ARTIMPLANT INTERIM REPORT JANUARY 1 - SEPTEMBER 30, 2006

Västra Frölunda, Sweden, November 9, 2006

• Net revenue of SEK 3.9 million (1.8)*
• Net profit of SEK -46.5 million (-30.2)
• Net profit of SEK -29.4 (-30.2) if one time write-downs of capitalized R&D costs without cash effect are excluded
• Earnings per share of SEK -0.79 (SEK -0.61)
• Strong sales increase for Artelon® CMC Spacer - close to 800 (100) units sold to end customers during the third quarter
• Three new Spacer products received CE-mark during the period
• Hans Rosén was appointed CEO
• The strategic direction of the Company is further developed
• Artimplant lowers revenue target of 2006 to “in parity with revenue of last year”

Capital market day to be held at Grand Hotel in Stockholm on November 16, 2006, 2:00 – 4:00 PM central European time (GMT+1)

* Numbers within brackets relate to the corresponding period last year.