Year End Financial Statement 1 May–31 December 2008

(shortened financial year, eight months)

The Morphic Group’s net turnover for the financial year was SEK 310.2m (215.2), an increase of 44.1 percent.

The operating loss was SEK –189.6m (–45.1).

For the eight-month financial year the Group reports a loss after financial items of SEK –311.9m (–40.6) and an after-tax loss of SEK –301.8m (–40.3).

Earnings per share were SEK –1.49 (–0.28).

Earnings were hit by large impairment charges on subsidiary company assets, which were written down by SEK 135.6m.

Consolidated cash and cash equivalents were SEK 226.2m (248.6), of which SEK 101.2m (102.5) refers to frozen assets. Cash flow from operating activities for the financial year was SEK –251.6m (12.3).

Net turnover for the last two months of the financial year were SEK 92.9m (56.6), an increase of 64.1 percent.

The operating loss for the last two months was SEK –60.6m (–14.9).

Revised long-term financial targets.

For more information, please contact:
Johannes Falk, Vice President, Corporate Strategy & Investor Relations
+46 706-76 73 93
johannes.falk@morphic.com