Ortivus reports net sales of MSEK 105.0 for 2009

OrtivusFeb 19 2010

• Net sales for the quarter amounted to MSEK 35.6 (23.6) and for the year to MSEK 105.0 (83.1).

• Operating profit for the quarter excluding restructuring costs amounted to MSEK 0.7 (-12.9) and including the one-off items to MSEK -2.0 (-24.6). Operating loss for the year excluding restructuring costs amounted to MSEK -14.9 (-31.3), and including restructing costs amounted to MSEK -17,6 (-41,9).

• Loss after tax for the quarter amounted to MSEK -3.6 (-22.9) and for the year to MSEK -18.5 (-68.9).

• Cash flow during the quarter amounted to MSEK -2.9 (-3.2) and the equity ratio Decemer 31 was 52% (59%).

• Profit/loss per share for the quarter was SEK -0.17 (-1.11) and for the year SEK 0.89 (-2.11).

SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD

• Ortivus is selling its North American operation. The sale price is USD 11.5 million (approximately SEK 83 million).

• During January, Ortivus and its Spanish partner Dextro Medica entered into an agreement to supply the organization Baleares 061 with MobiMed for a total of 50 ambulances.

CEO’s statement

During 2009, we have placed great focus on the sale of products and solutions within the framework for our core operation, i.e. advanced mobile and clinical monitoring and decision-making support for modern healthcare. This has resulted in an increase in sales of 66% in our units in Sweden and the UK. At the same time, we have worked further on reducing our costs and the introduction of a savings programme of around MSEK 10, primarily within the Swedish operation, which will come into full effect during 2010.

After the year-end, the strategy of refining the operation was completed through the sale of the North American operation. The American company, which concentrated on development and sale of administrative systems, primarily for ambulance transport, was sold to the American company TriTech Systems. The deal gives us the chance to focus even more on development and sale of mobile decision support for healthcare; an area that the healthcare sector throughout Europe is showing rapidly growing interest in, with the aim of improving care outcomes, but also the efficiency of the care process. With our unique combination of clinical know-how and solid knowledge about the development of mobile IT systems, we are particularly well equipped to meet these expressed requirements and expectations of the market. The deal strengthens Ortivus' bank balance with approximately SEK 38 million, and makes the company free of debt.

During the year, investments in research and development have continued within the project areas of both MobiMed and CoroNet. A new version of MobiMed was launched within the framework for our "Software Assurance" programme, with improved functionality and performance. The new version of CoroNet includes further development of the wireless Bluetooth monitoring, and thus an improved care situation for both patient and care providers. The upgrades of both product areas have been received very well by the market, and during the year a number of important deals have been closed, of which the following deserve mention: during the first quarter, Västra Götaland region made a decision to install MobiMed in its ambulances, strategic CoroNet deals were closed with the hospitals in Falun and Helsingborg, and existing customers in the UK increased their installed base of ambulances, and thus also MobiMed.

During 2009, some changes were also made to the sales and marketing function, and its way of working. The sales organization was also strengthened with further competence. During the year, we also continued the work of developing and establishing strategic collaboration with a number of selected partners in several European countries, primarily in Germany, the UK and Spain. Additionally, Magnus Nordgren takes up the post as CFO for Ortivus on 8 March 2010.

We do have many challenges ahead of us, and we are still some way from a proven long-term profitable operation. However, I am very satisfied with the platform we now have created within Ortivus, and the response we have received from the market during 2009. With our advanced products and services within mobile clinical monitoring, with unique knowledge about the development of clinical IT systems, with an increased marketing and sales organization, and with strengthened finances, we are now well equipped to take the next step towards implementing our strategy, namely to bring out our competitive products and solutions onto the European market.

Jan B Andersson CEO

19 February 2010