Navamedic third quarter results 2010

On track in developing the Generics Business Area

• MNOK 6.4 invested in 2010
• Regulatory expertise strengthened
• Moving towards first product launch end of 2011

Improved performance in the Vitaflo Scandinavia Business Area

• Sales at par with last year
• Operating costs reduced by 21% in 2010
• EBITDA improved in Q3; however, reduced gross margin.
• Product base expanded

Navamedic experienced a positive development in the third quarter. While revenues were relatively stable, the Vitaflo Scandinavia Business Area benefitted from a reduced  operating costs and ended the quarter with a  improvement in EBITDA. The result for the quarter as well as for the first nine months of the year was partly offset by the costs related to the ongoing build-up of Navamedic's new Generics Business Area.

Navamedic`s third quarter revenues ended at MNOK 13.7 compared with MNOK 13.9 in the same period of 2009. Revenue year to date ended at MNOK 39. 4 compared to MNOK 38.8 year to date in 2009.

EBITDA reached MNOK -1.7 compared with MNOK 0,4 in the same period of 2009. EBITDA for the first nine months of the year ended at MNOK - 4.5 compared to MNOK -2.2 year to date in 2009.

Net cash derived from operations was MNOK - 3.2 in the third quarter of 2010, compared to MNOK 36.6 in the third quarter of 2009 (Last year cash flow included a NOK 40 million sale of the Company's Glucomed businesss). Net cash from operations year to date 2010 was MNOK - 6.5 against MNOK 38.7 year to date 2009.

Key financial indicators 2010 vs. 2009

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)