Proposal concerning options programme withdrawn

Proposal concerning options programme withdrawn * The Board's proposal for the general meeting of the shareholders on May 10 concerning a decision on subscription options for primarily personnel for the sum of 500,000 new shares (equivalent to 2.0% of the share capital after full dilution) has been withdrawn due to the fact that extreme swings in the share price have led to the valuation of the created options involving an unreasonable risk. The Annual General Meeting of the shareholders of Q-Med AB (publ) will take place at Eklundshof in Uppsala on May 10, at 5.30 p.m. In the invitation to the Annual General Meeting which has previously been sent out, one of the items to be decided on was the Board's proposal concerning an options programme. The proposal consisted of 500,000 subscription options, where it was proposed that subscription for the options would take place from July 1, 2001 to June 30, 2005. The redemption price would be set to match market conditions and be calculated with the aid of Black & Scholes' valuation model as a certain percentage of the mean listed price paid for the company's share during the period from April 25, 2000 to May 9, 2000. The company's share capital could be increased by a maximum of SEK 500,000, corresponding to 2.0% after full dilution. It was intended that the issue would be aimed, deviating from the shareholders' pre-emptive rights, at employees in the Q-Med Group in Sweden and abroad, as well as newly elected Board members. The reason for the proposal concerning a deviation from the shareholders' pre-emptive rights was that the Board considers that the company should promote its long-term interests by encouraging employees in the Q-Med Group to have a participating interest in the company. In connection with work on the final valuation of the options it has become evident that the volatility that would need to be taken into account in the redemption price of the options is so high that the redemption price would have been unreasonably high. The high volatility factor is due both to the fact that the Q-Med share has been listed for a relatively short period of time and to the fact that during this time there have been extreme swings in the share price. The Board maintains its positive view of options programmes aimed at the personnel. Since 1997 three options programmes have been carried out, and these have made the majority of Q-Med's personnel holders of options in the company. These options programmes comprise 875,000 shares, which in the event of complete subscription corresponds to 3.5% of the capital and votes. In the light of the unreasonably high redemption price which would have been a consequence of the proposal which was presented in the invitation to the general meeting of the shareholders, the Board has decided to withdraw the proposal. May 4, 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 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/05/04/20000504BIT00990/bit0001.doc http://www.bit.se/bitonline/2000/05/04/20000504BIT00990/bit0002.pdf