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October 28, 2008 at 12:23 PM EDT

DENTSPLY International Inc. Reports Record Third Quarter 2008 Sales and Earnings

YORK, Pa., Oct. 28, 2008 (GLOBE NEWSWIRE) -- DENTSPLY International Inc. (Nasdaq:XRAY) today announced record sales and earnings for the three months ended September 30, 2008.

FINANCIAL RESULTS

Three Months Ended September 30, 2008

Net sales in the third quarter of 2008 increased 8.6% to $530.0 million compared to $488.1 million reported for the third quarter of 2007. Net sales, without precious metal content, increased 9.6% to $488.1 million in the third quarter of 2008, as we continued to benefit from a balanced portfolio of dental products with a diversified geographic mix, favorable exchange impact and acquisition growth.

Net income for the third quarter of 2008 was $66.0 million, or $0.44 per diluted share, compared to $0.42 per diluted share in the third quarter of 2007. Net income in the third quarter of 2008 included an $11.4 million net of tax charge for restructuring and other costs, and a net benefit for income tax-related adjustments of $8.2 million, which combined, reduced earnings per share on a net basis by $.02 per diluted share. The third quarter of 2007 included the net of tax impact of restructuring and other costs of $3.0 million and a net benefit for income tax-related adjustments of $7.8 million, which combined, benefited earnings per diluted share by $.03.

Net income on a non-GAAP basis, (excluding restructuring and other costs, and income tax-related adjustments), was $69.3 million or $0.46 per diluted share in the third quarter of 2008 compared to $61.0 million or $0.39 per diluted share in the third quarter of 2007. This represents a 17.9% increase in earnings per diluted share on an adjusted non-GAAP basis. For a reconciliation of GAAP and non-GAAP measures, see the attached table.

2008 Third Quarter Results & 2008 Full Year Outlook

Bret Wise, Chairman and Chief Executive Officer, stated, "We are very pleased to once again deliver record top and bottom line results in the third quarter. We continue to benefit from our role as a key diversified player in the global dental industry, which generally has less volatility than broader markets. We believe our global market position and financial strength in today's economic environment will allow us to develop a stronger presence in the worldwide dental market as we move forward."

Mr. Wise went on to state, "While we acknowledge that economic volatility is making global markets more unpredictable, our strong and consistent year-to-date performance, new product launches, and current assessment of business and market conditions continue to give us confidence in our business model. We are reconfirming our 2008 guidance of $1.86 to $1.91 for earnings per diluted share. Guidance for 2008 excludes income tax related adjustments, restructuring and other costs, and the benefit from the provisions of SFAS 157."

ADDITIONAL INFORMATION

A conference call has been scheduled for Wednesday, October 29, 2008 at 8:30 AM Eastern Time. A live broadcast is available through Shareholder.com by accessing DENTSPLY's website at www.dentsply.com. The Conference ID # is 1471266. If you would like to participate in this call, dial (877) 719-9799 (for domestic calls), and (719)325-4820 (for international calls). An on-line rebroadcast, as well as a transcript of the call, will be available to the public following the call at the DENTSPLY website: www.dentsply.com. A replay will be available for one week following the conference call at (888) 203-1112 (for domestic calls) and (719) 457-0820 (for international calls), Passcode # 1471266.

DENTSPLY designs, develops, manufactures and markets a broad range of products for the dental market. The Company believes that it is the world's leading manufacturer and distributor of dental prosthetics, precious metal dental alloys, dental ceramics, endodontic instruments and materials, prophylaxis paste, dental sealants, ultrasonic scalers, and crown and bridge materials; the leading United States manufacturer and distributor of dental handpieces, dental x-ray film holders, film mounts and bone substitute/grafting materials; and a leading worldwide manufacturer or distributor of dental implants, impression materials, orthodontic appliances, dental cutting instruments, infection control products, and dental injectable anesthetics. The Company distributes its dental products in over 120 countries under some of the most well-established brand names in the industry.

DENTSPLY is committed to the development of innovative, high quality, cost-effective new products for the dental market.

The DENTSPLY International Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4306

This press release contains forward-looking information (within the meaning of the Private Securities Litigation Reform Act of 1995) regarding future events or the future financial performance of the Company that involve substantial risks and uncertainties. Actual events or results may differ materially from those in the projections or other forward-looking information set forth herein as a result of certain risk factors.

These risk factors include, without limitation; the continued strength of dental markets, the timing, success and market reception for our new and existing products, uncertainty with respect to governmental actions with respect to dental products, outcome of litigation, continued support of our products by influential dental professionals, and changes in the general economic environment that could affect our business. Changes in such assumptions or factors could produce significantly different results. For an additional description of risk factors, please refer to the Company's Annual Report on Form 10-K and its subsequent periodic reports on Forms 10-Q filed with the Securities and Exchange Commission.

NON-GAAP FINANCIAL MEASURES

DENTSPLY believes that the non-GAAP financial information provided in this release may be useful to investors for comparison purposes because the Company has historically provided similar information. The non-GAAP financial information should not be considered in isolation from, or as a substitute for, measures of financial performance prepared in accordance with GAAP.

                       DENTSPLY INTERNATIONAL INC.       
                   CONSOLIDATED STATEMENTS OF INCOME
                 (IN THOUSANDS EXCEPT PER SHARE DATA)

                         THREE MONTHS ENDED    NINE MONTHS ENDED
                            SEPTEMBER 30,        SEPTEMBER 30,
                         ------------------------------------------
                            2008      2007      2008        2007
                         --------  --------  ----------  ----------
  NET SALES              $529,953  $488,103  $1,685,582  $1,468,329
  NET SALES - Ex
   Precious Metal
   Content                488,086   445,332   1,526,607   1,330,706
  COST OF PRODUCTS
   SOLD                   249,770   235,113     804,670     700,277
                         --------  --------  ----------  ----------

  GROSS PROFIT            280,183   252,990     880,912     768,052
  % OF NET SALES             52.9%     51.8%       52.3%       52.3%
  % OF NET SALES - Ex
   Precious Metal
   Content                   57.4%     56.8%       57.7%       57.7%

 SELLING, GENERAL &
  ADMINISTRATIVE
  EXPENSES                180,729   165,708     565,599     501,869

 RESTRUCTURING AND
  OTHER COSTS              18,539     4,692      20,202       8,889
                         --------  --------  ----------  ----------
  INCOME FROM
   OPERATIONS              80,915    82,590     295,111     257,294
  % OF NET SALES             15.3%     16.9%       17.5%       17.5%
  % OF NET SALES - Ex
   Precious Metal
   Content                   16.6%     18.5%       19.3%       19.3%

  NET INTEREST AND
   OTHER NON OPERATING
   EXPENSE (INCOME)         5,664       745      15,018      (3,643)
                         --------  --------  ----------  ----------

  PRE-TAX INCOME           75,251    81,845     280,093     260,937

  INCOME TAXES              9,204    16,126      67,219      71,313
                         --------  --------  ----------  ----------

  NET INCOME             $ 66,047  $ 65,719  $  212,874  $  189,624
  % OF NET SALES             12.5%     13.5%       12.6%       12.9%
  % OF NET SALES - Ex
   Precious Metal
   Content                   13.5%     14.8%       13.9%       14.2%

 EARNINGS PER SHARE
  -BASIC                 $   0.44  $   0.43  $     1.43  $     1.25
  -DILUTIVE              $   0.44  $   0.42  $     1.40  $     1.23

  DIVIDENDS PER SHARE    $  0.045  $  0.040  $    0.135  $    0.120

 WEIGHTED AVERAGE 
  NUMBER OF COMMON 
  SHARES OUTSTANDING
  -BASIC                  148,775   151,632     149,186     151,886
  -DILUTIVE               151,697   154,736     152,137     154,735



                       DENTSPLY INTERNATIONAL INC.
                        CONDENSED BALANCE SHEETS
                             (IN THOUSANDS)

                                         SEPTEMBER 30,  DECEMBER 31,
                                             2008          2007
                                         -------------  ------------
 ASSETS

 CURRENT ASSETS:

  CASH AND CASH EQUIVALENTS              $    54,205    $   169,384
  SHORT TERM INVESTMENTS                     190,545        146,939
  ACCOUNTS AND NOTES RECEIVABLE-
   TRADE, NET                                345,477        307,622
  INVENTORIES, NET                           278,761        258,032
  OTHER CURRENT ASSETS                       103,108        100,045
                                         -----------    -----------
    TOTAL CURRENT ASSETS                     972,096        982,022

 PROPERTY,PLANT AND EQUIPMENT, NET           386,885        371,409
 IDENTIFIABLE INTANGIBLE ASSETS, NET          68,466         76,167
 GOODWILL, NET                             1,145,212      1,127,420
 OTHER NONCURRENT ASSETS, NET                 88,652        118,551
                                         -----------    -----------

 TOTAL ASSETS                            $ 2,661,311    $ 2,675,569
                                         ===========    ===========


 LIABILITIES AND STOCKHOLDERS' EQUITY:

 CURRENT LIABILITIES                     $   338,047    $   312,411
 LONG-TERM DEBT                              401,685        482,063
 OTHER LIABILITIES                           271,618        304,146
 DEFERRED INCOME TAXES                        63,187         60,547
                                         -----------    -----------
   TOTAL LIABILITIES                       1,074,537      1,159,167

 MINORITY INTEREST IN CONSOLIDATED 
  SUBSIDIARIES                                   355            296
 STOCKHOLDERS' EQUITY                      1,586,419      1,516,106
                                         -----------    -----------

 TOTAL LIABILITIES AND STOCKHOLDERS' 
  EQUITY                                 $ 2,661,311    $ 2,675,569
                                         ===========    ===========



                DENTSPLY INTERNATIONAL INC.
           (IN THOUSANDS EXCEPT PER SHARE DATA)



 Operating Income Summary:

 The following tables present the reconciliation of reported
 GAAP operating income in total and on a percentage of net sales,
 excluding precious metal content basis to the non-GAAP financial
 measures.

 Three Months Ended September 30, 2008

                                                          Percentage
                                        Operating        of Net Sales,
                                                          Ex Precious 
                                      Income (Expense)   Metal Content
                                      ----------------   -------------

 Income from Operations                  $  80,915            16.6%

 Restructuring and Other Costs              18,539             3.8%
                                         ---------       ---------

 Adjusted Non-GAAP Operating Earnings    $  99,454            20.4%
                                         =========       =========


 Three Months Ended September 30, 2007
                                                          Percentage
                                        Operating        of Net Sales,
                                                         Ex Precious 
                                      Income (Expense)  Metals Content
                                      ----------------   -------------

 Income from Operations                  $  82,590            18.5%
 
 Restructuring and Other Costs               4,692             1.1%
                                         ---------       --------- 

 Adjusted Non-GAAP Operating Earnings    $  87,282            19.6%
                                         =========       =========




                DENTSPLY INTERNATIONAL INC.
           (IN THOUSANDS EXCEPT PER SHARE DATA)


 Earnings Summary:

 The following tables present the reconciliation of reported
 GAAP net income in total and on a per share basis to the non-GAAP
 financial measures.

 Three Months Ended September 30, 2008

                                               Income        Diluted
                                              (Expense)     Per Share
                                             ----------    ----------

 Net Income                                  $  66,047      $   0.44

 Restructuring and Other Costs, Net of Tax      11,398          0.07

 Income Tax Related Adjustments                 (8,169)        (0.05)
                                             ---------      --------

 Adjusted Non-GAAP Earnings                  $  69,276      $   0.46
                                             =========      ========


 Three Months Ended September 30, 2007
                                               Income        Diluted
                                              (Expense)     Per Share
                                             ----------    ----------

 Net Income                                  $  65,719      $   0.42

 Restructuring and Other Costs, Net of Tax       3,032          0.02

 Income Tax Related Adjustments                 (7,756)        (0.05)
                                             ---------      --------

 Adjusted Non-GAAP Earnings                  $  60,995      $   0.39
                                             =========      ========


                DENTSPLY INTERNATIONAL INC.
           (IN THOUSANDS EXCEPT PER SHARE DATA)


 Operating Income Summary:

 The following tables present the reconciliation of reported
 GAAP operating income in total and on a percentage of net sales,
 excluding precious metal content basis to the non-GAAP financial
 measures.

 Nine Months Ended September 30, 2008

                                                          Percentage
                                         Operating       of Net Sales,
                                                          Ex Precious 
                                      Income (Expense)   Metal Content
                                      ----------------   -------------

 Income from Operations                  $ 295,111            19.4%

 Restructuring and Other Costs              20,202             1.3%
                                         ---------       ---------      

 Adjusted Non-GAAP Operating Earnings    $ 315,313            20.7%
                                         =========       =========    


 Nine Months Ended September 30, 2007
                                                          Percentage
                                        Operating        of Net Sales,
                                                          Ex Precious 
                                      Income (Expense)  Metals Content
                                      ----------------   -------------

 Income from Operations                  $ 257,294            19.3%

 Restructuring and Other Costs               8,889             0.7%
                                         ---------       ---------   
 
 Adjusted Non-GAAP Operating Earnings    $ 266,183            20.0%
                                         =========       =========      



                DENTSPLY INTERNATIONAL INC.
           (IN THOUSANDS EXCEPT PER SHARE DATA)


 Earnings Summary:


 The following tables present the reconciliation of reported
 GAAP net income in total and on a per share basis to the non-GAAP
 financial measures.

 Nine Months Ended September 30, 2008

                                               Income        Diluted
                                              (Expense)     Per Share
                                             ----------    ----------

 Net Income                                  $ 212,874      $   1.40

 Provisions of SFAS 157, Net of Tax             (1,129)        (0.01)

 Restructuring and Other Costs, Net of Tax      12,432          0.08

 Income Tax Related Adjustments                 (6,513)        (0.04)
                                             ---------      --------

 Adjusted Non-GAAP Earnings                  $ 217,664      $   1.43
                                             =========      ========


 Nine Months Ended September 30, 2007

                                               Income        Diluted
                                              (Expense)     Per Share
                                             ----------    ----------

 Net Income                                  $ 189,624      $   1.23

 Restructuring and Other Costs, Net of Tax       5,709          0.04

 Income Tax Related Adjustments                 (7,400)        (0.05)

 Rounding                                           --         (0.01)
                                             ---------      --------

 Adjusted Non-GAAP Earnings                  $ 187,933      $   1.21
                                             =========      ========
CONTACT:  DENTSPLY International Inc.
          William R. Jellison, Senior Vice President 
           and Chief Financial Officer
          (717) 849-4243
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