Sweden's Oss-Q Raises SEK13.7M, Rebrands as OssDsign

STOCKHOLM, July 15, 2013. Oss-Q AB, a Swedish medtech company focusing on
implants for bone replacement, has received SEK 13.7m through a rights issue and
will now initiate a clinical trial with OssDsign Cranio PSI, its implant for
skull reconstruction. In connection with these important advances, the company
will change its name to OssDsign AB.

Karolinska Development invested SEK 6.8m in
the rights issue, increasing its ownership in OssDsign AB from 16% to 26%*.
After closing of a SEK 13.7m financing round, OssDsign has taken another
important step by initiating a clinical multi-center study with its first
product, OssDsign Cranio PSI. In addition to clinical outcome, the study
evaluates quality of life and health economics. The first patients in the study
have recently been treated at the Karolinska University Hospital in Stockholm.

Bo Qwarnström, CEO, OssDsign:
"The clinical study with OssDsign Cranio PSI is conducted on patients for whom
previous treatments with conventional skull implants have failed. The positive
results so far with OssDsign Cranio PSI, suggest that this implant could be an
important new option for this patient category, especially if the skull injuries
are severe. Our goal is to document this in the current study."

The launch of OssDsign Cranio PSI will provide a valuable platform for further
development of applications in skull surgery and in other orthopedic areas, such
as fracture healing. The market for bone replacement products was worth EUR 1bn
in 2012.

Torbjörn Bjerke, CEO, Karolinska Development:
"It was natural for us to increase our ownership in OssDsign, the company has
made great progress in a short time. The surgical procedures carried out so far
with OssDsign Cranio PSI have been successful in all cases and, for some
patients, life changing. If the company can repeat the results in the current
study, it will be a great achievement for all patients with skull injuries and
also for the owners."

Serious accidents and open brain surgery can result in large and complicated
damage to the skull. In many cases, today's implant materials result in poor
clinical outcomes, which is why OssDsign developed a new implant where
biomaterials, mechanical properties and implant design are optimized precisely
for these injuries. OssDsign develops a new bioceramic material with a chemical
composition similar to bone. The company's strategy is to transform this
technology into distinctively differentiated products for bone replacement and
to build a niche company in orthopedics, starting with sales in skull surgery.

* Direct and indirect investment and ownership through KCIF Co-Investment Fund
KB


For further information, please contact:
Bo Qwarnström, CEO, OssDsign AB
Phone: +46 76 899 85 87, email: bq@ossdsign.com

Torbjörn Bjerke, CEO, Karolinska Development AB
Phone: +46 72 744 41 23, e-mail: torbjorn.bjerke@karolinskadevelopment.com

Benjamin Nordin, IRO, Karolinska Development AB
Phone: +46 73 093 60 80, e-mail: benjamin.nordin@karolinskadevelopment.com

Original story