CONTINUED HIGH GROWTH AND US BREAKTHROUGH FOR DIETARY SUPPLEMENTS

THIRD QUARTER OF 2011

• Net sales totalled MSEK 21.9 (26.7).
• operating income amounted to MSEK 5.5 (9.2).
• profit after tax amounted to MSEK 4.5 (6.7).
• earnings per share amounted to SEK 0.49 (0.72).
• total cash flow was a negative MSEK -1.8 (0.8).  Probi brought back own shares for MSEK 4.9.

ACCUMULATED 2011

• Net sales totalled MSEK 69.8 (58.5).
• operating income amounted to MSEK 18.5 (15.1).
• profit after tax amounted to MSEK 14.5 (11.3).
• earnings per share amounted to SEK 1.57  (1.20).
• total cash flow was a negative -14.3 MSEK (5,7).  In 2011, Probi brought back own shares for MSEK 11.8 and paid dividends of MSEK 9.2.

Information for comparative purposes:

Probi received compensation of MSEK 10.0 from Skånemejerier when Probi’s agreement with Danone came into effect on 30 September 2010. This compensation was reported in full in the third quarter of 2010, and is included in net sales and earnings in the comparative figures for the preceding year.

SIGNIFICANT EVENTS DURING THE THIRD QUARTER:

• Breakthrough in the US through dietary supplement agreement with Pharmavite.
• ProbiMage and ProbiFrisk launched in Boots pharmacies in Norway.
• Dietary Supplements’ sales until the end of the third quarter was MSEK 31.6, an increase of 115 % compared with 2010.
• Royalties from ProViva until the end of the third quarter was MSEK 33.7, an increase of 7 % compared with 2010.

CEO´S COMMENTS:

”Probi again showed excellent growth in the third quarter and revenue from our continuing businesses has risen 44% to date this year. Most of this growth was generated by dietary supplements. Our new agreement with Pharmavite in the US is an important step in our continued expansion of this business area. I view this as one of our most significant agreements to date in dietary supplements, since it gives us excellent coverage across the mass retail market and in major drugstore chains in the US,” says Michael Oredsson, CEO for Probi.

This information is such that Probi AB must disclose in accordance with the Swedish Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication on 19 October 2011, at 11.15 a.m.

This is a translation of the Swedish version of the interim report. When in doubt, the Swedish wording prevails.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Michael Oredsson, CEO Probi, tel: +46 (0) 46-286 89 23 or +46 (0)707-18 89 30, e-mail: michael.oredsson@probi.se

ABOUT PROBI

Probi is a leading player in the probiotic research and the development of efficient and well-documented probiotics. The research areas include: gastrointestinal tracts, immune system, metabolic syndrome and stress and recovery. Probi’s customers are leading companies in the functional foods and dietary supplement business areas. Total income for 2010 was MSEK 81.1, of which the majority represented royalties. Probi’s share is listed on the Nasdaq OMX Stockholm, Small Cap. Probi has approximately 4.200 shareholders. For more information, please visit www.probi.com

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