Young Innovations, Inc'

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• Young Innovations, Inc.

• Sidoti Company, LLC
• 10th Annual New York Emerging Growth
  Institutional Investor Forum
• April 2006

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Safe Harbor Statement

• For securities law purposes, certain information
  provided in this presentation may constitute
  forward-looking statements. Please refer to our
  most recent 10-K for an explanation of what
  constitutes a forward-looking statement and the
  related implications.

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Investment Highlights

• Leading market share positions in an attractive,
  stable industry
• Strong brand names and reputation for
  high-quality products and services
• Recurring revenue stream from high-margin,
  single-use products and services
• Established growth strategy of strategic
  acquisitions, operating efficiencies and new
  product development
• Experienced management team

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Industry Trends

• Growing demand for dental procedures
• Favorable demographic trends
• Insurance carriers emphasizing preventive
  dentistry
• Increasing dental insurance coverage
• Increasing evidence of a link between good oral
  health and good overall health

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Recent News On Potential Oral Health/Overall
Health Link

• Healthy Mouth, Healthy Baby
• Source The Pennsylvania Gazette, April 2004
• Having periodontal disease may put you at
  greater risk of a number of serious medical
  conditions heart disease and stroke,
  complications of pregnancy, uncontrolled blood
  sugar, and pneumonia.
• Source MayoClinic.com, November 2004
• Columbia study suggests brushing your teeth may
  reduce risk of stroke and heart attack.
• Source Columbia University College of Physicians
  and Surgeons, February 2005
• Mouth bacteria tied to cardiovascular disease
• Source Newsweek, February 2005
• Oral Hygiene May Help More than Teeth and Gums
• Source New York Times, August 2003

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Industry Characteristics

• Dentists want reliable products, and tend to be
  less sensitive to competitive pricing for
  clinical products
• Products that reduce chair time or make
  procedures more comfortable are important
• High-quality, reliable products create customer
  loyalty
• Product life cycles tend to be long compared to
  other industries

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Solid Industry Growth
Projected Growth 7
Source Centers for Medicare and Medicaid Services
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Product Mix
All percentages are approximate.
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Preventive

• Preventive products are typically used during
  teeth-cleaning procedures.
• Market leader in the disposable prophy angle
  (DPA) segment
• Offer dentists and hygienists a range of products
  at a variety of price points for prophy
  procedures
• Preventive dentistry reduces the need for
  restorative dentistry

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Preventive Products

• Disposable Prophy Angles (DPAs)
• Prophy Cups
• Prophy Pastes
• Professional-use Fluorides
• Metal Angles
• Low-speed Handpieces

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Diagnostic

• X-ray systems provide dentists with valuable
  diagnostic information which is useful in
  developing a treatment plan.
• Entered the diagnostic market via acquisition in
  1998
• Market leading position in the panoramic X-ray
  segment
• Customers include general dentists, orthodontists
  and oral surgeons

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Diagnostic Products

• Panoramic X-ray System
• Purchase
• Income Per Image Program
• Cephalometric Attachment
• Digital Options
• Related Consumables

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Infection Control

• Infection Control products are used to clean the
  dental operatory and instruments.
• Increased patient knowledge about the
  transmission of diseases such as HIV and
  Hepatitis has heightened concern about going to
  the dentist
• Regulatory requirements have become more
  stringent to reduce the likelihood of disease
  transmission

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Infection Control Products

• Hard Surface Disinfectants
• Evacuation System Cleaners
• Examination Gloves
• Instrument Cleaning Solutions and Systems
• Ultrasonic Cleansing Solutions

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Home Care

• Home Care products are used to promote good oral
  health between dental visits.
• Sold to general dentists, orthodontists and
  pediatric dentists
• First product was the dual-headed toothbrush
  designed for orthodontic patients
• Line has expanded to provide oral health care
  products for the entire family
• Community support through programs with County
  Health and Head Start teaching children at an
  early age about good oral health care habits and
  their benefit to overall health

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Home Care Products

• Dual-headed Toothbrushes
• Age-specific Toothbrushes
• Customized Kits for Patients
• Fluorides for Home Use

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Endodontics

• Endodontic products are used to treat the tooth
  root and dental pulp during the root canal
  procedure.
• Products are sold to endodontists and general
  dentists
• Obtura is a leader in the market for warm,
  vertical condensation obturation
• Domestic market leader in ultrasonic systems and
  tips used in apical surgery and endodontic
  retreatment

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Endodontic Products

• Obtura Obturation System
• Spartan Ultrasonic System
• Line of consumables and tips
• Endodontics
• Periodontics
• Microsurgery

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Market Leader

• Young holds the No. 1 or No. 2 position in the
  following markets
• Disposable prophy angles (branded and private
  label)
• Metal prophy angles and cups
• Panoramic X-ray systems
• Liquid surface disinfectants
• Evacuation system cleaners
• Obturation
• Ultrasonic systems and tips used in endodontic
  procedures

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Growth Strategy

• Focused on three primary sources of growth
• New Product Development
• Operating Efficiencies
• Acquisitions

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New Product Development

• Develop new products across all segments
• Most new products are evolutionary, not
  revolutionary
• Emphasis on recurring revenue products, which
  currently represent 79 of total sales
• Examples of new products include the Obtura III
  System, NeutraVac, new formats of orthodontic
  kits, and new flavors of examination gloves,
  pastes and fluorides

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Operating Efficiencies

• Continue to search for new ways to improve our
  operating efficiency
• Possible opportunities for improvement include
• Facilities consolidation
• Increased automation
• Job combinations

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Acquisition Strategy

• Identify products with similar buying patterns,
  life cycles and cash flow generation
• Select candidates with a complementary culture
• Typical payment terms
• 6X-8X EBIT, pro forma

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Consolidating Industry

• A large number of small, independent dental
  manufacturers
• Increasingly difficult for small manufacturers to
  compete
• Single product companies
• Burdensome regulatory requirements
• Limited manufacturing and distribution resources

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Completed Acquisitions
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Integration Process

• Learn the characteristics of the business and
  products
• Identify potential cost savings
• Manufacturing
• Facilities consolidation
• Administrative
• Selling and marketing
• Seek ways to cross-market products
• Full integration may take several years

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Financial Highlights
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Strong History of Sales Growth
CAGR Since IPO (8 yr) 16
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Long-term Growth in Profitability
CAGR Since IPO (8 yr) 16
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Growth in Net Income Exceeds Growth in Operating
Income
CAGR Since IPO (8 yr) 18
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Strong Cash Flow Generation
CAGR Since IPO (8 yr) 19
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Income Statement HighlightsResults for the year
ended December 31, 2005
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Balance Sheet HighlightsAs of December 31, 2005
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Financial Goals

• 4-6
• 11-14
• 15-20

• EPS Growth
• Internal
• New Procedures
• New Products
• Price Increases
• Acquisitions, Consolidations Efficiencies
• Total

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Investment Highlights

• Leading market share positions in an attractive,
  stable industry
• Strong brand names and reputation for
  high-quality products and services
• Recurring revenue stream from high-margin,
  single-use products and services
• Established growth strategy of strategic
  acquisitions, operating efficiencies and new
  product development
• Experienced management team

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• Young Innovations, Inc.