Arcam acquires strategic partner DiSanto Technology

The acquisition of DiSanto Technology (DiSanto), a strategic partner to Arcam
since February 2013, combines Arcam’s leading edge Additive Manufacturing
technology with DiSanto’s full-service contract manufacturing services for
orthopedic implants. Through DiSanto Arcam will offer customers, including
industry-leading orthopedic and spinal implant companies, manufacturing of
advanced EBM-based implants and other components.
The combination of Arcam’s EBM technology and DiSanto´s know-how in orthopedic
implant manufacturing will accelerate the market adoption of Additive
Manufacturing in the implant industry. DiSanto’s expertise in implant
engineering and production of finished components is thus expected to leverage
Arcam’s EBM technology for Additive Manufacturing of orthopedic implants.

DiSanto is a fully equipped and certified production facility for the production
of finished orthopedic implants with approximately 100 employees. In the last 12
months DiSanto generated approximately USD 12M in revenue and an EBIT of USD
0.6M. The total purchase price amounts to USD 15.8M paid in cash and through the
execution of Arcam stock options issued to the sellers in February 2013.

The acquired business will become a subsidiary of Arcam and continue operating
with the existing management team. The acquisition is expected to have a
positive effect on Arcam’s earnings per share in 2014.

“Through this acquisition Arcam’s offering will cover the entire supply chain
for our customers: Metal powders through AP&C, acquired earlier this year, EBM
systems and services through Arcam AB and finished products through DiSanto. The
acquisition is thus in line with our growth strategy, it complements our
technology and product portfolio, and it is immediately accretive. We are very
pleased to welcome the skilled DiSanto team to the Arcam group”, says Magnus
René, CEO of Arcam.

“With this deal we will be part of the leading company in 3D-printing in metals.
This will enable us to help customers in rapidly developing product applications
and to commercially produce products for them with Arcam’s cost-efficient,
regulatory-cleared Additive Manufacturing technology. Being part of a larger
group will also help in accelerating growth to better serve the growing implant
market”,
says Ronald F. Dunn, President of DiSanto Technology.

Viant Capital LLC acted as Arcam’s advisor in connection with the acquisition.

About DiSanto Technology, Inc.

DiSanto was founded by Ottavio DiSanto in 1967 as a general contract
manufacturer. Over the years, the company has specialized in contract
manufacturing of orthopedic implants and today the company has a clientele
consisting of major orthopedic device companies. DiSanto provides its customers
with engineering, development and production of implants and instruments of
metal and plastic implants and components. DiSanto is certified to ISO 9001, ISO
13485 and the company is registered with the FDA as a contract manufacturer. The
company is located in Shelton, Connecticut, an area with a thriving implant
industry. www.disanto.com

About Arcam

Arcam offers industrial 3D-printing solutions for metals. Arcam’s technology,
EBM®, makes possible cost efficient manufacturing of products with advanced
functionality. Arcam’s market is global with customers mainly in the orthopedic
and aerospace industries. Arcam is listed on Nasdaq OMX Stockholm and the Head
Office is located in Mölndal, Sweden. The Group provides 3D-printing systems
through Arcam AB in Sweden, Metal powders through AP&C in Canada and Implant
Contract Manufacturing though DiSanto in the US. The group has about 220
employees.
For further information please contact:
Magnus René, CEO Arcam AB
Tel: 0046 31 710 32 00, alt. cell: 0046 702 79 89 99, or e-mail:
magnus.rene@arcam.com
Arcam provides a cost-efficient Additive Manufacturing solution for production
of metal components. The technology offers freedom in design combined with
excellent material properties and high productivity. Arcam’s market is global
with customers mainly in the orthopedic and aerospace industries. The company
was founded in 1997 and is listed on NASDAQ OMX Stockholm, Sweden. Head office
and production facilities are located in Mölndal, Sweden. Support offices are
located in the US, UK, Italy and China.

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Arcam AB • Krokslätts Fabriker 27A • SE-431 37 Mölndal, Sweden • 46-31-710 32 00
• www.arcam.com