Organizational Change at Össur hf.

With regards to the experience gained from the merger of Össur hf., FlexFoot, and Century XXII Innovations, a decision has been made to implement organizational changes at Össur.  These changes are implemented to shorten communications lines and make the decision making process within the Company more effective.  It is also intended to further enhance the Sales and Marketing organization of the Company with the new sales structure in the US and Europe.

In implementing these changes, Maynard Carkhuff’s position of President of the Prosthetic Unit has been eliminated.  Effective immediately we will transfer responsibility of the sales and marketing, manufacturing and product management functions to Jon Sigurdsson, President &CEO of Össur hf.  Mark Emery, Vice President and CFO of Ossur USA, will continue as head of Finance and Administration.  These functions will report through the CFO of Össur hf.

Due to an employment agreement that was made in connection with the purchase of Flex-Foot, Inc, the Company will take a charge to the earnings in the third quarter of 93 million ISK.