Year-End Report 2005

• Turnover during 2005 rose by 19 percent to SEK 976.0 (823.2) million. • Operating income amounted to SEK 111.7 (339.4) million. Adjusted for revenues and expenses of a one-time nature, operating income amounted to SEK122.6 (25.5) million. • Net income after tax amounted to SEK 77.1(257.8) million. • Earnings per share before dilution amounted to SEK 3.11 (10.39). • Continued very positive sales development within the Hospital Healthcare product area, +54 percent. • Registration study on RESTYLANE in China was completed during the year. • The Board proposes a dividend of SEK 3 per share. Queries should be addressed to: Erika Kjellberg Eriksson, Vice President and CFO Tel: +46(0)70-974 90 20. Anne Rhenman, Director Investor Relations and Corporate Communications Tel: +46(0)70-974 90 15

About Us

Q-Med is a rapidly growing and profitable biotechnology and medical device company that develops, produces and markets medical implants. Operations focus on four areas, Esthetics, Orthopedics, Uro-Gynecology, and Cell Therapy and Encapsulation.

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