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Year in Review

A First Look at 2010 Results: Artimplant

* SEK 18.5MM (~US $2.8MM), -23%
* Own sales of product = 61% of revenue
* Own sales in U.S. doubled, while license revenue was halved
* Sales of Artelon Spacer by Small Bone Innovations continued to fall during 4Q
* Sales by Biomet Sports Medicine to end customers remain stable
* Renegotiated sales agreement with Biomet in 4Q, taking back exclusive right to sell tissue   reinforcement ex-U.S. in return for Artimplant meeting full cost of aftermarket studies for product
* Completed 17-patient prospective clinical study of Artelon Tissue Reinforcement (ATR) for rotator cuff injuries, preliminary results encouraging
* Recently launched new ATR products in Europe and U.S.
* During 2011, will commence development of Artelon product as a scaffold for cells in conjunction with cartilage repair for the treatment of knee arthritis