Press Release, 6 May 2010 (12 pages) BioGaia AB Interim report 1 January - 31 March 2010 (Figures in brackets refer to the same period of last year) Interim report 1 January - 31 March 2010 Net sales amounted to SEK 58.6 million (52.2), an increase of SEK 6.4 million (12%). Excluding foreign exchange effects, the increase in net sales was 23%*. Operating profit was SEK 14.1 million (13.4), an improvement of SEK 0.7 million (5%). Excluding foreign exchange effects, operating profit rose by 37%*. Profit before tax was SEK 18.1 million (15.1), an increase of SEK 3.0 million (20%). Profit after tax was SEK 12.2 million (10.4), an improvement of SEK 1.8 million (17%). Earnings per share amounted to SEK 0.71 (0.61). The period's cash flow from operating activities before changes in working capital was SEK 14.7 million (14.6). Total cash flow for the period was SEK 12.2 million (7.6). Cash and cash equivalents at 31 March 2010 amounted to SEK 112.3 million (65.9). Key events in the first quarter of 2010 Agreement with Nippon Access for the sale of a large share of BioGaia's product range in Japan. Agreement with Ferring Pharmaceuticals for the sale of Probiotic drops and tablets in Argentina. Agreement with Interbat for the sale of Probiotic drops in Indonesia. "Our business model works well. The model is based on informing physicians through our partners' sales forces, which results in the physicians recommending the products and the patients buying them in pharmacies. It is satisfying to see how quickly we are growing particularly in Europe" says President Peter Rothschild. * Most of the company's sales are denominated in EUR. The EUR rate was lower in the first quarter of 2010 than in the corresponding period of 2009. If the EUR rate had been the same, net sales would have been SEK 5.7 million higher. Because the exchange rate fluctuations (mainly in EUR and JPY) have reduced both income and expenses, operating profit would have been SEK 4.2 million higher in the event of an unchanged exchange rate. For additional information contact: Peter Rothschild, President, telephone +46 8 - 555 293 00. Margareta Hagman, Executive Vice President, telephone +46 8 - 555 293 00 [HUG#1412333]