Year-end Report 2016

Fourth quarter 2016 compared to 2015, Group

» Group net sales increased by 168% to SEK 1,007,759 (375,368).

» Other operating income amounted to SEK 821,447 (1,849,848) and is related to capitalized development costs.

» Loss for the period amounted to SEK -18,454,211 (-14,148,843).

» Earnings per share (weighted average) amounted to SEK -1,16 (-0.89).

Twelve months 2016, compared to 2015, Group

»    Group net sales increased by 137% to SEK 2,405,614 (1,016,462).

»    Other operating income amounted to SEK 1,859,976 (5,628,598) and is related to capitalized development costs.

»    Loss for the period amounted to SEK -61,667,464 (-43,974,662).

»    Earnings per share (weighted average) amounted to SEK -3,87 (-3,52).

»    Equity per share was SEK 3,05 (6,89).

»    Equity ratio was 80,8% (93,0).

Significant events during the fourth quarter

» Episurf Medical achieves milestone of 150th Implant.

» Episurf Medical's 50th Episealer® Femoral Twin Implant demonstrates rapid clinical adoption.

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

Significant events after the fourth quarter

» Episurf Medical's CEO Rosemary Cunningham Thomas steps down - search for new CEO initiated.

» Episurf Medical is expanding Its Clinical Advisory Board.

» Episurf Medical announces an up to approx. SEK 120 million rights issue subject to EGM approval and brings forward date of year-end report; Dennis Stripe to act as executive chairman.

» Episurf Medical obtains its first granted patents in China

» Episurf Medical’s 3D-based damage assessment tool: positive development in US patenting

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 20 February 2017.

For more information, please contact:

Pål Ryfors, acting CEO, Episurf Medical

Tel: +46 (0) 709 62 36 69

pal.ryfors@episurf.com