INTERIM REPORT 1 JANUARY– 31 MARCH 2019

“For several years, Episurf has been a pioneer in our orthopaedic niche, and we believe we are well positioned to take the next step and become a leader. There isn’t much disagreement in the industry about the fact a new standard is needed for the treatment of focal cartilage and bone lesions in the knee. However, it has not yet been clear which treatment alternative will become that standard. Several recent scientific publications have discussed the treatment gap, the challenges in treating this patient group, and various treatment alternatives. We are very pleased that the Episealer® has been highlighted as a promising technology for the future given the early clinical success and low revision rate. The Episealer® implant represents a new alternative for the treatment of a patient grop that previously has been difficult to treat, and it is very encouraging that this is generating more and more scientific interest.” says Pål Ryfors, CEO Episurf Medical.

First quarter 2019 compared to 2018, Group

» Gross order intake amounted to SEK 1.1m (0.9) and increase of 25.5%
» Order backlog amounted to SEK 1.0m (0.5)
» 25.6% increase in orders for Episealer® knee implants during the quarter with 49 (39) approved orders
» Group net sales Increased by 29.4% to SEK 1.4m (1.1)
» Loss before tax amounted to SEK -14.6m (-13.3)
» Earnings per share (weighted average) amounted to SEK -0.42 (-0.44)

Significant events during the first quarter

» Episurf Medical announced the start of a comparative investigator-initiated clinical study performed at the Julius Wolff Institute, Charité University Hospital, Berlin 5
» New Australian, Canadian, and US patent approvals for Episurf Medical
» Clinical results for Episealer® were presented at a German clinical congress in February
» Episurf Medical reached milestone of 500 implants
» Progress for Episurf medical in initiation of Episealer® Knee IDE study
» Pre-clinical study proving chondrointegration was accepted for publication in scientific journal

Significant events after the first quarter

» Prof. Niek van Dijk joined Episurf Medical’s Clinical Advisory Board
» US and Japanese patent approvals for Episurf Medical
» Episurf Medical announced that the Company’s COO Jeanette Spångberg has decided to leave the company June 1 and the Company’s Chief Regulatory Officer – Regulatory Affairs, Quality and IP, Katarina Flodström, is appointed as new COO. In conjunction to these changes, the company announced that Michael Näsström is appointed Acting Quality Manager
» Episurf Medical announced that the Board resolved on a share issue of SEK 98.3m through a partially guaranteed preferential rights issue
» Episurf Medical announced that the Company will terminate the financing agreement with European Select Growth Opportunities Fund
» The Episealer® implant was highlighted in three scientific publications

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 18 April 2019.