INTERIM REPORT 1 APRIL– 30 JUNE 2019

“We will continue to explore commercialization opportunities for our imaging technology, and we took a first, and very important, step very recently though our first strategic partnership. The orthopaedic industry is dominated by a small number of large, global players. As we have previously communicated, at the right time the company is open to seeking a partnership for some or all of its products in key markets.”

Second quarter 2019 compared to 2018, Group

» Gross order intake amounted to SEK 1.3m (1.1) an increase of 21.0%

» Order backlog amounted to SEK 0.7m (1.1)

» 14,0% increase in orders for Episealer® knee implants during the quarter with 49 (43) approved orders

» Group net sales Increased by 35.5% to SEK 1.1m (0.8)

» Loss before tax amounted to SEK -18.9m (-16.2)

» Earnings per share (weighted average) amounted to SEK -0.42 (-0.45)

Significant events during the second quarter

» Episurf Medical announced and conducted a rights issue and raised approximately SEK 75.2m prior to transaction costs

» Episurf Medical announced that the EPIC-Knee study now is available at ClinicalTrials.gov and that the patient recruitment in the US was ready to start

» Prof. Niek van Dijk joined Episurf Medical’s Clinical Advisory Board

» The Episealer® implant was highlighted in three scientific publications

» Clinical data for Episealer ® was accepted for presentation at a global scientific congress

» US, Japanese and European patent approvals for Episurf Medical

» Professor Mats Brittberg, Göteborg’s University, presented the Episealer ® at the ICRS Focus Meeting “One Step Cartilage Repair” in Rome, 5-7 June

» The Company’s COO Jeanette Spångberg left the company on June 1 and the Company’s Chief Regulatory Officer – Regulatory Affairs, Quality and IP, Katarina Flodström, was appointed as new COO. In conjunction to these changes, Michael Näsström was appointed Acting Quality Manager

» Episurf Medical announced that the Company will terminate the financing agreement with European Select Growth Opportunities Fund

Significant events after the second quarter

» Canadian patent approval for Episurf Medical

» Episurf Medical enters into its first strategic partnership regarding its AI-based imaging technology

For more information, please contact:

Pål Ryfors, CEO, Episurf Medical
Tel:+46 (0) 709 62 36 69
Email: pal.ryfors@episurf.com

Veronica Wallin, CFO, Episurf Medical
Tel:+46 (0) 700 37 48 95
Email: veronica.wallin@episurf.com

About Episurf Medical

Episurf Medical is endeavoring to bring people with painful joint injuries a more active, healthier life through the availability of minimally invasive and individualised treatment alternatives. Episurf Medical’s Episealer® individualised implants and Epiguide® surgical drill guides are developed for treating localised cartilage injury in joints. Episurf Medical’s μiFidelity® system enables implants to be cost-efficiently tailored to each individual’s unique injury for the optimal fit and minimal intervention. Episurf Medical’s head office is in Stockholm, Sweden. Its share (EPIS B) is listed on Nasdaq Stockholm. For more information, go to the company’s website: www.episurf.com.

This information is information that Episurf Medical AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08.30 CEST on 19 July 2019.