PERLANE approved in Australia

PERLANE APPROVED IN AUSTRALIA Q-Med's facial esthetics product for deeper tissues, PERLANE, has received approval for sales in Australia. The product was launched very successfully in Europe and Canada earlier this year. Together with RESTYLANE and RESTYLANE FINE LINES, PERLANE constitutes a complete family of products from Q-Med in order to meet different needs for correction within facial esthetics. PERLANE is intended to smooth out more pronounced facial folds and enables the correction of facial contours. Like all of Q-Med's products, the product is based on the company's unique NASHA (Non-Animal Stabilized Hyaluronic Acid) technology. Hyaluronic acid (HA) is a natural substance, identical in all living beings, which is to be found primarily in the skin, but also, for example, in muscles, the skeleton and synovial fluid. The function in the skin is, together with water, to create volume. PERLANE and Q-Med's other facial esthetics products are injected into the skin and achieve their effect by providing volume. NASHA is produced using non-animal raw material, which has two advantages compared to animal raw material. First, the product obtains a high level of purity and does not contain infectious substances, for example viruses which can be transmitted to man. Second, the risk of the allergic reactions which can arise when using products of animal origin is eliminated. The stabilization of HA is a prerequisite for the clinical effect and means that the product is degraded slower than naturally occurring HA, which is continuously metabolized in the body. PERLANE and RESTYLANE FINE LINES were launched in a number of countries in March this year, and they were given a very positive reception, with good sales as a result. RESTYLANE was approved for sales in Europe at the end of 1996 and today it has been used in the treatment of almost 300,000 people. June 29, 2000 Uppsala, Sweden Q-Med AB (publ) Per Olof Wallström President and CEO Queries should be addressed to Per Olof Wallström, President and CEO, on +46(0)18-474 90 00 or +46(0)70-974 90 70. Q-Med AB (publ), Seminariegatan 21, SE-752 28 Uppsala, Sweden. Corporate identity number 556258-6882. Tel: +46(0)18-474 90 00. Fax: +46(0)18-474 90 01. E-mail: info@q-med.com. Home page: www.q-med.com 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 filling out of lips and facial wrinkles, today accounts for the majority of sales. The development of MACROLANE for the filling out of breasts 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 145 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. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/06/29/20000629BIT00580/bit0001.doc http://www.bit.se/bitonline/2000/06/29/20000629BIT00580/bit0002.pdf

About Us

Q-Med is a rapidly growing and profitable biotechnology and medical device company that develops, produces and markets medical implants. Operations focus on four areas, Esthetics, Orthopedics, Uro-Gynecology, and Cell Therapy and Encapsulation.