YEAR-END REPORT 1 OCTOBER – 31 DECEMBER 2017

Fourth quarter 2017, compared to 2016, Group

» Gross order intake amounted to SEK 885,088 (626,306), an increase of 41,3%

» Order backlog amounted to SEK 893,014 (325,434), an increase of 174,4%

» 38% growth in orders for Episealer® knee implants during the quarter with 36 (26) approved orders

» Group net sales amounted to SEK 884,088 (1,007,759)

» Loss before tax amounted to SEK –15,547,283 (–18,454,211)

» Loss per share (weighted average) amounted to SEK –0.51 (–0.97)



Significant events during the fourth quarter

» Episealer® 24 months’ clinical study results accepted for publication in peer-reviewed scientific journal

» 5 years’ follow-up of the first Episealer® patient

» Episurf Medical reached milestone of 300 implants

» Episurf Medical obtained another new patent in China and Australia

» Fredrik Zetterberg appointed Head of Marketing for Episurf Medical

» Episurf Medical’s CEO Pål Ryfors acquired shares corresponding to 3.2% of capital and 6.8% of votes from main shareholder Serendipity Ixora

» Episurf Medical’s 100th Episealer® implant in Germany



Significant events after the fourth quarter

» Episurf Medical signed financing agreement of up to SEK 70m subject to approval at the general meeting

» Episurf Medical announced that the company is in the final stages of the development of an ankle implant

» Episurf Medical received market approval in Israel and signed distribution agreement for the Israeli market



For more  information, please contact:

Pål Ryfors, CEO, Episurf Medical

Tel:+46 (0) 709 62 36 69

Email: pal.ryfors@episurf.com

About Episurf Medical

Episurf Medical is endeavoring to bring people with painful joint injuries a more active, healthier life through the availability of minimally invasive and personalized treatment alternatives. Episurf Medical’s Episealer® personalized implants and Epiguide® surgical drill guides are developed for treating localized cartilage injury in joints. Episurf Medical’s μiFidelity® system enables implants to be cost-efficiently tailored to each individual’s unique injury for the optimal fit and minimal intervention. Episurf Medical’s head office is in Stockholm, Sweden. Its share (EPIS B) is listed on Nasdaq Stockholm. For more information, go to the company’s website: www.episurf.com.

This information is information that Episurf Medical AB is obliged to make public pursuant to the EU Market Abuse Regulationand the Swedish Securities Market Act.. The information was submitted for publication, through the agency of the contact person set out above, at 08.30 CET on 23 February 2018.

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About Us

Episurf Medical is endeavoring to bring people with painful joint injuries a more active, healthier life through the availability of minimally invasive and personalized treatment alternatives. Episurf Medical’s Episealer® personalized implants and Epiguide® surgical drill guides are developed for treating localized cartilage injury in joints. Episurf Medical’s μiFidelity® system enables implants to be cost-efficiently tailored to each individual’s unique injury for the optimal fit and minimal intervention. Episurf Medical’s head office is in Stockholm, Sweden. Its share (EPIS B) is listed on Nasdaq Stockholm. For more information, go to the company’s website: www.episurf.com.