Interim report for Q2 2016

The positive trend with increased sales of our own portfolio of infection
prevention products for the healthcare sector has continued and we delivered
almost 110 000 units in the quarter. We have delivered a total of approximately
200 000 products so far this year, well above the total annual volume for 2015.
License revenues are also back at a stable level in the quarter. Altogether,
revenues are higher and costs are lower resulting in a significant improvement
in operating profit.
Second quarter (April-June 2016)

  · During the second quarter, a total of approx. 110 000 (58 000) BIP products
were delivered.
  · Revenues amounted to SEK 33.8 (28.5) million, an increase of approx. 19 %
compared to the corresponding quarter previous year.
  · EBITDA amounted to SEK 2.4 (-8.4) million.
  · Operating profit amounted to SEK -5.9 (-16.5) million.
  · Net profit/loss for the quarter amounted to SEK -7.7 (-10.2) million,
corresponding to SEK -0.23 (-0.31) per share. Net profit/loss for the quarter
has been positively affected by market valuation of the bond loan of SEK 0.7
(11.0) million.
  · Operating cash flow for the quarter amounted to SEK -2.2 (-7.8) million,
corresponding to SEK -0.07 (-0.23) per share.

First half year (January-June 2016)

  · During the first half year, a total of approx. 198 000 (63 000) BIP products
were delivered.
  · Revenues for the period amounted to SEK 59.8 (57.5) million, an increase of
4 % compared to the corresponding period previous year.
  · EBITDA for the period amounted to SEK 0.8 (-8.2) million.
  · Operating profit amounted to SEK -15.8 (-24.5) million.
  · Net profit/loss for the period amounted to SEK -18.9 (-13.8) million
corresponding to SEK -0.57 (-0.42) per share. Net profit/loss for the period has
been positively affected by market valuation of the bond loan of SEK 1.4 (17.9)
million.
  · Operating cash flow for the period amounted to SEK -0.5 (-16.4) million
corresponding to SEK -0.01 (-0.49) per share.

Key events during the second quarter

  · EU research grant to develop a new generation of vascular access catheters
  · New clinical study for patients with spinal cord injury
  · Marie Wickman-Chantereau new board member
  · Executive Management invests in Bactiguard

Key events after the end of the second quarter

  · New major order from India of 60 000 catheters
  · Extended maturity for credit facility

Comments by the CEO

The positive trend with increased sales of our own portfolio of infection
prevention products for the healthcare sector has continued during the second
quarter. The largest shipment went to China as a result of the order we received
in January this year, in connection with the product approval. In the second
quarter, we delivered almost 110 000 units, which means that we have delivered a
total of approximately 200 000 products so far this year. This is well above the
total annual volume for 2015 and we are well under way towards our goal of at
least doubling sales volumes this year.

We also report significantly higher revenues in the second quarter of 2016
compared to the corresponding quarter of 2015. This is both due to higher
revenue from C.R. Bard and that the revenue from sales of BIP products increased
as a result of higher delivered volumes. Our focus on keeping costs under
control has also produced results and taken together we could see a strong
improvement in EBITDA for the second quarter, compared to the corresponding
period last year. It does not mean that we are satisfied, and we are working
hard towards our long-term financial target of an EBITDA margin of at least 30
percent.

In sales- and marketing, the second quarter continued with intense preparations
for the launch of our urinary catheters in the Chinese market. In May, Madame Li
Bin, China's Minister of Health visited Sweden and, together with the Swedish
Minister of Health Gabriel Wikström, she highlighted the importance of working
together to prevent further spread of multiresistant bacteria, whereprevention
of infections is of strategic importance.

During a few intense days in July, the largest training effort ever in
Bactiguard’s history was initiated, when some 100 product specialists and sales
managers at our Chinese distributor Jian An were trained. From now on they are
approaching the Chinese hospitals, while further training efforts and clinical
tests are planned. In order to regularly train our distributors and support this
massive educational effort, we have developed a digital platform, "Bactiguard
Academy", which will be launched in all markets in several languages during the
third quarter of this year.

In India, sales and marketing activities continued unabated. The initial
deliveries, which were completed in June, have been forwarded to dealers and sub
-distributors in several major metropolitan areas and have started to reach end
customers. A handful of reputable hospitals have tested our product, started
using it, and are now placing repeat orders. In order to meet market needs, the
other day we received another order from our distributor of approximately 60,000
catheters. The clinical study involving a total of 1 000 patients has reached a
level of around 250 patients and the recruitment of new patients is now faster
than before since five of the six hospitals have received ethical approval and
are up and running.

We are also intensifying efforts in Europe, which has produced results in the
form of increased volumes, albeit from a low level. At the same time, we are
evaluating new partnerships for expansion in several European markets. In
Sweden, we meet an increasing interest in our products and we are involved in
more and more public tenders where the need for preventive actions to fight
hospital acquired infections have been identified. In late April, a clinical
study together with the Centre for Spinal Cord Injury in Stockholm was
initiated. The purpose of the study is to evaluate Bactiguard’s anti-infective
catheter, to improve the quality of life for patients with spinal cord injuries,
who often suffer from recurring urinary tract infections.

Within research and development, Bactiguard has received a European research
grant aimed at developing a new generation of vascular access catheters. The
development will be run in a joint project, financed by VINNOVA and Innovative
UK.

The cooperation with our new license partner in orthopaedic implants, Vigilenz
Medical Devices, is in full progress and we are now waiting to start clinical
trials and obtaining product approval. We also continue to evaluate new
potential partnerships and licensing opportunities, where our objective is to
sign at least one new license agreement before the end of the year.

In connection with the Annual General Meeting in May, the industry experience on
the Board was strengthened by Marie Wickman-Chantereau as new Board member. She
works as business area manager for specialist care in Stockholm at Aleris, a
private healthcare provider, and Adjunct Professor of Plastic Surgery at the
Karolinska Institute, Stockholm.

In our ongoing effort to secure long-term financing, the maturity of the credit
facility that we signed an agreement of, in November 2015, was extended to 31
December, 2017.

In May, the management showed its strong commitment to Bactiguard by making a
major investment in the company in order to, also as shareholders, take part in
the company's future development. Altogether, the management invested in shares
to a value of about SEK 9.2 million. I believe this demonstrates the conviction
management shares with the main shareholders of Bactiguard’s potential and
possibility to act as a driving force in the war against hospital acquired
infections.

Christian Kinch
VD

The interim report for Bactiguard Holding AB (publ) for the period April-June
2016 is available as a PDF at www.bactiguard.com

This is information that Bactiguard Holding AB (publ) is required to publish in
compliance with the Swedish Securities Market Act and/or the Financial
Instruments Trading Act. The information was submitted for publication on 11
August, 2016, at 08.00.

A telephone conference for investors, analysts and media will be held at 10:00
CET today, where CEO Christian Kinch and CFO Fredrik Järrsten will present the
interim report and answer questions.

The report and a presentation for the conference call will be available at
Bactiguard’s website www.bactiguard.com from 8:00 CET the same day.

To participate in the conference, please dial +46 8 566 427 01

For further information, please contact:

Fredrik Järrsten, CFO, mobile: +46 725 500 089
About Bactiguard

Bactiguard is a Swedish medtech company with a global presence, offering a
solution that prevents healthcare associated infections caused by medical
devices. By preventing infections, we contribute to a reduced use of antibiotics
and the spread of multi-resistant bacteria, which is a growing problem
worldwide. We save lives, increase patient safety and significantly reduce the
cost for the healthcare and society. Our technology is well-proven, safe and
tissue friendly and consist of a thin layer of noble metals that prevents
bacterial growth. The coating can be applied on almost all medical devices.
Bactiguard-coated urinary catheters are market leading in the US and Japan and
the company has also its own product portfolio consisting of Foley catheters,
central venous catheters and endotracheal tubes. Bactiguard is a growth company,
focused on markets in Europe, Middle East, Asia and Latin America. The company
has about 60 employees worldwide, mainly at the headquarters in Stockholm and
the production facility in Malaysia and is listed on Nasdaq Stockholm. Read more
about Bactiguard at www.bactiguard.com