Navamedic on track to significant growth

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Navamedic ASA (OSE: NAVA), the Norwegian pharmaceutical products company, today announced its first quarter 2011 results. Sales were record high for the second quarter running and Navamedic is on track towards additional growth in 2012 based on its new Generics pharmaceuticals business area.

Navamedics' sales were NOK 16.8 million in the first quarter, which is a 28 per cent growth over last year's first quarter sales. All sales are generated by the Vitaflo business area, a distributor of patented drugs and healthcare products in the Nordic and Benelux markets.

Navamedic is currently ramping up its new Generics business area, targeting the first product launch later this year. Navamedic has so far filed for marketing license for a total of ten generic pharmaceutical products. The build-up of the new business area represented costs and investments totalling NOK 3.5 million in the first quarter.

EBITDA for Navamedic in the first quarter was heavily influenced by the generics business costs, partly offset by a positive results development in the Vitaflo business. Navamedic's EBITDA for the quarter came in at NOK -1.0 million, compared to NOK -1.2 million in the first quarter last year.

"The first quarter results demonstrate the continued positive development in our Vitaflo business area and that we are on track in building the highly attractive Generics business area," said Navamedic CEO Olof Milveden.

The Vitaflo business is expected to grow by approximately 20 per cent per year going forward. The Generics business area forecast an extremely strong growth from 2012 onwards. The company targets sales of more than NOK 300 million at attractive margins for this business area in 2015, making Navamedic on of the top five generic pharmaceutical companies in its defined markets.

For further information, please call Olof Milveden, CEO, telephone +46 733 463 736 or Bjørn Lindholt, CFO, telephone +47 9300 6601.

Navamedic ASA is a Norwegian pharmaceutical products company. Through its subsidiary Vitaflo Scandinavia the Company is a distributor of a broad range of nutrition and pharmaceutical products in the Nordic markets. Navamedic is currently building up a generic pharmaceutical business for the Nordic, Dutch and Belgian markets based on its partnership with Aspen Healthcare of South Africa. Navamedic is listed on the Oslo Stock Exchange (ticker: NAVA).

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

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