Year- End Report 2015

Strong growth and significant investments

  · Net sales increased by 70% to 576.1 (339,0) MSEK
  · Operating income increased by 50.2 (21.7) MSEK
(including non-recurring costs of approximately 0 (9.3) MSEK)
  · Net income amounted to 24.3 (57.7) MSEK
(including tax effects for 2014 of 15.8 MSEK
  · Earnings per share increased to 1.18 (3.10) SEK
  · 50 (35) EBM systems were delivered during the period
  · Order intake amounted to 58 (42) EBM systems

For the fourth quarter:

  · Sales increased by 28% to 176.0 (137.1) MSEK
  · Operating income amounted to 14.0 (15.3) MSEK
  · Net income increased to 2.7 (15.8) MSEK
  · Order intake increased by 29 (21) systems
  · 16 (15) EBM systems were delivered in the fourth quarter

Strong growth and significant investments

2015 was another very active and strong year for Arcam. We have worked hard and
focused. Our primary focus has been to continue executing and developing our
long-term strategy to put the EBM technology in industrial production. To do
that, we have developed all three parts of the Group, EBM systems, metal powders
and contract manufacturing. We have grown rapidly and we have made substantial
investments in increased capacity to continue to meet our customers demand.

After a strong fourth quarter, we reached net sales of 576.1 MSEK and an
operating profit of 50.2 MSEK for the full year. Sales increased by 70% and
operating profit increased by 131%. During the year we booked 58 new EBM orders,
an increase of 38% compared with the previous year. We enter 2016 with an order
book of 27 systems.

Business status

Avio Aero in Turin, Italy, is a subsidiary of GE Aviation. Avio Aero has
successfully used and evaluated Arcam´s EBM systems for many years and is now
moving into series production of state of the art turbine blades. In connection
with this they ordered, by the end of the year, 10 new EBM system and with that
order they doubled their installation base.

Another important reference business is the order from GKN of two Arcam Q20.
Together with GKN we are bringing our EBM-technology to series production of
aerospace components.

The deals confirm the great potential of the Arcam EBM technology as a volume
production tool for the aerospace industry. We can now see that our aerospace
customers are expanding their EBM production facilities.

In September, our customer Beijing AK Medical Chinese announced that the Chinese
authorities approved their EBM manufactured orthopedic implants for sale in
China. These are the first additive manufactured implants to be formally
approved in China. In connection with this decision Beijing AK Medical decided
to go into production with these implants and they ordered another five Arcam
Q10 systems.

During the year our Italian customer Lima has received the five systems they
ordered in the end of 2014. Lima has thereby increased its EBM capacity
significantly and Lima is the world's largest manufacturer of additively
manufactured implants.

Meanwhile, customers in Japan, Korea, Europe and in the US have introduced new
EBM-manufactured products on the market within orthopedics for hips, knees and
spine surgery. The EBM technology is therefore now established as a
manufacturing method for orthopedic implants.

Our metal powder manufacturer AP&C in Montreal is growing rapidly with several
new customers within Additive Manufacturing. To meet the demand, we took in the
beginning of the year a third powder reactor in use and in the autumn we decided
to expand AP&C with another two powder reactors. With these investments, AP&C
will have five complete production lines, of which four are intended for
titanium powder and one is intended for Inconel and other alloys.

Management changes and infrastructure

During the year we strengthened our sales and support organization in the US, UK
and in China through the recruitment of sales and support engineers. In the UK a
new office was inaugurated in Warwick and in the US a new office was opened in
Woburn, MA. With the new local offices we move management, customer support and
logistics closer to our customers.

During the third quarter a major expansion of our production facilities in
Mölndal, Sweden, was finalized. With the expansion we have doubled our
production area and we have also opened a new demo and customer training center.

During the year we strengthened our marketing organization by setting up a new
central marketing function for Arcam Group, based in the US. The new marketing
organization will manage and coordinate Arcam's global marketing including
branding efforts and product marketing, in order to fully utilize our position
in the aerospace and medical implant industry.

In December Alain Dupont was appointed the new CEO of powder manufacturer AP&C.
He succeeds Jacques Mallette who has been CEO of AP&C since 2011 and continues
to be involved as Chairman for AP&C.

Financing and ownership structure

In May Industrifonden sold its entire holding in Arcam, corresponding to 10.4%
of capital and votes. The buyer was the US-based Oppenheimer Funds.

After the deal Industrifonden has no ownership in Arcam. Industrifonden has been
involved in the company since 1999, first as a lender and, since 2002, as an
owner.

Oppenheimer has been a shareholder of Arcam since 2014 and, with the new deal,
became the largest owner with more than 15% of the outstanding shares.

On May 27 we completed a share issue of 1.8 million new shares directed to
Första AP-fonden, providing the company with approximately MSEK 250 before
transaction costs. Första AP-fonden represents an engaged, long term ownership
which the board expects will contribute to the development of the company.

After those transactions we have a new ownership structure and a very strong
cash position. At the end of the third quarter we had approximately 452.9 MSEK
in cash. The strong balance sheet provides financial stability that is much
appreciated by the large clients we work with in long term projects.

With some of the world's largest companies as customers, a strong cash position
and, most important, a team of dedicated and driven employees, we are well
positioned to take advantage of our opportunities in the fast growing market for
Additive Manufacturing.

Mölndal, February 8, 2016

Magnus René, President & CEO

The information has been made public in accordance with the Securities Market
Act and/or the Financial Instruments Trading Act.

The information was published on February 8, 2016 at 08.30 (CET).
For further information:

Magnus René, CEO and President, Arcam
Cell: 46 702 79 89 99 or 1 781 266 6957
E-mail: magnus.rene@arcam.com
Arcam Group provides cost-efficient Additive Manufacturing solutions for
production of metal components. Arcam’s Electron Beam Melting (EBM®) technology
offers design freedom combined with excellent material properties and high
productivity. Arcam is, through its solution orientation and comprehensive
product offering, an innovative partner for advanced manufacturing, primarily
for the aerospace and medical industries. Arcam offers EBM systems through Arcam
AB in Sweden, powder metals through AP&C in Canada and implant contract
manufacturing through DiSanto in the U.S.The company is listed on Nasdaq
Stockholm and the Head Office is located in Mölndal, Sweden.

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