NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

1. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted by Trinity Biotech plc, its subsidiaries, and its interest in jointly controlled entities and its associate ("the Group"), are as follows:

a) Statement of compliance The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU. IFRS as adopted by the EU differ in certain respects from IFRS as issued by the International Accounting Standards Board ("IASB"). However, as none of these differences are relevant in the context of Trinity Biotech, the consolidated financial statements for the periods presented would be no different had IFRS as endorsed by the IASB been applied. These are the Group's first consolidated financial statements prepared under IFRS as adopted by the EU and IFRS 1 has been applied. The Group has availed of the exemption in IFRS 1 and is not presenting comparative information for convertible notes and derivative financial instruments. The transition date for compliance with IAS 32 and IAS 39 is January 1, 2005 and the comparative information for convertible notes and derivative financial instruments is presented under IFRS in line with Irish GAAP (Irish Generally Accepted Accounting Principles).

An explanation of how the transition to IFRS as adopted by the EU, with the exception of exemptions taken in accordance under IFRS 1, from the old basis of accounting, Irish GAAP ("Previous GAAP"), has affected the reported financial position, financial performance and cash flows of the Group is provided in note
33. This note also outlines the principal exemptions availed of by the Group on transition to IFRS as adopted by the EU.

The effect on the balance sheet as at January 1, 2005 resulting from the adoption of IAS 32 and IAS 39 As permitted under the transition arrangements of IFRS the Company has implemented the provisions of IAS 32 and IAS 39 as at January 1, 2005. The following adjustments necessary to implement the revised policy have been made as at January 1, 2005 with the net adjustment, to net assets, shown in the 2005 statement of recognised income and expense. Corresponding amounts for 2004 are presented and disclosed under IFRS in line with Previous GAAP. For further information see note 33.

The following are the impacts on the individual balance sheet assets/(liabilities) as at January 1, 2005:

                                                                                January 1, 2005
                                                                                        US$'000
Convertible debentures                                                                     (85)
Derivative financial instruments                                                           418
Deferred tax liability                                                                     (69)
                                                                                ------------------
 Impact on net assets                                                                      264
                                                                                ==================

Share premium                                                                           (3,779)
Other reserves - convertible notes equity component                                        164
Other reserves - hedging reserve                                                           373
Other reserves - warrant reserve                                                         3,803
Retained earnings                                                                         (297)
                                                                                ------------------
                                                                                           264
                                                                                ==================

The effect on the income statement and the statement of recognised income and expense in the year resulting from the adoption of IAS 32 and IAS 39 The effect on the current year income statement of the adoption of IAS 32 and IAS 39 is to:

o Increase charges by US$64,000 in respect of the separate recognition of the equity component of convertible notes.

o Recognition of a gain of US$20,000 as the ineffective element of the hedge in the income statement.

o A decrease in the deferred tax charge of US$17,000.

o The net effect on the Group is to reduce profit by US$27,000.

The effect on the current year statement of recognised income and expense of the new policies adopted is:

o Losses arising on the effective portion of cash flow hedges, losses recycled to the income statement for the period in respect of hedged transactions and the associated movement in deferred tax, result in a net loss of US$437,000 in the Group, being taken directly to the hedging reserve.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

0 The effect of implementing the new policies on January 1, 2005 has resulted in a net credit directly to equity of US$264,000. See note 18.

b) Basis of preparation The consolidated financial statements have been prepared in United States Dollars (US$), rounded to the nearest thousand, under the historical cost basis of accounting, except derivative financial instruments and share-based payments which are stated at fair value.

The preparation of financial statements in conformity with IFRS as adopted by the EU requires management to make judgements, estimates and assumptions that affect the application of policies and amounts reported in the financial statements and accompanying notes. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Judgements made by management that have a significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed in note 32.

The accounting policies set out below, with the exception of the accounting policies relating to financial instruments and convertible notes have been applied consistently to all periods presented in these consolidated financial statements and in preparing an opening IFRS as adopted by the EU balance sheet at January 1, 2004 for the purposes of the transition to IFRS as adopted by the EU, except that the Group has availed of the exemption in IFRS 1 and is not presenting comparative information for convertible notes and financial instruments under IFRS as adopted by the EU. The transition date for compliance with IAS 32 and IAS 39 is January 1, 2005 and the comparative information
(convertible notes (note 1(m)) and derivative financial instruments (note 1(s))
is presented under IFRS in line with Previous GAAP. See note 33 for an explanation of the transition to IAS 32 and IAS 39 from January 1, 2005.

The accounting policies have been applied consistently by all Group entities.

c) Basis of consolidation SUBSIDIARIES Subsidiaries are entities controlled by the Company. Control exists when the Company has the power, directly or indirectly, to govern the financial and reporting policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable or convertible are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.

ASSOCIATES
Associates are those entities in which the Group has significant influence, but not control, over the financial and operating policies. The consolidated financial statements include the Group's share of the total recognised income and expenses of associates on an equity accounted basis, from the date that significant influence commences until the date that significant influence ceases. When the Group's share of losses exceeds its interest in an associate, the Group's carrying amount is reduced to nil and recognition of further losses is discontinued except to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of an associate.

JOINT VENTURE ENTITIES
Joint ventures are those entities over whose activities the Group has joint control, established by contractual agreement. The consolidated financial statements include the Group's proportionate share of the entities' assets, liabilities, revenues and expenses with items of a similar nature on a line by line basis, from the date that joint control commences until the date that joint control ceases.

TRANSACTIONS ELIMINATED ON CONSOLIDATION
Intragroup balances and any unrealised gains or losses or income and expenses arising from intragroup transactions are eliminated in preparing the consolidated financial statements. Unrealised gains arising from transactions with associates and jointly controlled entities are eliminated to the extent of the Group's interest in the entity. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

d) Property, plant and equipment OWNED ASSETS Items of property, plant and equipment are stated at cost less any accumulated depreciation and any impairment losses (see note 1(e)). The cost of self-constructed assets includes the cost of materials, direct labour and attributable overheads. It is not Group policy to revalue any items of property, plant and equipment. Depreciation is charged to the income statement on a straight-line basis to write-off the cost of the assets over their expected useful lives as follows:

o Leasehold improvements 5-10 years
o Office equipment and fittings 10 years
o Buildings 50 years
o Computer equipment 3-5 years
o Plant and equipment 5-10 years

Land is not depreciated. The residual values, if not insignificant, useful lives and depreciation methods of property, plant and equipment are reviewed and adjusted if appropriate, at each balance sheet date.

LEASED ASSETS - AS LESSEE
Leases under terms of which the Group assumes substantially all the risks and rewards of ownership are classified as finance leases. Property, plant and equipment acquired by way of finance lease is stated at an amount equal to the lower of its fair value and present value of the minimum lease payments at inception of the lease, less accumulated depreciation and any impairment losses.

Depreciation is calculated in order to write-off the amounts capitalised over the estimated useful lives of the assets, or the lease term if shorter, by equal annual instalments. The excess of the total rentals under a lease over the amount capitalised is treated as interest, which is charged to the income statement in proportion to the amount outstanding under the lease. Leased assets are reviewed for impairment (see note 1(e)).

Leases other than finance leases are classified as "operating leases", and the rentals thereunder are charged to the income statement on a straight line basis over the period of the leases. Lease incentives are recognised in the income statement on a straight-line basis over the lease term.

LEASED ASSETS - AS LESSOR
Leases where the Group substantially transfers the risks and benefits of ownership of the asset to the customer are classified as finance leases within finance lease receivables. The Group recognises the amount receivable from assets leased under finance leases at an amount equal to the net investment in the lease. Finance lease income is recognised in the income statement reflecting a constant periodic rate of return on the Group's net investment in the lease.

Assets provided to customers under leases other than finance leases are classified as operating leases and carried in property, plant and equipment at cost and are depreciated on a straight line basis over the term of the lease.

SUBSEQUENT COSTS
The Group recognises in the carrying amount of an item of property, plant and equipment the cost of replacing part of such an item when that cost is incurred if it is probable that the future economic benefits embodied within the item will flow to the Group and the cost of the item can be measured reliably. All other costs are recognised in the income statement as an expense as incurred.

e) Business combinations All business combinations are accounted for by applying the purchase method.

The Group has elected to avail of the exemption under IFRS 1, First-time adoption of International Financial Reporting Standards, whereby business combinations prior to the transition date, January 1, 2004, are not restated. IFRS 3, Business Combinations, has been applied with effect from the transition date and goodwill amortisation ceased from that date.

The cost of a business combination is measured as the aggregate of the fair values at the date of exchange of assets given, liabilities incurred or assumed and equity instruments issued in exchange for control together with any directly attributable expenses. To the extent that settlement of all or any part of a business combination is deferred beyond a period of 12 months, the fair value of the deferred component is determined through discounting the amounts payable to their present value at the date of exchange. The discount component is unwound as an interest charge in the income statement over the life of the obligation.

Where a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the estimated amount of the adjustment is included in the cost at the acquisition date if the adjustment can be reliably measured.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

When the initial accounting for a business combination is determined provisionally, any subsequent adjustments to the provisional values allocated to the identifiable assets, liabilities and contingent liabilities are made within twelve months of the acquisition date and treated retrospectively as an adjustment to goodwill.

f) Goodwill In respect of business combinations that have occurred since January 1, 2004 (being the transition date to IFRS), goodwill represents the difference between the cost of the acquisition and the fair value of the net identifiable assets acquired.

In respect of acquisitions prior to this date, goodwill is included on the basis of its deemed cost, which represents the amount recorded under Previous GAAP. Save for retrospective restatement of deferred tax as an adjustment to retained earnings in accordance with IAS 12, Income Taxes, the classification and accounting treatment of business combinations undertaken prior to the transition date has not been reconsidered in preparing the Group's opening IFRS balance sheet as at January 1, 2004.

To the extent that the Group's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities acquired exceeds the cost of a business combination, the identification and measurement of the related assets, liabilities and contingent liabilities are revisited accompanied by a reassessment of the cost of the transaction, and any remaining balance is immediately recognised in the income statement.

As at the acquisition date, any goodwill is allocated to each of the cash generating units expected to benefit from the combination's synergies. Following initial recognition, goodwill is stated at cost less any accumulated impairment losses (see note 1(e)). In respect of the associates and the joint venture entity, goodwill is included in the carrying amount of the investment.

g) Intangibles, including research and development (other than goodwill) An intangible asset, which is an identifiable non-monetary asset without physical substance, is recognised to the extent that it is probable that the expected future economic benefits attributable to the asset will flow to the Group and that its cost can be measured reliably. The asset is deemed to be identifiable when it is separable (that is, capable of being divided from the entity and sold, transferred, licensed, rented or exchanged, either individually or together with a related contract, asset or liability) or when it arises from contractual or other legal rights, regardless of whether those rights are transferable or separable from the Group or from other rights and obligations.

Intangible assets acquired as part of a business combination are capitalised separately from goodwill if the intangible asset meets the definition of an asset and the fair value can be reliably measured on initial recognition. Subsequent to initial recognition, these intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses (note
1(e)). Definite lived intangible assets are reviewed for indicators of impairment annually while indefinite lived assets are tested for impairment annually, either individually or at the cash generating unit level.

Research and development
Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognised in the income statement as an expense as incurred. Expenditure on development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and processes, is capitalised if the product or process is technically and commercially feasible and the Group has sufficient resources to complete the development. The expenditure capitalised includes the cost of materials, direct labour and attributable overheads and third party costs. Subsequent expenditure on capitalised intangible assets is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other development expenditure is expensed as incurred. Subsequent to initial recognition, the capitalised development expenditure is carried at cost less any accumulated amortisation and any accumulated impairment losses (note 1(e)).

Expenditure on internally generated goodwill and brands is recognised in the income statement as an expense as incurred.

Amortisation
Amortisation is charged to the income statement on a straight-line basis over the estimated useful lives of intangible assets, unless such lives are indefinite. Goodwill, intangible assets with an indefinite useful life and intangible assets that are not yet available for use are systematically tested for impairment at each balance sheet date. Other intangible assets are amortised from the date they are available for use. The estimated useful lives are as follows:

o Patents and licences 6-15 years
o Capitalised development costs 15 years
o Other (including acquired customer and supplier lists) 6-15 years

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

Certain trade names acquired are deemed to have an indefinite useful life.

Where amortisation is charged on assets with finite lives, this expense is taken to the income statement through the 'selling, general and administrative expenses' line.

Useful lives are examined on an annual basis and adjustments, where applicable, are made on a prospective basis.

h) Impairment The carrying amount of the Group's assets, other than inventories and deferred tax assets, are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount (being the greater of fair value less costs to sell and value in use) is assessed at each balance sheet date.

Fair value less costs to sell is defined as the amount obtainable from the sale of an asset or cash-generating unit in an arm's length transaction between knowledgeable and willing parties, less the costs that would be incurred in disposal. Value in use is defined as the present value of the future cash flows expected to be derived through the continued use of an asset or cash-generating unit. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the future cash flow estimates have not yet been adjusted. The estimates of future cash flows exclude cash inflows or outflows attributable to financing activities and income tax. For an asset that does not generate largely independent cash flows, the recoverable amount is determined by reference to the cash generating unit to which the asset belongs.

For goodwill, assets that have an indefinite useful life and intangible assets that are not yet available for use, the recoverable amount is estimated at each balance sheet date at the cash generating unit level.

Goodwill and indefinite-lived assets were tested for impairment at January 1, 2004, the date of transition to IFRS as adopted by the EU, and no impairment resulted from this exercise. The goodwill and indefinite-lived assets were also reviewed for impairment at December 31, 2004 and December 31, 2005. No impairment resulted from these exercises.

An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in the income statement.

Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to cash-generating units and then to reduce the carrying amount of other assets in the unit on a pro-rata basis.

An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

An impairment loss in respect of goodwill is not reversed.

Following recognition of any impairment loss (and on recognition of an impairment loss reversal), the depreciation charge applicable to the asset or cash generating unit is adjusted prospectively with the objective of systematically allocating the revised carrying amount, net of any residual value, over the remaining useful life.

i) Inventories Inventories are stated at the lower of cost and net realisable value. Cost is based on the first-in, first-out principle and includes all expenditure which has been incurred in bringing the products to their present location and condition, and includes an appropriate allocation of manufacturing overhead based on the normal level of operating capacity. Net realisable value is the estimated selling price of inventory on hand in the ordinary course of business less all further costs to completion and costs expected to be incurred in selling these products.

j) Trade and other receivables Trade and other receivables are stated at their amortised cost less impairment losses incurred. Cost approximates fair value given the short dated nature of these assets. The Group had an allowance for impairment losses incurred of approximately US$587,000 as at December 31, 2005 (2004: US$462,000).

k) Trade and other payables Trade and other payables are stated at cost.

l) Cash and cash equivalents Cash and cash equivalents comprise cash balances and short-term deposits with a maturity of three months or less. The Group has no short-term bank overdraft facilities.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

Where restrictions are imposed by third parties, such as lending institutions, on cash balances held by the Group these are treated as financial assets in the financial statements.

m) Interest-bearing loans and borrowings LOANS AND BORROWINGS, INCLUDING PROMISSORY NOTES From January 1, 2005 under IFRS as adopted by the EU, interest-bearing loans, borrowings and promissory notes are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost, with any difference between cost and redemption value being recognised in the income statement over the period of the borrowings on an effective interest basis.

As at December 31, 2004, in line with Previous GAAP interest-bearing loans, borrowings and promissory notes are recognised and carried at cost less attributable transaction costs.

CONVERTIBLE NOTES
From January 1, 2005 under IFRS as adopted by the EU, convertible notes that can be converted into share capital at the option of the holder, where the number of shares issued does not vary with changes in their fair value, are accounted for as compound financial instruments. Transaction costs that relate to the issue of a compound financial instrument are allocated to the liability and equity components in proportion to the allocation of proceeds. The equity component of the convertible notes is calculated as the excess of the issue proceeds over the present value of the future interest and principal payments, discounted at the market rate of interest applicable to similar liabilities that do not have a conversion option. The interest expense recognised in the income statement is calculated using the effective interest rate method.

The Group has availed of the exemption in IFRS 1 from presenting its financial instruments and convertible notes in the comparative information in accordance with IAS 32 and IAS 39. The transition date for compliance with IAS 32 and IAS 39 is January 1, 2005 and the comparative information is presented under IFRS in line with Previous GAAP.

To the extent that the liability element of a compound financial instrument was no longer outstanding at January 1, 2005, the date of transition to IFRS as adopted by the EU for IAS 32 and IAS 39, the Group has availed of the exemption in IFRS 1 and the amounts within equity that are attributable to the equity and liability elements have not been identified separately.

As at December 31, 2004, in line with Previous GAAP convertible notes are recognised and carried at cost less attributable transaction costs.

n) Share-based payments For equity-settled share-based payments (for share options), the Group measures the services received and the corresponding increase in equity at fair value at the measurement date (which is the grant date) using a trinomial model. Given that the share options granted do not vest until the completion of a specified period of service, the fair value, which is assessed at the grant date, is recognised on the basis that the services to be rendered by employees as consideration for the granting of share options will be received over the vesting period.

The share options issued by the Company are not subject to market-based vesting conditions as defined in IFRS 2, Share-based Payments. Non-market vesting conditions are not taken into account when estimating the fair value of share options as at the grant date; such conditions are taken into account through adjusting the number of equity instruments included in the measurement of the transaction amount so that, ultimately, the amount recognised equates to the number of equity instruments that actually vest. The expense in the income statement in relation to share options represents the product of the total number of options anticipated to vest and the fair value of those options; this amount is allocated to accounting periods on a straight-line basis over the vesting period. Given that the performance conditions underlying the Group's share options are non-market in nature, the cumulative charge to the income statement is only reversed where the performance condition is not met or where an employee in receipt of share options relinquishes service prior to completion of the expected vesting period.

The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.

In line with the transitional provisions applicable to a first-time adopter of IFRS as adopted by the EU as contained in IFRS 2, the Group has elected to implement the measurement requirements of the IFRS as adopted by the EU in respect of share options that were granted after November 7, 2002 that had not vested as at the effective date of the standard (January 1, 2005). In accordance with the standard, the disclosure requirements of IFRS 2 have been applied in relation to all outstanding share options and warrants regardless of their grant date.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

The Group does not operate any cash-settled share-based payment schemes or share-based payment transactions with cash alternatives as defined in IFRS 2.

o) Government grants Grants that compensate the Group for expenses incurred such as research and development, employment and training grants are recognised as revenue in the income statement on a systematic basis in the same periods in which the expenses are incurred. Grants that compensate the Group for the cost of an asset are recognised in the income statement as other operating income on a systematic basis over the useful life of the asset.

p) Revenue recognition GOODS SOLD AND SERVICES RENDERED Revenue from the sale of goods is recognised in the income statement when the significant risks and rewards of ownership have been transferred to the buyer. Sales of products are generally recorded as of the date of shipment. Revenue is recognised when the Group has satisfied all of its obligations to the customer. Sales represent the value of goods supplied to external customers and exclude sales taxes and discounts.

Revenue from services rendered is recognised in the income statement in proportion to the stage of completion of the transaction at the balance sheet date.

Revenue is recognised to the extent that it is probable that economic benefit will flow to the Group, that the risks and rewards of ownership have passed to the buyer and the revenue can be measured. No revenue is recognised if there is uncertainty regarding recovery of the consideration due at the outset of the transaction or the possible return of goods.

The Group leases instruments under operating and finance leases as part of its business. In cases where the risks and rewards of ownership of the instrument passes to the customer, the fair value of the instrument is recognised as revenue at the time of sale matched by the related cost of sale. In the case of operating leases of instruments which typically involve commitments by the customer to pay a fee per test run on the instruments, revenue is recognised on the basis of customer usage of the instruments. See also note 1(d).

OTHER OPERATING INCOME
Rental income from the Group's sub-lease of a premise under operating lease, where the risks and rewards of the premises remain with the lessor, is recognised in the income statement as other operating income on a straight-line basis over the term of the lease.

q) Employee benefits DEFINED CONTRIBUTION PLANS The Group operates defined contribution pension schemes in various locations where the subsidiaries are based. Contributions to the defined contribution schemes are recognised in the income statement in the period in which they become payable.

OTHER LONG-TERM BENEFITS
Where employees participate in the Group's other long-term benefit schemes (such as permanent health insurance schemes) the Group pays an annual fee to a service provider, and accordingly the Group expenses such payments as incurred.

r) Foreign currency A majority of the revenue of the Group is generated in US Dollars. The Group's management has determined that the US dollar is the primary currency of the economic environment in which the Company and its subsidiaries (with the exception of the Group's subsidiaries in Germany and Sweden) principally operate. Thus the functional currency of the Company, its subsidiaries (other than those subsidiaries in Germany and Sweden), joint venture entity and associate is the US Dollar. The functional currency of the German and Swedish subsidiaries is the euro and the Swedish Kroner, respectively. The presentation currency of the Company and Group is the US Dollar.

Results and cash flows of subsidiary undertakings, which have a functional currency other than the US Dollar, are translated into US Dollars at average exchange rates for the year, and the related balance sheets have been translated at the rates of exchange ruling on the balance sheet date. Adjustments arising on translation of the results of these subsidiary undertakings from January 1, 2004 and on restatement of the opening net assets at closing rates are dealt with in a separate component of equity. The Group has availed of the exemption in IFRS 1 and has deemed the cumulative currency translation differences applicable to foreign operations to be zero at the transition date (see note 33).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

Foreign currency transactions are translated at the rates of exchange ruling at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the balance sheet date. The resulting gains and losses are included in the income statement. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

s) Derivative financial instruments From January 1, 2005 under IFRS as adopted by the EU, the Group uses derivative financial instruments to hedge its exposure to foreign exchange risks. The Group has entered into a series of forward contracts to sell US Dollars forward for euro. The principal exchange risk identified by the Group is with respect to fluctuations in the euro as a substantial portion of its expenses are denominated in euro but its revenues are primarily denominated in US Dollars. These forward contracts are cash flow hedging instruments whose objective is to cover a portion of this euro expense.

At the inception of a hedging transaction entailing the use of derivatives, the Group documents the relationship between the hedged item and the hedging instrument together with its risk management objective and the strategy underlying the proposed transaction. The Group also documents its assessment of the effectiveness of the hedge in offsetting movements in the cash flows of the hedged items.

Derivative financial instruments are recognised at fair value. Where derivatives do not fulfil the criteria for hedge accounting, they are classified as held-for-trading and changes in fair values are reported in the income statement. The fair value of forward exchange contracts is calculated by reference to current forward exchange rates for contracts with similar maturity profiles and equates to the current market price at the balance sheet date.

The portion of the gain or loss on a hedging instrument that is deemed to be an effective hedge is recognised directly in the hedging reserve in equity and the ineffective portion is recognised in the income statement. As the forward contracts are exercised the net cumulative gain or loss recognised in the hedging reserve is transferred to the income statement.

The Group has availed of the exemption in IFRS 1 from presenting comparative information for derivative financial instruments in accordance with IAS 32 and IAS 39. The transition date for compliance with IAS 32 and IAS 39 is January 1, 2005 and the comparative information is presented under IFRS in line with Previous GAAP.

In 2004, in line with Previous GAAP where derivatives are used to hedge cross-currency cash flows arising from trading activities, the profit or loss on the derivative was recognised in the income statement when the contract was settled.

t) Segment reporting A segment is a distinguishable component of the Group that is engaged either in providing products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and returns different to those of other segments. Stemming from the Group's internal organisational and management structure and its system of internal financial reporting, segmentation by geographic location of assets is regarded as being the predominant source and nature of the risks and returns facing the Group and is thus the primary segment format under IAS 14, Segment Reporting. Business segmentation is therefore the secondary segment format.

u) Tax (current and deferred) Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in the income statement except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

Current tax represents the expected tax payable (or recoverable) on the taxable profit for the year using tax rates enacted or substantively enacted at the balance sheet date and taking into account any adjustments stemming from prior years.

Deferred tax is provided on the basis of the balance sheet liability method on all temporary differences at the balance sheet date which is defined as the difference between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets and liabilities are not subject to discounting and are measured at the tax rates that are anticipated to apply in the period in which the asset is realised or the liability is settled based on tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

Deferred tax assets and liabilities are recognised for all temporary differences (that is, differences in the carrying amount of the asset or liability) with the exception of the following:

i. Where the deferred tax liability arises from goodwill not deductible for tax purposes or the initial recognition of an asset or a liability in a transaction that is not a business combination and affects neither the accounting profit nor the taxable profit or loss at the time of the transaction; and

ii. Where, in respect of temporary differences associated with investments in subsidiary undertakings, the timing of the reversal of the temporary difference is subject to control and it is probable that the temporary difference will not reverse in the foreseeable future.

Where goodwill is tax deductible, a deferred tax liability is not recognised on initial recognition of goodwill. It is recognised subsequently for the taxable temporary difference which arises when the goodwill is amortised for tax with no corresponding adjustment to the carrying value of the goodwill.

The carrying amounts of deferred tax assets are subject to review at each balance sheet date and are reduced to the extent that future taxable profits are considered to be inadequate to allow all or part of any deferred tax asset to be utilised.

v) Provisions A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation.

w) Cost of sales Cost of sales comprises the product cost including manufacturing costs, quality control, shipping, handling, and packaging costs.

x) Finance income and costs From January 1, 2005 under IFRS as adopted by the EU, financing expenses comprise costs payable on leases, loans and borrowings including promissory notes. Interest payable on loans and borrowings and convertible notes is calculated using the effective interest rate method. Interest payable on finance leases is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Finance income comprises interest income on deposits and is recognised in the income statement as it accrues, using the effective interest method.

In 2004 in line with Previous GAAP interest payable on loans and borrowings and convertible notes was recognised in the income statement as they accrued using the nominal rate of interest. Interest payable on finance leases was allocated to each period during the lease term so as to produce a constant period rate of interest on the remaining balance of the liability.

In 2004 in line with Previous GAAP finance income was recognised in the income statement as it accrued, using the nominal rate of interest.

y) Warrant reserve The Group calculates the fair value of warrants at the date of issue taking the amount directly to equity. The fair value is calculated using a recognised valuation methodology for the valuation of financial instruments (that is, the trinomial model). The fair value which is assessed at the grant date is calculated on the basis of the contractual term of the warrants.

z) New IFRS Standards and Interpretations not applied The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the EU. IFRS as adopted by the EU differ in certain respects from IFRS as issued by the IASB. However, the consolidated financial statements for the periods presented would be no different had we applied IFRS as adopted by the EU. During 2005, the IASB and IFRIC issued additional standards and interpretations which are effective for periods starting after the date of these financial statements and which have not yet been adopted by the EU. The following standards and interpretations have yet to be adopted by the Group:

INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS/IAS)                                          Effective date

IFRS 1   Amendment relating to IFRS 6                                                          January 1, 2006
IFRS 4   Amendment to IAS 39 and IFRS 4 -- Financial Guarantee Contracts                       January 1, 2006
IFRS 6   Amendment relating to IFRS 6                                                          January 1, 2006
IFRS 7   Financial Instruments: Disclosures                                                    January 1, 2007
IAS 1    Amendment to IAS 1 -- Presentation of Financial Statements: Capital Disclosures       January 1, 2007
IAS 39   Fair Value Option                                                                     January 1, 2006
IAS 39   Amendments to IAS 39 -- Cash Flow Hedges of Forecast Intragroup Transactions          January 1, 2006
IAS 39   Amendment to IAS 39 and IFRS 4 -- Financial Guarantee Contracts                       January 1, 2006
INTERNATIONAL FINANCIAL REPORTING INTERPRETATIONS COMMITTEE (IFRIC)
IFRIC 4  Determining Whether an Arrangement Contains a Lease                                   January 1, 2006
IFRIC 8  Scope of IFRS 2                                                                       May 1, 2006

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

The Group does not anticipate that the adoption of these standards and interpretations will have a material effect on its financial statements on initial adoption. Upon adoption of IFRS 7, the Group will be required to disclose additional information about its financial instruments, their significance and the nature and extent of the risks to which they give rise, together with greater detail as to the fair value of its financial instruments and its risk exposure. There will be no effect on reported income or net assets.

aa) Companies Acts, 1963 to 2005
The financial information relating to the Company and its subsidiaries included in this document does not comprise full group accounts as referred to in Regulation 40 of the European Communities (Companies: Group Accounts) Regulations 1992, copies of which are required by that Act to be annexed to the Company's annual return. The auditors have made a report without qualification under Section 193 of the Companies Act, 1990 in respect of the group financial statements for the year ended December 31, 2004. A copy of the full group accounts for the year ended December 31, 2004 has been annexed together to the 2004 annual return, and a copy of the full group accounts for the year ended December 31, 2005 together with the report of the auditors thereon will in due course be annexed to the 2005 annual return, which will be filed after the annual general meeting of the Company in 2006.

2. SEGMENT INFORMATION Segment information is presented in respect of the Group's geographical and business segments. The primary format, geographical segments, is based on the Group's management and internal reporting structure. Sales of product between companies in the Group are made on commercial terms which reflect the nature of the relationship between the relevant companies. Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise interest-bearing loans, borrowings and expenses and corporate expenses. Segment capital expenditure is the total cost during the period to acquire segment plant, property and equipment and intangible assets that are expected to be used for more than one period.

Geographical segments
The Group comprises two main geographical segments (i) the Americas and (ii) Rest of World. The Group's geographical segments are determined by the location of the Group's assets and operations.

The Group has also presented a geographical analysis of the segmental data for Ireland on the basis of the aggregation thresholds contained in IAS 14.

Business segments
The Group operates in one business segment, the market for diagnostic tests for a range of diseases and other medical conditions. In determining the nature of its segmentation the Group has considered the nature of the products, their risks and rewards, the nature of the production base, the customer base and the nature of the regulatory environment. The Group acquires, manufactures and markets a range of diagnostic products that are all based on In Vitro technology. The Group's products are sold to a similar customer base and the main regulatory body to which the Group's products must comply is the Food and Drug Administration ("FDA") in the US.

The following presents revenue and profit information and certain asset and liability information regarding the Group's geographical segments.

a) The distribution of revenue by geographical area based on location of assets was as follows:

                                          Americas             Rest of World
Year ended December 31, 2005                               Ireland          Other       Eliminations        Total
                                           US$'000         US$'000         US$'000         US$'000         US$'000
Revenue from external customers               31,136           54,859         12,565               -          98,560
Inter-segment revenue                         22,197           14,402          6,594         (43,193)              -
                                        -------------- ---------------- -------------- ---------------- --------------
Total revenue                                 53,333           69,261         19,159         (43,193)         98,560
                                        ============== ===============  ============== ================ ==============

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

The Group sets inter-segment sales prices on the basis of arm's length prices. .

                                          Americas              Rest of World
Year ended December 31, 2004                               Ireland           Other        Eliminations        Total
                                           US$'000         US$'000          US$'000         US$'000          US$'000

Revenue from external customers               28,937            40,985         10,086                -        80,008
Inter-segment revenue                         20,860            13,077          6,549          (40,486)            -
                                        -------------- ---------------- --------------  ----------------  --------------
Total revenue                                 49,797            54,062         16,635          (40,486)       80,008
                                        ============== ================ ==============  ================  ==============

b) The distribution of revenue by customers' geographical area was as follows:

REVENUE                                                                  December 31, 2005        December 31, 2004
                                                                                   US$'000                  US$'000
Americas                                                                            50,627                   41,380
Europe (including Ireland) *                                                        25,301                   22,718
Asia / Africa                                                                       22,632                   15,910
                                                                        -------------------      --------------------
                                                                                    98,560                   80,008
                                                                        ===================      ====================

*Revenue for customers in Ireland is not disclosed separately due to the immateriality of these revenues.

c) The distribution of revenue by major product group was as follows:

REVENUE                                                                  December 31, 2005       December 31, 2004*
                                                                                   US$'000                  US$'000
Infectious diseases                                                                                          36,402
                                                                                    44,078
Haemostasis                                                                                                  26,836
                                                                                    29,766
Point of care                                                                                                 9,807
                                                                                    12,836
Clinical chemistry                                                                                            6,963
                                                                                    11,880
                                                                        --------------------      --------------------
                                                                                    98,560                   80,008
                                                                        ====================      ====================

* The 2004 comparatives have been reclassified to be consistent with the 2005 classification of revenue by product category. Following the acquisition of Primus, clinical chemistry is considered a separate product category and an amount of US$6,962,000 was reclassified from the product category 'other' to the clinical chemistry product category. The product category 'infectious diseases' was broadened in 2005 to include the Fitzgerald business, accordingly US$4,765,000 was reclassified from the product category 'other' to the infectious diseases product category.

d) The distribution of segment result by geographical area was as follows:

Year ended December 31, 2005
                                                         Americas              Rest of World
                                                                          Ireland           Other           Total
                                                         US$'000          US$'000          US$'000         US$'000
RESULT                                                    (369)           10,339           (1,581)             8,389
Unallocated expenses *                                                                                       (1,767)
                                                                                                         --------------
Operating profit                                                                                               6,622
Net financing costs (note 3)                                                                                   (669)
                                                                                                         --------------
Profit before tax                                                                                              5,953
Income tax expense (note 8)                                                                                    (673)
                                                                                                         --------------
Profit for the year                                                                                            5,280
                                                                                                         ==============

* Unallocated expenses represent head office general and administration costs of the Group which cannot be allocated to the results of any specific geographical area.

The result for the Americas includes a loss from the Group's joint venture entity of US$20,000 and of US$nil from its associate.

Year ended December 31, 2004

                                                          Americas              Rest of World
                                                                             Ireland          Other           Total
                                                          US$'000            US$'000         US$'000         US$'000
RESULT                                                    (4,941)            12,205            667             7,931
Unallocated expenses *                                                                                       (1,744)
                                                                                                         --------------
Operating profit                                                                                               6,187
Net financing costs (note 3)                                                                                   (522)
                                                                                                         --------------
Profit before tax                                                                                              5,665
Income tax credit (note 8)                                                                                        49
                                                                                                         --------------
Profit for the year                                                                                            5,714
                                                                                                         ==============

* Unallocated expenses represent head office general and administration costs of the Group which cannot be allocated to the results of any specific geographical area.

e) The distribution of segment assets and segment liabilities by geographical area was as follows:

As at December 31, 2005

                                                          Americas               Rest of World
                                                                            Ireland            Other          Total
                                                          US$'000           US$'000           US$'000        US$'000
ASSETS AND LIABILITIES                                     50,501            99,336           11,958           161,795
Segment assets
Unallocated assets:
Income tax assets (current and deferred)                                                                         3,926
Restricted cash                                                                                                  9,000
Cash and cash equivalents                                                                                        9,881
                                                                                                         --------------
Total assets as reported in the Group balance sheet                                                             184,602
                                                                                                         ==============
Segment liabilities                                          7,415             8,078           1,327            16,820
Unallocated liabilities:
Income tax liabilities (current and deferred)                                                                    7,036
Interest-bearing loans and borrowings and
convertible notes (current and non-current)                                                                     27,128
                                                                                                          --------------
Total liabilities as reported in the Group balance sheet                                                        50,984
                                                                                                          ==============

The assets of the Americas include US$475,000 representing the Group's share of assets in its joint venture entity. The liabilities of the Americas include US$247,000 representing the Group's share of liabilities in its joint venture entity.

As at December 31, 2004
                                                          Americas               Rest of World
                                                                            Ireland            Other          Total
                                                          US$'000           US$'000           US$'000        US$'000
ASSETS AND LIABILITIES
Segment assets                                                30,005              87,370         13,087        130,462
Unallocated assets:
Income tax assets (current and deferred)                                                                         3,291
Restricted cash                                                                                                  7,148
Cash and cash equivalents                                                                                       15,139
                                                                                                           --------------
Total assets as reported in the Group balance sheet                                                            156,040
                                                                                                           ==============

Segment liabilities                                            2,090               5,167          1,409          8,666
Unallocated liabilities:
Income tax liabilities (current and deferred)                                                                    4,470
Interest-bearing    loans   and    borrowings    and
convertible notes (current and non-current)                                                                     24,010
                                                                                                           ==============
Total liabilities as reported in the Group balance sheet                                                        37,146
                                                                                                           ==============

                                                                         December 31, 2005        December 31, 2004
                                                                                   US$'000                  US$'000
Rest of World -- Ireland                                                            75,878                   65,526
Rest of World -- Other                                                               4,973                    5,307
Americas                                                                            23,609                    8,773
                                                                       ---------------------- ------------------------
                                                                                   104,460                   79,606
                                                                       ====================== ========================

g) The distribution of depreciation and amortisation by geographical area was as follows:

                                                                         December 31, 2005        December 31, 2004
                                                                                   US$'000                  US$'000
DEPRECIATION:
Rest of World -- Ireland                                                             1,118                    1,023
Rest of World -- Other                                                                 427                      211
Americas                                                                               889                      395
                                                                        ---------------------- ------------------------
                                                                                    2,434                    1,629
                                                                        ====================== ========================

AMORTISATION:
Rest of World -- Ireland                                                             1,569                      997
Rest of World -- Other                                                                  87                       59
Americas                                                                               147                       55
                                                                        ---------------------- ------------------------
                                                                                     1,803                    1,111
                                                                        ====================== ========================

h) The distribution of share-based payment expense by geographical area was as follows:

                                                                         December 31, 2005        December 31, 2004
                                                                                   US$'000                  US$'000
Rest of World -- Ireland                                                             1,174                      588
Rest of World -- Other                                                                  22                       19
Americas                                                                               172                      151
                                                                        ---------------------- ------------------------
                                                                                     1,368                      758
                                                                        ====================== ========================

There are no other significant non-cash expenses that require disclosure. See note 19 for further information on share-based payments.

i) The distribution of interest expense by geographical area was as follows:

                                                                         December 31, 2005        December 31, 2004
                                                                                   US$'000                  US$'000
Rest of World -- Ireland                                                               894                      806
Rest of World -- Other                                                                   8                        7
Americas                                                                               156                       11
                                                                        ---------------------- ------------------------
                                                                                     1,058                      824
                                                                        ====================== ========================

j) The distribution of taxation expense/(credit) by geographical area was as follows:

                                                                         December 31, 2005        December 31, 2004
                                                                                   US$'000                  US$'000
Rest of World -- Ireland                                                             1,105                    1,167
Rest of World -- Other                                                               (236)                    (125)
Americas                                                                             (196)                  (1,091)
                                                                       ---------------------- ------------------------
                                                                                       673                     (49)
                                                                       ====================== ========================

k) During 2005 and 2004 there were no customers with 10% or more of total revenues.

                                                                        December 31, 2005        December 31, 2004
                                                                                  US$'000                  US$'000

Rest of World -- Ireland                                                           12,837                   22,716
Rest of World -- Other                                                              1,023                      853
Americas                                                                           16,374                    3,268
                                                                       --------------------     ---------------------
                                                                                   30,234                   26,837
                                                                       ====================     =====================

                                                           Note          December 31, 2005        December 31, 2004
                                                                                   US$'000                  US$'000


Financial income:
Interest income                                                                        389                      302
                                                                       --------------------     ---------------------

Finance expense:
Finance lease interest                                                                (33)                     (40)
Interest payable on interest bearing loans and
borrowings                                                  20                       (312)                    (193)
Convertible note interest*                                  21                       (713)                    (485)
Other interest expense                                                                   -                    (106)
                                                                       --------------------     ---------------------
                                                                                   (1,058)                    (824)
                                                                       --------------------     ---------------------
                                                                                     (669)                    (522)
                                                                       ====================     =====================

* The Company has availed of the exemption in IFRS 1 and has not applied IAS 32 until January 1, 2005. Interest on the convertible notes from January 1, 2005 is recognised in the income statement using the effective interest rate method. In 2004, in line with Previous GAAP, interest was recognised in the income statement using the coupon rate, adjusted for transaction costs.

                                                                         December 31, 2005        December 31, 2004
                                                                                   US$'000                  US$'000

Rental income from premises                                                            161                      167
Employment grants                                                                        -                      135
                                                                       --------------------     ---------------------
                                                                                       161                      302
                                                                       ====================     =====================

                                                                         December 31, 2005        December 31, 2004
                                                                                   US$'000                  US$'000

Directors' emoluments:
     Remuneration                                                                    1,752                    1,321
     Pension                                                                           131                      172
Auditors' remuneration
     Audit fees                                                                        688                      419
     Non audit fees                                                                    164                       17
Depreciation -- leased assets                                                           92                      184
Depreciation -- owned assets                                                         2,342                    1,445
Amortisation                                                                         1,803                    1,111
Loss on disposal of fixed assets                                                       469                       14
Net foreign exchange differences                                                     (295)                    (741)
Operating lease rentals:
     Plant and machinery                                                                17                       19
     Land and buildings                                                              1,800                    1,695
     Other equipment                                                                   125                      280
Employment grants                                                                        -                    (135)

                                                                         December 31, 2005         December 31, 2004
                                                                                   US$'000                   US$'000

Wages and salaries                                                                  35,595                   31,731
Social welfare costs                                                                 3,613                    3,280
Pension costs                                                                          761                      450
Share-based payments (note 19)                                                       1,368                      758
                                                                       --------------------     ---------------------
                                                                                    41,337                   36,219
                                                                       ====================     =====================

                                                                         December 31, 2005        December 31, 2004




Research and development                                                                42                       41
Administration and sales                                                               207                      171
Manufacturing and quality                                                              454                      459
                                                                       --------------------     ---------------------
                                                                                       703                      671
                                                                       ====================     =====================

7. PENSION SCHEME

The Group operates defined contribution pension schemes for certain of its full-time employees. The benefits under these schemes are financed by both Group and employee contributions. Total contributions made by the Group in the financial year and charged against income amounted to US$761,000 (2004:
US$450,000) (note 6). This represents the total cost paid and due by the Group to the pension schemes for the financial year and as such it was not necessary to accrue or prepay pension contributions at the year end.

8. INCOME TAX EXPENSE/(CREDIT)

(a) The charge for tax based on the profit comprises:

                                                                         December 31, 2005         December 31, 2004
                                                                                   US$'000                   US$'000

Current tax expense
Corporation tax at 12.5%                                                               361                     1,125
Manufacturing relief                                                                     -                     (144)
                                                                       --------------------     ---------------------
                                                                                       361                       981
Overseas tax*                                                                        (172)                     (139)
Adjustment in respect of prior years                                                     -                     (214)
                                                                       --------------------     ---------------------
Total current tax expense                                                             189                       628
                                                                       --------------------     ---------------------

Deferred tax expense/(credit)**
Origination and reversal of temporary differences (see note 12)                         926                       264
Benefit of tax losses recognised (see note 12)                                        (442)                     (941)
                                                                       --------------------     ---------------------
Total deferred tax expense/(credit)                                                     484                     (677)
                                                                       --------------------     ---------------------

Total income tax charge/(credit) in income statement                                    673                      (49)
                                                                       ====================     =====================

* The credit in 2005 of US$172,000 relates primarily to a current year trading loss in Sweden which the Company is able to offset against its deferred corporation tax liabilities in Sweden from previous years. The credit in 2004 of US$139,000 primarily arose as a result of refunds due relating to a loss carry-back claim in respect of the 2004 US trading loss.

** In 2005 there was a deferred tax expense of US$747,000 (2004: US$277,000) recognised in respect of Ireland. In 2005, there was a deferred tax credit of US$263,000 (2004: US$954,000) recognised in respect of overseas tax jurisdictions.

Effective tax rate
Profit on ordinary activities before taxation                                        5,953                     5,665
As a percentage of profit before tax:
    Current tax                                                                      3.17%                    11.09%
    Total (current and deferred)                                                    11.31%                   (0.86%)

                                                                         December 31, 2005         December 31, 2004
Irish corporation tax                                                               12.50%                    12.50%
Manufacturing relief                                                                     -                   (2.54%)
Adjustment in respect of prior years                                                     -                   (3.78%)
Effect of tax rates on overseas earnings                                           (5.10%)                   (5.13%)
Effect of non deductible expenses                                                    3.91%                     2.72%
Effects of benefit of loss carryforwards                                                 -                   (4.63%)
                                                                       --------------------     ---------------------
Effective interest rate                                                             11.31%                   (0.86%)
                                                                       ====================     =====================

                                                                           December 31, 2005         December 31, 2004
                                                                                     US$'000                   US$'000

Relating to forward contracts as hedged instruments                                       41                         -
                                                                          --------------------     ---------------------
                                                                                          41                         -
                                                                          ====================     =====================

(b) The distribution of profit before taxes by geographical area was as follows:

                                                                       December 31, 2005          December 31, 2004
                                                                                 US$'000                    US$'000

Rest of World - Ireland                                                            7,873                      9,957
Rest of World - Other                                                            (1,567)                        660
Americas                                                                           (353)                    (4,952)
                                                                       --------------------     ---------------------
                                                                                   5,953                      5,665
                                                                       ====================     =====================

(c) At December 31, 2005, the Group had net operating losses of approximately US$3,331,000 (2004: US$2,260,000) in the US, US$244,000 (2004: US$256,000) in the UK and US$668,000 (2004: US$410,000) in Germany. The utilisation of these net operating loss carryforwards is limited to future profitable operations in the US, UK and Germany. The US net operating loss has a maximum carryforward of 20 years. US$3,046,000 of the net operating losses in the US will expire by December 31, 2024 while the balance of US$285,000 will expire by December 31 2025. The UK and German losses can be carried forward indefinitely. A deferred tax asset has been recognised for these loss carryforwards. The tax value of these loss carryforwards is US$1,525,000 (2004: US$1,083,000) (see Note 12). The Company has state credit carryforwards of US$331,000 at December 31, 2005 (2004: US$307,000). A deferred tax asset of US$316,000 (2004: US$302,000) in respect of US state credit carryforwards was not recognised in 2005 due to uncertainties regarding future full utilisation of these state credit carryforwards in the related tax jurisdiction in future periods. Excepting state credit carryforwards of US$60,000 which expire by December 31, 2009, the balance of the state credits carry forward indefinitely.

(d) There are no income tax consequences for the Company attaching to the payment of dividends by Trinity Biotech plc to shareholders of the Company.

9. EARNINGS PER SHARE

Basic earnings per ordinary share
Basic earnings per ordinary share is computed by dividing the profit after taxation of US$5,280,000 (2004: US$5,714,000) for the financial year by weighted average number of 'A' ordinary and 'B' ordinary shares in issue of 58,890,084 (2004: 55,132,024). 1,400,000 of the total weighted average shares used as the EPS denominator relate to the 700,000 'B' ordinary shares in issue. In all respects these shares are treated the same as 'A' ordinary shares except for the fact that they have two voting rights per share, rights to participate in any liquidation or sale of the Company and to receive dividends as if each Class 'B' ordinary share were two Class 'A' ordinary shares. Hence the EPS for a 'B' ordinary share is exactly twice the EPS of an 'A' ordinary share.

                                                                         December 31, 2005         December 31, 2004



'A' ordinary shares                                                             57,490,084                53,732,024
'B' ordinary shares                                                              1,400,000                 1,400,000
                                                                       --------------------     ---------------------
Basic earnings per share denominator                                            58,890,084                55,132,024
                                                                       --------------------     ---------------------

Reconciliation to weighted average earnings per share
denominator:

Number of A ordinary shares at January 1 (note 18)                              54,904,318                45,160,640
Number of B ordinary shares at January 1 (multiplied  by 2)                      1,400,000                 1,400,000
Weighted average number of shares issued during the year
                                                                                 2,585,766                 8,571,384
                                                                       --------------------     ---------------------
Basic earnings per share denominator                                            58,890,084                55,132,024
                                                                       ====================     =====================

The weighted average number of shares issued during the year is calculated by taking the number of shares issued by the number of days in the year each share is in issue divided by 365 days.

Diluted earnings per ordinary share
Diluted earnings per ordinary share is computed by dividing the profit after tax of US$5,280,000 (2004: US$5,714,000) for the financial year, adjusted for the after tax effect of the interest saving on convertible notes of US$535,000 (2004: US$386,000) by the diluted weighted average number of ordinary shares in issue of 67,032,382 (2004: 65,527,802).

The after tax effect of the interest saving on convertible notes is included in the diluted earnings per share calculation. The after tax effect of the interest saving on convertible notes for 2004 and 2005 was not anti-dilutive.

The basic weighted average number of shares may be reconciled to the number used in the diluted earnings per ordinary share calculation as follows:

                                                                         December 31, 2005         December 31, 2004


Basic earnings per share denominator (see above)                                58,890,084                55,132,024
Issuable on exercise of options and warrants                                     2,168,545                 4,156,551
Issuable on conversion of convertible notes                                      5,973,753                 6,239,227
                                                                       --------------------     ---------------------
Diluted earnings per share denominator                                          67,032,382                65,527,802
                                                                       ====================     =====================

                                                                         December 31, 2005         December 31, 2004


'A' ordinary shares - ADS                                                       14,372,521                13,433,006
'B' ordinary shares - ADS                                                          350,000                   350,000
                                                                       --------------------     ---------------------
Basic earnings per share denominator                                            14,722,521                13,783,006
                                                                       ====================     =====================

Diluted earnings per ADS is computed by dividing the profit on ordinary activities after taxation of US$5,280,000 (2004: US$5,714,000) for the financial year, adjusted for the after tax effect of interest saving on convertible notes of US$535,000 (2004: US$386,000) by the diluted weighted average number of ADS in issue of 16,758,095 (2004: 16,381,950).

The basic weighted average number of ADS shares may be reconciled to the number used in the diluted earnings per ADS share calculation as follows:

                                                                         December 31, 2005         December 31, 2004



Basic earnings per share denominator (see above)                                14,722,521                13,783,006
Issuable on exercise of options and warrants                                       542,136                 1,039,137
Issuable on conversion of convertible notes                                      1,493,438                 1,559,807
                                                                       --------------------     ---------------------
Diluted earnings per share denominator                                          16,758,095                16,381,950
                                                                       ====================     =====================

                                                                            Computer,
                                  Freehold land         Leasehold         fixtures and        Plant and
                                  and buildings        improvements         fittings          equipment          Total
                                     US$'000             US$'000             US$'000           US$'000          US$'000

Cost
-----
At January 1, 2004                          5,133               2,445              2,937             9,440         19,955
Acquisitions through
business combinations (note 26)                 -                   7                 64               201            272
Other additions                                94                 239                406             2,976          3,715
Disposals / retirements                         -                   -                  -              (80)           (80)
Exchange adjustments                          277                   8                 25               258            568
                                 ------------------- ------------------- ------------------ ----------------- --------------
At December 31, 2004                        5,504               2,699              3,432            12,795         24,430
                                 ------------------- ------------------- ------------------ ----------------- --------------

At January 1, 2005                          5,504               2,699              3,432            12,795         24,430
Acquisitions through
business combinations (note 26)                 -                 187                 92             2,116          2,395
Other additions                                17                 191                716             3,398          4,322
Disposals / retirements                         -                (36)              (231)             (571)          (838)
Exchange adjustments                        (457)                (16)               (34)             (540)        (1,047)
                                 ------------------- ------------------- ------------------ ----------------- --------------
At December 31, 2005                        5,064               3,025              3,975            17,198         29,262
                                 ------------------- ------------------- ------------------ ----------------- --------------

Accumulated depreciation
At January 1, 2004                          (454)               (519)            (1,274)           (4,355)        (6,602)
Charge for the year                         (118)               (233)              (435)             (843)        (1,629)
Disposals / retirements                         -                   -                  -                35             35
Exchange adjustments                         (12)                 (8)               (29)             (168)          (217)
                                 ------------------- ------------------- ------------------ ----------------- --------------
At December 31, 2004                        (584)               (760)            (1,738)           (5,331)        (8,413)
                                 ------------------- ------------------- ------------------ ----------------- --------------

At January 1, 2005                          (584)               (760)            (1,738)           (5,331)        (8,413)
Charge for the year                         (119)               (268)              (444)           (1,603)        (2,434)
Disposals / retirements                         -                  25                178               162            365
Exchange adjustments                           21                  16                 17               368            422
                                 ------------------- ------------------- ------------------ ----------------- --------------
At December 31, 2005                        (682)               (987)            (1,987)           (6,404)       (10,060)
                                 ------------------- ------------------- ------------------ ----------------- --------------

Carrying amounts
At December 31, 2005                        4,382               2,038              1,988            10,794         19,202
                                 =================== =================== ================== ================= ==============
At December 31, 2004                        4,920               1,939              1,694             7,464         16,017
                                 =================== =================== ================== ================= ==============

There were no indications in the current year that the above carrying value may not be recoverable.

ASSETS HELD UNDER OPERATING LEASES (WHERE THE COMPANY IS THE LESSOR) Included in the carrying amount of property, plant and equipment are a number of assets which generate operating lease revenue for the Group. The net book value of these assets as at December 31, 2005 is US$2,328,000 (2004: US$932,000). Depreciation charged on these assets in 2005 amounted to US$522,000 (2004:
US$74,000).

At December 31, 2005                Freehold land                              Computer,
                                    and buildings           Leasehold       fixtures and       Plant and
                                          US$'000        improvements           fittings       equipment         Total
                                                              US$'000            US$'000         US$'000       US$'000
Depreciation charge                             -                   -                  -             522           522
Carrying amounts
At December 31, 2005                            -                   -                  -           2,328         2,328
                                   ----------------  ------------------ ------------------ --------------- -------------

At December 31, 2004                Freehold land                              Computer,
                                    and buildings           Leasehold       fixtures and       Plant and
                                          US$'000        improvements           fittings       equipment         Total
                                                              US$'000            US$'000         US$'000       US$'000
Depreciation charge                             -                   -                  -              74            74
Carrying amounts
At December 31, 2004                            -                   -                  -             932           932
                                   ----------------  ------------------ ------------------ --------------- -------------

At December 31, 2005                Freehold land                              Computer,
                                    and buildings           Leasehold       fixtures and       Plant and
                                          US$'000        improvements           fittings       equipment         Total
                                                              US$'000            US$'000         US$'000       US$'000

Depreciation charge                             -                  39                 46               7            92
Carrying value
At December 31, 2005                            -                 310                231             155           696
                                   ----------------  ------------------ ------------------ --------------- -------------

At December 31, 2004                Freehold land                              Computer,
                                    and buildings           Leasehold       fixtures and       Plant and
                                          US$'000        improvements           fittings       equipment         Total
                                                              US$'000            US$'000         US$'000       US$'000
Depreciation charge                             -                  43                 34             107           184
Carrying value
At December 31, 2004                            -                 373                202             779         1,354
                                   ----------------  ------------------ ------------------ --------------- -------------

PROPERTY, PLANT AND EQUIPMENT UNDER CONSTRUCTION
Included in plant and equipment at December 31, 2005 is an amount of US$1,157,000 (2004: US$1,219,000) relating to assets in the course of construction. During the year, plant and equipment of US$1,309,000 which was under construction in 2004 was completed and depreciation was charged on these assets in 2005. A further US$1,247,000 was included as assets under construction in 2005, relating to plant and equipment which were not fully completed by December 31, 2005. These assets were not depreciated in 2005.

                                                            Development         Patents and
                                             Goodwill             costs            licences          Other         Total
                                              US$'000           US$'000             US$'000        US$'000       US$'000

Cost
----
At January 1, 2004                             34,744             4,046               2,835          1,092        42,717
Acquisitions, through business
combinations (note 26)                          8,728                 -                   -         11,123        19,851
Other additions                                     -             2,990                   -            495         3,485
Exchange adjustments                                -                51                   -              2            53
                                          --------------  ----------------    ----------------  -------------  ------------
At December 31, 2004                           43,472             7,087               2,835         12,712        66,106
                                          --------------  ----------------    ----------------  -------------  ------------

At January 1, 2005                             43,472             7,087               2,835         12,712        66,106
Acquisitions, through business
combinations (note 26)                         11,466               400               2,140          3,865        17,871
Other additions                                     -             4,916                 168            562         5,646
Disposals                                           -                 -                   -          (154)         (154)
Exchange adjustments                                -              (86)                   -              7          (79)
                                          --------------  ----------------    ----------------  -------------  ------------
At December 31, 2005                           54,938            12,317               5,143         16,992        89,390
                                          --------------  ----------------    ----------------  -------------  ------------

Accumulated amortisation
At January 1, 2004                                  -               (4)             (1,074)          (357)       (1,435)
Charge for the year                                 -             (111)               (179)          (821)       (1,111)
Exchange adjustments                                -               (5)                   -            (1)           (6)
                                          --------------  ----------------    ----------------  -------------  ------------
At December 31, 2004                                -             (120)             (1,253)        (1,179)       (2,552)
                                          --------------  ----------------    ----------------  -------------  ------------

At January 1, 2005                                  -             (120)             (1,253)        (1,179)       (2,552)
Charge for the year                                 -             (350)               (259)        (1,194)       (1,803)
Disposals                                           -                 -                   -            154           154
Exchange adjustments                                -                 6                   -              2             8
                                          --------------  ----------------    ----------------  -------------  ------------
At December 31, 2005                                -             (464)             (1,512)        (2,217)       (4,193)
                                          --------------  ----------------    ----------------  -------------  ------------

Carrying amounts
At December 31, 2005                           54,938            11,853               3,631         14,775        85,197
                                          ==============  ================    ================  =============  ============
At December 31, 2004                           43,472             6,967               1,582         11,533        63,554
                                          ==============  ================    ================  =============  ============

Included within development costs are costs of US$6,280,000 which were not amortised in 2005 (2004: US$1,731,000). These development costs are not amortised as the projects to which the costs related were not fully complete at December 31, 2005 or at December 31, 2004.

Other intangible assets consist primarily of acquired customer and supplier lists, trade names, website and software costs. Included as part of the total cost is US$8,690,000 with respect to the customer list for Fitzgerald. At the time of acquisition, April 2004, the useful life for this customer list was estimated to be 13 years. The principal determinant of the original estimate of useful life was the estimated rate of customer attrition expected to occur in the periods subsequent to the acquisition date. Since acquisition the rate of customer attrition has been less than was originally envisaged and hence the Company decided to revise the remaining useful life of the customer list to 15 years from January 1, 2005 and has been accounted for prospectively. The impact of this change in estimated useful life on the current period is a reduction in amortisation charged to the income statement in 2005 of US$119,000. There will be a similar impact on the amortisation charge in future accounting periods.

Amortisation is charged to the income statement through the selling, general and administrative expenses line.

Included in other intangibles are the following indefinite lived assets:

                                                                       December 31, 2005        December 31, 2004
                                                                                 US$'000                  US$'000
Fitzgerald trade name                                                                970                      970
RDI trade name                                                                       560                        -
Primus trade name                                                                  1,870                        -
                                                                       --------------------     ---------------------
                                                                                   3,400                      970
                                                                       ====================     =====================

These trade names were acquired through business combinations (see note 26). These assets were valued by an external valuer using the relief from royalty method and based on factors such as (1) the market and competitive trends and
(2) the expected usage of the name. It was considered that these trade names will generate net cash inflows for the Group for an indefinite period.

IMPAIRMENT TESTING FOR INTANGIBLES INCLUDING GOODWILL AND INDEFINITE LIVED ASSETS

Goodwill and the above other intangibles are tested annually for impairment at each balance sheet date at a cash-generating unit (CGU) level, i.e. the individual legal entities. For the purpose of these annual impairment reviews goodwill is allocated to the relevant CGU. The joint venture entity and the associate held by the Group are also subject to impairment reviews. No impairment losses have been recognised to date.

                                                                             December 31, 2005       December 31, 2004
                                                                                       US$'000                 US$'000

Trinity Biotech Manufacturing Limited                                                   30,131                  30,138
Benen Trading Limited                                                                   12,086                   7,739
Primus Corporation                                                                       9,558                       -
MarDx Diagnostics Inc                                                                    3,571                   3,571
Clark Laboratories Inc                                                                   2,994                   2,994
                                                                           --------------------     ---------------------
                                                                                        58,340                  44,442
                                                                           ====================     =====================

The recoverable amounts of the Group's CGUs are determined on the basis of value in use calculations. The Group operates in one business segment and accordingly the key assumptions are similar for all CGUs. Value in use calculations use cash flow projections based on actual operating results extrapolated for five years using a revenue growth rate of 6% and a cost growth rate of 3%. A pre-tax discount rate of 8.69% is used. Cash flows beyond the five year period are extrapolated using a price earnings ratio of 15.

                                                Assets                   Liabilities                   Net
                                              2005           2004          2005         2004         2005        2004
                                           US$'000        US$'000       US$'000      US$'000      US$'000     US$'000

Property, plant and equipment                   37             36       (1,687)      (1,176)      (1,650)     (1,140)
Intangible assets                                -              -       (4,492)      (2,276)      (4,492)     (2,276)
Inventories                                    981          1,176             -            -          981       1,176
Provisions                                     640            173             -            -          640         173
Other items*                                    94              8         (549)         (65)        (455)        (57)
Tax value of loss carryforwards
recognised                                   1,525          1,083             -            -        1,525       1,083

                                       ------------ -------------- ------------- ------------ ------------ ------------
Deferred tax assets/(liabilities)            3,277          2,476       (6,728)      (3,517)      (3,451)     (1,041)
                                       ============ ============== ============= ============ ============ ============

* The Group implemented the provisions of IAS 32 and IAS 39 on January 1, 2005. The Group's opening deferred tax position at January 1, 2005 has been revised to account for the opening deferred tax consequences of the implementation of these standards. A deferred tax liability of US$45,000 was created on January 1, 2005, to account for the taxable temporary difference arising on the recognition of the Group's forward contracts at fair value on that date. Similarly, a deferred tax liability of US$24,000 was created on January 1, 2005 to account for the taxable temporary differences arising from the Company's split of its convertible debt on that date into its equity and liability components. The total impact of the adoption of IAS 32 and IAS 39 on the Company's tax position at January 1, 2005 has been to increase its closing deferred tax liabilities at December 31, 2004 of US$3,517,000 by US$69,000 to US$3,586,000 at January 1, 2005.

The deferred tax asset in 2005 is due mainly to deductible temporary differences created by net operating losses and US state credit carryforwards, and the elimination of unrealised intercompany inventory profit. The deferred tax asset increased in 2005 due principally to the increase in net operating losses available for offset against future profits.

The deferred tax asset in 2004 is principally due to temporary differences created by net operating losses and US state credit carryforwards, the tax written down value of non current assets being greater than the related net book value and the elimination of unrealised intercompany profit. The deferred tax asset increased in 2004 due to the tax effect of the excess of the tax written down value of non current assets over the net book value, the elimination of unrealised intercompany profit and the availability of net operating losses for offset against future profits.

At December 31, 2005, the Company recognised a deferred tax asset of US$1,525,000 in respect of net operating loss carryforwards in the USA, Germany and the UK. The utilisation of these net operating loss carryforwards is limited to future profitable operations in the USA, Germany and the UK.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

At December 31, 2004, the Company recognised a deferred tax asset of US$983,000 in respect of net operating loss carryforwards in the USA, Germany and the UK. The utilisation of these net operating loss carryforwards is limited to future profitable operations in the USA, Germany and the UK. A deferred tax asset of US$100,000 was also recognised in respect of US state carryforwards.

The deferred tax liability is caused by the net book value of non current assets being greater than the tax written down value of non current assets, temporary differences due to the acceleration of the recognition of certain charges in calculating taxable income permitted in Ireland and Germany, and deferred tax recognised on fair value asset uplifts in connection with business combinations. The deferred tax liability increased in 2005 as the excess of the net book value of non current assets over the tax written down value increased and the Company was able to recognise an upfront charge relating to licence fees in the calculation of its taxable income in Ireland. The increase was also as a result of the recognition of deferred tax liabilities on the net assets acquired in business combinations and on the fair value asset uplifts in those combinations of US$2,041,000 (2004: US$1,532,000). See Note 26, Business Combinations.

                                                                           December 31, 2005         December 31, 2004
                                                                                     US$'000                   US$'000

Deductible temporary differences                                                         427                       427
Capital losses                                                                         6,138                     6,344
US state credit carryforwards                                                            316                       302
                                                                          --------------------     ---------------------
                                                                                       6,881                     7,073
                                                                          ====================     =====================

No deferred tax asset is recognised in respect of management expenses forward of US$427,000 and a capital loss of US$6,138,000 in Trinity Biotech plc in 2005 or 2004. These losses are available indefinitely for offset against future taxable profits of Trinity Biotech plc. No deferred tax asset was recognised in 2004 in respect of a capital loss carryover of US$206,000 in Clark Laboratories which expired in 2005. No deferred tax assets are recognised in this regard as deferred tax assets are only recognised on the carryforward of unused tax losses to the extent that it is probable that future taxable profits will be available against which the unused tax losses can be utilised. It is not probable that there will be future taxable income in Trinity Biotech plc against which to offset the unutilised management expenses forward or that there will be future capital gains against which to offset the capital losses. A deferred tax asset of US$316,000 (2004: US$302,000) in respect of US state credit carryforwards was not recognised due to uncertainties regarding future full utilisation of these state carryforwards in the related tax jurisdiction in future periods.

In 2004 Trinity Biotech plc released a deferred tax asset of US$42,000 in respect of losses forward as it was not anticipated that the Company would have future taxable income against which to offset the unutilised management expenses forward.

UNRECOGNISED DEFERRED TAX LIABILITIES
At December 31, 2005 and 2004, there was no recognised or unrecognised deferred tax liability for taxes that would be payable on the unremitted earnings of certain of the Group's subsidiaries, associates or joint ventures. The Company is able to control the timing of the reversal of the temporary differences of its subsidiaries and it is probable that these temporary differences will not reverse in the foreseeable future. The Company does not control the dividend policy of its associate or joint venture entity. However, the associate undertaking does not have undistributed reserves at December 31, 2005, and accordingly the Company has not provided for a deferred tax liability for taxable temporary differences associated with its investment in the associate. Equally there are no undistributed reserves in the Company's joint venture at December 31, 2005 and a deferred tax liability has not been recognised for the Company's investment in its joint venture at that date.

                                             Balance       Recognised in     Recognised in     Recognised             Balance
                                     January, 1 2005              income          goodwill      in equity   December 31, 2005
                                             US$'000             US$'000           US$'000        US$'000             US$'000
Property, plant and equipment                (1,140)                  53             (563)              -             (1,650)
Intangible assets                            (2,276)               (459)           (1,757)              -             (4,492)
Inventories                                    1,176               (272)                77              -                 981
Provisions                                       173                 135               332              -                 640
Other items *                                  (126)               (383)                13             41               (455)
Tax value of loss carryforwards
recognised                                     1,083                 442                 -              -               1,525
                                     ---------------- ------------------- ----------------- -------------- -------------------
                                             (1,110)               (484)           (1,898)             41             (3,451)
                                     ================ =================== ================= ============== ===================

* The Company implemented the provisions of IAS 32 and IAS 39 on January 1, 2005. The Company's opening deferred tax position at January 1, 2005 has been revised to account for the opening deferred tax consequences of the implementation of these standards. A deferred tax liability of US$45,000 was created on January 1, 2005, to account for the taxable temporary difference arising on the recognition of the Company's forward contracts at fair value on that date. Similarly, a deferred tax liability of US$24,000 was created on January 1, 2005 to account for the taxable temporary differences arising from the Company's split of its convertible debt on that date into its equity and liability components. The total impact of the adoption of IAS 32 and IAS 39 on the Company's tax position at January 1, 2005 has been to increase its closing deferred tax liabilities at December 31, 2004 of US$3,517,000 by US$69,000 to US$3,586,000 at January 1, 2005.

                                             Balance       Recognised in     Recognised in     Recognised             Balance
                                     January 1, 2004              income          goodwill      in equity   December 31, 2004
                                             US$'000             US$'000           US$'000        US$'000             US$'000
Property, plant and equipment                (1,005)               (135)                 -              -             (1,140)
Intangible assets                              (233)               (511)           (1,532)              -             (2,276)
Inventories                                    1,088                  88                 -              -               1,176
Provisions                                         -                 173                 -              -                 173
Other items                                    (178)                 121                 -              -                (57)
Tax value of loss carryforwards
recognised                                       142                 941                 -              -               1,083
                                     ---------------- ------------------- ----------------- -------------- -------------------
                                               (186)                 677           (1,532)              -             (1,041)
                                     ================ =================== ================= ============== ===================

                                                                         December 31, 2005       December 31, 2004
                                                                                   US$'000                 US$'000

Other assets                                                                            61                      35
                                                                       --------------------     ---------------------
                                                                                        61                      35
                                                                       ====================     =====================

                                                                         December 31, 2005       December 31, 2004
                                                                                   US$'000                 US$'000

Raw materials and consumables                                                        8,983                   9,239
Work-in-progress                                                                    10,192                  10,520
Finished goods                                                                      17,275                  17,760
                                                                       --------------------     ---------------------
                                                                                    36,450                  37,519
                                                                       ====================     =====================

All inventories are stated at the lower of cost or net realisable value.

                                                                         December 31, 2005       December 31, 2004
                                                                                   US$'000                 US$'000


Trade receivables, net of impairment losses                                         17,591                  10,798
Prepayments                                                                          1,956                   1,662
Value added tax                                                                         29                      70
Called up share capital not received                                                    61                     158
Finance lease receivables                                                            1,159                     491
Other receivables                                                                       89                     158
                                                                       --------------------     ---------------------
                                                                                    20,885                  13,337
                                                                       ====================     =====================

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

Trade receivables are shown net of the impairment losses provision of US$587,000 (2004: US$462,000). See note 1(j).

                                                                           December 31, 2005
                                                                                 US$'000
                                                                  Gross         Unearned        Minimum
                                                                investment        income       payments
                                                                                             receivable

Less than one year                                                     438            60            378
Between one and five years                                             933           152            781
                                                            ----------------- ------------- --------------
                                                                     1,371           212          1,159
                                                            ================= ============= ==============

                                                                           December 31, 2004
                                                                                 US$'000
                                                                  Gross         Unearned        Minimum
                                                                investment        income       payments
                                                                                             receivable
Less than one year                                                     170            12            158
Between one and five years                                             358            25            333
                                                            ----------------- ------------- --------------
                                                                       528            37            491
                                                            ================= ============= ==============

Under the terms of the lease arrangements, no contingent rents are receivable.

(ii) Operating lease commitments -- Group as lessor The Group has leased a facility consisting of 9,000 square feet in Dublin, Ireland. This property has been sub-let by the Group. The lease contains a clause to enable upward revision of the rent charge on a periodic basis. The Group also leases instruments under operating leases as part of its business.

Future minimum rentals receivable under non-cancellable operating leases are as follows:

                                                                            December 31, 2005
                                                                                US$ '000
                                                                  Land and              Others             Total
                                                                 buildings

Less than one year                                                     153               1,190             1,343
Between one and five years                                             611               1,589             2.200
More than five years                                                   879                   -               879
                                                            -----------------     ---------------    --------------
                                                                     1,643               2,779             4,422
                                                            =================     ===============    ==============

                                                                           December 31, 2004
                                                                                US$ '000
                                                                  Land and              Others             Total
                                                                 buildings

Less than one year                                                     176                 731               907
Between one and five years                                             704                 696             1,400
More than five years                                                 1,189                   -             1,189
                                                            -----------------     ---------------    --------------
                                                                     2,069               1,427             3,496
                                                            =================     ===============    ==============

                                                                         December 31, 2005       December 31, 2004
                                                                                  US$ '000                US$ '000

Restricted cash                                                                      9,000                   7,148
                                                                       ====================     =====================

As part of the Club banking facility, the Group has US$9,000,000 (2004:
US$7,148,000) which it must hold on deposit and seek prior approval from the lenders before such funds are spent on acquisitions. As a result, this cash, of US$9,000,000 (2004: US$7,148,000) is shown as a financial asset at December 31, 2005.

                                                                         December 31, 2005       December 31, 2004
                                                                                  US$ '000                US$ '000
Cash at bank and in hand                                                             4,916                   6,435
Short-term deposits                                                                  4,965                   8,704
                                                                       --------------------     ---------------------
Cash and cash equivalents in the statements of cash flows                            9,881                  15,139
                                                                       ====================     =====================

Cash relates to all cash balances which are readily available at year end. Cash equivalents relate to all cash balances on deposit, with a maturity of less than three months, which are not restricted. See note 27 (c).

                                                     Share        Share         Share    Translation        Warrant
                                                   capital      capital       premium        reserve        reserve
                                                       'A'          'B'
                                                  ordinary     ordinary
                                                    shares       shares
                                                   US$'000      US$'000       US$'000        US$'000        US$'000


Balance at January 1, 2004                             658           12        87,596              -              -
Total recognised income and expense                      -            -             -            118              -
Options and warrants exercised                          12            -         1,968              -              -
Class A shares issued on conversion of                   1            -           426              -              -
convertible notes
Class A shares issued in private placement              63            -        24,272              -              -
Class A shares issued to fund an                        30            -         7,691              -              -
acquisition
Share issue expenses                                     -            -       (1,509)              -              -
Share-based payments                                     -            -             -              -              -
Own shares acquired                                      -            -             -              -              -
                                               -------------- ------------ ------------- -------------- --------------
Balance at December 31, 2004                           764           12       120,444            118              -
                                               -------------- ------------ ------------- -------------- --------------

Balance at December 31, 2004                           764           12       120,444            118              -
Adjustment in respect of adoption of IAS                 -            -       (3,779)              -          3,803
32 and 39 on January 1, 2005 (note 1(a))

Balance at January 1, 2005 as restated                 764           12       116,665            118          3,803
Total recognised income and expense                      -            -             -        (1,740)              -
Share-based payments                                     -            -             -              -              -
Options and warrants exercised                          27            -         2,464              -              -
Class A shares issued on conversion of                  27            -         5,439              -              -
convertible notes
Share issue expenses                                     -            -         (341)              -              -
Own shares sold                                          -            -             -              -              -
                                               -------------- ------------ ------------- -------------- --------------
Balance at December 31, 2005                           818           12       124,227        (1,622)          3,803
                                               -------------- ------------ ------------- -------------- --------------

                                                   Owned       Hedging        Convertible      Retained       Total
                                                  shares      reserves    notes -- equity      earnings
                                                                                component


                                                 US$'000       US$'000            US$'000       US$'000     US$'000


Balance at January 1, 2004                             -             -                  -       (6,543)      81,723
Total recognised income and expense                    -             -                  -         5,714       5,832
Options and warrants exercised                         -             -                  -             -       1,980
Class A shares issued on conversion of                 -             -                  -             -         427
convertible notes
Class A shares issued in private placement             -             -                  -             -      24,335
Class A shares issued to fund an                       -             -                  -             -       7,721
acquisition
Share issue expenses                                   -             -                  -             -     (1,509)
Share-based payments                                   -             -                  -           758         758
Own shares acquired                              (2,373)             -                  -             -     (2,373)
                                              ------------- ------------- ------------------ ------------- -----------
Balance at December 31, 2004                     (2,373)             -                  -          (71)     118,894
                                              ------------- ------------- ------------------ ------------- -----------

Balance at December 31, 2004                     (2,373)             -                  -          (71)     118,894
Adjustment in respect of adoption of IAS               -           373                164         (297)         264
32 and 39 on January 1, 2005 (note 1(a))

Balance at January 1, 2005 as restated           (2,373)           373                164         (368)     119,158
Total recognised income and expense                    -         (437)                  -         5,280       3,103
Share-based payments                                   -             -                  -         1,368       1,368
Options and warrants exercised                         -             -                  -             -       2,491
Class A shares issued on conversion of                 -             -                  -             -       5,466
convertible notes
Share issue expenses                                   -             -                  -             -       (341)
Own shares sold                                    2,373             -                  -             -       2,373
                                              ------------- ------------- ------------------ ------------- -----------
Balance at December 31, 2005                           -          (64)                164         6,280     133,618
                                              ------------- ------------- ------------------ ------------- -----------

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

The Company has availed of the exemption in IFRS 1 and has not applied IAS 32 and IAS 39 until January 1, 2005, see note 33. Accordingly the hedging reserve and equity component of convertible debt balances as at December 31, 2004 are presented under IFRS in line with under Previous GAAP.

                                                            Class 'A' Ordinary shares    Class 'A' Ordinary shares
In thousands of shares                                                           2005                         2004
In issue at January 1                                                          54,904                       45,161
Issued for cash                                                                 2,615                        9,623
Issued for non cash (note 21)                                                   2,522                          120
                                                            -------------------------    -------------------------
In issue at December 31                                                        60,041                       54,904
                                                            -------------------------    -------------------------

                                                            Class 'B' Ordinary shares    Class 'B' Ordinary shares
In thousands of shares                                                           2005                         2004
In issue at January 1                                                             700                          700
Issued for cash                                                                     -                            -
                                                            -------------------------    -------------------------
In issue at December 31                                                           700                          700
                                                            -------------------------    -------------------------

The Company had authorised share capital of 75,000,000 'A' ordinary shares of US$0.0109 each and 700,000 'B' ordinary shares of US$0.0109 each as at December 31, 2005 and 2004.

(a) In January 2004, the Company completed a US$22.5m private placement of 5,294,118 of Class 'A' Ordinary Shares of the Company at a price of US$4.25 per ordinary share. The investors were granted five year warrants to purchase an aggregate of 1,058,824 Class 'A' Ordinary Shares of the Company at an exercise price of US$5.25 per ordinary share. Under the terms of the placement, investors were also granted the right to purchase an additional 2,647,059 Class 'A' Ordinary Shares of the Company at a price of US$4.25 per share for a period of up to 30 days after the closing of the transaction. An additional 431,617 Class 'A' Ordinary Shares of the Company, amounting to US$1,834,000, were issued within the 30 day period following the closing of the transaction to investors who exercised this option. The Company granted further warrants (vesting immediately) to purchase 200,000 Class 'A' Ordinary Shares in the Company to agents of the Company who were involved in this private placement at an exercise price of US$5.25 per Ordinary Share. These warrants also have a term of five years.

(b) A further 1,113,538 shares were issued in 2004, resulting from the exercise of warrants and employee share options.

(c) During 2005, the Company issued 2,615,375 'A' Ordinary Shares from the exercise of employee options for a consideration of US$2,491,000, settled in cash. A further 2,522,000 shares (equivalent to US$5,465,249) were issued on a non cash basis as the Company chose to repay part of its convertible debt repayments in 2005 by way of shares. In 2004, 120,423 shares were issued on the conversion of part of the principal amount of the debenture on a non cash basis also (equivalent to US$427,000) (see note 21).

(d) Since its incorporation the Company has not declared or paid dividends on its 'A' Ordinary Shares. The Company anticipates, for the foreseeable future, that it will retain any future earnings in order to fund its business operations. The Company does not, therefore, anticipate paying any cash or share dividends on its 'A' Ordinary or 'B' Ordinary shares in the foreseeable future. As provided in the Articles of Association of the Company, dividends or other distributions will be declared and paid in US Dollars.

(e) The Class 'B' Ordinary Shares have two votes per share and the rights to participate in any liquidation or sale of the Company and to receive dividends as if each Class 'B' Ordinary Share were two Class 'A' Ordinary Shares. In all other respects they rank pari passu with the 'A' ordinary shares.

CURRENCY TRANSLATION RESERVE
The currency translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign currency denominated operations of the Group since January 1, 2004.

WARRANT RESERVE

The warrant reserve comprises the equity component of share warrants issued by the Company. At 31 December, 2004 the fair value of these warrants was included within share premium. As part its the adoption of IAS 32 and IAS 39 the Company has elected to disclose the fair value of these warrants as a separate reserve within equity. The Group calculates the fair value of warrants at the date of issue taking the amount directly to reserves. The fair value is calculated using the trinomial model. The fair value which is assessed at the grant date is calculated on the basis of the contractual term of the warrants. In accordance with the transitional provisions under IFRS 2, 1,258,824 warrants with a value of (US$3,803,000) have been fair valued and classified as a separate reserve. The following input assumptions were made to fair value the warrants:

                                                                                                             2005
Fair value at date of measurement                                                                         US$3.02
                                                                                                      ===========
Share price                                                                                               US$4.78
Exercise price                                                                                            US$5.25
Expected volatility                                                                                        78.31%
Contractual life                                                                                          5 years
Risk free rate                                                                                              3.26%
Expected dividend yield                                                                                         -

A further 58,500 warrants which were outstanding at December 31, 2005 do not fall within the scope of IFRS 2 and hence were not fair valued.

OWNED SHARES

In April 2004, the Company completed the acquisition of the assets of Fitzgerald Industries International Inc (Fitzgerald) for US$16,000,000 in cash (before contingent consideration and costs). The acquisition was partly funded by the issue of 2,783,984 'A' Ordinary Shares of the Company. As at December 31, 2004, the Company funded the in substance repurchase of 817,470 shares with a value of US$2,373,000. All of these shares were resold in the market in 2005.

HEDGING RESERVE
The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related to hedged transactions entered into but that had not yet crystallised at December 31, 2005.

19. SHARE OPTIONS AND SHARE WARRANTS

WARRANTS
The Company granted warrants to purchase 940,405 Class 'A' Ordinary Shares in the Company to agents of the Company who were involved in the Company's private placements in 1994 and 1995 and the debenture issues in 1997, 1999 and 2002. A further warrant to purchase 100,000 Class 'A' Ordinary Shares was also granted to a consultant of the Company. In January 2004, the Company completed a private placement of 5,294,118 Class 'A' Ordinary Shares of the Company at a price of US$4.25 per share. The investors were granted five year warrants (vesting immediately) to purchase an aggregate of 1,058,824 Class 'A' Ordinary Shares in the Company at an exercise price of US$5.25 per share. The Company granted further warrants (vesting immediately) to purchase 200,000 Class 'A' Ordinary Shares in the Company to agents of the Company who were involved in this private placement in January 2004 at an exercise price of US$5.25. These warrants also have a term of five years. At December 31, 2005 there were warrants to purchase 1,317,324 Class 'A' Ordinary shares in the Company outstanding.

                                                                    December 31, 2005            December 31, 2004
Outstanding at beginning of period                                          1,317,324                      258,500
Granted                                                                             -                    1,258,824
Exercised                                                                           -                    (200,000)
                                                                   ------------------            -----------------
Outstanding at end of period                                                1,317,324                    1,317,324
                                                                   ==================            =================

OPTIONS
Under the terms of the Company's Employee Share Option Plan, options to purchase 7,531,133 Class 'A' Ordinary Shares were outstanding at December 31, 2005. Under the plan, options are granted to officers, employees and consultants of the Group at the discretion of the compensation committee (designated by the board of directors), or a sub-committee of the board, under the terms outlined below.

The terms and conditions of the grants are as follows, whereby all options are settled by physical delivery of shares:

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

Vesting conditions
The options vest following a period of service by the officer or employee. The required period of service is determined by the compensation committee at the date of grant of the options (usually the date of approval by the compensation committee) and it is generally over a four year period. There are no market conditions associated with the share option grants.

Contractual life
The term of an option will be determined by the compensation committee, provided that the term may not exceed seven years from the date of grant (some of the Group's earlier plans had a ten year life). All options will terminate 90 days after termination of the option holder's employment, service or consultancy with the Group (or one year after such termination because of death or disability) except where a longer period is approved by the Board of Directors. Under certain circumstances involving a change in control of the Group, the committee may accelerate the exercisability and termination of the options.

The number and weighted average exercise price of share options and warrants per ordinary share is as follows (as required by the transitional provisions of IFRS 1 and IFRS 2, this information relates to all grants of share options and warrants by the Company):

                                                        Options and        Weighted-average              Range
                                                           warrants         exercise price                 US$
                                                                                       US$
Outstanding January 1, 2004                               8,327,394                   1.44          0.81 -5.00
Granted                                                   3,162,824                   3.68          2.33- 5.25
Exercised                                               (1,113,538)                   1.82         0.98 - 2.75
Forfeited                                                 (430,339)                   1.66          0.98 -4.00
                                                      -------------         --------------       -------------
Outstanding at end of period                              9,946,341                   2.10          0.81 -5.25
                                                      =============        ===============        ============
Exercisable at end of year                                5,693,844                   2.20          0.81 -5.25
                                                      =============        ===============        ============
Outstanding January 1, 2005                               9,946,341                   2.10          0.81 -5.25
Granted                                                   1,670,000                   1.69          1.59 -3.00
Exercised                                               (2,615,376)                   1.00           0.81-1.75
Forfeited                                                 (152,508)                   1.99           0.98-4.00
                                                      -------------         --------------       -------------
Outstanding at end of period                              8,848,457                   2.35           0.81-5.25
                                                      =============        ===============        ============
Exercisable at end of year                                4,589,342                US$2.69           0.81-5.25
                                                      =============        ===============        ============

The weighted average share price at the date of exercise for options exercised in 2005 is US$2.09 (2004: US$4.21).

The opening share price at the start of the financial year was US$2.93 and closing share price at December 31, 2005 was US$2.04. The average share price for the year was US$2.05.

A summary of the range of prices for the Company's stock options and warrants for the year ended December 31, 2005 follows:

                                          OUTSTANDING                                      EXERCISABLE
 Exercise price range   No. of options  Weighted- avg    Weighted-avg        No. of      Weighted- avg    Weighted-avg
                                        exercise price    contractual       options      exercise price    contractual
                                                        life remaining                                   life remaining
                                                            (years)                                          (years)
US$0.81-US$0.99           1,339,322        US$0.97           3.32            839,322          US$0.97         3.05
US$1.00-US$2.05           3,576,340        US$1.57           4.64          1,580,561          US$1.49         2.74
US$2.06-US$2.99           2,262,974        US$2.56           4.79            746,305          US$2.52         3.53
US$3.00-US$5.25           1,669,821        US$4.84           3.35          1,423,154          US$5.12         3.00
                        ----------------                                   ----------
                          8,848,457                                        4,589,342
                        ================                                   ==========

                                          OUTSTANDING                                      EXERCISABLE
 Exercise price range   No. of options   Weight- avg      Weight-avg         No. of       Weight- avg      Weight-avg
                                        exercise price    contractual       options      exercise price    contractual
                                                        life remaining                                   life remaining
                                                            (years)                                          (years)
US$0.81-US$0.99           2,947,530        US$0.94           3.92          1,756,863          US$0.92         3.45
US$1.00-US$1.99           2,999,677        US$1.35           3.89          2,195,344          US$1.33         3.65
US$2.00-US$2.99           2,315,310        US$2.55           5.69           386,513           US$2.39         2.05
US$3.00-US$5.25           1,683,824        US$4.84           4.36          1,355,124          US$5.21         3.90
                        ----------------                                   ----------
                          9,946,341                                        5,693,844
                        ================                                   ==========

The weighted-average remaining contractual life of options outstanding at December 31, 2004 is 4.39 years. The information above also includes outstanding warrants.

The recognition and measurement principles of IFRS 2 have been applied to share options granted under the Company's share options plans since November 7, 2002 which have not vested by January 1, 2005, in accordance with the transitional provisions in IFRS 1 and IFRS as adopted by the EU. Of the total options outstanding, 2,726,700 share options which fall into this category have been fair valued in accordance with the requirements of IFRS 2 as per the group policy set out in the accounting policy in note 1.

                                                                                    December 31, 2005     December 31, 2004
                                                                                              US$'000               US$'000
Share-based payments - cost of sales                                                              110                    81
Share-based payments - research and development                                                   210                    96
Share-based payments - selling, general and administrative                                      1,048                   581
                                                                                   ------------------      ----------------
Total                                                                                           1,368                   758
                                                                                    =================      ================

The fair value of services received in return for share options granted are measured by reference to the fair value of share options granted. The estimate of the fair value of services received is measured based on a trinomial model. The following are the input assumptions used in determining the fair value of share options granted after November 7, 2002 that had not vested as at the effective date of January 1, 2005:

                                               KEY MANAGEMENT           OTHER       KEY MANAGEMENT             OTHER
                                                    PERSONNEL       EMPLOYEES            PERSONNEL          MPLOYEES
                                                         2005            2005                 2004              2004
Weighted    average    fair    value   at             US$0.95         US$0.75              US$1.15           US$1.37
measurement date
Total share options granted                           650,000       1,019,000            1,270,000           519,833
                                             ================      ==========      ===============        ==========

Weighted average share price                          US$1.67         US$1.69              US$2.62           US$3.02
Weighted average exercise price                       US$1.67         US$1.71              US$2.56           US$3.02
Weighted average expected volatility                    60.3%          59.72%               66.48%            65.24%
Weighted average expected life                     5.33 years      3.28 years           5.28 years        3.17 years
Weighted average risk free interest rate                5.33%           4.01%                3.54%             2.66%
Expected dividend yield                                    0%              0%                   0%                0%

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur. The expected volatility is based on the historic volatility (calculated based on the expected life of the options) and no adjustments have been made to reflect any expected changes to future volatility.

20. INTEREST-BEARING LOANS AND BORROWINGS This note provides information about the contractual terms of the Group's interest-bearing loans and borrowings. For more information about the Group's exposure to interest rate and foreign currency risk, see note 31.

                                                                         December 31, 2005         December 31, 2004
                                                                                  US$ '000                  US$ '000
                                                             Note
CURRENT LIABILITIES
Finance lease liabilities                                                              241                       237
Financial liabilities from unconnected third party                                       -                       669
Promissory note                                                26                    3,000                         -
Bank loans, secured                                           27(c)
 - Repayable by instalment                                                           2,504                     1,191
 - Repayable not by instalment                                                       1,975                     1,959
                                                                        ------------------         -----------------
                                                                                     7,720                     4,056
                                                                        ==================         =================
NON-CURRENT LIABILITIES
Finance lease liabilities                                                              381                       554
Bank loans, secured                                           27(c)
 - Repayable by instalment                                                           9,988                     3,581
                                                                        ------------------         -----------------
                                                                                    10,369                     4,135
                                                                        ==================         =================

BANK LOANS

In June 2003, Trinity Biotech completed a new US$10,000,000 Club banking facility with Allied Irish Bank plc and Bank of Scotland (Ireland) Limited. The facility consisted of a five year term loan of US$6,000,000 and a one year revolver of US$4,000,000. The original term loan was repayable in ten equal biannual instalments which commenced on January 2, 2004. At September 1, 2005, the balance on the term loan was US$3,600,000 and US$2,000,000 was drawn down on the revolver facility. In September 2005, Trinity amended this loan facility by increasing the balance on the term loan from US$3,600,000 to US$12,600,000 and renewing the revolver loan of US$2,000,000 for a further year. Under the terms of the amended facility, repayments on the term loan will be paid evenly over 10 instalments, commencing January 2, 2006 and six monthly thereafter. The revolver loan facility was decreased from US$4,000,000 to US$2,000,000, which was fully drawn down at December 31, 2005. This facility is secured on the assets of the Group (see note 27 (c)).Various covenants apply to the Group's bank borrowings. The banks may deem the Group to be in default if such covenants are breached. At December 31, 2005, the total amount outstanding amounted to US$14,414,000 under the Club facility agreement. The debt is stated net of unamortised funding costs of US$187,000.

                                                                                 December 31, 2005
                                                                                     US$ '000
                                                                 Minimum lease       Interest         Principal
                                                                    payments
Less than one year                                                          267               26               241
In more than one year, but not more than two                                220               15               205
In more than two years but not more than three                              181                5               176
                                                                 --------------   ----------------   -------------
                                                                            668               46               622
                                                                 ===============  ================   =============

                                                                                 December 31, 2004
                                                                                     US$ '000
                                                                 Minimum lease       Interest         Principal
                                                                    payments
Less than one year                                                          267               30               237
In more than one year, but not more than two                                241               21               220
In more than two years but not more than three                              188               13               175
In more than three years but not more than four                             163                4               159
                                                                 --------------  ----------------     ------------
                                                                            859               68               791
                                                                 ==============  ================     ============

Under the terms of the lease arrangements, no contingent rents are payable.

PROMISSORY NOTES
In July 2005, Trinity Biotech completed the acquisition of Primus Corporation for a total consideration of US$14,503,000. Part of the consideration included a one year promissory note of US$3 million. Interest is charged on this note at a quarterly rate of 0.5% above the base interest rate of the US Federal Reserve Bank and is payable to the shareholders of Primus on a quarterly basis. As the interest rate applying to the promissory note represents a commercial interest rate, the Company has not discounted the promissory note. The principal amount will be paid on the first anniversary of the acquisition in July 2006. The previous shareholders of Primus retain a lien over the shares of Primus whilst payment of the promissory note remains outstanding.

                                                                         December 31, 2005         December 31, 2004
                                                                                  US$ '000                  US$ '000
CONVERTIBLE NOTES
Due within one year                                                                  7,203                     7,031
Due greater than one year                                                            1,836                     8,788
                                                                        ------------------         -----------------
Total                                                                                9,039                    15,819
                                                                       ===================         =================

The Company has availed of the exemption in IFRS 1 and has not applied IAS 32 until January 1, 2005. The convertible debentures are presented under IFRS in line with Previous GAAP at December 31, 2004. If they were accounted for as compound financial instruments in accordance with IAS 32, the equity and liability elements would have been separately recorded, with the equity component of the convertible notes being calculated as the excess of the issue proceeds over the present value of the future interest and principal payments, discounted at the market rate of interest applicable to similar liabilities that do not have a conversion option. Transaction costs would have been allocated to the liability and equity components in proportion to the allocation of proceeds. The corresponding interest expense recognised in the income statement would have been calculated using the effective interest rate method.

                                                                                         2005                     2004
                                                                                     US$ '000                 US$ '000
                                                                         Stated under IFRS as     Stated under IFRS in
                                                                            adopted by the EU       line with Previous
                                                                                                                  GAAP
Proceeds from issue of convertible notes                                               25,000                   25,000
Transaction costs                                                                     (1,307)                   (576)*
                                                                         --------------------     --------------------
Net                                                                                    23,693                   24,424
Converted to shares                                                                   (11,889)**               (6,783)
Cash repayments                                                                       (3,644)                  (1,822)
Amount classified as equity                                                             (297)                        -
Accreted interest capitalised                                                           1,176                        -
                                                                         --------------------     --------------------
Carrying amount of liability at December 31                                             9,039                   15,819
                                                                         ====================     ====================

* The 2004 transactions costs are unamortised transactions costs.

** Of the US$6,783,000 converted to shares in December 2003 and January 2004, under IFRS US$6,423,000 was reclassified from the carrying amount of the convertible debentures to share capital and share premium, with the remaining US$360,000 being reclassified within equity to share capital and share premium.

The amount of the convertible notes classified as equity on January 1, 2005 of US$297,000 is net of attributable transaction costs of US$16,000. Of the US$297,000, US$71,000 has been reclassified from equity to share capital and share premium following the share conversions in December 2003 and January 2004. At December 31, 2005 the amount classified as equity of US$226,000 is stated net of the related deferred tax asset of US$62,000 and carried at US$164,000.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

In July 2003, the Company completed a private placement of US$20,000,000 principal amount of 3% convertible debentures. The debentures bear interest at a rate of 3% per annum, convertible into Class 'A' Ordinary Shares of the Company at a price of US$3.55 at the option of the holder. In December 2003, US$6,355,000 of the US$20,000,000 principal amount of the debentures and US$44,000 of the related accrued interest was converted into 1,802,676 Class 'A' Ordinary Shares of the Company. In January 2004, a further US$427,000 of the principal amount of the debenture was converted into 120,423 Class 'A' Ordinary Shares of the Company.

As part of the July 2003 placement, convertible notes in the aggregate principal amount of up to US$5,000,000 could be issued at the option of the investors by the later of January 9, 2004 and the three month anniversary of the effective date of the related registration statement. In March 2004, the investors exercised this option in full and the Company completed a further placement of US$5,000,000 principal amount of 3% convertible debentures. The debentures bear interest at a rate of 3% per annum and are convertible into Class 'A' Ordinary Shares of the Company at a price of US$4 at the option of the holder. All of the above debentures are unsecured and are repayable in ten equal instalments on a quarterly basis. Under the terms of the agreement, the Company has the option to satisfy each repayment either in cash or in shares. If the repayment is to be satisfied in shares, the number of shares will be based on, at the holders' option, either the conversion price or 97% of the volume weighted average price per ADS for the twenty trading days for the period immediately preceding the repayment date. In October 2004, the first principal repayment of US$1,822,000 was made to the debenture holders in cash. Four principal repayments of US$1,822,000 each were made in 2005. Three of these repayments were paid by shares (2,522,000 shares) and one repayment by cash. At December 31, 2005, the balance outstanding was US$9,109,000 including accrued interest at year end of US$70,000.

                                                                         December 31, 2005         December 31, 2004
                                                                                  US$ '000                  US$ '000
Trade payables                                                                       6,065                     3,266
Payroll taxes                                                                          296                       244
Employee related social insurance                                                      347                       366
Accrued liabilities and deferred income                                              6,060                     4,693
                                                                         -----------------        ------------------
                                                                                    12,768                     8,569
                                                                         =================        ==================

                                                                         December 31, 2005         December 31, 2004
                                                                                  US$ '000                  US$ '000
Consideration                                                                        3,707                         -
                                                                         -----------------        ------------------
                                                                                     3,707                         -
                                                                         =================        ==================

CONSIDERATION
In April, 2004, the Company acquired the trade and assets of Fitzgerald Industries International, Inc. ("Fitzgerald") for US$16 million in cash. Under the terms of the purchase agreement, contingent consideration would be payable depending on the financial performance of that business during the first two years of operation post acquisition relative to its pre-acquisition performance. At December 31, 2004 the payment of these amounts was not considered to be probable, therefore no provisions for these amounts were made. At December 31, 2005 it was determined, based on the performance of Fitzgerald in 2005, that an amount of US$1,002,000 would be payable to the shareholders of Fitzgerald. This will be paid in 2006.

In July 2005, Trinity Biotech completed acquisition of Primus Corporation for US$14.5 million. The shareholders of Primus are entitled to an additional consideration depending on the growth of the Company during 2005 net of an adjustment relating to the level of working capital at the date of acquisition. At December 31, 2005 given the financial performance of Primus post acquisition, it was determined that US$2,705,000 would be payable to the former shareholders of Primus in 2006.

                                                                         December 31, 2005         December 31, 2004
                                                                                  US$ '000                  US$ '000
Provisions                                                                             199                        62
                                                                         =================        ==================

                                                                                                   December 31, 2005
                                                                                                            US$ '000
Balance at  January 1, 2005                                                                                       62
Provisions made during the year                                                                                  137
                                                                                                   -----------------
Balance at December 31, 2005                                                                                     199
                                                                                                   =================

The above provisions represent estimated royalties which are payable, the exact amount of which cannot be determined. US$199,000 represents management's best estimate of the liability at December 31, 2005.

                                                                         December 31, 2005       December 31, 2004
                                                                                  US$ '000                US$ '000
Other payables                                                                         102                      35
                                                                         =================       =================

26. BUSINESS COMBINATIONS

2005 Acquisitions
In March 2005, Trinity Biotech completed the acquisition of the assets of Research Diagnostics Inc ("RDI"), a provider of immunodiagnostic products for US$4,200,000 in cash. Acquisition expenses amounted to US$105,000. In July 2005, Trinity Biotech completed the acquisition of 100% of the equity in Primus Corporation ("Primus"), a leader in the field of in-vitro diagnostic testing for haemoglobin A1c and haemoglobin variants for US$14,503,000 consisting of a cash consideration of $US8,587,000 and a one year promissory note of US$3,000,000. Acquisition expenses amounted to US$211,000. Under the terms of the purchase agreement, the shareholders of Primus were also entitled to an additional consideration based on the growth of the Group during the remainder of 2005. At year end, the Company has accrued US$2,705,000 for this additional consideration which will be paid in early 2006. The results of these acquisitions for 2005 are incorporated from the date of acquisition in the consolidated statement of income for the year ended December 31, 2005. The fair value of the identifiable assets and liabilities are as follows:

                                                          Primus                   RDI                 Total
                                                         US$'000               US$'000              US$ '000
Property, plant and equipment                              2,395                     -                 2,395
Trade and other receivables                                1,848                     -                 1,848
Inventories                                                1,304                   113                 1,417
Intangible assets                                          4,615                 1,790                 6,405
                                                       ---------            ----------              --------
                                                          10,162                 1,903                12,065
                                                       ---------            ----------              --------

Deferred tax liability (see note 12)                       1,825                   216                 2,041
Trade and other payables                                   1,649                     -                 1,649
                                                       ---------            ----------              --------
                                                           3,474                   216                 3,690
                                                       ---------            ----------              --------

Fair value of net assets                                   6,688                 1,687                 8,375
Goodwill arising on acquisition                            7,688                 2,618                10,306
                                                       ---------            ----------              --------
                                                          14,376                 4,305                18,681
                                                       =========            ==========              ========
Consideration:
Cash payments                                              8,587                 4,200                12,787
Less cash transferred with subsidiary                      (127)                     -                 (127)
Deferred consideration                                     3,000                     -                 3,000
Other consideration (see note 23)                          2,705                     -                 2,705
Costs associated with the acquisition                        211                   105                   316
                                                       ---------            ----------              --------
                                                          14,376                 4,305                18,681
                                                       =========            ==========              ========

                                                       Fair value
                                      Book values      adjustments     Fair value     Consideration     Goodwill
                                        US$ '000        US$ '000        US$ '000        US$ '000        US$ '000
PRIMUS
Property, plant and equipment                 2,371              24          2,395
Trade and other receivables                   1,848               -          1,848
Inventories                                   1,858           (554)          1,304
Intangible assets                               330           4,285          4,615
                                     --------------   -------------   ------------
                                              6,407           3,755         10,162
                                     --------------   -------------   ------------

Deferred tax liability                            -           1,825          1,825
Trade and other payables                      1,566            (33)          1,533
Creditors greater than one year                 116               -            116
                                     --------------   -------------   ------------
                                              4,725           1,963          6,688            14,376         7,688
                                     ==============   =============  ==============   ==============     =========

RDI
Property, plant and equipment                    10            (10)              -
Inventories                                     146            (33)            113
Intangible assets                                 -           1,790          1,790
                                     --------------   -------------   ------------
                                                156           1,747          1,903
                                     --------------   -------------   ------------

Deferred tax liability                            -             216            216
                                     --------------   -------------   ------------
                                                156           1,531          1,687             4,305         2,618
                                     ==============   =============  ==============   ==============     =========

During the period, following these acquisitions, fair value adjustments were made to recognise intangible assets acquired in these business combinations in 2005. All of the fair value adjustments were made following an assessment of the carrying value of the assets acquired.

If the acquisitions had occurred on January 1, 2005 the Group revenue would have been US$104,885,000 and the retained profit for the financial period would have been US$5,564,000.

Impact of the acquisitions on the income statement RDI and Primus acquired on March 21 and July 19 contributed US$9,793,000 and US$1,578,000 to the revenue and operating profit of the Group, respectively.

Impact of acquisitions on cash flow headings There were two acquisitions in 2005. The cash outflow of US$13,129,000 in 2005 was partly funded by US$9,000,000 received as part of the amendment to the current bank loan facility (see note 20). The acquisition of Primus did not have a material impact on any of the headings of the consolidated statement of cashflows. As the working capital of RDI was fully integrated into the Group's existing operations by December 31, 2005 post acquisition operating cashflows were not obtainable.

2004 Acquisitions
In April, 2004, the Company acquired the trade and assets of Fitzgerald Industries International, Inc ("Fitzgerald") for US$16 million in cash. Acquisition expenses amounted to US$152,000. Additional consideration was payable for the acquisition of the business of Fitzgerald, depending on the financial performance of that business during the first 18 months of operation post acquisition relative to its pre-acquisition performance. At December 31, 2004 the payment of these amounts was not considered to be probable, therefore no provisions for these amounts were made. At December 31, 2005 it was determined, based on the performance of Fitzgerald in 2005, that deferred consideration of US$1,002,000 is payable. See note 23.

Fitzgerald provides a comprehensive range of immunodiagnostic products to pharmaceutical companies, reference laboratories, diagnostic manufacturers and research facilities worldwide. The acquisition of Fitzgerald places the Company in the life sciences market with significant potential for future growth.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

In April 2004, the Company also acquired the trade, assets and certain liabilities of Adaltis US, Inc for US$2,852,000 in cash. Adaltis US, Inc was the distribution arm for Adaltis Inc. Acquisition costs amounted to US$112,000. As part of the transaction, Trinity obtained exclusive distribution rights to Adaltis' open-end microplate analytical instrumentation in the US and non-exclusive distribution rights in the rest of the world, excluding China. This acquisition gives Trinity access to the existing installed base of instruments in the US and provides an opportunity for Trinity to place its own reagents on this installed base of instruments. The results of these acquisitions for 2004 are incorporated from the date of acquisition in the consolidated statement of income for the year ended December 31, 2004. The fair value of the identifiable assets and liabilities are as follows:

                                                               Fitzgerald               Adaltis               Total
                                                                 US$ '000              US$ '000            US$ '000
Property, plant and equipment                                          35                   237                 272
Trade and other receivables                                            67                   851                 918
Inventories                                                           126                   480                 606
Intangible assets                                                  10,463                   660              11,123
                                                               ----------              --------           ---------
                                                                   10,691                 2,228              12,919
                                                               ----------              --------           ---------

Deferred tax liability (see note 12)                              (1,308)                 (224)             (1,532)
Trade and other payables                                                -                 (999)               (999)
                                                               ----------              --------           ---------
                                                                  (1,308)               (1,223)             (2,531)
                                                               ----------              --------           ---------

Fair value of net assets                                            9,383                 1,005              10,388
Goodwill arising on acquisition                                     6,769                 1,959               8,728
                                                               ----------              --------           ---------
                                                                   16,152                 2,964              19,116
                                                               ==========              ========           =========

Consideration:
Cash payments                                                      16,000                 2,852              18,852
Costs associated with the acquisition                                 152                   112                 264
                                                               ----------              --------           ---------
                                                                   16,152                 2,964              19,116
                                                               ==========              ========           =========

Goodwill capitalised during 2004 in respect of these acquisitions amounted to US$8,728,000 and comprises:

                                                       Fair value
                                      Book values      adjustments     Fair value     Consideration     Goodwill
                                        US$ '000        US$ '000        US$ '000        US$ '000        US$ '000
FITZGERALD
Property, plant and equipment                    35               -             35
Trade and other receivables                      84            (17)             67
Inventories                                     126               -            126
Intangible assets                                33          10,430         10,463
                                     --------------   -------------   ------------
                                                278          10,413         10,691
                                     --------------   -------------   ------------

Deferred tax liability                            -         (1,308)        (1,308)
                                     --------------   -------------   ------------
                                                278           9,105          9,383          (16,152)         6,769
                                     ==============   =============  ==============   ==============     =========

ADALTIS
Property, plant and equipment                   237               -            237
Trade and other receivables                     851               -            851
Inventories                                     480               -            480
Intangible assets                                 -             660            660
                                     --------------   -------------   ------------
                                              1,568             660          2,228
                                     --------------   -------------   ------------

Deferred tax liability                            -           (224)          (224)
Trade and other payables                    (1,004)               5          (999)
                                     --------------   -------------   ------------
                                            (1,004)           (219)        (1,223)
                                     --------------   -------------   ------------

                                                564             441          1,005           (2,964)         1,959
                                     ==============   =============  ==============   ==============     =========

During the period, following the acquisitions, fair value adjustments were made to recognise intangible assets acquired in these business combinations. US$8,690,000 of the cost of the acquisition of Fitzgerald was assigned to customer relationships acquired, US$700,000 was assigned to supplier relationships, US$970,000 was assigned to an indefinite-lived intangible asset representing the trade name acquired and US$70,000 was allocated to other intangibles. A deferred tax liability of US$1,308,000 was recognised on the acquired intangibles of Fitzgerald. A fair value adjustment was made to recognise intangibles of US$660,000 representing customer relationships acquired as part of the Adaltis business combination. A deferred tax liability of US$224,000 was recognised on this acquired intangible. Initial fair value adjustments were also made to the acquired working capital of Fitzgerald (US$17,000 decrease) and Adaltis (US$5,000 increase). All of these fair value adjustments were made following an assessment of the carrying value of the net assets acquired.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

The book values of the assets shown above have been taken from management accounts and other information of the acquired businesses at the dates of acquisition.

Following the completion of the fair value exercises in 2005 in respect of the acquisitions made during 2004, amendments have been made to the fair values reported in the 2004 financial statements related to the fair valuation of inventory acquired in Fitzgerald and of inventory and receivables acquired in Adaltis. The difference has been taken as an adjustment to goodwill on acquisition. Provisional and final values of net assets acquired and consideration paid are as follows:

                                      Provisional           Adjustments           Adjustments                Final
                                       fair value         to net assets              to costs           fair value
                                             2004                  2005                  2005                 2005
                                          US$'000               US$'000               US$'000              US$'000
FITZGERALD
Property, plant and
equipment                                      35                     -                     -                   35
Intangible assets                          10,463                     -                     -               10,463
Working capital                               193                  (64)                     -                  129
                                     ------------         -------------           ------------          ----------
                                           10,691                  (64)                     -               10,627
                                     ------------         -------------           ------------          ----------

Deferred tax liability                    (1,308)                     -                     -              (1,308)
                                     ------------         -------------           ------------          ----------
                                            9,383                  (64)                     -                9,319
                                     ------------         -------------           ------------          ----------

Consideration and costs                    16,152                     -                 1,104               17,256
                                     ------------         -------------           ------------          ----------

ADALTIS
Property, plant and
equipment                                     237                     -                     -                  237
Intangible assets                             660                     -                     -                  660
Working capital                               332                 (134)                     -                  198
                                     ------------         -------------           ------------          ----------
                                            1,229                 (134)                     -                1,095
                                     ------------         -------------           ------------          ----------

Deferred tax liability                      (224)                   142                     -                 (82)
                                     ------------         -------------           ------------          ----------
                                            1,005                     8                     -                1,013
                                     ------------         -------------           ------------          ----------

Consideration and costs                     2,964                     -                     -                2,964
                                     ------------         -------------           ------------          ----------

The following represents the increases (decreases) to goodwill which took place in 2005.

                                                                                    US$'000
Goodwill recognised with respect to 2005 acquisitions
     - Primus                                                                         7,688
     - RDI                                                                            2,618
Goodwill recognised with respect to 2004 acquisitions
     - Fitzgerald                                                                     1,168
     -Adaltis                                                                           (8)
                                                                                  ---------
Total goodwill movement in 2005                                                      11,466
                                                                                  ---------

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

27. COMMITMENTS AND CONTINGENCIES

(a) CAPITAL COMMITMENTS There were no capital commitments contracted for or authorised at December 31, 2005.

(b) LEASES AS LESSEE The Group leases a number of premises under operating leases. The leases typically run for periods up to 25 years. Lease payments are reviewed periodically (typically on a 5 year basis) to reflect market rentals. None of the leases include contingent rentals. Operating lease commitments payable during the next 12 months amount to US$2,277,000 (2004: US$2,648,000) payable on leases of buildings at Dublin and Bray, Ireland, Umea, Sweden, upstate New York, Kansas City, New Jersey, Massachusetts and Carlsbad, California and motor vehicles and equipment in the UK and Lemgo, Germany. US$249,000 (2004:
US$206,000) of these operating lease commitments total relates to leases whose remaining term will expire within one year, US$82,000 (2004: US$630,000) relates to leases whose remaining term expires between one and two years, US$342,000 (2004: US$253,000) between two and five years and the balance of US$1,604,000 (2004: US$1,559,000) relates to leases which expire after more than five years.

Future minimum operating lease commitments with non-cancellable terms in excess of one year are as follows:

                                                         Year ended
                                                               2005
                                                   Operating leases
                                                            US$'000
2006                                                          2,277
2007                                                          1,998
2008                                                          1,936
2009                                                          1,719
2010                                                          1,539
Later years                                                  15,998
                                                   -----------------
Total lease obligations                                      25,467
                                                   -----------------

                                                         Year ended
                                                               2004
                                                   Operating leases
                                                            US$'000
2005                                                          2,648
2006                                                          2,200
2007                                                          1,777
2008                                                          1,632
2009                                                          1,584
Later years                                                  18,912
                                                   -----------------
Total lease obligations                                      28,753
                                                   -----------------

See note 20 for future minimum finance lease commitments.

(c) In June 2003, the Group completed a new US$10,000,000 Club banking facility with Allied Irish Banks plc and Bank of Scotland (Ireland) Limited, this facility is guaranteed by the subsidiaries of the company. An additional US$9,000,000 was borrowed as part of this facility in September 2005. At December 2005, US$14,600,000 was drawn down by the Group consisting of a US$12,600,000 of a term loan and US$2,000,000 revolver facility (see note 20). The Group's bank borrowings are secured by a fixed and floating charge over the assets of Group entities, including specific charges over the shares in the subsidiaries and the Group's patents. Various covenants apply to the Group's bank borrowings with respect to profitability, interest cover, capital expenditure, working capital and location of assets. The banks may deem the Company to be in default if such covenants are breached The Group has agreed to keep US$9,000,000 (2004: US$7,148,000) on deposit with its lending banks and must seek prior approval from these financial institutions before such funds are spent on acquisitions. Resulting from the restrictions on this cash, the US$9,000,000 (2004: US$7,148,000) is shown as a financial asset at December 31, 2005. See note 16.

(d) Pursuant to the provisions of Section 17, Irish Companies (Amendment) Act, 1986, the Company has guaranteed the liabilities of Trinity Biotech Manufacturing Limited, Trinity Biotech Manufacturing Services Limited, Trinity Research Limited, Benen Trading Limited and Trinity Biotech Sales Limited, subsidiary undertakings in the Republic of Ireland, for the financial year to December 31, 2005 and, as a result, these subsidiary undertakings have been exempted from the filing provisions of Section 17, Irish Companies (Amendment) Act, 1986. Where the Company enters into these guarantees of the indebtedness of other companies within its Group, the Company considers these to be insurance arrangements and accounts for them as such. The Company treats the guarantee contract as a contingent liability until such time as it becomes probable that the company will be required to make a payment under the guarantee. The Company does not enter into financial guarantee with third parties. The Company does not expect the amendment to have any impact on the Company financial statements.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

(e) In December 2003, the Company initiated legal proceedings in the Superior Court of Middlesex County, Massachusetts against Inverness Medical and its affiliate Wampole (collectively, Defendants) for declaratory judgment, breach of contract and unfair and deceptive business practices in connection with the Defendants' performance under a distribution agreement initially entered into in 1995 by Clark Laboratories Inc (now part of the Trinity Biotech Group) and subsequently amended in 2002. Inverness Medical, through its affiliate, Wampole Laboratories, has acted as exclusive distributor for certain of Trinity Biotech's infectious disease products in the US. This exclusivity ended on September 30, 2004, at which time it had been agreed that both Trinity Biotech and Inverness Medical would sell the products under their respective labels. Among other things, the suit requested a judgement declaring that Trinity was entitled to sell certain products directly in the US and Puerto Rico before October 1, 2004 under the terms of the 2002 amendment to the distribution agreement. The suit also alleged that the Defendants were attempting to convert customers from Trinity's products to products manufactured by a competitor (which were modified to look like the Trinity products) by misrepresenting to the customers that the Trinity product was unavailable and was being discontinued. In January 2004, the Defendants countersued alleging, among other things, various breaches of the distribution agreement and subsequent amendments, and that Defendants were entitled to rescind the distribution agreement and any amendments thereto, including any agreement to grant certain intellectual property rights to Trinity. The Defendants sought a preliminary injunction to prevent Trinity from selling directly in the Territory any of its products which are competitive with products sold by the Defendants and sourced from other suppliers. The Superior Court of Middlesex County, Massachusetts, denied this motion for a preliminary injunction on January 28, 2004. In April of 2004, Trinity amended its complaint to add additional claims alleging breaches of the distribution agreement by the Defendants. In May of 2004, the Defendants amended their counterclaims to add claims alleging, among other things, that Trinity was selling certain products without a license. Following the expiration of the Defendants' exclusive distribution rights under the distribution agreement on October 1, 2004, Trinity moved to amend its complaint to eliminate the declaratory judgment claims and add additional claims for breach of the distribution agreement and tortious interference with advantageous business relations that had arisen after December 2003. The Defendants filed a cross-motion to amend their complaint. On April 22, 2005, the court granted both parties' motions to amend. The case is currently in the discovery phase. It is possible that the Company will incur a loss arising out of this legal case. However, it is currently not possible to quantify the amount of this potential loss.

(f) Arising out of its acquisition of Primus in July 2005, the Company has provided the former shareholders with a promissory note to pay the remaining US$3,000,000 of the purchase consideration on the first anniversary of the transaction. Until the promissory note is paid the former shareholders have a lien over all of the shares in Primus.

(g) For finance leases outstanding at year end, the lessor has a charge over the relevant assets.

28. RELATED PARTY TRANSACTIONS The Group has related party relationships with its subsidiaries, associate and joint venture entities (see note 29) and with its directors and executive officers.

The Company has entered into various arrangements with JRJ Investments ("JRJ"), a partnership owned by Mr O'Caoimh and Dr Walsh, directors of the Company, to provide for current and potential future needs to extend its premises at IDA Business Park, Bray, Co. Wicklow, Ireland. It has entered into an agreement with JRJ pursuant to which the Company has taken a lease of premises adjacent to the existing facility for a term of 20 years at a rent of (euro)7.62 per square foot ("the Current Extension"). The lease commenced on the newly completed 25,000 square foot building in July 2000. On November 20, 2002, the Company entered into an agreement for a 25 year lease with JRJ for offices that have been constructed on part of these lands. The annual rent of (euro)381,000 (US$451,000) is payable from January 1, 2004. Independent valuers have advised the Company that the rent fixed in respect of the Current Extension and the agreement for lease represents a fair market rent. The rent for any future property constructed will be set at the then open market value. The Company and its directors (excepting Mr O'Caoimh and Dr Walsh who express no opinion on this point) believe that the arrangements entered into represent a fair and reasonable basis on which the Company can meet its ongoing requirements for premises.

                                                                           December 31, 2005         December 31, 2004
                                                                                     US$'000                   US$'000
Short-term employee benefits (note 5)                                                  1,752                     1,321
Post-employment benefits (note 5)                                                        131                       172
Share-based payments                                                                     828                       339
                                                                          ------------------        ------------------
                                                                                       2,711                     1,832
                                                                          ==================        ==================

Total remuneration is included in "personnel expenses" (see note 6).

Directors' and executive officers interests in the Company's shares and share option plan

                                                                         'A' Ordinary Shares       Share options
At January 1, 2005                                                                 1,379,530           6,108,541
Exercised                                                                                  -         (2,546,875)
Granted                                                                                    -             650,000
Shares sold                                                                                -                   -
Shares purchased                                                                   4,501,675                   -
                                                                          ------------------      --------------
At December 31, 2005                                                               5,881,205           4,211,666
                                                                          ==================      ==============

                                                                         'A' Ordinary Shares      Share options
At January 1, 2004                                                                 2,988,105          4,838,541
Exercised                                                                                  -                  -
Granted                                                                                    -          1,270,000
Shares sold                                                                      (1,608,575)                  -
Shares purchased                                                                           -                  -
                                                                          ------------------      --------------
At December 31, 2004                                                               1,379,530          6,108,541
                                                                          ==================      ==============

29. INTEREST IN JOINT VENTURE ENTITY Through its investment in Primus, the Groups holds a 50% interest in Primus International LLC, a jointly controlled entity. Under the terms of the shareholders agreement between Primus Corporation and Progressive Group Inc (the holder of the remaining 50%), control of Primus International LLC is exercised jointly by both parties. The share of the assets and liabilities, at December 31, 2005 and income and expenses for the period from acquisition (July 19, 2005) to December 31, 2005 of the jointly controlled entity, which are included in the consolidated financial statements using the proportionate consolidation method, are as follows:

                                                                         December 31, 2005        December 31,  2004
                                                                                   US$'000                   US$'000
Non-current assets                                                                     103                         -
Current assets                                                                         372                         -
                                                                         =================       ===================
                                                                                       475                         -
Current liabilities                                                                  (247)                         -
Non-current liabilities                                                                  -                         -
                                                                         -----------------       -------------------
                                                                                       228                         -
                                                                         =================       ===================

                                                                     Period ended December     Period ended December
                                                                                  31, 2005                  31, 2004
                                                                                   US$'000                   US$'000
Revenue                                                                                 13                         -
Cost of sales                                                                         (12)                         -
Selling, general and administrative costs                                             (21)                         -
                                                                     ---------------------     ---------------------
Loss before tax                                                                       (20)                         -
Tax                                                                                      -                         -
                                                                     ---------------------     ---------------------
Net loss                                                                              (20)                         -
                                                                     =====================     =====================

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

30. INVESTMENT IN ASSOCIATE Through its investment in Primus Corporation, the Group holds a 32% interest in Chronomed Inc. Under the terms of the shareholders agreement for Chronomed Inc, Primus Corporation does not have control of this entity and hence it is treated as an associate. In determining the carrying value of the investment in the associate, the Group considered its share of the net assets as at December 31, 2005. As Chronomed Inc. had net liabilities as at December 31, 2005 and the Company had no legal or constructive obligations to make payments on behalf of the associate a carrying value of nil has been assigned to the investment.

                                                                         December 31, 2005         December 31, 2004
                                                                                   US$'000                   US$'000
Carrying amount of investment                                                            -                         -
                                                                         =================         =================

31. DERIVATIVES AND FINANCIAL INSTRUMENTS The Group uses a range of financial instruments (including cash, bank borrowings, convertible notes, promissory notes and finance leases) to fund its operations. These instruments are used to manage the liquidity of the Group in a cost effective, low-risk manner. Working capital management is a key additional element in the effective management of overall liquidity. The Group does not trade in financial instruments or derivatives.

The main risks arising from the utilisation of these financial instruments are interest rate risk, liquidity risk, foreign exchange and credit risk.

INTEREST RATE RISK
The Group borrows in US dollars at floating and fixed rates of interest. Year-end borrowings totalled US$27,128,000 (2004: US$24,011,000), (net of cash and restricted cash: US$8,247,000 (2004: US$1,723,000)), at interest rates ranging from 3.0% to 5.65% (2004: 3.0% to 5.5%) and including US$9,714,000 (2004: US$16,680,000) of fixed rate debt at interest rates ranging from 3% to 5% (2004: 3% to 5.5%). In broad terms, a one-percentage point increase in interest rates would increase interest income by US$189,000 (2004: US$223,000) and increase the interest expense by US$174,000 (2004: US$73,000) resulting in a decrease in the net interest charge of US$15,000 (2004: decrease by US$150,000).

EFFECTIVE INTEREST RATE AND REPRICING ANALYSIS
The following table sets out all interest-earning financial assets and interest bearing financial liabilities held by Trinity Biotech at December 31, indicating their effective interest rates and the period in which they reprice.

The following table for 2005 is prepared under IFRS as adopted by the EU. By adopting IAS 32 and 39 from January 1, 2005, interest on the convertible notes is charged to the income statement at an effective interest rate of 6.23%. The effective interest rate on all other loans and borrowings is the same as actual interest rates.

AS AT DECEMBER 31, 2005        NOTE      EFFECTIVE        TOTAL          1 YEAR    1-2 YEARS      2-5 YEARS
US$'000                              INTEREST RATE      US$'000         US$'000      US$'000        US$'000

Cash and cash equivalents         16          4.22%        9,881           9,881            -              -

Financial asset --                17          4.22%        9,000           9,000            -              -
restricted cash
Secured bank loans --             20          5.65%     (14,414)        (14,414)            -              -
floating
Secured bank loans -- fixed       20             5%         (53)               -            -           (53)
Promissory note -- floating       20          4.27%      (3,000)         (3,000)            -              -
Convertible notes -- fixed        21          6.23%      (9,039)               -      (9,039)              -
Finance lease liabilities         20          5.60%        (622)            (54)            -          (568)
- fixed
                                                    -----------    ------------   ----------   ------------
TOTAL                                                   (8,247)           1,413      (9,039)          (621)
                                                    ===========    ============   ==========   ============

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

The following table for 2004 is prepared in line with Previous GAAP. The Company has availed of the exemption in IFRS 1 and has not applied IAS 32 and IAS 39 until January 1, 2005. The convertible notes are presented under IFRS in line with Previous GAAP at December 31, 2004 and as a result the effective interest rate is the normal coupon interest rate of 3% as adjusted for the effect of transaction costs. The effective interest rate on all other loans and borrowings is the same as actual interest rates.

AS AT DECEMBER 31, 2004        NOTE      EFFECTIVE        TOTAL          1 YEAR    1-2 YEARS      2-5 YEARS
US$'000                              INTEREST RATE      US$'000         US$'000      US$'000        US$'000
Cash and cash equivalents        16          2.33%       15,139          15,139            -              -
Financial asset -                17          2.33%        7,148           7,148            -              -
restricted cash
Secured bank loans -             20          3.37%      (6,662)         (6,662)            -              -
floating
Other financial                  20          4.86%        (669)           (669)            -              -
liabilities - floating
Secured bank loans -fixed        20             5%         (69)               -            -           (69)
Convertible notes - fixed        21             3%     (15,819)               -            -       (15,819)
Finance lease liabilities        20          5.04%        (791)            (25)        (121)          (645)
- fixed
                                                    -----------    ------------   ----------   ------------
TOTAL                                                   (1,723)          14,931        (121)       (16,533)
                                                    ===========    ============   ==========   ============

Trinity Biotech has no interest earning financial assets and interest bearing financial liabilities with a maturity greater than 5 years.

LIQUIDITY RISK
The Group's operations are cash generating. Short-term flexibility is achieved through the management of the group's short-term deposits and through the use of a revolver loan facility.

FOREIGN EXCHANGE RISK
The majority of the Group's activities are conducted in US Dollars. The primary foreign exchange risk arises from the fluctuating value of the Group's euro denominated expenses as a result of the movement in the exchange rate between the US Dollar and the euro. Arising from this, the Group pursues a treasury policy which aims to sell US Dollars forward to match a portion of its uncovered euro expenses at exchange rates lower than budgeted exchange rates. These forward contracts are primarily cashflow hedging instruments whose objective is to cover a portion of these euro forecasted transactions. All of the forward contracts at December 31, 2005 have maturities of less than one year after the balance sheet date. Where necessary, the forward contracts are rolled over at maturity.

With an increasing level of euro denominated sales, the Group anticipates that, over the next three years, a higher proportion of its non-US Dollar expenses will be matched by non-US Dollar revenues. The Group had foreign currency denominated cash balances equivalent to US$1,486,000 at December 31, 2005 (2004:
US$874,000).

IFRS 1 exemption from IAS 39
The Group has availed of the exemption in IFRS 1 and is applying the requirements of IAS 39 prospectively from January 1, 2005. At December 31, 2004 these forward contracts are accounted for under IFRS in line with Previous GAAP. If they were accounted for under IAS 39, the unrecognised gains and losses with hedged transactions would be recognised in the statement of recognised income and expenditure and the fair value of these contracts would be recognised on the balance sheet.

Forecasted transactions
From January 1, 2005 the Group states its forward exchange contracts at fair value in the balance sheet. The Group classifies certain of its forward exchange contracts as hedging forecasted transactions and thus accounting for them as cash flow hedges. During 2005 changes in the fair value of these contracts were recognized in equity and then in the case of contracts which were exercised during 2005, the cumulative gain or losses were transferred to the income statement. Changes in the fair value of ineffective cash flow hedges were recognized in the income statement during 2005. The fair value of all forward exchange contracts amounted to a liability of US$44,000. The liability of US$44,000 in respect of the fair value of all forward exchange contracts at December 31, 2005 comprises assets of US$6,000,000 and liabilities of US$6,044,000.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

CREDIT RISK
The Group has no significant concentrations of credit risk. Exposure to credit risk is monitored on an ongoing basis. The Group maintains specific provisions for potential credit losses. To date such losses have been within management's expectations. Due to the large number of customers and the geographical dispersion of these customers, the Group has no significant concentrations of accounts receivable.

With respect to credit risk arising from the other financial assets of the Group, which comprise cash and cash equivalents, restricted cash and forward contracts, the Group's exposure to credit risk arises from default of the counter-party, with a maximum exposure equal to the carrying amount of these instruments.

The Group maintains cash and cash equivalents and restricted cash with various financial institutions. These financial institutions are located in a number of countries and Group policy is designed to limit exposure to any one institution. The Group performs periodic evaluations of the relative credit standing of those financial institutions.

The carrying amount reported in the balance sheet for cash and cash equivalents and restricted cash approximates their fair value.

                                                                            Carrying Value        Fair Value
                                                                                   US$'000           US$'000
Convertible notes                                                                    9,039             9,009
Interest bearing loans                                                              17,467            17,465
Finance leases                                                                         622               623
                                                                         -----------------   ----------------
TOTAL                                                                               27,128            27,097
                                                                         =================   ================

                                                                December 31, 2005         December 31, 2004
                                                                         US$ '000                  US$ '000
Floating rate financial liabilities                                        17,414                     7,331
Fixed rate financial liabilities                                            9,714                    16,680
                                                                -----------------         -----------------
                                                                           27,128                    24,011
                                                                =================         =================

Floating rate financial liabilities comprise other borrowings that bear interest at rates of between 4.27% and 5.65%. These borrowings are provided by lenders at margins ranging from 0.5% to 1.25% over interbank rates.

The table below provides information about the Company's long-term debt obligations that are sensitive to changes in interest rates. The table presents principal cash flows and related weighted average interest rates by expected maturity dates. Weighted average variable rates are based on rates set at the balance sheet date. The information is presented in US Dollars, which is the Company's reporting currency.

MATURITY                                                                                AFTER                     FAIR
BEFORE DECEMBER 31               2006         2007       2008       2009       2010      2011        TOTAL        VALUE
LONG-TERM DEBT
Variable rate -- US$000          7,462        2,488      2,488      2,488      2,487         -       17,413      17,413
Average interest rate            5.11%        5.11%      5.11%      5.11%      5.11%         -        5.11%

Fixed rate -- US$000             7,460        2,057        193          4          -         -        9,714       9,684
Average interest rate            3.08%        3.23%      5.07%       5.0%          -         -        3.15%

                                                                         December 31, 2005         December 31, 2004
FIXED RATE FINANCIAL LIABILITIES
Weighted average interest rate                                                       3.15%                     3.20%
Weighted average period for which rate is fixed                                 1.13 years                2.15 years

                                                                         December 31, 2005         December 31, 2004
                                                                                  US$ '000                  US$ '000
In one year or less, or on demand                                                   14,922                    11,088
In more than one year, but not more than two                                         4,546                     8,733
In more than two years, but not more than three                                      2,680                     2,835
In more than three years, but not more than four                                     2,492                     1,352
In more than four years, but not more than five                                      2,488                         3
                                                                        ------------------        ------------------
                                                                                    27,128                    24,011
                                                                        ==================        ===================

FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES
There is no significant difference between the fair value and the carrying value of the Group's Financial Assets and Liabilities as at December 31, 2005 or December 31, 2004. At December 31, 2005 forward contracts with a carrying value of US$44,000 (2004:$NIL) had a fair value of US$44, 000 (2004: US$418,000).

32. ACCOUNTING ESTIMATES AND JUDGEMENTS The preparation of these financial statements requires us to make estimates and judgements that affect the reported amount of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities.

On an on-going basis, we evaluate our estimates, including those related to intangible assets, contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgements about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

KEY SOURCES OF ESTIMATION UNCERTAINTY
Note 11 contains information about the assumptions and their risk factors
relating to goodwill impairment. Note 19 outlines information regarding the valuation of share options. In note 31 detailed analysis is given about the interest rate risk, credit risk, liquidity risk and foreign exchange risk of the Group.

CRITICAL ACCOUNTING JUDGMENTS IN APPLYING THE GROUP'S ACCOUNTING POLICIES Certain critical accounting judgements in applying the Group's accounting policies are described below:

Research and development expenditure
Under IFRS as adopted by the EU, we write-off research and development expenditure as incurred, with the exception of expenditure on projects whose outcome has been assessed with reasonable certainty as to technical feasibility, commercial viability and recovery of costs through future revenues. Such expenditure is capitalised at cost within intangible assets and amortised over its expected useful life of 15 years, which commences when commercial production starts (see note 11).

Factors which impact our judgement to capitalise certain research and development expenditure include the degree of regulatory approval for products and the results of any market research to determine the likely future commercial success of products being developed. We review these factors each year to determine whether our previous estimates as to feasibility, viability and recovery should be changed.

Impairment of intangible assets and goodwill Definite lived intangible assets are reviewed for indicators of impairment annually while goodwill and indefinite lived assets are tested for impairment annually, individually or at the cash generating unit level.

Factors considered important, as part of an impairment review, include the following:

o significant underperformance relative to expected historical or projected future operating results;
o significant changes in the manner of our use of the acquired assets or the strategy for our overall business;
o obsolescence of products; significant decline in our stock price for a sustained period; and
o our market capitalisation relative to net book value.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

When we determine that the carrying value of intangibles, non-current assets and related goodwill may not be recoverable based upon the existence of one or more of the above indicators of impairment, any impairment is measured based on our estimates of projected net discounted cash flows expected to result from that asset, including eventual disposition. Our estimated impairment could prove insufficient if our analysis overestimated the cash flows or conditions change in the future.

Allowance for slow-moving and obsolete inventory We evaluate the realisability of our inventory on a case-by-case basis and make adjustments to our inventory provision based on our estimates of expected losses. We write-off any inventory that is approaching its "use-by" date and for which no further re-processing can be performed. We also consider recent trends in revenues for various inventory items and instances where the realisable value of inventory is likely to be less than its carrying value.

Allowance for impairment of receivables.
We make judgements as to our ability to collect outstanding receivables and where necessary make allowances for impairment. Such impairments are made based upon a specific review of all significant outstanding receivables. In determining the allowance, we analyse our historical collection experience and current economic trends. If the historical data we use to calculate the allowance for impairment of receivables does not reflect the future ability to collect outstanding receivables, additional allowances for impairment of receivables may be needed and the future results of operations could be materially affected (see note 1).

Accounting for income taxes
Significant judgement is required in determining our worldwide income tax expense provision. In the ordinary course of a global business, there are many transactions and calculations where the ultimate tax outcome is uncertain. Some of these uncertainties arise as a consequence of revenue sharing and cost reimbursement arrangements among related entities, the process of identifying items of revenue and expense that qualify for preferential tax treatment and segregation of foreign and domestic income and expense to avoid double taxation. Although we believe that our estimates are reasonable, no assurance can be given that the final tax outcome of these matters will not be different than that which is reflected in our historical income tax provisions and accruals. Such differences could have a material effect on our income tax provision and profit in the period in which such determination is made. Deferred tax assets and liabilities are determined using enacted or substantively enacted tax rates for the effects of net operating losses and temporary differences between the book and tax bases of assets and liabilities.

While we have considered future taxable income and ongoing prudent and feasible tax planning strategies in assessing whether deferred tax assets can be recognised, there is no assurance that these deferred tax assets may not be realisable. The extent to which deferred tax assets which are recognised are not realisable could have a material adverse impact on our income tax provision and net income in the period in which such determination is made. In addition, we operate within multiple taxing jurisdictions and are subject to audits in these jurisdictions. These audits can involve complex issues that may require an extended period of time for resolution. In management's opinion, adequate provisions for income taxes have been made (see note 8 and 12).

Warranty Provision
We make judgements as to extent to which we have to replace products which are returned by customers due to quality issues. In determining the level of provision required for such returns we consider our historical experience of customers returning products. If our historical experience does / does not reflect future levels of returned products then the level of provision is increased / released as appropriate.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

33. EXPLANATION OF TRANSITION TO IFRS AS ADOPTED BY THE EU

As stated in note 1(a), these are the Group's first consolidated financial statements prepared in accordance with IFRS as adopted by the EU. The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended December 31, 2004 and in the preparation of the opening IFRS as adopted by the EU balance sheet at January 1, 2004 (the Group's date of transition).

In preparing its opening IFRS as adopted by the EU balance sheet, the Group has adjusted amounts reported previously in financial statements prepared in accordance with its old basis of accounting, Irish GAAP ("Previous GAAP"). An explanation of how the transition from Previous GAAP to IFRS as adopted by the EU has affected the Group's financial position, financial performance and cash flows is set out in the following tables and the notes that accompany the tables.

                                                 Previous    Effect of      IFRS as     Previous   Effect of      IFRS as
                                                  GAAP       transition     adopted       GAAP     transition     adopted
                                       Notes     Note ( a)   to IFRS as      by the     Note (a)   to IFRS         by the
                                                             adopted             EU                                    EU
                                                             by the EU
                                                          January 1, 2004                     December 31, 2004
                                                              US$ '000                             US$ '000
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment           g           13,343           10      13,353       15,997           20      16,017
Intangible assets                      b, e         39,401        1,881      41,282       58,496        5,058      63,554
Deferred tax assets                     e              555          762       1,317        1,654          822       2,476
Other assets                            h              410        (410)           -          910        (875)          35
                                              ------------  -----------   ---------  -----------  -----------   ---------
TOTAL NON-CURRENT ASSETS                            53,709        2,243      55,952       77,057        5,025      82,082
                                              ------------  -----------   ---------  -----------  -----------   ---------

CURRENT ASSETS
Inventories                                         30,555            -      30,555       37,519            -      37,519
Trade and other receivables             d           13,152        (190)      12,962       13,524        (187)      13,337
Cash and cash equivalents                            2,562            -       2,562       15,139            -      15,139
Financial assets-restricted cash                    18,000            -      18,000        7,148            -       7,148
Income tax receivable                                  131            -         131          815            -         815
                                              ------------  -----------   ---------  -----------  -----------   ---------
TOTAL CURRENT ASSETS                                64,400        (190)      64,210       74,145        (187)      73,958
                                              ------------  -----------   ---------  -----------  -----------   ---------

                                              ------------  -----------   ---------  -----------  -----------   ---------
TOTAL ASSETS                                       118,109        2,053     120,162      151,202        4,838     156,040
                                              ============  ===========   =========  ===========  ===========   =========

EQUITY AND LIABILITIES
EQUITY ATTRIBUTABLE TO THE EQUITY
HOLDERS OF THE PARENT
Issued capital                                         670            -         670          776            -         776
Share premium account                               87,596            -      87,596      120,444            -     120,444
Retained earnings                      i           (3,913)      (2,630)     (6,543)        1,266      (1,337)        (71)
Translation reserve                   f,g          (4,091)        4,091           -      (3,975)        4,093         118
Other reserves                         c                 -            -           -      (2,373)            -     (2,373)
                                              ------------  -----------   ---------  -----------  -----------   ---------
TOTAL EQUITY                                        80,262        1,461      81,723      116,138        2,756     118,894
                                              ------------  -----------   ---------  -----------  -----------   ---------

CURRENT LIABILITIES
Trade and other payables and
provisions                                           8,916            -       8,916        8,631            -       8,631
Interest-bearing loans and borrowings                7,749            -       7,749        4,056            -       4,056
Convertible notes                                    1,162            -       1,162        7,031            -       7,031
Income tax payable                                   1,592            -       1,592          792            -         792
                                              ------------  -----------   ---------  -----------  -----------   ---------
TOTAL CURRENT LIABILITIES                           19,419            -      19,419       20,510            -      20,510
                                              ------------  -----------   ---------  -----------  -----------   ---------

NON-CURRENT LIABILITIES
Other payables                                           -            -           -           35            -          35
Interest-bearing loans and                           5,484            -       5,484        4,135            -       4,135
borrowings
Convertible notes                                   11,875            -      11,875        8,788            -       8,788
Deferred tax liabilities               e              911           592       1,503        1,435        2,082       3,517
Other income tax payable                              158             -         158          161            -         161
                                              ------------  -----------   ---------  -----------  -----------   ---------
TOTAL NON-CURRENT LIABILITIES                       18,428          592      19,020       14,554        2,082      16,636
                                              ------------  -----------   ---------  -----------  -----------   ---------
TOTAL LIABILITIES                                   37,847          592      38,439       35,064        2,082      37,146
                                              ------------  -----------   ---------  -----------  -----------   ---------

                                              ------------  -----------   ---------  -----------  -----------   ---------
TOTAL EQUITY AND LIABILITIES                       118,109        2,053     120,162      151,202        4,838     156,040
                                              ============  ===========   =========  ===========  ===========   =========

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

NOTES TO THE RECONCILIATION OF EQUITY

a. IAS 1, Presentation of Financial Statements IAS 1, Presentation of Financial Statements, requires separate disclosure of (i) current tax assets and liabilities, (ii) deferred tax assets and liabilities and (iii) financial assets and liabilities. IAS 38, Intangible Assets requires that certain items be classified as intangible assets and not as property, plant and equipment. The following reclassifications were made to comply with the requirements of IAS 1 and IAS 38:

                                   Previous      Reclassification   Adjusted      Previous      Reclassification      Adjusted
                                     GAAP                                           GAAP
                                                                                  Note (a)
                                                January 1, 2004                                December 31, 2004
                                                    US$ '000                                        US$ '000
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment         13,660                 (317)     13,343         15,942                   55        15,997
Intangible assets                     38,851                   550     39,401         57,870                  626        58,496
Deferred tax assets                        -                   555        555              -                1,654         1,654
Other assets                             550                 (140)        410          1,330                (420)           910
                                 -----------    ------------------ ----------   ------------   ------------------    ----------
TOTAL NON-CURRENT ASSETS              53,061                   648     53,709         75,142                1,915        77,057
                                 -----------    ------------------ ----------   ------------   ------------------    ----------

CURRENT ASSETS
Inventories                           30,555                     -     30,555         37,519                    -        37,519
Trade and other receivables           13,913                 (761)     13,152         15,880              (2,356)        13,524
Cash and cash equivalents             20,562              (18,000)      2,562         22,287              (7,148)        15,139
Financial assets-restricted cash           -                18,000     18,000              -                7,148         7,148

Income tax receivable                      -                   131        131              -                  815           815
                                 -----------    ------------------ ----------   ------------   ------------------    ----------
TOTAL CURRENT ASSETS                  65,030                 (630)     64,400         75,686              (1,541)        74,145
                                 -----------    ------------------ ----------   ------------   ------------------    ----------

                                 -----------    ------------------ ----------   ------------   ------------------    ----------
TOTAL ASSETS                         118,091                    18    118,109        150,828                  374       151,202
                                 ===========    ================== ==========   ============   ==================    ==========

EQUITY AND LIABILITIES
EQUITY ATTRIBUTABLE TO THE
EQUITY HOLDERS OF THE PARENT
Issued capital                           670                     -        670            776                   -            776
Share premium account                 87,596                     -     87,596        120,444                   -        120,444
Retained earnings                    (4,169)                   256    (3,913)            997                 269          1,266
Translation reserve                  (4,091)                     -    (4,091)        (3,975)                   -        (3,975)
Other reserves                           256                 (256)                   (2,104)               (269)        (2,373)
                                 -----------    ------------------ ----------   ------------   ------------------    ----------
TOTAL EQUITY                          80,262                     -     80,262        116,138                   -        116,138
                                 -----------    ------------------ ----------   ------------   ------------------    ----------

CURRENT LIABILITIES
Trade and other payables and
provisions                            19,401              (10,485)      8,916         20,260            (11,629)          8,631
Interest-bearing loans and
borrowings                                 -                 7,749      7,749              -               4,056          4,056
Convertible notes                          -                 1,162      1,162              -               7,031          7,031
Current tax payable                        -                 1,592      1,592              -                 792            792
                                 -----------    ------------------ ----------   ------------   ------------------    ----------
TOTAL CURRENT LIABILITIES             19,401                    18     19,419         20,260                 250         20,510
                                 -----------    ------------------ ----------   ------------   ------------------    ----------

NON-CURRENT LIABILITIES
Other payables                        17,517              (17,517)          -         13,119            (13,084)             35
Interest-bearing loans and                 -                 5,484      5,484              -               4,135          4,135
borrowings
Convertible notes                          -                11,875     11,875              -               8,788          8,788
Deferred tax liabilities                 911                     -        911          1,311                 124          1,435
Other tax payable                          -                   158        158              -                 161            161
                                 -----------    ------------------ ----------   ------------   ------------------    ----------
TOTAL NON-CURRENT LIABILITIES         18,428                     -     18,428         14,430                 124         14,554
                                 -----------    ------------------ ----------   ------------   ------------------    ----------
TOTAL LIABILITIES                     37,829                    18     37,847         34,690                 374         35,064
                                 -----------    ------------------ ----------   ------------   ------------------    ----------

                                 -----------    ------------------ ----------   ------------   ------------------    ----------
TOTAL EQUITY AND LIABILITIES         118,091                    18    118,109        150,828                 374        151,202
                                 ===========    ================== ==========   ============   ==================    ==========

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

January 1, 2004

Property, plant and equipment included software with a net book value of US$550,000 which was reclassified to intangible assets. Instruments owned by the Group with a net book value of US$233,000 were reclassified from trade and other receivables (US$93,000) and other assets (US$140,000) to property, plant and equipment.

Trade and other receivables included US$555,000 relating to deferred tax assets and US$113,000 relating to current tax assets which are now classified separately. A further US$18,000 of income tax receivable had previously been included in income tax payable.

US$18,000,000 of restricted cash which was previously included in cash and cash equivalents is now separately disclosed.

Trade and other payables included US$7,749,000 relating to current interest-bearing loans and borrowings, US$1,162,000 relating to current convertible debentures and US$1,574,000 relating to current tax liabilities which are now classified separately.

Long-term liabilities included US$4,540,000 relating to long-term interest-bearing loans and borrowings , US$11,875,000 relating to long-term convertible debentures and a further US$158,000 relating to other tax payable.

Other reserves included US$256,000 relating to share-based payments which have been netted off against the income statement reserve ("retained earnings").

December 31, 2004

Property, plant and equipment included software with a net book value of US$626,000 which was reclassified to intangible assets. Instruments owned by the Group with a net book value of US$681,000 were reclassified from trade and other receivables (US$261,000) and other assets (US$420,000) to property, plant and equipment.

Trade and other receivables included US$1,654,000 relating to deferred tax assets, US$579,000 relating to current tax assets and US$138,000 relating to deferred tax liabilities which are now classified separately. A further US$236,000 of current tax receivable had previously been included in current tax payable.

US$7,148,000 of restricted cash which was previously included in cash and cash equivalents is now separately disclosed.

Trade and other payables included US$4,056,000 relating to short-term interest-bearing loans and borrowings, US$7,031,000 relating to short-term convertible debentures and US$542,000 relating to current tax liabilities which are now classified separately.

A further US$14,000 of current tax payable had previously been included in deferred tax liabilities.

Long-term liabilities included US$4,135,000 relating to long-term interest-bearing loans and borrowings, US$8,788,000 relating to long-term convertible debentures and a further US$161,000 relating to other tax payable.

Other reserves included US$269,000 relating to share-based payments which have been netted off against the income statement reserve ("retained earnings").

b. IFRS 3 Business Combinations, IAS 38 Intangible Assets The Group has applied IFRS 3 to all business combinations that have occurred since January 1, 2004 (the date of transition to IFRS as adopted by the EU). The Group has availed of the exemption under IFRS 1 enabling non restatement of business combinations undertaken prior to the transition date and, accordingly, goodwill as at the transition date is carried forward at its net book value. The principal implications of IFRS 3 are as follows:

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

o Cessation of goodwill amortisation in respect of subsidiary undertakings resulting in a credit of US$2,756,000 to the Consolidated Income Statement in 2004.

o De-recognition of the carrying amount of negative goodwill, resulting in an increase in the carrying amount of goodwill of US$1,878,000 and US$1,258,000 at January 1, 2004 and December 31, 2004 respectively. The reversal of negative goodwill amortised under Irish GAAP resulted in a charge of US$620,000 in the 2004 Consolidated Income Statement.

o The acquisition balance sheets for business combinations completed by the Group during 2004 have been restated to recognise intangible assets (comprised of customer and supplier relationships) and this resulted in a reduction of US$10,050,000 in the goodwill figure in the acquisition balance sheets. The amortisation charge in respect of the intangible assets thus recognised during 2004 was US$532,000, and the net change in intangible assets at December 31, 2004 amounted to US$9,518,000.

o Recognition of deferred tax liabilities on the fair value uplifts of US$11,123,000 gave rise to an increase in the carrying amount of goodwill of US$1,532,000 at December 31, 2004 (see note (e)).

o As dictated by IFRS 3, IAS 36 (Revised) Impairment of Assets has been applied to the carrying amount of goodwill at the date of transition and at December 31, 2004. No impairment arose.

c. IFRS 2 Share-based Payment The fair value of share-based payments (share options) is expensed to the Income Statement on a straight-line basis over the vesting period of the options. In accordance with the exemption allowed on transition to IFRS as adopted by the EU, the fair value calculations have only been applied in respect of share options granted after November 7, 2002 which have not vested by January 1, 2005. The effect is to increase retained earnings by US$153,000 and US$898,000 at January 1, 2004 and December 31, 2004 respectively. An expense of US$745,000 has been recognised in respect of the year ended December 31, 2004.

d. Sales on extended credit terms During 2003 and 2004 the Company made certain sales on extended credit terms. Under IAS 18, Revenue, such sales on extended credit would not be recognisable as revenue until the subsequent year. The effect is to decrease accounts receivable by US$144,000 and US$80,000 at January 1, 2004 and December 31, 2004 respectively. A credit of US$64,000 was recognised in respect of such sales in the 2004 Consolidated Income Statement. Refer to note (e) for the deferred tax consequences of this item.

e. IAS 12 Income Taxes The requirements of IAS 12 have been retrospectively applied in the restatement of the Group's 2004 results with the cumulative adjustment at the transition date reflected in the opening balance sheet.

IAS 12 requires that deferred tax be accounted for on the basis of temporary differences rather than timing differences which form the basis of the equivalent under the Previous GAAP. This difference in methodology results in an overall increase in the Group's net deferred tax liability under IFRS as adopted by the EU. The adjustments made to deferred tax assets and liabilities on transition to IFRS as adopted by the EU principally relate to the following issues:

o Under Previous GAAP deferred tax was not provided on fair value asset uplifts in business combinations if these uplifts did not affect the tax base of the assets acquired. The recognition under IAS 12 of the deferred tax liabilities on the differences arising from such revaluations gave rise to a deferred tax liability of US$638,000 and US$2,080,000 at January 1, 2004 and December 31, 2004, respectively. A portion of this deferred tax (US$638,000 and US$625,000 at January 1, 2004 and December 31, 2004, respectively), relates to the fair value on a building acquired as part of an acquisition in 2002. As the purchase price allocation adjustment period for this acquisition had closed during 2003, the corresponding charge is included in retained earnings. The deferred tax liability recognised on the fair valuation on intangibles acquired in business combinations after January 1, 2004 of US$1,532,000 was recognised in the carrying value of goodwill at December 31, 2004 (see note (b) and note 26). The recognition of these deferred tax liabilities gave rise to a deferred tax credit of US$90,000 in the 2004 Consolidated Income Statement.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

o Under Previous GAAP deferred tax was calculated on unrealised intercompany profit adjustments using the seller's rate. IAS 12 requires that the buyer's rate be used. The net effect at January 1, 2004 was to recognise an additional deferred tax asset of US$748,000 and at December 31, 2004 to recognise an additional deferred tax asset of US$814,000 and to de-recognise a deferred tax liability of US$14,000 at December 31, 2004. The recognition of these deferred tax assets gave rise to a deferred tax credit of US$52,000 in the 2004 Consolidated Income Statement.

o A deferred tax asset of US$14,000 and US$8,000 at January 1, 2004 and December 31, 2004 respectively was recognised in relation to the deductible temporary difference relating to sales on extended credit terms (see note (d)). The recognition of these deferred tax assets gave rise to a deferred tax charge of US$6,000 in the 2004 Consolidated Income Statement.

o Under Previous GAAP, a deferred tax liability was recognised on the taxable temporary differences arising from the deferral of certain costs under Previous GAAP (see note (h)), the write off of these costs under IFRS as adopted by the EU has resulted in a decrease in the deferred tax liability of US$46,000 and US$106,000 at January 1, 2004 and December 31, 2004, respectively. There was a corresponding deferred tax credit of US$60,000 in the 2004 Consolidated Income Statement.

o From January 1, 2004 the Group ceased the amortisation of goodwill in accordance with the provisions of IFRS 3 (see note
b). This has resulted in an increase in the taxable temporary difference between the carrying amount of tax deductible goodwill in the United States and its basis for tax. Accordingly, the deferred tax liability as December 31, 2004 has increased by US$94,000 and there has been a comparable charge to the 2004 Consolidated Income Statement.

f. IFRS 1 Currency Translation Differences IFRS as adopted by the EU require that on disposal of a foreign operation, the cumulative amount of currency translation differences previously recognised directly in reserves for that operation be transferred to the income statement as part of the profit or loss on disposal. The Group has availed of the exemption in IFRS 1 and has deemed the cumulative currency translation differences of US$4,091,000 applicable to foreign operations to be zero at the transition date. This has had no net impact on capital and reserves attributable to the Company's equity holders. The cumulative currency translation differences arising after the transition date (that is, during 2004) have been classified as a separate component of equity.

g. IAS 16 Property, Plant and Equipment Certain land and buildings owned by the Group had previously been accounted for as one item and depreciation charged on both elements. Each element is now accounted for separately and no depreciation is charged on the land. This has resulted in a credit of US$8,000 in the Consolidated Income Statement in 2004 and an increase in the carrying amount of property, plant and equipment of US$10,000 and US$20,000 at January 1, 2004 and December 31, 2004, respectively. There was a corresponding increase in the currency translation reserve of US$2,000 at December 31, 2004.

h. IAS 38 Intangible Assets Certain costs were deferred under Previous GAAP; these costs no longer meet the criteria for recognition as an asset. This has resulted in a decrease in the carrying amount of trade and other receivables and other assets of US$46,000 and US$410,000, respectively and an increase in the carrying amount of intangible assets of US$3,000 at January 1, 2004. The corresponding effect at December 31, 2004 was a decrease in the carrying amount of trade and other receivables and other assets of US$107,000 and US$875,000, respectively and an increase in the carrying amount of intangible assets of US$44,000. An expense of US$485,000 has been recognised in respect of the year ended December 31, 2004.

i. IAS 32 Financial Instruments: Disclosure and Presentation and IAS 39:
Financial Instruments: Recognition and Measurement The Group has availed of the exemption under IFRS 1 and has not restated the 2004 results for the effects of the above two standards, that is, financial instruments are accounted for under IFRS in line with Previous GAAP.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

The Group uses financial instruments throughout its businesses:
borrowings (including convertible debt), cash and cash equivalents are used to finance the Group's operations; trade debtors and trade creditors arise directly from operations and derivatives (principally forward contracts) are used to manage exchange risk.

IAS 39 requires, in general, that financial instruments are recorded initially at fair value with subsequent measurement either at fair value or at amortised cost dependent on the nature of the financial asset or liability. Except for the convertible debt and forward contracts as outlined below, this would not result in any adjustments as:

o Cash and cash equivalents, accounts receivable and payable are stated at cost, which approximates fair value given the short-dated nature of these assets and liabilities.
o Loans are stated at cost which approximates amortised cost as the interest rate re-prices at regular, short intervals.

If IAS 32 and IAS 39 had been applied from the transition date the effects of this would have been:

o Convertible debt: If they were accounted for as compound financial instruments in accordance with IAS 32; the equity and liability elements would have been separately recorded, with the equity component of the convertible notes being calculated as the excess of the issue proceeds over the present value of the future interest and principal payments, discounted at the market rate of interest applicable to similar liabilities that do not have a conversion option, the liability portion being the residual. Transaction costs would have been allocated to the liability and equity components in proportion to the allocation of proceeds. The corresponding interest expense recognised in the income statement would have been calculated using the effective interest rate method.

o Forward contracts: The Group has entered into a number of forward contracts; these forward contracts are cash-flow hedging instruments. Under Previous GAAP these contracts were not recognised in the financial statements until they settled. If accounted for under IAS 39, the unrecognised gains and losses would be recognised in equity and the fair value of these contracts would be recognised on the balance sheet. From January 1, 2005 the Group has followed the criteria in IAS 39 regarding documentation and designation of instruments used for hedging purposes.

j. Effect on retained earnings

The effect of the above adjustments is to increase / (decrease) retained earnings as follows:

                                                                                     January 1,       December
                                                                                           2004       31, 2004
                                                                    Note               US$ '000       US$ '000

Goodwill amortisation add-back                                       b                        -          2,756
Amortisation of new intangibles                                      b                        -          (532)
Elimination of negative goodwill                                     b                    1,878          1,258
Equity-settled transactions (recognition of expense)                 c                    (153)          (898)
Equity-settled transactions (offset to retained earnings)            c                      153            898
Sales on extended credit terms                                       d                    (144)           (80)
Deferred tax on sales on extended credit terms                      d,e                      14              8
Deferred tax on unrealised intercompany inventory profit             e                      748            800
Deferred  tax on fair value of acquired  property,  plant
and equipment                                                        e                    (638)          (625)
Deferred tax on recognition of intangibles                          b,e                       -             77
Deferred tax on write off of costs                                   e                       46            106
Deferred tax on amortisable goodwill                                 e                        -           (94)
Currency translation differences                                     f                  (4,091)        (4,091)
Depreciation on land                                                 g                       10             18
Write-off of deferred costs                                          h                    (453)          (938)
                                                                                  -------------     ----------
Total adjustment to retained earnings                                                   (2,630)        (1,337)
                                                                                  =============     ==========

                                                                                              Effect of
                                                                            Previous      transition to
                                                            Notes               GAAP            IFRS as              IFRS
                                                                                             adopted by
                                                                                                 the EU
                                                                             US$'000            US$'000           US$'000

Revenues                                                       d              79,944                 64            80,008
                                                                         -----------    ---------------      ------------

Cost of sales -- including share-based payments of           g, c           (39,974)               (73)          (40,047)
US$81,000

                                                                         -----------    ---------------      ------------
GROSS PROFIT                                                                  39,970                (9)            39,961

Other operating income                                                           302                  -               302

Research and development expenses -- including share-          c             (4,648)               (96)           (4,744)
based payments of US$96,000

Selling, general and administrative expenses -- including   b, c, h         (29,883)                551          (29,332)
share-based payments of US$581,000

                                                                         -----------    ---------------      ------------
OPERATING PROFIT BEFORE FINANCING COSTS                     b, d, h            5,741                446             6,187
                                                                         -----------    ---------------      ------------

Financial income                                                                 302                  -               302
Financial expenses                                                             (824)                  -             (824)
                                                                         -----------    ---------------      ------------
NET FINANCING COSTS                                                            (522)                  -             (522)
                                                                         -----------    ---------------      ------------

PROFIT BEFORE TAX                                                              5,219                446             5,665

Income tax (expense) / credit                                  e                (53)                102                49

                                                                         -----------    ---------------      ------------
PROFIT FOR THE YEAR                                                            5,166                548             5,714
                                                                         ===========    ===============      ============

Basic earnings per ordinary share (US Dollars)                                  0.09                                 0.10

Diluted earnings per ordinary share (US Dollars)                                0.09                                 0.09

k. Reclassifications within the Consolidated Income Statement Other operating income of US$302,000 has been separately classified in the Consolidated Income Statements, this resulted in an increase in the cost of sales expense of US$286,000, an increase in the research and development expense of US$7,000 and an increase in selling, general and administrative expenses of US$9,000.

EXPLANATION OF MATERIAL ADJUSTMENTS TO THE CASH FLOW STATEMENT FOR 2004 There are no material differences between the cashflow statement presented under IFRS as adopted by the EU and the cashflow statement presented under Previous GAAP. Restricted cash has been classified separately.

TRANSITION TO IAS 32 AND IAS 39
The Company has availed of the exemption in IFRS 1 and has not applied IAS 32 and IAS 39 until January 1, 2005. The convertible debentures and forward contracts are presented under IFRS in line with Previous GAAP at December 31, 2004.

Convertible notes
The application of IAS 32 to the compound financial instruments resulted in the separation of the equity and liability elements, with the equity component of the convertible notes being calculated as the excess of the issue proceeds over the present value of the future interest and principal payments, discounted at the market rate of interest applicable to similar liabilities that do not have a conversion option. Transaction costs were allocated to the liability and equity components in proportion to the allocation of proceeds. Certain transaction costs which had been included in share premium on conversion of the convertible debentures are reclassified to the carrying value of the liability. Interest expense is calculated using the effective interest rate method.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

Forward contracts

The application of IAS 32 and IAS 39 to the Group's forward contracts has resulted in the fair value of these contracts being recognised on the balance sheet, the unrecognised gains and losses are recognised in equity.

Deferred tax
A deferred tax liability was created on the temporary difference between the tax base of the convertible debenture and its tax base at the inception of the convertible debenture. This liability is being unwound over its life and regular timing differences arise on the accrued and paid convertible debenture interest. This has resulted in a deferred tax asset at January 1, 2005.

A deferred tax liability was created on the temporary difference that arose on the fair value of the forward contracts as this gain is not chargeable for tax purposes until it is recognised.

The reconciliation of the balance stated under IFRS as adopted by the EU (prior to the application of IAS 32 and IAS 39) at January 1, 2005 to the balance stated under IFRS as adopted by the EU (including the application of IAS 32 and IAS 39) at January 1, 2005 is as follows:

                                                                                                      US$'000
CONVERTIBLE NOTES
Balance at January 1, 2005 (prior to the application of IAS 32 and IAS 39)                             15,819
Accreted interest capitalised                                                                             336
Amount classified as equity                                                                             (226)
Transaction costs                                                                                        (25)
                                                                                                -------------
Balance at January 1, 2005 (following the application of IAS 32 and IAS 39)                            15,904
                                                                                                =============

CURRENT ASSETS -- DERIVATIVE FINANCIAL INSTRUMENTS
Balance at January 1, 2005 (prior to the application of IAS 32 and IAS 39)                                  -
Fair value of hedging contracts                                                                           418
                                                                                                -------------
Balance at January 1,2005 (following the application of IAS 32 and IAS 39)                                418
                                                                                                =============

RETAINED EARNINGS
Balance at January 1, 2005 (prior to the application of IAS 32 and IAS 39)                               (71)
Convertible notes interest at effective rate                                                            (336)
Deferred tax on convertible notes                                                                          39
                                                                                                -------------
Balance at January 1, 2005 (following the application of IAS 32 and IAS 39)                             (368)
                                                                                                =============

DEFERRED TAX LIABILITY
Balance at January 1, 2005 (prior to the application of IAS 32 and IAS 39)                              3,517
Deferred tax on fair value of hedging contracts                                                            45
Deferred tax on convertible notes                                                                          24
                                                                                                -------------
Balance at January 1, 2005 (following the application of IAS 32 and IAS 39)                             3,586
                                                                                                =============

OTHER RESERVES -- CONVERTIBLE NOTES  EQUITY COMPONENT
Balance at January 1, 2005 (prior to the application of IAS 32 and IAS 39)                                  -
Convertible notes residual                                                                                226
Deferred tax on convertible notes                                                                        (62)
                                                                                                -------------
Balance at January 1, 2005 (following the application of IAS 32 and IAS 39)                               164
                                                                                                =============

OTHER RESERVES -- HEDGING RESERVE
Balance at January 1, 2005 (prior to the application of IAS 32 and IAS 39)                                  -
Fair value of hedging contracts                                                                           418
Deferred tax on fair value of hedging contracts                                                          (45)
                                                                                                -------------
Balance at January 1, 2005 (following the application of IAS 32 and IAS 39)                               373
                                                                                                =============

OTHER RESERVES -- WARRANT RESERVE
Balance at January 1, 2005 (prior to the application of IAS 32 and IAS 39)                                  -
Fair value of warrants                                                                                  3,803
                                                                                                -------------
Balance at January 1, 2005 (following the application of IAS 32 and IAS 39)                             3,803
                                                                                                =============

SHARE PREMIUM
Balance at January 1, 2005 (prior to the application of IAS 32 and IAS 39)                            120,444
Fair value of warrants                                                                                (3,803)
Convertible notes transaction costs                                                                        24
                                                                                                -------------
Balance at January 1, 2005 (following the application of IAS 32 and IAS 39)                           116,665
                                                                                                =============

Name and registered office                  Principal activity          Principal Country of       Group % holding
                                                                           incorporation and
                                                                                   operation

Trinity Biotech plc                         Investment and holding                   Ireland       Holding Company
IDA Business Park, Bray,                    company
Co. Wicklow, Ireland

ENTITIES DIRECTLY OWNED BY THE COMPANY

Trinity Biotech Manufacturing Limited       Manufacture and sale of                  Ireland                  100%
IDA Business Park, Bray,                    diagnostic test kits
Co. Wicklow, Ireland

Trinity Research Limited                    Research and development                 Ireland                  100%
IDA Business Park, Bray,
Co. Wicklow, Ireland

Trinity Biotech Sales Limited               Non - trading                            Ireland                  100%
IDA Business Park, Bray,
 Co. Wicklow, Ireland

Benen Trading Limited                       Trading                                  Ireland                  100%
IDA Business Park, Bray,
Co. Wicklow, Ireland

Trinity Biotech Manufacturing Services      Engineering services                     Ireland                  100%
Limited
IDA Business Park, Bray,
Co. Wicklow, Ireland

Trinity Biotech Inc (Formerly Disease       Holding Company                           U.S.A.                  100%
Detection International Inc) Girts
Road, Jamestown, NY 14702,USA

Clark Laboratories Inc                      Manufacture and sale of                   U.S.A.                  100%
Trading as Trinity Biotech (USA)            diagnostic test kits
Girts Road, Jamestown
NY14702, USA

FHC Corporation                             Non - trading                             U.S.A.                  100%
Girts Road, Jamestown
NY14702, USA

Mardx Diagnostics Inc                       Manufacture and sale of                   U.S.A.                  100%
5919 Farnsworth Court                       diagnostic test kits
Carlsbad
CA 92008, USA

Fitzgerald Industries International,        Management services company               U.S.A.                  100%
Inc
2711 Centerville Road, Suite 400
Wilmington, New Castle
Delaware, 19808

Biopool Us Inc                              Sale of diagnostic test                   U.S.A.                  100%
Girts Road, Jamestown                       kits
NY14702, USA

Primus Corporation                          Manufacture and sale of                   U.S.A.                  100%
4231 E 75th Terrace                         diagnostic test kits and
Kansas City,                                instrumentation
MO 64132

Eastcourt Limited                           Non-trading                                   UK                  100%
Chichester House
278/282, High Holborn
London, UK

Trinity Biotech UK Holdings Ltd             Holding company                               UK                  100%
(Formerly Centocor UK Holdings Ltd)
Shalford
Guildford, Surrey, UK

Trinity Biotech UK Ltd                      In voluntary liquidation                      UK                  100%
(Formerly Centocor UK Holdings Ltd)
Shalford
Guildford, Surrey, UK

Trinity Biotech (UK Sales) Limited          Sales of diagnostic kits                      UK                  100%
54 Queens Road
Reading RG1 4A2, England

Trinity Biotech GmbH                        Manufacture of diagnostic                Germany                  100%
Otto Hesse Str 19                           instrumentation and
64293 Darmstadt, Germany                    sale of diagnostic test
                                            kits

Biopool AB                                  Manufacture and                           Sweden                  100%
S-903 47 Umea                               sale of diagnostic test
Sweden                                      kits


ENTITIES  INDIRECTLY OWNED BY THE
COMPANY

Primus International LLC                    Sale of diagnostic test                   U.S.A.                   50%
2711 Centreville Road, Suite 400            kits and instrumentation
Wilmington, DE 19808


Primus International LLC H.K. Ltd.,         Sale of diagnostic test                    China                   50%
Room 605-606, Alliance Building,            kits and instrumentation
130 Connaught Road,
Central Hong Kong

Primus Medical (Shanghai) Company Ltd.      Sale of diagnostic test                    China                   50%
14P, 985 Dong Fan Road,                     kits and instrumentation
Pudong New Area, PRC 200122

Chronomed Inc.                              Development of diagnostic                 U.S.A.                   32%
8 Trillium Lane                             test instrumentation
San Carlos, CA 94070-1525

35. DIFFERENCES BETWEEN IFRS AS ADOPTED BY THE EU AND ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES

The Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU. IFRS as adopted by the EU differ in certain respects from IFRS as issued by the International Accounting Standards Board ("IASB"). However, the consolidated financial statements for the periods presented would be no different had the Company applied IFRS as issued by the IASB. IFRS as adopted by the EU differ in certain significant respects from US generally accepted accounting principles ("US GAAP").

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

As a result of the Company's transition to IFRS as adopted by the EU on January 1, 2004, the reconciliations of net income and shareholders' equity as of and for the year ended December 31, 2004 published in the previous period have been amended to reflect the profit and stockholders' equity reporting as reported under IFRS. Consequently, the reconciling items in these reconciliations now consider the differences between US GAAP and IFRS as adopted by the EU as opposed to Previous GAAP. The net income and shareholders' equity under US GAAP have remained unchanged. These differences relate principally to the following items and the necessary adjustments are shown in the table set out below:

(a) Goodwill:
The difference in the carrying value of goodwill under US GAAP and IFRS as adopted by the EU relates to the differing treatment of goodwill acquired prior to 1998 and the different transition dates under US GAAP and IFRS as adopted by the EU for the move from the systematic amortisation of goodwill over a lifetime of 20 years to impairment testing of the carrying value of goodwill on an annual basis or more frequently if there are indicators of impairment. The treatment of the excess of the acquirer's interest in the net fair value of acquiree's identifiable assets, liabilities and contingent liabilities over cost ("negative goodwill") also differs under IFRS as adopted by the EU and US GAAP.

In prior years under Previous GAAP, goodwill was either written-off immediately on completion of the acquisition against shareholders' equity, or capitalised in the balance sheet and amortised through the statement of income on a systematic basis over its useful economic life. From 1998 until January 1, 2004, the date of transition to IFRS as adopted by the EU, goodwill was capitalised and amortised over the period of its expected useful life, however, historic goodwill pre 1998 continued to remain an offset against shareholders' equity. From January 1, 2004 goodwill is accounted for in accordance with IFRS 3 Business Combinations. IFRS 3 prohibits the amortisation of goodwill acquired in a business combination and instead requires the goodwill to be tested for impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired, in accordance with IAS 36 Impairment of Assets. Goodwill impairment tests are undertaken at a consistent time in each annual period. Impairment is determined by assessing the recoverable amount of the cash-generating unit to which the goodwill relates. Where the recoverable amount of the cash-generating unit is less than the carrying amount, an impairment loss is recognised. The Company tested its goodwill for impairment on the date of its transition to IFRS as adopted by the EU and at December 31, 2004 and December 31, 2005 in the manner prescribed by IAS 36 and determined that its goodwill was not impaired on these dates.

Negative goodwill arises when the net amounts assigned to assets acquired and liabilities assumed exceed the cost of an acquired entity. Under IFRS as adopted by the EU, if the acquirer's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities exceeds the cost of the business combination, the acquirer shall (a) reassess the identification and measurement of the acquiree's identifiable assets, liabilities and contingent liabilities and the measurement of the cost of the combination and (b) recognise immediately in profit or loss any excess remaining after that reassessment.

Under US GAAP, goodwill is not amortised, but is instead subject to impairment tests annually, or more frequently if indicators of impairment are present. On December 31, 2004 and December 31, 2005, the Group performed its annual impairment tests of goodwill and indefinite-lived intangible assets, and concluded that there was no impairment in the carrying value of goodwill at those dates.

Negative goodwill is allocated to reduce proportionately the values assigned to the acquired non-current assets, any excess is recognised in income as an extraordinary gain.

At December 31, 2004, the Company had recognised US$3,451,000 of negative goodwill in retained earnings under IFRS as adopted by the EU. Under US GAAP US$2,500,000 of this negative goodwill would be allocated to reduce property, plant and equipment. The balance of US$951,000 would be recognised in retained earnings. Depreciation of US$57,000 (2004: US$54,000), under IFRS as adopted by the EU, on property, plant and equipment acquired would not be recognised under US GAAP as the value of the acquired building has been fully offset by the negative goodwill arising on the acquisition.

Under IFRS 3 Business Combinations, following the completion of the fair value exercises in 2005 in respect of the acquisitions made during 2004, amendments were made to the fair values reported in the 2004 financial statements related to the net assets acquired in the 2004 business combinations. The net difference of US$56,000 was taken as an adjustment to goodwill on acquisition under IFRS in 2005 (See Note 26). Under US GAAP the Company has expensed fair value adjustments arising in 2005 relating to the 2004 acquisitions as the Company has applied a stricter interpretation of the purchase price allocation period under US GAAP.

The aggregate amount of goodwill relating to acquisitions during the period for the Group and for each reportable segment for each of the periods presented is as follows:

                                                              2005                 2004
                                                           US$'000              US$'000
Rest of World -- Ireland                                     3,722                8,728
Americas                                                     7,688                    -
                                                          --------              --------
                                                            11,410                8,728
                                                          --------              --------

Identifiable intangible assets comprise goodwill, which is not amortisable, and certain other non-current intangible assets, which are amortisable. Other non-current asset amortisation under US GAAP for the year ended December 31, 2005 was US$1,410,000 (2004: US$715,000). Other non-current amortisation of identifiable intangible assets under US GAAP is estimated to be approximately US$1,595,000 in 2006, US$1,580,000 in 2007, US$1,503,000 in 2008, US$1,373,000 in 2009, US$1,274,000 in 2010 and US$7,518,000 thereafter.

The net book value of goodwill at December 31, 2005 was US$67,430,000.

(b) Share Capital Not Paid:
Under IFRS as adopted by the EU, unpaid share capital is classified as a receivable under current assets. Under US GAAP, share capital receivable is reported as a reduction to Shareholders' Equity. Unpaid share capital at December 31, 2005 is US$61,000 (2004: US$158,000).

(c) Statement of Comprehensive Income:
The Company prepares a "Statement of Recognised Income and Expense" which is similar to the "Statement of Comprehensive Income" required under US GAAP. SFAS 130 requires disclosure of the cumulative amounts of other comprehensive income.

(d) Sale and Leaseback:

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

Under IFRS as adopted by the EU, the Company's sale and leaseback transaction, which took place in December 1999, was recorded as a disposal of assets with the gain on the disposal of US$1,014,000 recognised in the income statement in the period of the transaction. Under US GAAP, this amount is deferred and released to the income statement over the period of the lease (20 years).

(e) Product Development Costs:
Under IFRS as adopted by the EU, development expenditure on projects whose outcome can be assessed with reasonable certainty as to technical feasibility, commercial viability and recovery of costs through future revenues, are capitalised at cost within intangible assets. US GAAP, as set forth in SFAS 2, Accounting for Research and Development Costs, requires development costs to be written off as incurred. However, SFAS 86 Accounting for the Costs of Computer Software to be Sold, Leased or Otherwise Marketed specifies that costs incurred internally in creating a computer software product shall be charged to expense when incurred as research and development until technological feasibility has been established for the product. Technological feasibility is established upon completion of a detail program design or, in its absence, completion of a working model. Thereafter, all software production costs shall be capitalized and subsequently reported at the lower of unamortized cost or net realizable value. The Company has determined that technological feasibility, as defined by SFAS 86 i.e. the completion of all planning, designing, coding, and testing activities that are necessary to establish that the product can be produced to meet its design specifications including functions, features, and technical performance requirements has not yet been established for its software development projects and accordingly the Company has expensed this development expenditure under US GAAP in 2005 and 2004.

(f) Share-based Payment:
Under IFRS as adopted by the EU, IFRS 2 Share-based Payment requires that for equity-settled share-based payment transactions (i.e. the issuance of share options), the Group measures the services received and the corresponding increase in equity at fair value at the measurement date (which is the grant date) using a recognised valuation methodology for the valuation of financial instruments such as the trinomial model. Given that the share options granted do not vest until the completion of a specified period of service, the fair value is determined on the basis that the services to be rendered by employees as consideration for the granting of share options will be received over the vesting period, which is assessed at the grant date. The expense in the income statement in relation to share options represents the product of the total number of options anticipated to vest and the fair value of those options; this amount is allocated to accounting periods on a straight-line basis over the vesting period. Given that the performance conditions underlying the Group's share options are non-market in nature, the cumulative charge to the income statement is only reversed where the performance condition is not met or where an employee in receipt of share options relinquishes service prior to completion of the expected vesting period. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised. In line with the transitional provisions applicable to a first-time adopter of IFRS as adopted by the EU as contained in IFRS 2, Share-based Payment, the Group has elected to implement the measurement requirements of the IFRS as adopted by the EU in respect of share options that were granted after November 7, 2002 that had not vested as at the effective date of the standard (January 1, 2005).

Under US GAAP, the Company has elected to follow Accounting Principles Board Opinion No. 25 Accounting for Stock Issued to Employees ("APB 25") and related interpretations in accounting for its employee stock options. Under APB 25, the cost of awarding stock options to employees is measured by the intrinsic value, which is the excess of market value over the strike price, if any. Accordingly, where the exercise price of the Company's employee stock options is less than the market price of the underlying stock on the grant date, compensation expense for the intrinsic value is recognised in the income statement over the vesting period. APB 25 requires that the proforma effect on income and earnings per share of using the fair value of the options be disclosed in accordance with Statement No. 123, Accounting for Stock-Based Compensation, as if the Company had accounted for its employee stock options under the fair value method of that statement.

In December 2004, the FASB issued SFAS No. 123 (revised 2004) Share-Based Payment ("SFAS 123R"). This Statement replaces FASB Statement No. 123 and supersedes APB Opinion No. 25, and its related implementation guidance.

This Statement requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions), and recognise the cost over the period during which an employee is required to provide service in exchange for the award---the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service. If an equity award is modified after the grant date, incremental compensation cost will be recognized in an amount equal to the excess of the fair value of the modified award over the fair value of the original award immediately before the modification. This Statement eliminates the alternative to use Opinion 25's intrinsic value method of accounting that was provided in Statement 123 as originally issued. The proforma disclosures previously permitted under Statement 123 no longer will be an alternative to financial statement recognition.

This Statement is effective for the financial period ended December 31, 2006. Under SFAS 123R, the Company must determine the appropriate fair value model to be used for valuing share-based payments, the amortisation method for compensation cost and the transition method to be used at date of adoption.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

The Company has not determined the method of adoption or the effect of adopting SFAS 123R. However, the differing effective dates and transition provisions in applying the requirements of IFRS 2 and SFAS 123R will result in the recognition of different amounts for stock-based compensation under IFRS as adopted by the EU and US GAAP in the 2006 financial statements.

(g) Derivatives and Financial Instruments:

FORWARD CONTRACTS
As part of a managed hedging policy, Trinity Biotech has entered into a series of forward contracts to sell US Dollars forward for euro. The Company adopted the provisions of IAS 32 Financial Instruments: Disclosure and Presentation and IAS 39 Financial Instruments: Recognition and Measurement on January 1, 2005. IAS 39 requires, in general, that financial instruments are recorded initially at fair value with subsequent measurement either at fair value or at amortised cost dependent on the nature of the financial asset or liability. The unrecognised gains and losses on forward contracts are recognised in the statement of changes in equity and the fair values of these contracts are recognised on the balance sheet. From January 1, 2005 the Group has followed the criteria in IAS 39 regarding documentation and designation of instruments used for hedging purposes. The Group has availed of the exemption in IFRS 1 First time Adoption of International Financial Reporting Standards and is presenting comparative information for derivative financial instruments under IFRS as adopted by the EU in line with Previous GAAP.

Under US GAAP all derivatives are recognised on the balance sheet at fair value. Derivatives that are not qualifying hedges or where hedge correlation cannot be demonstrated must be adjusted to fair value through income. Under IFRS as presented in line with Previous GAAP derivatives are not recognised until settled. Realised gains and losses on transactions where derivatives are used to hedge cross-currency cashflows are ultimately recorded in the income statement on settlement.

During 2001 Trinity Biotech began documenting its hedging transactions in accordance with the requirements of SFAS 133. In 2004 an unrealised loss of US$54,000 was taken to comprehensive income in respect of such contracts in accordance with the standard. During the year ended December 31, 2004 US$868,000 of foreign exchange gains were recognised in the Income Statement. This included realised foreign exchange gains of US$126,000 on the exercise of forward contracts under US GAAP, relating to contracts entered into during the year which had not been designated as hedging instruments. At December 31, 2004 contracts with a fair value of US$47,000 were recorded in other comprehensive income under US GAAP.

The Company designated all of its forward contracts outstanding at January 1, 2005, as cashflow hedging instruments on its transition to IAS 32 and IAS 39. Under US GAAP, the Company had not designated forward contracts, with a fair value of US$244,000 at January 1, 2005, as cashflow hedging instruments at inception of the contracts. Accordingly, US$244,000 of foreign exchange gains recognised in the income statement in 2005 under IFRS as adopted by the EU, are not recognised under US GAAP.

In 2005 an unrealised loss of US$233,000 was taken to comprehensive income in respect of forward contracts designated as hedging instruments, in accordance with SFAS 133. During the year ended December 31, 2005 US$51,000 of foreign exchange gains were recognised in the Income Statement. This included realised foreign exchange gains of US$16,000 on the exercise of forward contracts under US GAAP, relating to contracts entered into during the year which had not been designated as hedging instruments. At December 31, 2005 contracts with a fair value of (US$60,000) were recorded in other comprehensive income which the Company anticipates will be reclassified into earnings on the exercise of forward contracts in the year ending December 31, 2006. The last of the Company's forward contracts expire in December 2006.

CONVERTIBLE DEBT
Under IFRS from January 1, 2005 the Company's convertible debentures are accounted for as compound financial instruments in accordance with IAS 32; the equity and liability elements are separately recorded, with the equity component of the convertible notes being calculated as the excess of the issue proceeds over the present value of the future interest and principle payments, discounted at the market rate of interest applicable to similar liabilities that do not have a conversion option, the liability portion being the residual. Transaction costs are allocated to the liability and equity components in proportion to the allocation of proceeds. The corresponding interest expense recognised in the income statement is calculated using the effective interest rate method. Under US GAAP the Company has considered whether the embedded conversion option should be separated from the debt and accounted for separately at fair value at each reporting period in accordance with SFAS 133 Accounting for Derivative Instruments and EITF Issue No.00-19, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, A Company's Own Stock. The Company has determined that the conversion feature does not have intrinsic value as the convertible debt securities are convertible into common stock of the issuer at a specified price at the option of the holder and that conversion price exceeds the fair market value of the underlying stock at the date the parties committed o the terms of the convertible debt. Therefore, no portion of the proceeds from the issuance of the convertible debt is accounted for as attributable to the conversion feature. As a result of the differing accounting treatment under IFRS and US GAAP of convertible debt, under US GAAP the Company has recognised additional shareholders' equity of US$150,000 at December 31, 2005 and additional profit in the income statement in 2005 of US$64,000.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

(h) Capitalisation of Interest Charges in Self-Constructed Assets:
IFRS 23 Capitalisation of Borrowing Costs generally requires the immediate expensing of borrowing costs. However, the Standard permits, as an allowed alternative treatment, the capitalisation of borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset. Under IFRS the Company has elected to expense borrowing costs directly attributable to qualifying assets. Under US GAAP, SFAS 34 Capitalisation of Interest Cost requires interest cost to be capitalised as part of the historical cost of acquiring qualifying assets. To qualify for interest capitalization under SFAS 34, assets must require a period of time to get them ready for their intended use. The interest cost eligible for capitalization shall be the interest cost recognized on borrowings and other obligations. Under US GAAP the Company has capitalised interest costs of US$52,000 in 2005 (2004: Nil) relating to qualifying assets.

(i) In-Process Research and Development ("R&D"):
IFRS 3 Business Combinations requires all intangible assets, including in-process R&D, acquired in a business combination, to be measured at fair value at the date of acquisition and recognised separately from goodwill. Subsequent to initial recognition, the intangible asset is carried at cost less any accumulated amortisation and impairment losses. Under US GAAP intangible assets acquired in a business combination are initially recognised and measured in accordance with SFAS 141 Business Combinations. Costs are assigned to all identifiable tangible and intangible assets of an acquired entity, including any resulting from research and development activities of the acquired entity or to be used in research and development activities of the acquired entity, in accordance with SFAS 141. FIN 4 Applicability of FASB Statement No. 2 to Business Combinations Accounted for by the Purchase Method addresses the accounting treatment for identifiable tangible and intangible assts to be used in research and development activities that are acquired in a purchase business combination. Costs assigned to assets to be used in a particular research and development project and that have no alternative future use should be charged to expense at the date of consummation of the combination. In 2005 the Company assigned a fair value of US$400,000 to in-process R&D acquired as part of the acquisition of Primus. Under US GAAP this intangible has been charged to expense at the date of consummation of the combination.

(j) Deferred Tax:
Deferred tax differences arise between IFRS and US GAAP due to the impact of the nature and timing of the reconciling items arising. The principal causes of the deferred tax differences are the reversal of deferred tax liabilities created under IFRS by the capitalisation of qualifying development expenditure, the impact of the write off of negative goodwill against non current assets acquired under US GAAP on the carrying value of the Company's property, plant and equipment and the recognition of the deferred tax asset on unrealised intercompany stock profit reflected at the seller's rate under US GAAP and at the buyer's rate under IFRS. The Company's deferred tax position under IFRS has also been adjusted to reflect the impact on deferred tax of the immediate write off of in-process R&D, acquired in a business combination, on consummation of the combination under US GAAP, the capitalisation of interest charges in self-constructed assets, the reversal of the deferred tax liability recognised on the equity component of convertible notes under IFRS and greater taxable temporary differences under US GAAP on tax-deductible goodwill as a lesser net book value has been recognised for this goodwill under IFRS than under US GAAP. The systematic amortisation of goodwill ceased under US GAAP in 2002. It continued for an additional two years under Previous GAAP until the transition to IFRS on January 1, 2004.

                                                                                      2005                      2004
                                                                                   US$'000                   US$'000
                                                                                                           (Amended)

Total shareholders' equity before minority interests under IFRS                    133,618                   118,894
as adopted by the EU
US GAAP adjustments:
Goodwill
- Gross (a)                                                                         21,777                    21,777
- Gross (b)                                                                        (2,500)                   (2,500)
- Gross (c)                                                                           (56)                         -
- Aggregate amortisation                                                           (9,231)                   (9,231)
In process R&D acquired in a business combination
- Gross                                                                              (400)                         -
- Aggregate amortisation                                                                12                         -
Product development costs
- Gross                                                                           (12,296)                   (7,416)
- Aggregate amortisation                                                               555                       164
Capitalisation of interest in self-constructed assets
- Gross                                                                                 52                         -
- Aggregate depreciation                                                               (1)                         -
Property, plant and equipment                                                          176                       119
Share capital not paid                                                                (61)                     (158)
Adjustment for sale and leaseback                                                    (709)                     (760)
Adjustment for fair value of derivative instruments                                      -                       418
Adjustment for residual value of convertible debt                                      150                         -
Deferred tax                                                                         1,683                       726
                                                                               -----------               ------------
Shareholders' equity under US GAAP                                                 132,769                   122,033
                                                                               -----------               ------------

(a) Pre -1998 goodwill written-off against shareholders' equity of US$21,777,000.
(b) Excess of the acquirer's interest in the net fair value of assets, liabilities and contingent liabilities acquired over cost recognised in retained earnings under IFRS as adopted by the EU and not against the carrying value of non-current assets acquired as required by US GAAP.
(c) Fair value adjustments to 2004 business combinations not recognised in goodwill under US GAAP.

At December 31, 2005 the cumulative total fair value of derivative instruments in other comprehensive income was (US$60,000) (2004: US$47,000). At December 31, 2005 the total accumulated translation reserve in other comprehensive income was (US$5,682,000) (2004: (US$3,975,000)).

SFAS 109 Accounting for Income taxes requires that all current deferred tax assets and liabilities and all non-current deferred tax assets and liabilities for a particular tax paying component and within a particular tax jurisdiction be offset and shown as a single amount.

                                                                  December 31, 2005    December 31, 2004
                                                                           US$ '000             US$ '000

Current deferred tax asset                                                    1,534                  173
Current deferred tax liability                                                    -                 (94)
Non-current deferred tax asset                                                  813                1,227
Non-current deferred tax liability                                          (4,116)              (1,621)

EFFECT ON NET PROFIT

                                                                  December 31, 2005    December 31, 2004
For the year ended                                                         US$ '000             US$ '000
                                                                                               (Amended)

Profit after taxation under IFRS as adopted by the EU                         5,280                5,714
US GAAP adjustments
Fair value adjustments relating to 2004 business
combinations written off                                                       (56)                    -
Write back of depreciation charge for property, plant and
equipment offset by negative goodwill                                            57                   54
Recognition of deferred gain on sale and leaseback
transaction                                                                      51                   51
Reversal of fair-valued stock-based compensation                              1,354                  745
Expensing of development costs
- Cost                                                                      (4,916)              (3,201)
- Amortisation                                                                  394                  164
Capitalisation of interest in self-constructed assets
- Gross                                                                          52                    -
- Depreciation                                                                  (1)                    -
In-process R&D acquired in a business combination
- Gross                                                                       (400)                    -
- Amortisation                                                                   12                    -
Adjustment for fair value of derivative instruments                           (244)                  126
Adjustment for residual value of convertible debt                                64                    -
Deferred tax                                                                    935                  395

                                                                  -----------------     ----------------
Profit under US GAAP                                                          2,582                4,048
                                                                  -----------------     ----------------

                                                                                                Restated
Profit per 'A' ordinary share (US Dollars)                                     0.04                 0.07
Profit per 'B' ordinary share (US Dollars) **                                  0.08                 0.14
Diluted profit per 'A' ordinary share (US Dollar)                              0.04                 0.07
Diluted profit per 'B' ordinary share (US Dollar)                              0.08                 0.14
Weighted-average  number  of 'A'  ordinary  shares  used in
computing basic profit per ordinary share                                58,890,084           55,132,024
Diluted  weighted-average  number  of 'A'  ordinary  shares
used in computing diluted profit per ordinary share                      67,142,527           65,740,993

** As the 'B' ordinary shareholders have twice the voting and dividend rights of the 'A' ordinary shareholders, the basic profit per ordinary share and the diluted profit per ordinary share for the 'B' ordinary shares is twice that of the 'A' ordinary shares.

The diluted earnings per share under US GAAP for the year ended December 31, 2004 have been restated to include the effects of certain dilutive shares to be included in the denominator associated with the Company's convertible notes. The number of potentially dilutive shares has increased by 1,818,789 shares to 65,740,993 shares. Diluted earnings per 'A' ordinary share and per 'B' ordinary share under US GAAP for 2004 has remained unchanged for this revision.

The Company's debentures are convertible into Class 'A' Ordinary Shares of the Company at a price of US$4 at the option of the holder. In addition, under the terms of the agreement, the Company has the option to satisfy each repayment either in cash or in shares. Where the repayment of convertible notes is to be satisfied in shares, the number of shares will be based on, at the holders' option, either the conversion price or 97% of the volume weighted average price per ADS for the twenty trading days for the period immediately preceding the repayment date.

                                                                          December 31           December 31
                                                                                 2005                  2004
                                                                              US$'000               US$'000
                                                                                                  (Amended)

Profit under US GAAP                                                            2,582                 4,048
Translation adjustment                                                        (1,707)                   116
Fair value of derivative instruments (net of deferred tax)                      (239)                  (54)
                                                                         ------------           ------------
Total comprehensive income                                                        636                 4,110
                                                                         ------------           ------------

                                                                           December 31          December 31
                                                                                  2005                 2004
                                                                               US$'000              US$'000
US GAAP Shareholders' Equity at January 1                                      122,033               87,234
Net profit for the period                                                        2,582                4,048
'A' shares issued for cash                                                           -               24,335
'A' shares issued for conversion of debenture                                    5,466                  427
'A' shares issued on conversion of warrant                                           -                  348
Options exercised                                                                2,491                1,632
Stock-based compensation - additional paid-in capital                               14                   13
'A' shares issued as consideration for acquisition                                   -                7,721
Share issue expenses                                                             (341)              (1,509)
Share proceeds outstanding                                                       2,373              (2,373)
Share capital now paid                                                              97                   95
Other comprehensive income:
      Translation adjustment                                                   (1,707)                  116
      Fair value of derivative instruments                                       (239)                 (54)
                                                                           -----------          -----------
US GAAP Shareholders' Equity at December 31                                    132,769              122,033
                                                                           -----------          -----------

NON CASH TRANSACTIONS

In January 2004, the Company has completed a private placement of 5,294,118 of Class 'A' Ordinary Shares of the Company at a price of US$4.25 per share. The investors were granted five year warrants to purchase an aggregate of 1,058,824 Class 'A' Ordinary Shares of the Company at an exercise price of US$5.25 per share. The Company further granted warrants to purchase 200,000 Class 'A' Ordinary Shares in the Company to agents of the Company who were involved in this private placement at an exercise price of US$5.25. Under the terms of the placement, investors were also granted the right to purchase an additional 2,647,059 Class 'A' Ordinary Shares of the Company at a price of US$4.25 per share for a period of up to 30 days after the closing of the transaction. An additional 431,617 Class 'A' Ordinary Shares of the Company were issued within the 30 day period following the closing of the transaction to investors who exercised this option.

In April 2004, Trinity completed the acquisition of the assets of Fitzgerald Industries International Inc (Fitzgerald) for US$16,000,000 in cash. The acquisition was partly funded by the issue of 2,783,984 'A' Ordinary Shares. Additional consideration was payable for the acquisition of the business of Fitzgerald, depending on the financial performance of that business during the first 18 months of operation post acquisition relative to its pre-acquisition performance. At December 31, 2004 the payment of these amounts was not considered to be probable, therefore no provisions for these amounts were made. At December 31, 2005 it was determined, based on the performance of Fitzgerald in 2005, that deferred consideration of US$1,002,000 is payable.

In July 2005, Trinity completed the acquisition of Primus Corporation, a leader in the field of in-vitro diagnostic testing for haemoglobin A1c and haemoglobin variants for US$14,503,000 consisting of a cash consideration of US$8,587,000 and a one year promissory note of US$3,000,000. Acquisition expenses amounted to US$211,000. Under the terms of the purchase agreement, the shareholders of Primus were also entitled to an additional consideration based on the growth of the Company during the remainder of 2005. At year end, the Company have accrued US$2,705,000 for this additional consideration which will be paid in early 2006.

RESTATEMENT IN CASH FLOW STATEMENT
On adoption of IFRS as adopted by the EU, the Company determined that it had not presented restricted cash in the statement of cash flows separately from cash and cash equivalents at December 31, 2004 in accordance with US GAAP. Accordingly, this presentation is now restated and is reflected in the same manner as now set out in the statement of cash flows presented under IFRS as adopted by the EU.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

SHARE OPTION SCHEME - ADDITIONAL INFORMATION REQUIRED BY SFAS 123 The Company has elected to follow the intrinsic value method of Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees" ("APB 25") and related interpretations in accounting for its employee stock options.

Proforma information regarding net income and earnings per share is required by SFAS 123, and has been determined as if the Company had accounted for its employee stock options under the fair value method of that statement. The fair value for these options was estimated at the date of grant using a trinomial option pricing model with the following assumptions:

                                                 KEY MANAGEMENT           OTHER     KEY MANAGEMENT           OTHER
                                                      PERSONNEL       EMPLOYEES          PERSONNEL       EMPLOYEES
                                                           2005            2005               2004            2004
Weighted    average   fair   value   at                 US$0.95         US$0.75            US$1.15         US$1.37
measurement date
Total share options granted                             650,000       1,019,000          1,270,000         519,833
                                                ===============     ===========  =================     ============
Weighted  average  risk-free   interest                   5.33%           3.28%              5.28%           3.17%
rate
Weighted  average   expected   dividend                       -               -                  -               -
yield
Weighted average expected volatility                     60.30%          59.72%             66.48%          65.24%
Weighted average expected life                       5.33 years      3.28 years         5.28 years      3.17 years

The 2004 numbers have been restated to revise certain assumptions previously used to value the Company's options under US GAAP, in a manner consistent with those used under IFRS 2 Share-based payments. The Company has used a recognised valuation methodology for the valuation of its share options (i.e. the Black-Scholes model).

The information required by SFAS 148, "Accounting for Stock-Based Compensation", is as follows:

                                                                          December 31, 2005       December31,2004
                                                                                   US$ '000              US$ '000
                                                                                                         Restated
Net income as reported                                                                2,582                 4,048
Add:
Total stock based employee  compensation included in reported
net income, net of related tax effects                                                   14                    13
Deduct:
Total  stock  based  employee  compensation  under fair value
based   methods   for  all   rewards,   net  of  related  tax effects               (1,607)                (1,361)
                                                                         ------------------     ------------------
Proforma net income                                                                     989                 2,700
                                                                         ------------------     ------------------
Earnings per share:
Basic -- as reported per 'A' ordinary share (US Dollars)                               0.04                  0.07
Basic -- as reported per 'B' ordinary share (US Dollars)                               0.08                  0.14
Diluted -- as reported per 'A' ordinary share (US Dollars)                             0.04                  0.07
Diluted -- as reported per 'B' ordinary share (US Dollars)                             0.08                  0.14
Basic -- proforma per 'A' ordinary share (US Dollars)                                  0.02                  0.05
Basic -- proforma per 'B' ordinary share (US Dollars)                                  0.04                  0.10
Diluted -- proforma per 'A' ordinary share (US Dollars)                                0.02                  0.05
Diluted -- proforma per 'B' ordinary share (US Dollars)                                0.04                  0.10

The fair value of employee stock options for the year ended December 31, 2004 has been restated to reflect a revised estimated life of the options and a revised expected volatility. The expected volatility was originally calculated based on the changes in the Company's equity prices in the year prior to the options being granted. This has now been calculated over a timeframe comparable with the expected life of each option grant. Pro forma stock compensation expense determined under the fair value based method of SFAS 123 for 2004 has been decreased by US$64,000. Pro forma basic and diluted earnings per share for 2004 have remained unchanged.

                                                                    YEAR ENDED
                                                                    DECEMBER 31, 2005
Shares issuable on conversion of debentures                         2,486,690
Shares underlying outstanding stock options                         7,531,133
Shares available for grant under option plans                       217,935
Shares issuable upon exercise of warrants                           1,317,324
                                                                    ---------
                                                                    11,553,082
                                                                    ==========

INVESTMENTS
The Company had no trading securities as at December 31, 2005 or December 31, 2004. The gross realised gains on sales of trading securities during 2005 was US$Nil (2004: US$Nil). The Company had no "available for sale" or "held-to-maturity securities" as at December 31, 2005 or December 31, 2004.

FAIR VALUES OF FINANCIAL INSTRUMENTS
The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments:

Cash and cash equivalents, trade accounts receivable and trade accounts payable:
The carrying amount reported in the balance sheet for cash and cash equivalents, trade accounts receivable and trade accounts payable approximates their fair value.

Long and short-term debt: The carrying amounts of the Company's borrowings approximate their fair value as substantially all of the debt bears interest at market rates.

Forward contracts: The Company marks its forward contracts to market in determining fair value.

The carrying amounts and fair values of the Company's financial instruments at December 31, 2005 and 2004 are as follows:

                                                       December 31, 2005                  December 31, 2004
                                                Carrying               Fair          Carrying               Fair
                                                  Amount              Value            Amount              Value
                                                 US$'000            US$'000           US$'000            US$'000
Cash and cash equivalents (restated)*              9,881              9,881            15,139             15,139

Financial assets -- restricted cash (restated)*    9,000              9,000             7,148              7,148

Trade accounts receivable                         17,591             17,591            10,798             10,798

Trade accounts payable                             6,065              6,065             3,266              3,266

Short-term debt                                   14,922             14,998            11,087             11,410

Long-term debt                                    12,206             12,099            12,923             13,316

Forward contracts                                     64                 64               418                418

*The carrying amount and associated fair value of restricted cash of US$7,148,000 as of December 31, 2004, which was previously included in cash and cash equivalents is now separately disclosed.

ADDITIONAL UNAUDITED PROFORMA INFORMATION FOR ACQUISITIONS MADE IN 2005 The information below presents the proforma effect of the acquisitions made in 2005 as if they had occurred on January 1, 2005 and January 1, 2004.

                                                                  December 31           December 31
                                                                         2005                  2004
                                                                      US$'000               US$'000
Proforma revenues                                                     104,885                95,194
Proforma income before extraordinary items                              2,561                 5,687
Proforma net income                                                     2,561                 5,687

Proforma earnings
per 'A' ordinary share (US Dollar)                                       0.04                  0.10
Proforma earnings
per 'B' ordinary share (US Dollar)                                       0.08                  0.20
Proforma diluted earnings
per 'A' ordinary share (US Dollar)                                       0.04                  0.09
Proforma diluted earnings
per 'B' ordinary share (US Dollar)                                       0.08                  0.18

The proforma information was compiled using a combination of available financial information or where unavailable, extrapolations of the results of Adaltis and Fitzgerald both of which were acquired during 2004. There were no acquisitions in 2003.

IMPACT OF RECENTLY ISSUED US ACCOUNTING PRONOUNCEMENTS

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by EU. IFRS as adopted by the EU differ in certain respects from IFRS as issued by the IASB. However, the consolidated financial statements for the periods presented would be no different had the Company applied IFRS as issued by the IASB. The Company has included a discussion of the potential impact of recently issued accounting pronouncements by the IASB and the IFRIC on the financial statements of the Company in Item 5. These standards, interpretations and amendments to existing standards have not yet been adopted by the EU.

IFRS as adopted by the EU differ in certain respects from US GAAP. The following discussion considers the potential impact of recently issued US GAAP accounting pronouncements on the financial statements of the Company.

ACCOUNTING FOR SERVICING OF FINANCIAL ASSETS
In March 2006 the Financial Accounting Standards Board (the "FASB") issued Statement of Financial Reporting No. 156 ("SFAS 156"). This Statement amends FASB Statement No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, with respect to the accounting for separately recognized servicing assets and servicing liabilities, and is effective for financial periods beginning after September 15, 2006. The Company does not currently engage in transfers of financial fixed assets and accordingly does not anticipate that the adoption of this statement will have a material impact on its financial statements.

ACCOUNTING FOR CERTAIN HYBRID FINANCIAL INSTRUMENTS
In February 2006, the FASB issued SFAS 155 Accounting for certain hybrid financial instruments -- an amendment of FASB Statements No. 133 and 140. This Statement amends FASB Statements No. 133, Accounting for Derivative Instruments and Hedging Activities, and No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities. This Statement resolves issues addressed in Statement 133 Implementation Issue No. D1, "Application of Statement 133 to Beneficial Interests in Securitized Financial Asset.", and is effective for all financial instruments acquired or issued after the beginning of an entity's first fiscal year that begins after September 15, 2006.

The Company does not anticipate that the adoption of this statement will have a material impact on its financial statements.

ACCOUNTING CHANGES AND ERROR CORRECTIONS
In May 2005 the FASB issued Statement of Financial Reporting No.154 ('SFAS 154") Accounting Changes and Error Corrections -- a replacement of APB Opinion No. 20 and FASB Statement No. 3. SFAS 154 replaces APB Opinion No. 20, Accounting Changes, and FASB Statement No. 3, Reporting Accounting Changes in Interim Financial Statements, and changes the requirements for the accounting for and reporting of a change in accounting principle. This Statement applies to all voluntary changes in accounting principle. It also applies to changes required by an accounting pronouncement in the unusual instance that the pronouncement does not include specific transition provisions. When a pronouncement includes specific transition provisions, those provisions should be followed.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

Opinion 20 previously required that most voluntary changes in accounting principle be recognized by including in net income of the period of the change the cumulative effect of changing to the new accounting principle. This Statement requires retrospective application to prior periods' financial statements of changes in accounting principle, unless it is impracticable to determine either the period-specific effects or the cumulative effect of the change. When it is impracticable to determine the period-specific effects of an accounting change on one or more individual prior periods presented, this Statement requires that the new accounting principle be applied to the balances of assets and liabilities as of the beginning of the earliest period for which retrospective application is practicable and that a corresponding adjustment be made to the opening balance of retained earnings (or other appropriate components of equity or net assets in the statement of financial position) for that period rather than being reported in an income statement.

This Statement is effective for accounting changes and corrections of errors made in fiscal years beginning after December 15, 2005. Early adoption is permitted for accounting changes and corrections of errors made in fiscal years beginning after the date this Statement is issued. This Statement does not change the transition provisions of any existing accounting pronouncements, including those that are in a transition phase as of the effective date of this Statement. The Company does not anticipate that the adoption of this statement will have a material impact on its financial statements.

ACCOUNTING FOR CONDITIONAL ASSET RETIREMENT OBLIGATIONS
In March 2005 the FASB issued Interpretation No. 47 Accounting for Conditional Asset Retirement Obligations -- an Interpretation of FASB Statement No. 143. This Interpretation clarifies that the term conditional asset retirement obligation as used in FASB Statement No. 143, Accounting for Asset Retirement Obligations, refers to a legal obligation to perform an asset retirement activity in which the timing and (or) method of settlement are conditional on a future event that may or may not be within the control of the entity. The obligation to perform the asset retirement activity is unconditional even though uncertainty exists about the timing and (or) method of settlement. Thus, the timing and (or) method of settlement may be conditional on a future event. Accordingly, an entity is required to recognize a liability for the fair value of a conditional asset retirement obligation if the fair value of the liability can be reasonably estimated. The fair value of a liability for the conditional asset retirement obligation should be recognized when incurred---generally upon acquisition, construction, or development and (or) through the normal operation of the asset.

This Interpretation is effective no later than the end of fiscal years ending after December 15, 2005 (December 31, 2005, for calendar-year enterprises). The Company does not anticipate that the adoption of Interpretation No. 47 will have a material impact on its financial statements.

SHARE-BASED PAYMENT
In December 2004, the FASB issued SFAS No. 123 (revised 2004) "Share-Based Payment" ("SFAS 123R"). This Statement replaces FASB Statement No. 123, "Accounting for Stock-Based Compensation" and supersedes APB Opinion No. 25, "Accounting for Stock Issued to Employees", and its related implementation guidance.

This Statement establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity's equity instruments or that may be settled by the issuance of those equity instruments. This Statement focuses primarily on accounting for transactions in which an entity obtains employee services in share-based payment transactions. This Statement does not change the accounting guidance for share-based payment transactions with parties other than employees provided in Statement 123 as originally issued and EITF Issue No. 96-18, "Accounting for Equity Instruments That Are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling, Goods or Services".

This Statement requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognised over the period during which an employee is required to provide service in exchange for the award---the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service.

This Statement eliminates the alternative to use Opinion 25's intrinsic value method of accounting that was provided in Statement 123 as originally issued. Under Opinion 25, issuing stock options to employees generally resulted in recognition of no compensation cost. This Statement is effective for public entities as of the beginning of the first interim or annual reporting period that begins after June 15, 2005. Under SFAS 123R, the Company must determine the appropriate fair value model to be used for valuing share-based payments, the amortisation method for compensation cost and the transition method to be used at date of adoption. The transition methods include prospective and retroactive adoption options. The Company is evaluating the requirements of SFAS 123R and expects that the adoption of SFAS 123R will have a material impact on the Company's consolidated results of operations and earnings per share. The Company has not determined the method of adoption or the effect of adopting SFAS 123R, and it has not determined whether the adoption will result in amounts that are similar to the current proforma disclosures under Statement 123 or to the current IFRS 2 amounts (see note 19).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2005

INVENTORY COSTS
The Financial Accounting Standards Board ("FASB") issued SFAS 151, "Inventory Costs -- an amendment of ARB No. 43, Chapter 4", in November 2004. This standard amends the guidance in ARB No. 43, Chapter 4, "Inventory Pricing", to clarify the accounting for abnormal amounts of idle facility expense, freight, handling costs, and wasted material (spoilage). Paragraph 5 of ARB 43, Chapter 4, previously stated that "under some circumstances, items such as idle facility expense, excessive spoilage, double freight, and re-handling costs may be so abnormal as to require treatment as current period charges...".

The amendment removes the ambiguity and requires that all abnormal amounts of idle facility expense, freight, re-handling costs, and wasted material (spoilage) be treated as current period costs. In addition, this statement requires that allocation of fixed production overheads to the costs of conversion be based on the normal capacity of the production facilities.

The provisions of this Statement shall be effective for inventory costs incurred during fiscal years beginning after June 15, 2005. The Company does not anticipate that the adoption of SFAS 151 will have a material impact on its financial statements.

EXCHANGES OF NON-MONETARY ASSETS---AN AMENDMENT OF APB OPINION NO. 29 The FASB issued SFAS 153, "Exchanges of Non-monetary Assets -- an amendment of APB Opinion No. 29" in December 2004. The guidance in APB Opinion No. 29, "Accounting for Non-monetary Transactions", is based on the principle that exchanges of non-monetary assets should be measured based on the fair value of the assets exchanged. The guidance in that Opinion, however, included certain exceptions to that principle. This Statement amends Opinion 29, to eliminate the exception for non-monetary exchanges of similar productive assets and replaces it with a general exception for exchanges of non-monetary assets that do not have commercial substance. A non-monetary exchange has commercial substance if the future cash flows of the entity are expected to change significantly as a result of the exchange. The provisions of this statement are effective for non-monetary asset exchanges occurring in fiscal periods beginning after June 15, 2005. The Company does not anticipate that the adoption of SFAS 153 will have a material impact on its financial statements.

36. EVENTS SUBSEQUENT TO THE BALANCE SHEET DATE There were no significant events after the balance sheet date which would require adjustment to or disclosure in the financial statements.

                   Balance at        Charged to     Charged to                            Balance
                    beginning         costs and          other                             at end
                    of period          expenses       accounts        Deductions        of period
                      US$'000           US$'000        US$'000           US$'000          US$'000
                                                           (a)               (b)
2005                     462               279            (36)             (118)              587

2004                     478               180           (143)              (53)              462

2003                     496               262            (38)             (242)              478

(a) Amounts recovered during the year.
(b) Amounts written-off during the year.

                                   Balance at      Provided        Reductions           Balance
                                    beginning                                            at end
                                    of period                                         of period
                                      US$'000        US$'000           US$'000          US$'000
                                                         (a)               (b)
2005                                      302             14                 -              316

2004                                      179            302             (179)              302

2003                                      131            179             (131)              179

(a) Increase in valuation allowance associated with deferred tax asset.
(b) Reduction in valuation of allowance associated with deferred tax asset.