Positive outcome with Artelon® Tissue Reinforcement in foot applications

Västra Frölunda, Sweden, October 6, 2010

Reported cases, by Dr. Jan Lidström, which involve 20 patients with soft tissue defects in the foot with up to four years follow-up together with a biomechanical study, by Dr. Eric Giza, confirm the positive clinical outcome orthopedic foot surgeons have experienced with Artelon® Tissue Reinforcement (ATR).

The case reports, which involve 20 patients treated for soft tissue defects in the foot with ATR was presented by Dr. Jan Lidström at the 7th SICOT Annual International Conference joint meeting with the Swedish Orthopaedic Association (SOF). ATR was used to reinforce tendon repair constructs with good clinical outcome. The longest follow-up period was four years. No adverse events were noted during the observation period. Dr. Jan Lidström at Sahlgrenska University Hospital in Göteborg comments:

 “The cases show very good outcome with ATR in improving clinical outcome in different foot applications. The product gives me a very useful clinical option when the patient has poor tissue quality. Consequently, we have incorporated this procedure into our surgical practice in these types of cases.”

The biomechanical study on Achilles ruptures was presented by Assistant Professor Eric Giza at the American Orthopaedic Foot & Ankle Society annual summer meeting. The study, performed at U.C. Davis in Sacramento, CA, shows that ATR significantly increase the strength of the Achilles repair construct. Dr. Giza at U.C. Davis says:

“The study results show that by using ATR there is a significant strength increase in the repair construct compared with sutures alone. For reconstructive Achilles surgery I find ATR to have optimal handling characteristics and it is surprisingly easy to suture. There are many different uses of ATR for complex Achilles tendon reconstructions. So far I have done approximately 15 cases with excellent outcome.”

Hans Rosén, CEO of Artimplant, comments:

“The positive data confirm our day-to-day clinical experience that ATR is an established solution for orthopedic foot surgeons when there is a need for soft tissue reinforcement. In recent years several studies have been initiated to elucidate and confirm the clinical benefits of ATR. We can expect more results from this ongoing work.”

For further information, please contact: Hans Rosén, CEO, phone 46 (0)31-746 56 00, 46 (0)708 58 34 70, hans.rosen@artimplant.com

Lars-Johan Cederbrant, CFO, phone 46 (0)31-746 56 54, 46 (0)703 01 68 54, lars-johan.cederbrant@artimplant.com

Further information is available at www.artimplant.com. To subscribe to future press releases please go to www.artimplant.com/investors-media/subscribe-to-press-releases.html

Artimplant

Artimplant’s mission is to restore the health of patients by offering medical professionals degradable implants that help the body to heal. Artimplant is a medical technology company that restores health through the development, production and marketing of degradable implants that regenerate body functions and improve quality of life. Our products are made from Artelon®, a biomaterial developed by the Company. Artimplant produces implants for the treatment of osteoarthritis and the reinforcement of weakened soft tissue. The Company's products are sold through licensees and own sales under the Artimplant brand take place through agents and distributors. Artimplant is a public company listed on the NASDAQ OMX Stockholm Exchange in the Small Cap segment and in the Healthcare sector.

Forward-looking statements

This press release contains forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting the Company's business including increased competition; the ability of the Company to expand its operations and to attract and retain qualified professionals; technological obsolescence; general economic conditions; and other risks detailed from time to time in the Company's filings.

This is information which Artimplant shall make public pursuant to the Swedish Financial Instruments Act and the Swedish Securities Exchange and Clearing Operations Act and/or stock market agreements. Information was made available for publication on October 6 2010 at 8:45am (CET).