ARTIMPLANT INTERIM REPORT JANUARY – JUNE 2008

Västra Frölunda, Sweden, August 7, 2008

• Net revenue for the second quarter amounted to SEK 3.1 million (4.7) and for the first six months to SEK 5.2 million (8.7)*
• The net loss for the first quarter totaled SEK 6.2 million (4.8) and for the first six months SEK 12.3 million (7.7)
• Earnings per share for the second quarter amounted to SEK -0.10 (-0.08) and for the first six months to SEK -0.21 (-0.13)
• Sales of Artelon® Spacer totaled approximately 1,600 (2,100) units, of which 800 (800) were during the second quarter
• Licensees have failed to meet the minimum volumes for the first half of the year
• Sales have commenced in the USA through the Company's own sales organization
• Over 8,000 patients were treated with Artelon® implants up to and including June 2008
• Clearance has been granted by the Swedish Medical Products Agency regarding the Artelon® Bone Scaffold study for bone replenishment in the upper jaw and the first patient has undergone surgery

N.B. This is a translation from Swedish. The Swedish version shall always take precedence.

No telephone conference will be held by reason of this report. For further information see www.artimplant.com.

* Figures in brackets refer to the corresponding period last year