Interim report 1 July – 30 September, 2016

Third quarter compared to 2015, Group

» Group net sales increased by 244% to SEK 516,641 (150,174).

» Other operating income amounted to SEK 91,495 (1 212 350) and is related to capitalized development costs.

» Loss for the period amounted to SEK -15,042,517 (-10,908,522).

» Earnings per share (weighted average) amounted to SEK -0.94 (-0.92).

First nine months 2016, compared to first nine months 2015, Group

» Group net sales increased by 118% to SEK 1,397,855 (641,094).

» Other operating income amounted to SEK 1,038,529 (3,778,750) and is related to capitalized development costs.

» Loss for the period amounted to SEK -43,213,253 (-29,825,819).

» Earnings per share (weighted average) amounted to SEK -2,71 (-2,63).

» Equity per share was SEK 4.22 (7.77).

» Equity ratio was 92.1% (95.2).

Significant events during the third quarter

» Episurf Medical has been granted additional European patent.

» Episurf Medical obtained Its first granted patent in Australia.

» Episurf Medical had a pre-submission meeting in Washington with the FDA in July.

» Episurf Medical hosted its first ever educational symposium at the prestigious ICRS congress in Sorrento, Italy.

» An Extraordinary General Meeting held on August 18, 2016, resolved to elect Dennis D. Stripe (Chairman) and Wil Boren as new members of the Board of Directors.

Significant events after the third quarter

» Touch surgery released Episealer surgical knee simulations in collaboration with Episurf Medical.

About Episurf Medical
Episurf Medical is endeavoring to bring people with painful joint injuries a more active, healthier life through the availability of minimally invasive and personalized treatment alternatives. Episurf Medical’s Episealer® personalized implants and Epiguide® surgical drill guides are developed for treating localized cartilage injury in joints. Episurf Medical’s μiFidelity® system enables implants to be cost-efficiently tailored to each individual’s unique injury for the optimal fit and minimal intervention. Episurf Medical’s head office is in Stockholm, Sweden. Its share (EPIS B) is listed on Nasdaq Stockholm. For more information, go to the company’s website: www.episurf.com.

This information is information that Episurf Medical AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08.30 CET on 4 November 2016.

For more information, please contact:

Rosemary Cunningham Thomas, CEO, Episurf Medical

Tel: +46 (0) 70-7655892

Tel: +44 (0) 7803-753603

Email: rosemary@episurf.com