CYB WisdomTree Chinese Yuan Strategy Fund

Cybex International, Inc. (AMEX: CYB), a leading exercise equipment manufacturer, today reported results for the fourth quarter and year ended December 31, 2005. Net sales for the fourth quarter 2005 were $36,000,000, compared to $29,890,000 for the corresponding 2004 period, an increase of 20%. For the year ended December 31, 2005, net sales were $114,646,000, compared to net sales of $103,421,000 for 2004, an increase of 11%. Excluding a fourth quarter 2005 litigation-related charge, the Company's fourth quarter 2005 pro forma net income was $2,943,000 or $0.19 per fully diluted share, compared to net income of $1,607,000, or $0.10 per fully diluted share, for the corresponding 2004 period. Excluding third and fourth quarter 2005 litigation-related charges, the pro forma net income for the year ended December 31, 2005 was $4,666,000, or $0.30 per fully diluted share, compared to net income of $2,949,000, or $0.24 per fully diluted share, for the corresponding 2004 period. On a GAAP basis, the Company reported net income for fourth quarter of $2,439,000, or $0.16 per fully diluted share and for the year ended December 31, 2005 of $61,000, or $0.00 per fully diluted share. Actual GAAP results for the fourth quarter ended December 31, 2005 include an increase in the Company's litigation reserve primarily related to the previously announced appellate decision in the Kirila matter, resulting in a pre-tax charge of $504,000. Actual GAAP results for the year ended December 31, 2005 also include increases in the Company's litigation reserve related to a jury verdict and a reversal of summary judgment in two patent infringement cases during the third quarter which, together with the fourth quarter increase described above, resulted in pretax charges for the year totaling $4,605,000. While CYBEX will continue to vigorously appeal or defend each of these matters, the Company believes it has sufficient liquidity to satisfy any final awards if these matters are ultimately determined adversely to the Company. John Aglialoro, Chairman and CEO, stated, "The results of our efforts over the last nine months culminated in our strong fourth quarter. We are pleased with our sales performance and the improvement in gross margins for the quarter. Most importantly, we introduced two new product categories, the LCX 425T light commercial treadmill and the virtual reality Trazer, which will open new markets for CYBEX. We also solidified our core strength business with the introduction of the exciting VR3 line. We are determined to continue our momentum in 2006 with an aggressive new product development schedule." Cybex International, Inc. is a leading manufacturer of premium exercise equipment for commercial and consumer use. The CYBEX product line includes a full range of both strength training and cardio training machines sold worldwide under the CYBEX brand. Products and programs are designed and engineered to reflect the natural movement of the human body, assisting each unique user - from the professional athlete to the first-time exerciser - to improve daily human performance. For more information on CYBEX and its product line, please visit the Company's website at www.cybexinternational.com. This news release may contain forward-looking statements. There are a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made above. These include, but are not limited to, competitive factors, technological and product developments, market demand, economic conditions and the ability of the Company to comply with the terms of its credit facilities. Further information on these and other factors which could affect the Company's financial results can be found in the Company's previously filed Report on Form 10-K, its Reports on Form 10-Q, its Current Reports on Form 8-K, and its proxy statement dated April 6, 2005. -0- *T CYBEX INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF OPERATIONS - ACTUAL (IN THOUSANDS, EXCEPT PER SHARE DATA) (unaudited) Three Months Ended Year Ended December 31, December 31, 2005 2004 (1) 2005 2004 (1) --------- --------- --------- --------- Net sales $ 36,000 $ 29,890 $114,646 $103,421 Cost of sales 22,576 19,413 73,169 65,640 --------- --------- --------- --------- Gross profit 13,424 10,477 41,477 37,781 As a percentage of net sales 37.3% 35.1% 36.2% 36.5% Selling, general and administrative expenses 9,583 8,141 33,908 30,900 Litigation charges 504 - 4,605 - --------- --------- --------- --------- Operating income 3,337 2,336 2,964 6,881 Interest expense, net 758 637 2,652 3,525 --------- --------- --------- --------- Income before income taxes 2,579 1,699 312 3,356 Income taxes 140 92 251 131 --------- --------- --------- --------- Net income 2,439 1,607 61 3,225 Preferred stock dividends - - - 276 --------- --------- --------- --------- Net income attributable to common stockholders $ 2,439 $ 1,607 $ 61 $ 2,949 ========= ========= ========= ========= Basic net income per share $ 0.16 $ 0.11 $ 0.00 $ 0.26 ========= ========= ========= ========= Diluted net income per share $ 0.16 $ 0.10 $ 0.00 $ 0.24 ========= ========= ========= ========= Shares used in computing basic net income per share 15,131 14,983 15,122 11,359 ========= ========= ========= ========= Shares used in computing diluted net income per share 15,701 15,717 15,708 12,355 ========= ========= ========= ========= (1) The 2004 statements of operations have been reclassified to conform to the current year presentation. CYBEX INTERNATIONAL, INC. PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (unaudited) Three Months Ended Year Ended December 31, December 31, 2005 2004 (1) 2005 2004 (1) --------- --------- --------- --------- Net sales $ 36,000 $ 29,890 $114,646 $103,421 Cost of sales 22,576 19,413 73,169 65,640 --------- --------- --------- --------- Gross profit 13,424 10,477 41,477 37,781 As a percentage of net sales 37.3% 35.1% 36.2% 36.5% Selling, general and administrative expenses 9,583 8,141 33,908 30,900 --------- --------- --------- --------- Operating income 3,841 2,336 7,569 6,881 Interest expense, net 758 637 2,652 3,525 --------- --------- --------- --------- Income before income taxes 3,083 1,699 4,917 3,356 Income taxes 140 92 251 131 --------- --------- --------- --------- Net income 2,943 1,607 4,666 3,225 Preferred stock dividends - - - 276 --------- --------- --------- --------- Net income attributable to common stockholders $ 2,943 $ 1,607 $ 4,666 $ 2,949 ========= ========= ========= ========= Basic net income per share $ 0.19 $ 0.11 $ 0.31 $ 0.26 ========= ========= ========= ========= Diluted net income per share $ 0.19 $ 0.10 $ 0.30 $ 0.24 ========= ========= ========= ========= Shares used in computing basic net income per share 15,131 14,983 15,122 11,359 ========= ========= ========= ========= Shares used in computing diluted net income per share 15,701 15,717 15,708 12,355 ========= ========= ========= ========= (1) The 2004 statements of operations have been reclassified to conform to the current year presentation. CYBEX INTERNATIONAL, INC. PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) Three Months Ended Year Ended December 31, 2005 December 31, 2005 Actual Adjust- ProForma Actual Adjust- ProForma Results ments Results Results ments Results ------- ------- -------- -------- ------- -------- Net Sales $ 36,000 $ - $ 36,000 $114,646 $ - $114,646 Cost of sales 22,576 - 22,576 73,169 - 73,169 ---------------------------------------------------- Gross Profit 13,424 - 13,424 41,477 - 41,477 ---------------------------------------------------- Selling, general and administrative expenses (SG&A) 9,583 - 9,583 33,908 - 33,908 Litigation charges 504 (504) - 4,605 (4,605) - ---------------------------------------------------- Total SG&A expenses 10,087 (504) 9,583 38,513 (4,605) 33,908 ---------------------------------------------------- Operating income 3,337 504 3,841 2,964 4,605 7,569 Interest expense, net 758 - 758 2,652 - 2,652 ---------------------------------------------------- Income before Income taxes 2,579 504 3,083 312 4,605 4,917 Income taxes 140 - 140 251 - 251 ---------------------------------------------------- Net income $ 2,439 $ 504 $ 2,943 $ 61 $ 4,605 $ 4,666 ==================================================== Basic net income per share $ 0.16 $ 0.03 $ 0.19 $ 0.00 $ 0.31 $ 0.31 ==================================================== Diluted net income per share $ 0.16 $ 0.03 $ 0.19 $ 0.00 $ 0.30 $ 0.30 ==================================================== Shares used in computing basic net income per share 15,131 15,131 15,122 15,122 ==================================================== Shares used in computing diluted net income per share 15,701 15,701 15,708 15,708 ==================================================== CYBEX INTERNATIONAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) (unaudited) December 31, December 31, 2005 2004 --------------- -------------- ASSETS Current assets: Cash $ 807 $ 1,826 Accounts receivable, net 18,320 15,891 Inventories 9,258 8,014 Prepaid expenses and other 2,707 1,684 --------------- -------------- Total current assets 31,092 27,415 Property and equipment, net 12,124 13,544 Goodwill 11,247 11,247 Other assets 1,209 2,280 -------------- ------------- $ 55,672 $ 54,486 =============== ============== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt $ 3,929 $ 9,116 Current portion of capital leases 481 408 Accounts payable 5,918 5,377 Accrued expenses 16,286 9,196 --------------- -------------- Total current liabilities 26,614 24,097 Long-term debt 9,730 11,489 Capital leases 332 648 Other liabilities 2,808 2,466 --------------- -------------- Total liabilities 39,484 38,700 Stockholders' equity 16,188 15,786 -------------- ------------- $ 55,672 $ 54,486 =============== ============== *T