Interim report January-June 2000

INTERIM REPORT JANUARY - JUNE 2000 * Turnover increased by 85% for comparable units to SEK 107.5 (58.1*) million. For the second quarter the increase was 100%. * Income after financial items increased by 116% to SEK 21.8 (10.1*) million. * Continued strong focus on research and development: 22% (14) of turnover. Operating income before these costs amounted to SEK 41.6 (19.4*) million, an increase of 114%. * After the end of the period a new business area was formed, Cell Therapy and Encapsulation. As a first step 59% of the American company Ixion Biotechnology, Inc., with business operations within cell therapy for diabetes, was acquired. *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 non-animal hyaluronic acid based 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 the areas of Esthetics, Orthopedics and Uro-Gynecology. Esthetics contains the products RESTYLANE, RESTYLANE FINE LINES and PERLANE for facial esthetics. RESTYLANE, for the correction of facial wrinkles and lip enhancement, today accounts for the majority of sales. The development of MACROLANE for breast augmentation is ongoing. Orthopedics is responsible for DUROLANE, the product for the treatment of osteoarthritis in the knee-joint which is under development. Uro- Gynecology contains DEFLUX for vesicoureteral reflux (malformation of the urinary bladder) in children and stress urinary incontinence in women. Q- Med today has 150 employees, with 110 at Q-Med's production facility and head office in Uppsala 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 6, 1999. REVENUES Q-Med increased its sales by 85% during the first half of 2000 to SEK 107.5 (58.1*) million. For the second quarter turnover amounted to SEK 64.2 (32.1*) million, an increase of 100%. Translated to a rolling 12 months, that is the period July 1999 to June 2000, turnover amounted to SEK 176.2 (101.1*) million, an increase of 74%. Currency fluctuations have had a negative effect of SEK 1.9 million on sales for the first six months compared with the same period the previous year. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/08/23/20000823BIT00340/bit0001.doc The full report http://www.bit.se/bitonline/2000/08/23/20000823BIT00340/bit0002.pdf The full report