ARTIMPLANT YEAR-END-REPORT JANUARY – DECEMBER 2012

Regulatory News:

Artimplant AB (STO:ARTIB):

• Net revenue increased by 15 percentage points and amounted to SEK 21.1 million (18.3).
• The net loss after tax totaled SEK 16.5 million (17.9). This represented an improvement in result of SEK 1.4 million compared to the corresponding period the previous year.
• Earnings per stock unit amounted to SEK -0.03 (-0.15).
• The aim of achieving a positive cash flow before changes in working capital on a monthly basis was moved forward to the second half of 2013 due to low sales growth in the USA. The sales development is still weak and the impact of the litigations it is uncertain and therefore the Board can at present not determine when the cash flow will be positive.
• The Board proposes that no dividend be paid for 2012.
• The license agreement with Biomet Sportsmedicine was terminated in April.
• The USA study of Artelon® Tissue Reinforcement for rotator cuff injuries has been published. The study shows positive results with regard to functioning of the shoulder and patients’ perceived improved quality of life.

Fourth quarter

• Net revenue amounted to SEK 5.5 million (4.0) an improvement with 1.5 MSEK. European sales increased by 247 percentage points and the US sales by 25 percentage points compared to previous period.
• The net loss after tax totaled SEK 6.4 million (6), a decreased by 0.4 MSEK compared to previous period due to higher legal costs in terms of increased legal costs caused by the ongoing insurance dispute.
• Earnings per stock unit amounted to SEK -0.01 (-0.05).
• Preliminary positive results presented from a two-year study of Artelon® CMC Spacer.

Events after the year-end

• Artimplant prolongs its funding agreement regarding costs for trials in USA and recovers previous legal costs of SEK 5 million.
• Artimplant has requested arbitration in the insurance dispute.
• The Company is in need of a capital injection, the Board has therefore decided to review its strategic options

Further information is available at www.artimplant.com where you can also subscribe to future press releases; www.artimplant.com/investors-media/subscribe-to-press-releases.html

Artimplant

Artimplant is a biomaterials company focused on solutions to problems in orthopedics. We restore health through the development, production and marketing of degradable implants that regenerate body functions and improve quality of life. Our products, made from Artelon®, meet unmet clinical needs and are marketed in a growing number of therapy areas. Artimplant produces implants for treatment of osteoarthritis in hands and feet as well as shoulder and other soft tissue injuries.

Artimplant is a public company, listed on NASDAQ OMX Stockholm in the Small Cap segment and in the healthcare sector.

Forward-looking statements

This press release contains forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting on the Company's business, including increased competition; the ability of the Company to expand its operations and to attract and retain qualified professionals; technological obsolescence; general economic conditions; and other risks detailed from time to time in the Company's filings.

This is information that Artimplant will make public pursuant to the Swedish Financial Instruments Act and the Swedish Securities Exchange and Clearing Operations Act and/or stock market agreements. Information was made available for publication on February 27, 2013 at 8:55 am (Swedish time).

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