Medivir successfully completes private placement of approximately SEK 280 million

Medivir successfully completes private placement of approximately SEK
280 million

Huddinge, Sweden - Medivir (OMX:MVIR), the emerging research-based
specialty pharmaceutical company focused on infectious diseases, today
announces that it has completed a private placement of 2,250,000 new
class B shares, providing the company with approximately SEK 280 million
before transaction costs.

The private placement, which was announced on 2 December 2010, has
allowed Medivir to place 2,250,000 new class B shares with some thirty
international institutional investors and qualified investors in Sweden
at a price of SEK 125 per share through an accelerated book-building
procedure. More than two thirds of the new shares have been subscribed
for by international institutional investors.

The proceeds from the private placement are intended to be used to i)
strengthen Medivir's anti-infective R&D activities through advancing
existing projects further towards commercialization and improving
Medivir's ability to add new projects through strengthened in-house
discovery, ii) explore joint ventures and partnerships, and iii)
continue to strengthen Medivir's commercial capabilities as a platform
for the preparatory activities, including awareness campaigns among key
opinion leaders, for TMC435, Medivir's most promising clinical project,
in the Nordic region where the company has retained full commercial
rights.

For the purpose of the private placement, the Board of Directors of
Medivir has resolved, pursuant to the authorization given by the 2010
annual general meeting, on a directed issue of 2,250,000 new class B
shares. The purpose of the resolution to issue new shares, deviating
from the shareholders' preferential rights, is primarily to broaden the
long-term international institutional ownership in Medivir, and to take
advantage of an opportunity to raise capital for the above-mentioned
purposes on attractive terms, thereby promoting Medivir's ability to
create further value for all shareholders.

The resolution of the Board of Directors is conditional upon the
registration of the new issue with the Swedish Companies Registration
Office not later than on 10 December 2010 and Carnegie Investment Bank
and Jefferies International Limited (the “Placing Agents”) not having
terminated the placing agreement entered into with Medivir prior
thereto. Medivir will make an announcement when the conditions are
satisfied and the new issue is definitive.

The new issue results in an equity dilution of 7.9 percent after
completed issue. Furthermore, the subscription price corresponds to a
discount of 4.4 percent compared to the closing share price on
2 December 2010, the last trading day before the resolution to issue new
shares.

Through the issue, the number of class B shares in Medivir increases by
2,250,000 from 25,590,591 to 27,840,591 and the share capital increases
by SEK 11,250,000 from SEK 131,252,955 to SEK 142,502,955. 

Ron Long, CEO of Medivir, comments
“We are very pleased with the strong support we have received from
prominent international investors and welcome them as shareholders. This
successful transaction not only strengthens Medivir's financial position
but also broadens the awareness and shareholder base outside of the
Nordic region. From this strong financial position we will be able to
realize best value from our R&D pipeline, particularly TMC435, our lead
development drug for hepatitis C, and to create long-term shareholder
value.”

Placing Agents and legal advisors
Carnegie Investment Bank and Jefferies International Limited acted as
placing agents to Medivir. Vinge acted as legal advisor to Medivir.
Gernandt & Danielsson and Cleary Gottlieb Steen & Hamilton LLP acted as
legal advisors to the Placing Agents.

Conference call
Date: 3 December 2010
Time: 10.00 am (CET)
Call-in number: + 46 (0)8-619 75 40
Confirmation code: 322326#

For additional information, please contact
Ron Long, CEO, +46 (0) 8-5468 3100
Rein Piir, CFO & VP Investor Relations, +46 708 537 292.
For more information about the Company, please visit;
www.medivir.se (http://www.medivir.se/)

Huddinge, Sweden, on 3 December 2010
Medivir AB (publ)

The above information has been made public in accordance with the
Securities Market Act. The information was submitted for publication at
8.30 am (CET) on 3 December 2010.

About Medivir
Medivir is an emerging research-based specialty pharmaceutical company
focused on the development of high-value treatments for infectious
diseases. Medivir has world class expertise in polymerase and protease
drug targets and drug development. Medivir has a strong R&D portfolio
and has recently launched its first product Xerese™/Xerclear®. Medivir's
key pipeline asset, TMC435, a protease inhibitor, is in phase 2b
clinical development for Hepatitis C and is partnered with Tibotec
Pharmaceuticals.

Xerese™/Xerclear® is an innovative treatment for cold sores, which has
been approved in both the US and Europe. It is partnered with GSK to be
sold OTC in Europe and Russia and with Meda in North America. Medivir
has retained the Rx rights for Xerclear® in Sweden and Finland.
 

IMPORTANT INFORMATION

The release, publication or distribution of this press release in
certain jurisdictions may be restricted. This press release does not
constitute an offer of, or an invitation to purchase or subscribe for,
any securities of Medivir in any jurisdiction.

This press release does not constitute or form part of an offer or
solicitation to purchase or subscribe for securities in the United
States. The securities referred to herein may not be sold in the United
States absent registration or an exemption from registration under the
US Securities Act of 1933, as amended. Medivir does not intend to
register any portion of the offering of the securities in the United
States or to conduct a public offering of the securities in the United
States. Copies of this announcement should not be made in and may not be
distributed or sent into the United States, Canada, Australia,
Singapore, South Africa, Switzerland, Japan or Hong Kong.

This press release is not a prospectus for the purposes of Directive
2003/71/EC (such Directive, together with any applicable implementing
measures under such Directive in the relevant home Member State, the
“Prospectus Directive”). Medivir has not authorized any offer to the
public of shares or rights in any Member State of the European Economic
Area and no prospectus or other offering document has been or will be
prepared in connection with the private placement (the “Private
Placement”) of shares in Medivir. With respect to each Member State of
the European Economic Area and which has implemented the Prospectus
Directive (each, a “Relevant Member State”), no action has been
undertaken to date to make an offer to the public of shares or rights
requiring a publication of a prospectus in any Relevant Member State. In
any Relevant Member State this communication is only addressed to and is
only directed at qualified investors in that Member State within the
meaning of the Prospectus Directive.

This press release is only being distributed to and is only directed at
(i) persons who are outside the United Kingdom or (ii) to investment
professionals falling within Article 19(5) of the Financial Services and
Markets Act 2000 (Financial Promotion Order 2005) (the “Order”) or (iii)
high net worth companies, and other persons to whom it may lawfully be
communicated, falling within Article 49(2)(a) to (d) of the Order (all
such persons in (i), (ii) and (iii) above together being referred to as
“relevant persons”). The securities are only available to, and any
invitation, offer or agreement to subscribe, purchase or otherwise
acquire such securities will be engaged in only with, relevant persons.
Any person who is not a relevant person should not act or rely on this
document or any of its contents.

The Placing Agents are acting exclusively for Medivir and no one else in
connection with the Private Placement. They will not regard any other
person (whether or not a recipient of this press release) as their
respective clients in relation to the Private Placement and will not be
responsible to anyone other than Medivir for providing the protections
afforded to their respective clients nor for giving advice in relation
to the Private Placement or any transaction or arrangement referred to
herein. No representation or warranty, express or implied, is made by
each of the Placing Agents as to the accuracy, completeness or
verification of the information set forth in this press release, and
nothing contained in this press release is, or shall be relied upon as,
a promise or representation in this respect, whether as to the past or
the future. Each of the Placing Agents assume no responsibility for its
accuracy, completeness or verification and, accordingly, disclaim, to
the fullest extent permitted by applicable law, any and all liability
which they might otherwise be found to have in respect of this release
or any such statement.

The Private Placement will be subject to the condition that any offering
of the new shares completes and that the new shares are issued and duly
and timely registered with the Swedish Companies Registration Office. In
particular, it should be noted that any such offering and formal
documentation relating thereto will be subject to conditions and
termination events, including those which are customary for such
offerings. The Placing Agents reserve the right to exercise or refrain
from exercising their rights in relation to the fulfillment or otherwise
of any such conditions or the occurrence of any termination event in
such manner as they may determine in their absolute discretion. Any
investors in the Private Placement will be deemed to acknowledge that
any offering of the new shares hence may not be completed and that
neither the company nor the Placing Agents in such event shall have any
liability to the investors. Any investors in the Private Placement will
further be deemed to acknowledge (i) the information in this press
release, (ii) that the investors are not relying (for purposes of making
any investment decision or otherwise) upon any advice, counsel or
representations (whether written or oral) of the company, the Placing
Agents or any of their respective affiliates, and (iii) that they have
consulted with their own legal, regulatory, tax, business, investment,
financial, and accounting advisers to the extent they have deemed
necessary, and they have made their own investment decisions based upon
their own judgment and upon any advice from such advisers as they have
deemed necessary. Any investors are also expected to execute a customary
investor letter. The company has not given, and the investors have not
received from the company, any non-public information in connection with
the Private Placement.

This press release contains "forward-looking statements”, which are
statements related to future events. In this context, forward-looking
statements often address Medivir's expected future business and
financial performance, and often contain words such as "expect”,
"anticipate”, "intend”, "plan”, "believe”, "seek”, or "will”.
Forward-looking statements by their nature address matters that are, to
different degrees, uncertain and can be influenced by many factors,
including the behaviour of financial markets, fluctuations in interest
and exchange rates, commodity and equity prices and the value of
financial assets; the impact of regulation and regulatory, investigative
and legal actions; strategic actions; and numerous other matters of
national, regional and global scale, including those of a political,
economic, business and competitive nature. These factors may cause
Medivir's actual future results to be materially different than those
expressed in its forward-looking statements. Medivir does not undertake
to update its forward-looking statements.