Q-Med's turnover up 87 percent

Q-MED'S TURNOVER UP 87 PERCENT Key ratios 2000 * Turnover increased by 87 percent for comparable units, to SEK 237.2 (126.9*) million. During the fourth quarter turnover increased by 103 percent and amounted to SEK 81.9 (40.3*) million. * Income after financial items increased by 252 percent, to SEK 44.0 (12.5*) million. Income for the fourth quarter was SEK 17.6 (2.6) million. Increased focus on research and development, 25 (18*) percent of turnover. Amounts in SEK millions 2000 1999* % Turnover 237.2 126.9 +87 Gross income 212.1 111.1 +91 Gross income, % of turnover 89.4 87.5 Operating income 33.7 13.6 +148 Operating income, % of 14.2 10.7 turnover Operating income exclusive of 42.3 13.6 +211 Ixion Operating income exclusive of 17.8 10.7 Ixion, % of turnover Income after financial items 44.0 12.5 +252 Net income for the year 39.3 11.1 +254 Number of employees at year- 197 110 +79 end Earnings per share, SEK 1.64 0.61 +169 Share price at year-end, SEK 192 67 +187 Market value 4,713 1,528 +208 *Income statement items excluding Venofer, an intravenous iron preparation which Q-Med had a licencing agreement for in the Nordic countries up until December 31, 1999. Per Olof Wallström, President and CEO, comments as follows: " Q-Med showed continued high and stable growth during the financial year 2000. It was also the first whole year as a company listed on the stock exchange. The share price tripled compared to the introduction price in December 1999. We are happy with the market's confidence in the company and its development. The company stands stronger than ever, works with a high gross margin and has good momentum. The new share issue in connection with the introduction on to the stock exchange and our positive cash flow give us the financial strength necessary to make investments in new markets and new products. The listing has also markedly increased the exposure of the company in the media, which contributes to the company's strong position in the recruitment of highly competent personnel. Q-Med intends to continue to actively develop its potential and we believe in continued strong development." Attached: Report on operations 2000 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) REPORT ON OPERATIONS 2000 THE YEAR 2000 IN BRIEF March: Two new products for facial esthetics, PERLANE and RESTYLANE Fine Lines, are launched. June: An application is submitted in USA for the registration of DEFLUX for the treatment of children with a malformation of the urinary bladder, so-called reflux. The application is given priority treatment. July: A patent application for an injection device used in the treatment with DEFLUX for stress urinary incontinence is submitted. July: A new business unit is formed, Cell Therapy and Encapsulation. Ownership in the American company Ixion Biotechnology, Inc. is increased to 59 percent of the shares. August: The application to start clinical trials in USA with RESTYLANE for facial esthetics is approved. October: An application for the European approval of DUROLANE, intended for the treatment of worn out knee joints, is submitted. October: The Gastroenterology and Urology Devices Advisory Panel to USA's regulatory authority recommends approval of DEFLUX for the indication reflux in children. December: A decision is taken to build further office and laboratory premises in Uppsala covering an area of 11,000 sq.m., an investment of SEK 130 million. 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 200 employees, with 145 at the company's production facility and head office in Uppsala, 15 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 87 percent during 2000, to SEK 237.2 (126.9*) million. In the fourth quarter turnover amounted to SEK 81.9 (40.3*) million, an increase of 103 percent. Exchange rate fluctuations have affected sales positively by SEK 1.0 million compared with 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/2001/02/08/20010208BIT00650/bit0001.doc http://www.bit.se/bitonline/2001/02/08/20010208BIT00650/bit0002.pdf