards the end of the year. So on that basis, cash neutral is just slightly positive.

Okay. The other comments, Brendan, you made a comment about you have sufficient capacity based on your assumptions for Destiny Max going forward. If that’s a $0.5 billion market overtime, what do you believe is your opportunity in terms of market penetration?

Well, that's tough question, Neal. And I'm sure that I would want to give out the number over the call that hang my hat on going forward over five years, but at this rate, we currently have an 8% share of the market and are only competing in half of the $1 billion market. So as you take our opportunity as being around the 8% to 10%, and if you take roughly that there are a thousand large instruments per year placed worldwide then you'd expect us to be facing around a hundred of those if we are maintaining our overall shift, as though the number is somewhere around that and I suppose to add the missing number from that instrument placement is one thing but what the reagents go through from an instrument placement, we would estimate it to be around $40,000 to $50,000 per year, per instrument.

And the price per instrument?

Well, the price per instruments is somewhere around the $80,000 to $90,000. But as you know, in this market it's more a placement market, a reagent rental market than it is a selling market. But we will be happy to take checks as well.

Okay. All right. Thank you.

Thank you, Neal.

Your next question comes from Bob.

Hello.

Hello, Bob, Hi.

Hi. Thank you for taking my call. I might have missed the beginning the call. What is the organic growth rate for the clinical laboratory business? It will be great if you can give the overall organic growth rates versus -- as well as the three business segment.

Okay. Bob, we're having a little bit of difficulty hearing you but you are asking about organic growth and I gave it for the clinical chemistry segment as being at 17% in the first half. If you're comparing it, it will have state comparison in H1'08 over 17% or the Haemoglobin A1C variants as the clinical chemistry business, 7% for infectious disease and flat haemostasis, the reason being that we're seeing time on top of the older instruments in the haemostasis as we wait to get the Destiny Max out. In the case of HIV in the United States was 26% organic and in the case of HIV outside US was 60% decline. That answer the question, Bob?

Yes. Thank you.

Thank you.

(Operator Instructions). Your next question comes from Matt Reiner with Adirondack Fund.

Hi, guys. Going back to the cash flow, can you give me a little more color on what the number you are standing by for the end of the year is expected to be? It sounds like roughly similar to way you are now. I am assuming that includes the debt pay down and you also indicated that you're going to have ramp-up in inventories because of Destiny Max launch, so where do you see some of that cash coming from and as far as going to that even to slightly positive number for the rest of the year?

I'll take that Matt. Yes, as we are starting at $6.2 million at the start of the second half. EBITDA returns will probably come in around $10 million between now and the end of the year. We will have debts repayments in around $1.5 million, and it includes interest. These payments have got reinvestment proposals of $2 million. We have CapEx stand of in and around $6 million and other payment then probably have a further $1 million, and mainly tax. And that should bring us in and around close to the $7million mark. So what I'm saying there is that we will be slightly cash positive when we get the $7 million by the end of the year and that will be fund to that of acquisition and other activity operations. And within all that, yes, we are funding our debts repayments, which has been made already for this half and all the capital expenditures between now and the end of the year.

Okay. So there is no additional equity raise plan on that?

Nothing. Nothing of that nature planned, what so ever, no.

Okay. Thank you.

Thank you, Matt.

(Operator Instruction). There are no further questions at this time. Mr. Farrell, do you have any closing remarks.

Yes. Thank you, Brook. I'd just like to thank everybody for participating in Trinity Biotech quarter two earnings call. And I look forward to talking to each of you individually over the coming days. Thank you very much.

Thank you. This concludes today's call. You may now disconnect.