Year-end Report 2011

| Source: Aerocrine AB Aerocrine AB 

Year-end Report 2011

Record sales in fourth quarter totalling 29.1 MSEK. Continued increase of
covered lives in the US.

January – December 2011

  · Global Net sales grew by 10% to SEK 93.5m (84.7). Adjusted for currency
fluctuations, net sales rose by 18%
  · The worldwide number of NIOX MINO® repeat tests sold increased by a total of
20% and for clinical use in the US by 138%
  · The loss after tax amounted to SEK 138.7m (85.8), corresponding to a loss
per share before dilution of SEK 1.4 (1.2). The increased loss was primarily
driven by investments in the US, the cost of the Long Term Incentive plans and
expenses related to the appointment of the new CEO.

October – December 2011

  · Net sales grew by 35% to SEK 29.1m (21.6). Adjusted for currency
fluctuations, sales grew by 39%
  · The worldwide number of NIOX MINO® repeat tests sold grew by a total of 36%,
and for clinical use in the US by 107%
  · The loss after tax amounted to SEK 50.7m (23.4), corresponding to a loss per
share before dilution of SEK 0.5 (0.2)
  · Aerocrine’s FeNO technology is standard practice in NHANES data by the CDC,
Center of Disease Control, to define airway inflammation in US population.
  · An EGM was held on November 16th where it was decided to implement a new
incentive program as well as electing Thomas Eklund as a new member of the
board.

Significant events after the period

  · The revised reimbursement strategy continued to show positive momentum with
a continued increase of covered lives by public and private payers in the US as
several payers changed their policies and are now reimbursing doctors for using
FeNO.
  · NIOX MINO received market clearance in both South Korea and Taiwan.

AEROCRINE IN BRIEF

+-----------------------------+---------+--------+------+-----+
|                             |October -|December|Full  |year |
+-----------------------------+---------+--------+------+-----+
|SEKm                         |2011     |2010    |2011  |2010 |
+-----------------------------+---------+--------+------+-----+
|Net sales                    |29.1     |21,6    |93.5  |84.7 |
+-----------------------------+---------+--------+------+-----+
|Gross profit/loss            |20.7     |12.7    |64.2  |57.5 |
+-----------------------------+---------+--------+------+-----+
|Gross margin %               |71%      |59 %    |69 %  |68%  |
+-----------------------------+---------+--------+------+-----+
|Operating profit/loss        |-49.2    |‑21.1   |-132.8|-85.0|
+-----------------------------+---------+--------+------+-----+
|Net profit after tax         |-50.7    |‑23.4   |-138.7|-85.8|
+-----------------------------+---------+--------+------+-----+
|Cash flow, current operations|-31,3    |‑16,6   |-96,5 |-74.0|
+-----------------------------+---------+--------+------+-----+
|Total cash flow              |-31.8    |71,8    |-102.8|230.3|
+-----------------------------+---------+--------+------+-----+

Comment by the CEO

“As the ATS guidelines begin to take hold, we are implementing several major
initiatives to capitalize on this important event. First we have doubled the
sales force in the US from eight (8) to sixteen (16). These reps have been
positioned strategically based on data determining where asthma is present and
treated. We also have added a contract reimbursement field force that will
specifically call on regional and local insurance offices to share our
information in an effort to convince private and public insurers to reimburse
physicians for the use of the NIOX MINO. We have also created a Health Economic
Model where payers can clearly see the economic as well as clinical benefits
associated with the use of the MINO. This model has also been adapted for use in
Europe. We have added additional field resources and management in the EU to
take advantage of sales opportunities and optimize our existing distributor
relationships. We are cautiously optimistic regarding increasing sales as we
must first convert the payers from either negative policies to positive ones or
convince them of the value of beginning to cover the test, all of which takes
time. We are pleased to see these latest results, but our company is now focused
on the sustainability and growth of our commercial operations. We want to
continue this trend and are putting the necessary investments in place to
accomplish that objective. We remain encouraged by our main shareholders support
of increased investment to take advantage of the recent momentum but are keenly
aware of the need to show profitability in a reasonable timeframe. The Company
has seen dramatic changes from being an interesting scientific method sold
primarily to research facilities and high level specialists to a patient-focused
company that sells high value products to a larger scope of doctors in many
geographies. We ended the year with 84 people, up from around 60 at the
beginning of 2011, which shows growth in human capital and our focus on building
a strong company for the future”," says Aerocrine's CEO, Scott Myers.

For further information, please contact:

Scott Myers,
CEO                                                                             
                                          Michael Colérus, CFO

Tel: +46 8 6290780                                     
www.aerocrine.com                                        +46 8 6290785

 

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