Annual Report 1998

Q-MED'S EXPANSION CONTINUES 1998 in brief *Revenues increased by 87% to SEK 86 million (46*). *Income before taxes doubled and amounted to SEK 12 million (6*). *In December Deflux® was approved. This is Q-Med's product for the treatment of deformities in children's urinary bladders. *Restylane® approved for the Canadian and Brazilian markets. *SEK 36 million was invested in new premises and production equipment. *The number of employees increased from 36 to 77. * pro forma 1997 Bengt Ågerup, Managing Director, comments: "It is now just over two years since our first in-house product, Restylane, was approved. Well over 100,000 people have been treated, and this has confirmed for us how well the substance works, even on a large scale. As all our business is based on the same patented basic technology, this is naturally a great help in the development of new products. We are constantly using this knowledge to further refine Restylane, with regard to both production and the substance. This has taken up a great deal of time during 1998 on the production and development side. As far as marketing is concerned, we have continued the intensive work of further extending international distribution, both through subsidiaries and distributors. All in all our work has resulted in us almost doubling our figures for both turnover and income. The number of people employed has increased even more, so 1999 can get off to a flying start. The challenges ahead of us consist, amongst other things, of completing the documentation for and preparing the launch of an implant to help women that have been afflicted by stress urinary incontinence. Completed studies show very promising results and approval is expected by the summer of 1999. In December 1998 we were awarded CE-marking for the same product but for another indication, deformities in children's urinary bladders. Furthermore, we are working with a long-acting single dose preparation that alleviates above all aching knee joints when they have become worn out. Multiple dose predecessors are now marching triumphantly over the American continent after ten years of very good sales in Japan." Attached: Report on operations 1998 For further information please contact Bengt Ågerup, Managing Director, on +46(0)18-474 90 00. Q-Med AB (publ) ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/03/12/19991111BIT00560/bit0001.doc http://www.bit.se/bitonline/1999/03/12/19991111BIT00560/bit0002.pdf