Q-med acquires its italian distributor

Q-MED ACQUIRES ITS ITALIAN DISTRIBUTOR · Q-Med has acquired all shares in its distributor in Italy, Nuova ICT. · The acquisition provides Q-Med with an additional annual turnover of over SEK 30 million. · Nuova ICT Since the end of 1996 Nuova ICT has acted as the exclusive distributor of Q-Med's facial esthetic products in Italy and as such has been very successful. Italy is one of the countries where Q-Med's sales are greatest. ICT is situated in the Milan area and has 14 employees and a sales force of approximately 30 independent agents. In addition to Q-Med's products, the turnover comprises different types of skin products and peeling (AHA) products licensed from the American company Neostrata and from the Italian company General Topic. These products are a complement to Q-Med's product range. Since autumn 1999, Q-Med's products have been sold via Q-Med's own subsidiary Q-Med Italia S.R.L. The acquisition will provide Q-Med with an additional turnover of over SEK 30 million per year, a turnover which displays stable growth with good profitability. Reasons for the acquisition Q-Med has an explicit strategy that sales of esthetic products will be carried out under Q-Med management, where subsidiaries will be used in the highest priority markets. Italy is one of the markets where Q-Med's sales are greatest. Since 1999 there has been a registered subsidiary of Q-Med in Italy, Q-Med Italia S.R.L. Sales have been taken care of by personnel employed by ICT. It is the subsidiary Q-Med Italia S.R.L. which is now acquiring Nuova ICT and thus incorporating the sales and marketing organization which works with Q-Med's products in Italy into the Q-Med Group. Furthermore, Q-Med will soon launch other products, for example DEFLUX for the treatment of reflux in children, in Italy and sees it as an advantage to then be present itself in the country. Terms The senior management of Nuova ICT, which largely comprises the previous family owners, will remain in the company for a minimum of 3 years. The purchase price for Nuova ICT consists of two parts, where the first part, Euro 5.2 million, was paid in connection with the signing of the agreement. The size of the second part of the purchase price is dependent on the outcome of business operations during the coming three years. These additional proceeds could in total amount to a maximum of Euro 1.8 million, payable over a period of three years. September 27, 2001 Uppsala, Sweden Q-Med AB (publ) Bengt Ågerup, President and CEO Queries should be addressed to Bengt Ågerup President and CEO, on +46(0)18-474 90 00 or +46(0)70-974 90 25. 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 body contouring, e.g. breast augmentation, is ongoing. DUROLANE, Q-Med's product for the treatment of osteoarthritis of the knee-joint, has been approved in Europe since May 2001. DEFLUX is a product which has been approved in Europe and in USA for the treatment of vesicoureteral reflux (malformation of the urinary bladder) in children. It is estimated that ZUIDEX for treatment of stress urinary incontinence in women will be available in Europe in early 2002. Since July 2000 Q-Med has held a majority interest in the American biotechnology company Ixion Biotechnology, Inc., which carries out research in cell therapy for diabetes. Q-Med today has just over 230 employees, with 170 at the company's production facility and head office in Uppsala, 20 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. 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 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/09/27/20010927BIT00280/bit0002.doc http://www.waymaker.net/bitonline/2001/09/27/20010927BIT00280/bit0002.pdf