INTERIM REPORT JANUARY

January – March

  · Net sales rose by about 4% to SEK 1,984k (1,906k).

  · Comprehensive income improved by SEK 108k to SEK -3,838k (-3,946k).

  · Comprehensive income per share, basic and diluted, improved by SEK 0.14 to
SEK -0.19 (-0.33).

  · Cash flow from operating activities was SEK -6,213k (-4,429k).

  · Genovis carried out a private placement in January that raised SEK 3.6
million before issue expenses on the same terms and conditions as the rights
issue in December, which raised SEK 23.7 million for the Company before issue
expenses.

  · Genovis decided to switch to dedicated direct sales in Europe and the US. In
other markets Sigma-Aldrich has a non-exclusive distribution agreement.
Comments from Sarah Fredriksson, CEO

During the quarter, we followed through on the strategically important decision
to pursue direct sales in the US from now on. Genovis has representation in
place, based in Boston, Massachusetts. The conversion will be fully implemented
at year-end when the US distributors no longer sell Genovis products. The main
reason for the change is to achieve direct contact with our customers. It is
crucial for us to understand the needs of our customers and to be able to assist
them as they implement our products in more extensive and a greater variety of
analytical processes. We see a clear trend in that FabRICATOR (IdeS) will also
be used in analytical methods other than mass spectrometry, as was recently
described in a publication in mAbs* by researchers in MSD Pharmaceuticals
(Merck, Sharp & Dohme). It is important for Genovis’ R&D and sales activities to
have direct contact to be able to offer the right product formats for our key
customers moving forward. We have also chosen to switch to direct sales in
Europe and Israel during the first quarter, as well as to offer direct sales in
the rest of the world alongside distribution through Sigma-Aldrich.

During the first quarter we saw a continued increase in sales to customers in
Europe and a recovery in the US market, though we did not fully reach the level
we expected. This has been affected by the shift from distributor to direct
sales; in addition, distributors have kept products in stock since the previous
quarter. Certain investments were made during the period, primarily in equipment
to streamline production and for quality control.  A private placement conducted
in early January, and the December 2013 rights issue that was registered in 2014
both had a positive impact on cash flow.

Sarah Fredriksson

President & CEO
For more information, please contact: Sarah Fredriksson, CEO, Genovis AB Tel: 46
(0)46 -101235 sarah.fredriksson@genovis.com
ABOUT GENOVIS

Genovis’ business concept is to develop, produce and market innovative
technologies that facilitate and enable development of new treatment methods and
diagnostics for customers in the medical device and pharmaceutical industries.
The Group consists of Genovis AB and the subsidiary GeccoDots AB. Genovis
develops and sells unique enzymes (protein engineering portfolio) in innovative
product formats that facilitate development and quality control of and
biological drugs. GeccoDots uses nanotechnology to produce a new type of
contrast agent that is used in medical imaging.

Genovis shares are listed on NASDAQ OMX First North, and Thenberg Fondkommission
is Certified Adviser for the Company, t: 46 (0)31-745 50 00
INTERIM REPORT JANUARY – MARCH 2014

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