Quarterly Report January – June 2009

CONTINUED FOCUS ON RESULT IMPROVING MEASURES • Net sales for the quarter amounted to MSEK 26.2 (18.9) and for the period January – June to MSEK 49.2 (35.8) • The operating loss for the quarter amounted to MSEK -3.8 (-5.0) and for the period January – June to MSEK -10.3 (-15.8). • Loss after tax for the quarter amounted to MSEK -4.2 (-5.1) and for the period January – June to MSEK -9.8 (-16.7). • Cash flow for the quarter amounted to MSEK -5.6 (0.0) and the equity ratio as of 30 June was 57 (51) %. • Earnings per share for the quarter before and after dilution amounted to SEK -0.20 (-0.25) and for the period January - June to SEK -0.47 (-0.81). • During the first six months, Ortivus closed two large and important deals – during the first quarter in Sweden, Västra Götaland region selected MobiMed for its ambulance organization, a deal involving 110 ambulances, and during the second quarter in the US, the City of Phoenix chose Ortivus’ system for invoicing, Sweet -Billing. SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD • The company has decided on a program of measures aimed at reducing costs equivalent to MSEK 10 on an annual basis, primarily through cost-cuts in Sweden. The program of measures also includes new initiatives in marketing and sales. • Ortivus’ target of a positive cash flow is with the current market no longer considered to be possible to achieve in 2009. CEO’s statement CONTINUED FOCUS ON RESULT IMPROVING MEASURES During the first quarter, Ortivus won an important purchase order for MobiMed, with Västra Götaland’s purchase of a new system for its 110 ambulances. Ortivus won this order, and is today the de facto standard in Sweden for patient monitoring in ambulance medical care. During the second quarter, Ortivus won another important purchase order, when the City of Phoenix purchased Ortivus’ system for invoicing, Sweet-Billing. The operation in the US has shown strong financial development with a 6 % growth in local currency, good profitability and continued great sales potential. However, it should be noted that the SEK/USD exchange rate has had a great positive effect (+33 %). The refocus carried out in Q4 2008 made it possible, among other things, to launch a new product during the first quarter. Fusion-ePCR provides the opportunity for ambulance organizations efficiently to automate data collection in conjunction with ambulance transportation. This product replaces an older product, has received a very positive response and will become an important part of the future offering. In July 2009, a second product was launched: Fusion e-Track. More information can be found on our North American website www.ortivusna.com. For the UK market, it is our assessment that it continues to be interesting and growing, and that Ortivus’ position is established and good, but will be strengthened. In addition to these deals, a few smaller international orders for both MobiMed and CoroNet have been received. Net sales for the group increased over 37% in the first 6 months and operating result improved to MSEK -10.3, which is lower than our ambitions. The work of creating a long-term sustainable business model continues, and it is a pleasure to announce that a service agreement now has been entered into with a number of county councils in Sweden for annual maintenance agreements. However, despite these positive successes on the company’s home markets, international sales have not lived up to the ambitions we had, namely to achieve a positive cash flow for the group already by the end of 2009. Several large international orders that the company is working on actively have been postponed, probably partly due to the much tougher economic situation. We still have strong faith in the opportunities on the international market, but because of the tougher market situation and on the basis of our goal of creating a sounder financial position with a positive cash flow, we have decided on a program of measures. The program aims to cutting costs corresponding to MSEK 10 on an annual basis, primarily through cost-cuts in Sweden. The program of measures also includes activities to strengthen the marketing and sales efforts. The program of measures will be implemented in early autumn 2009 and take full effect as from 2010. On the basis of the tougher market conditions, with delay of procurement and supply shifts, the forecast was updated and unfortunately we must note that the desire to turn to a positive cash flow by the end of this year will not be honored. The ambition to create a positive cash flow is still firm, and with the agreed program of measures and renewed focus on marketing and sales, we will be working towards this goal. The board of directors and management team continue to keep the strategic monitoring of the company’s future direction high on the agenda. Finally, it is an added pleasure to announce that during the summer months, Dalarna County Council in Sweden chose Ortivus’ system for heart monitoring – CoroNet – for Falun Hospital, and that the ambulance organization in Terni in Italy decided to purchase MobiMed from our partner et medical. Jan B Andersson CEO 14 August 2009