Interim Report January - June 2011

Sales for routine clinical use in the US continue to show a positive trend.  Aerocrine secured the company's largest single order to date, valued at SEK 5.5 million.

January – June 2011

• Net sales fell by 1% to SEK 41.8m (42.1). Adjusted for currency fluctuations, net sales rose by 10%
• The number of NIOX MINO® refill tests sold has increased by a total of 12% and for clinical use in the US by 214%
• The loss after tax amounted to SEK 56.2m (47.3), corresponding to a loss per share before dilution of SEK 0.5 (0.7)

April – June

• Net sales fell by 19% to SEK 19.6m (24.3). Adjusted for currency fluctuations, sales fell by 10%
• The number of NIOX MINO® refill tests sold has dropped by a total of 7%, while for clinical use in the US, sales rose by 319%
• The loss after tax amounted to SEK 29.3m (18.6), corresponding to a loss per share before dilution of SEK 0.3 (0.3)
• In June, Aerocrine secured the company's largest single order to date when a pharmaceutical company placed an order valued at approximately SEK 5.5 million. Aerocrine estimates that deliveries will take place during Q4 2011 and Q1 2012, at which time income from the order will be recognised
• Aerocrine entered into a licence agreement with Bedfont Ltd during the period, which gives Bedfont the right to, on payment of royalties, sell its current product NObreath® in Europe under two Aerocrine patents
• Negative ruling from the federal patent court in Munich regarding the validity in Germany of Aerocrine's earliest patent which expires in 2012. This decision does not affect Medisoft's obligation regarding the three previous patent rulings in Germany favourable to Aerocrine
• Dr Kathleen Rickard was appointed Chief Medical Officer

AEROCRINE IN BRIEF

Comment by the CEO

”The company’s focused investments in expanding its sales organization and activities to achieve reimbursement in the US are showing good results. Sales of NIOX MINO and refill tests in the US for clinical use have shown positive growth, up 86% compared with 2010. Sales for research and development use, primarily to the pharmaceutical industry, are also developing well. In addition to recognized sales, the company has an order value totalling approximately SEK 9.5 million to pharma companies which will be recognized as income following deliveries.
The American Thoracic Society, ATS, has communicated that it will publish official guidelines for the use of FENO in routine clinical practice during the third quarter this year. We believe that positive clinical guidelines from an internationally recognized society such as the ATS are an important help to generate accelerated sales growth and positive reimbursement decisions both in the US and in international markets.

Sales in Europe have been weak due to the lack of clinical guidelines and reimbursement in the major countries as well as significant price competition in several markets. The company’s competitive position has improved as a result of the acquisition of FILT’s assets, a successful patent litigation process in Germany versus Medisoft and the recent royalty-bearing license agreement with Bedfont. We have intensified our efforts to gain positive decisions regarding national reimbursement and we will further strengthen the company’s commercial leadership outside North America during this summer.
The partnership with Panasonic to develop the next generation of products for both clinical use and for home use by patients is progressing as planned," says Aerocrine's CEO, Paul de Potocki.

For further information, please contact:

Paul de Potocki, CEO                                                                                          Michael Colérus, CFO

Tel: +46 8 6290780                                       www.aerocrine.se                              +46 8 6290785