Interim report January - September 2000

INTERIM REPORT JANUARY - SEPTEMBER 2000 · Turnover increased by 79% for comparable units to SEK 155.3 (86.6*) million. · Income after financial items increased by 167% to SEK 26.4 (9.9*) million. Increased investments in research and development, 26% (17*) of the turnover. · Ixion is consolidated as from July. This affected operating income by SEK -4.6 million. · Application for European approval of DUROLANE submitted at the beginning of October. · FDA's advisory body recommends approval of DEFLUX in USA. *Excluding Venofer, an intravenous iron preparation which Q-Med had a licencing agreement for in the Nordic countries up until December 31, 1999. Q-Med is a rapidly growing and profitable biotechnology and medical device company that develops, produces and markets medical implants. All products are based on the company's patented technology for the production of NASHA - Non-Animal Stabilized Hyaluronic Acid. Q-Med's operations focus on four areas, Esthetics, Orthopedics, Uro-Gynecology, and Cell Therapy and Encapsulation. The products RESTYLANE, RESTYLANE Fine Lines and PERLANE are used for the filling out of lips and facial wrinkles and today account for the majority of sales. The development of MACROLANE for breast augmentation is ongoing. DUROLANE, Q-Med's product for the treatment of osteoarthritis in the knee-joint, is in the clinical documentation phase. DEFLUX is a product which has been approved in Europe for the treatment of vesicoureteral reflux (malformation of the urinary bladder) in children and stress urinary incontinence in women. Since July 2000 Q-Med has held a majority interest in the American biotechnology company Ixion Biotechnology, Inc., which carries out research within cell therapy for diabetes. Q-Med today has 175 employees, with 125 at the company's production facility and head office in Uppsala, 10 at Ixion and the remainder in wholly owned foreign subsidiaries. The Q-Med share has been listed on the O- list of the OM Stockholm Stock Exchange since December 1999. REVENUES Q-Med increased its sales by 79% during the first nine months of 2000 to SEK 155.3 (86.6*) million. For the third quarter turnover amounted to SEK 47.8 (28.5*) million, an increase of 68%. Translated to a rolling 12 months, that is the period October 1999 to September 2000, turnover amounted to SEK 195.5 (110.6*) million, an increase of 77%. Currency fluctuations have had a negative effect of SEK 1.4 million on sales for the first nine months compared with the same period the previous year. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2000/10/26/20010801BIT00490/bit0001.doc http://www.waymaker.net/bitonline/2000/10/26/20010801BIT00490/bit0002.pdf