Artimplant announcement of accounts January 1 - December 31, 2001

ARTIMPLANT ANNOUNCEMENT OF ACCOUNTS January 1-December 31, 2001 2001-SUMMARY Artimplant achieved certification of its quality system and obtained approval to market its first product, the Artelontm Augmentation Device ACL (ACL). The Company changed its marketing strategy. Plans call for sales and marketing to be conducted through strategic global partners, which initially will delay sales of ACL. A corporate development function was formed in the latter half of the year, its first task being to work on licensing Artimplant's products and product-development projects. Discussions have begun with several large, multinational enterprises in medical technology and biotechnology. These parties expressed an interest in discussing the licensing of ACL and other product- development projects. Their interest is directed partly at the products and partly at Artimplant's technology platform, which is believed to have potential for product-development in orthopedics as well as other areas of therapy. According to three-year follow-up data from the pilot study under way on ACL, all patients' knees are stable, Artimplant's degradable material Artelontm is biocompatible and connective tissue vascularizes and grows into the material. In the 12-month results from the pilot study on Artimplant's Spacer, patients demonstrated enhanced gripping strength and reduced pain as early as six months after the operation. A multicenter study using the Artelon Spacer CMC-1 was approved in the fourth quarter by the National Swedish Board of Health and Welfare and the requisite committees on research ethics. The first patients will be included during the first quarter of 2002. A new project-oriented organization was introduced in the fourth quarter. The aim is to streamline product-development and accelerate work leading to the approval of products for sale, chiefly in Europe through CE approval. Consolidated net sales rose 6%, to SEK 23.7 million (22.4). The operating loss totaled SEK 58.2 million (SEK 27.1 million loss). The deterioration was mainly attributable to increased costs for R&D, preparations for product roll-out, and licensing activities. SIGNIFICANT EVENTS IN JANUARY-FEBRUARY 2002 At present, confidential negotiations are under way with two global enterprises on licenses and partnership agreements in the field of orthopedics. Scheduled financial information: Three-month interim report: May 3, 2002 Six-month interim report: August 21, 2002 Nine-month interim report: November 6, 2002 Interim reports are made available at Artimplant's web site, www.artimplant.se, at the same time as they are distributed to the media. For additional information, please contact: Anders Cedronius, Chief Executive Officer, phone +46 (0)31 746-5600, anders.cedronius@artimplant.se Lars Erik Nygren, Chief Financial Officer, phone +46 (0)31 746-5600, lars.erik.nygren@artimplant.se Ulf Åkerblom, Director Corporate Communications, phone +46 (0)709 675- 999, ulf.akerblom@artimplant.se Artimplant Artimplant specializes in biodegradable materials for use in orthopedic surgery. Artimplant is active in the research, development, and manufacture of biologically degradable implants with the goal of recreating active lives for patients. The biodegradable material the Company has developed is based on a new technology that is opening new markets in the field of orthopedic surgery as well as other specialized fields where there are significant medical needs. Artimplant has already developed and patented several different degradable ligament implants, now undergoing clinical trials. The Company is focusing on three high-priority areas for its degradable material, called Artelontm: an augmentation device for anterior cruciate ligament reconstruction, hand surgery, and augmentation sutures. Artimplant is listed on the O list of Stockholmsbörsen, the stock exchange in Stockholm. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/02/20/20020220BIT00060/bit0002.doc The Full Year-End-Report http://www.waymaker.net/bitonline/2002/02/20/20020220BIT00060/bit0002.pdf The Full Year-End-Report