ARTIMPLANT ANNUAL ACCOUNTS JANUARY - DECEMBER, 2006

ARTIMPLANT ANNUAL ACCOUNTS JANUARY - DECEMBER, 2006

Västra Frölunda, Sweden, February 20, 2007

• Net revenue of 5.5 MSEK (8.2)*
• Net loss of 56.0 MSEK (36.2)
• Net loss of 38.9 MSEK(36.2) if one time write-downs of capitalized R&D costs without cash effect are excluded
• Earnings per share of -0.95 SEK ( -0.73 SEK)
• Strong sales increase for Artelon® CMC Spacer  - about 1,050 (200) units sold to end customers during the fourth quarter
• More than 3,000 patients have been treated with Artelon® devices through to 2006
• Received clearance to market Artelon®  Tissue Reinforcement for reinforcement of rotator cuff tears in the USA
• Four new Spacers received CE mark
• Hans Rosén was employed as CEO

Events after the period
• Promising results for Artelon®  Tissue Reinforcement in foot applications were presented at the Swedish Foot Surgeon Society's yearly meeting
• Artimplant´s products received great attention during the worlds largest orthopedic conference AAOS


* Numbers within brackets relate to the corresponding period last year 

For further information contact

Hans Rosén, Chief Executive Officer
Tel + 46 31 746 56 44, +46 708 583 470
hans.rosen@artimplant.com

Lars-Johan Cederbrant, Chief Financial Officer
Tel. +46 31 746 5654, +46 703 016 854 
lars-johan.cederbrant@artimplant.com 

Artimplant is a biomaterials company focused on solutions to problems in orthopedic and oral surgery. 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, for shoulder injuries and other soft tissue injuries as well as dental applications. 

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 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.