Interim report for Althin Medical AB

January - September 1999 *Group Sales for comparable units totaled SEK 736,0m (718,5). *Operating income totaled SEK -71,8m and includes costs for transfer of the dialyzer production of SEK 32,3m (-59,6). *Result after net financial items totaled SEK-90,7 (-79,6). *Operating cash flow totaled SEK 7,3m (-18,0). *Equity ratio totaled SEK 24,1% (35,2%), at year end 1998 equity ratio was 33,0%. *The transfer of the dialyzer production to Ronneby is finalized. The transfer is estimated to give an annual cost reduction of SEK 35-40m from year 2000. Marketing and Sales The world market for all hemodialysis products amounts to approx.SEK 35 billion. The number of patients increases each year by 6-8% and the annual growth in market value is estimated to 4-5%. Sales for the period totaled SEK 736,0m (759,7). Sales in the divested trading operations sold during 1998 totaled SEK 41,2m during the corresponding period last year. Excluding changes in exchange rates and the divested trading operations sales increased by 5% compared to the first three quarters of 1998. Result Operating income totaled SEK -71,8m (-59,6 for comparable units) and income after net financial items was SEK -90,7m (-79,6). In the operating income for the period costs for restructuring and transfer of the dialyzer production of SEK 32,3m are included. The period January - September 1998 included structural costs and non reccurring revenues of net SEK +11,9m. When considering these items the improved result between the years amounts to SEK 32m.The improvement for the period is mainly the result of efforts to improve quality, a decrease in the number of employees, a concentration of the production as well as other improvements in production and logistics which all are part of the action plan that was implemented during the second quarter of 1998. Operating income is adversely affected by the over capacity in the dialysis production within the Group (see also comments under Action plan). ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/11/18/19991118BIT00670/bit0001.pdf The Full Report http://www.bit.se/bitonline/1999/11/18/19991118BIT00670/bit0002.doc The Full Report