2008-08-01 Ortivus divests German subsidiary Medos

Ortivus has closed an agreement with Nexus AG, a publicly listed German Healthcare IT-company, regarding divestiture of Ortivus German subsidiary Medos AG.

-Medos is today, after comprehensive changes, a stable company with an interesting future. A divestiture is nevertheless a natural step for Ortivus as part of the overview of focus and structure that was initiated earlier this year. We want to focus on our application areas Cardiovascular Disease Management and Emergency Services, and we believe that Nexus can offer better conditions for the future development of Medos, says Bengt Arne Sjöqvist, acting CEO of Ortivus AB.

The transaction takes effect on July 31, 2008. The divestiture generates a loss in the accounts of approximately 29-30 MSEK before tax (27-28 MSEK after tax) for the Ortivus Group. Due to the loss write downs are made of assets in Medos as per June 30, 2008. Through the divestiture, the Group net sales will decrease with approximately 60 MSEK on an annual basis. Balance sheet total for the sold company was last year approximately 34 MSEK. The consideration is paid in cash in connection with the day of taking possession and gives Ortivus a positive gross cash flow of 21 MSEK, which after transaction costs and amortizations of loans related to the acquisition of Medos increases the Groups liquidity with 13 MSEK.



For further information:
Bengt Arne Sjöqvist, acting CEO, Ortivus, phone +46 8 446 45 00, mobile +46 707 87 77 97, e-mail firstname.firstname.lastname@ortivus.com