- Private placement commences today The Board of Directors of Ossur agreed at a board meeting 29 October 2007 to increase the Company's share capital through a private placement of new shares to a limited number of institutional investors, representing an increase of up to 10% of its total issued share capital. Ossur intends to apply for the new shares to be admitted to trading on OMX Nordic Exchange Iceland hf. (“OMXI”). The purpose of the offering is to strengthen the Company's capital structure and expand the shareholder base. The offering will be managed by Kaupthing Bank hf. (Kaupthing). Summary of the private placement • A private placement of new shares to a limited number of institutional investors. • Ossur intends to issue up to 38,059,553 new shares, representing up to approximately 10% of its total issued shares. • Subscriptions will be accepted today, 30 October 2007, and until 6 p.m. GMT tomorrow, 31 October 2007, by Kaupthing's equity sales desk. However, Kaupthing and Ossur reserve the right to close the offering earlier in case of excess demand for the new shares. • Ossur will, in co-operation with Kaupthing, allocate the new shares at its sole discretion and reserves the right to reject individual subscriptions, in part or in full. • The results of the private placement will be published no later than 8 p.m. GMT on Wednesday 31 October 2007. • Investors will be required to pay the purchase price of the new shares no later than 4 p.m. GMT on Wednesday 7 November 2007. • Ossur's board of directors will utilize its authorization to increase the share capital, which was granted to the board by the Company's shareholders at its annual general meeting on 24 February 2006, where the shareholders further agreed to waive their pre-emptive rights to subscribe for any new shares issued in respect of the increase. • The new shares will be sold at a price in the range of ISK 101-103 per share. • The new shares are expected to be admitted to trading on OMXI no later than on Monday 12 November 2007. Further information: Jon Sigurdsson, President & CEO, Ossur, tel. +354-515-1300 Thorolfur Jonsson, Managing Director, Investment Banking, Kaupthing, tel. +354-444-6000 Frosti Reyr Runarsson, Head of Equity Sales, Capital Markets, Kaupthing, tel. +354-444-6000