BioPhausia streamlines in order to focus on Nordic market

The Board of BioPhausia has decided to start the process of streamlining the
Company's operations and products with the aim of strengthening profitability
and adapting the Company to changing market conditions and other external
factors. By phasing out the less profitable operations and products, the Company
is better able to take advantage of the new business opportunities offered by
events such as de-regulation of the Swedish pharmacy market. The new
streamlining process also gives the Company a clear Nordic focus.

The following operations and activities are affected by the changes:

* An ongoing review of the Company's generic portfolio has revealed a number of
products with poor profitability potential or excessive carrying amounts. This
has resulted in impairment losses of approx. SEK 24 million on intangible assets
(not affecting EBITDA) in the second quarter of 2010.  These impairment losses
do not affected the Company's covenants. A further adaptation to the current
price pressure on the market has resulted in impairment losses of approx. SEK 7
million on generic inventories (affecting EBITDA) in the second quarter of
2010.

* The generic product operations in Poland is being wound up and all activities
not related to repacking operations are being discontinued during 2010. At the
end of the second quarter of 2010, the Polish generic operations had five
employees and inventories of approx. SEK 5 million. Sales for the first half
year of 2010 were approx. SEK 1.5 million, with an EBITDA of approx. SEK -2
million. However, there will remain a focus on the Polish repacking operations,
both for external customers and the wholly-owned subsidiary Cross Pharma AB.

* BioPhausia has signed an agreement to sell its Dutch generics company to the
original owner. Sales for the first half year of 2010 were approx. SEK 4.5
million, with an EBITDA of approx. SEK -1 million. The transaction has to be
approved by an extraordinary general meeting of the shareholders of BioPhausia.
The notice convening the EGM is available as a separate press release.

* A decision has been made to discontinue generic operations in the Baltic
region and sell the remaining stock in 2010. At present, the Lithuanian generic
operations consist of one employee and inventories of approx. SEK 0.5 million.
Sales for the first half year of 2010 were approx. SEK 0.5 million, with a
break-even EBITDA.

* A sales process has been initiated with regard to the veterinary company
Omnidea, and this company will be disposed of at the earliest opportunity. Sales
for the first half year of 2010 were approx. SEK 2.5 million, with a break-even
EBITDA.

A strategic review of the Company's different business areas is continuing, and
is aimed at improving profitability by focusing on the areas where the Company
is best placed for success.

"BioPhausia is becoming a more focused company as a number of our less
profitable activities are disposed of or closed down," says CEO Maris Hartmanis.
"We can now concentrate on the business areas we consider best able to
strengthen our long-term operating profit and margins over a long period. The
Company has good underlying operations in the Nordic region and this is where we
are placing a clear focus."







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