Photocure ASA

Earnings Release • Aug 26, 2014

Photocure ASA: Results for second quarter and the first half year 2014

Photocure ASA: Results for second quarter and the first half year 2014

Oslo, Norway, 26 August 2014: Photocure (OSE: PHO), a Norwegian specialty

pharmaceutical company focused on photodynamic technologies in dermatology and

cancer, announces its results for second quarter and the first half year 2014.

Highlights include:

(Numbers in brackets are for the corresponding period in 2013)

* Total sales revenues of Hexvix/Cysview increased 14% in second quarter and

22% year to date to NOK 43.2 million (NOK 35.4 million) driven by volume

growth in the major markets, price increases and positive currency effects

* Hexvix/Cysview global in-market sales value growth of 14% in the quarter to

NOK 43 million and 24% year to date to NOK 89 million

* Second quarter operating loss from continued operations was significantly

reduced to NOK 5.7 million compared to NOK 13.9 million in second quarter

last year

* Cash and cash equivalents of NOK 141 million as of 30 June 2014

* Introduction of a bill to the US Congress to secure US senior patients

access to state-of-the-art cancer treatment technology; this will if enacted

by Congress provide separate payment to hospitals for Cysview in the US

* Updated expert recommendations on the clinical and cost effectiveness of

Hexvix published in European Urology in July recommend the use of Hexvix in

the management of a broader bladder cancer population

* Completion of the re-analysis of the Cevira phase 2b data confirmed that

Cevira provides an improvement in treatment efficacy compared to placebo in

patients with high-grade precancerous lesions of the cervix (HSIL).

* In August, following the proposed merger agreement between Salix and Cosmo

Pharmaceuticals S.p.A, Photocure and Salix agreed to terminate the global

licensing agreement for Lumacan®. Photocure has received a payment of USD 5

million and will regain the global rights and all intellectual property to

Lumacan

Key figures:

+-------------------------------+-------+-------+------+-------+-------+-------+

|Figures in NOK million |2Q 2014|2Q 2013|Change|1H 2014|1H 2013|FY 2013|

+-------------------------------+-------+-------+------+-------+-------+-------+

|Sales revenues Hexvix / Cysview| 23.8| 20.9| 14 %| 43.2| 35.4| 77.9|

+-------------------------------+-------+-------+------+-------+-------+-------+

|Sales revenues API | 0.5| 0.5| 9 %| 0.7| 0.7| 1.4|

+-------------------------------+-------+-------+------+-------+-------+-------+

|Signing fee & milestone | 1.1| 1.1| 8 %| 2.3| 2.1| 4.3|

|revenues | | | | | | |

+-------------------------------+-------+-------+------+-------+-------+-------+

|Total revenues | 25.5| 22.5| 14 %| 46.2| 38.1| 83.6|

+-------------------------------+-------+-------+------+-------+-------+-------+

|Gross profit | 23.5| 20.4| 15 %| 42.6| 34.7| 76.8|

+-------------------------------+-------+-------+------+-------+-------+-------+

|Research and development | 7.3| 6.5| 13 %| 16.0| 15.7| 34.0|

|expenses | | | | | | |

+-------------------------------+-------+-------+------+-------+-------+-------+

|Sales and marketing expenses | 13.5| 19.2| -30 %| 27.6| 38.2| 68.4|

+-------------------------------+-------+-------+------+-------+-------+-------+

|Operating result excl. | -5.7| -13.9| -59 %| -19.4| -37.6| -63.0|

|restructuring & one-off | | | | | | |

+-------------------------------+-------+-------+------+-------+-------+-------+

|Operating result incl. non- | -5.7| -18.0|  | -19.4| -41.7| -75.5|

|recurring | | | | | | |

+-------------------------------+-------+-------+------+-------+-------+-------+

|Net profit/loss | -4.2| -15.2|  | -17.2| -36.6| -58.9|

+-------------------------------+-------+-------+------+-------+-------+-------+

|Earnings per share, diluted | -0.20| -0.72|  | -0.81| -1.73| -2.78|

|(NOK) | | | | | | |

+-------------------------------+-------+-------+------+-------+-------+-------+

President & CEO Kjetil Hestdal, M.D. Ph.D. comments:

"Sales of Hexvix/Cysview remained strong in the second quarter, achieving year

to date growth of 22%. Alongside this positive growth in revenue, our focus on

cost control has resulted in reduced losses.

The continued unit sales growth of Hexvix/Cysview across all markets

demonstrates the untapped potential for Hexvix/Cysview. In the US market, our

efforts coupled with the efforts of other key stakeholders within the Urology

and Bladder Cancer community, passed a milestone with the introduction of a new

Congressional bill to secure a long term sustainable reimbursement solution for

this valuable product. For Cevira we have made progress toward meeting the FDA

requests by completing the reanalysis of the phase 2b data. This will now allow

for continued discussions with the FDA."

Please find the full financial report and presentation enclosed.

Photocure ASA will present its interim report today at Hotel Continental, Oslo,

Norway. The presentation will begin at 08.30 (CET) and representatives from the

company will be Kjetil Hestdal, President & CEO and Erik Dahl, CFO.

The presentation will be publicly available at www.photocure.com. It will be

possible to follow the presentation through a live webcast.

A light snack will be served from 08:00 (CET). The presentation is scheduled to

conclude at 09:15 (CET).

Photocure will additionally host an audio webcast and conference call today in

English at 16:00 CET / 15:00 GMT / 10:00 EST.

Please make sure to dial in 5-10 minutes prior to scheduled conference call

start time on one of the following numbers:

* NORWAY:        +47 2316 2771

* UK:                  +44(0)20 7784 1036

* USA:                +1646 254 3363

Confirmation code: 9613990

It is possible to listen to a replay of the conference call on the following

numbers:

* NORWAY         +47 2100 0498

* UK                   +44 (0)20 3427 0598

* USA                 +1 347 366 9565

Confirmation code: 9613990

For further information, please contact:

Photocure

President & CEO Kjetil Hestdal

Tel: + 47 913 19 535, Email: kh@photocure.no

CFO Erik Dahl

Tel: +47 450 55 000, Email: ed@photocure.no

Hume Brophy

Mary Clark

Tel: +44 20 3440 5653

Email: photocure@humebrophy.com

About Photocure

Photocure, headquartered in Oslo Norway, is a specialty pharmaceutical company

and world leader in photodynamic technology. Based on our unique proprietary

Photocure Technology(TM) platform, Photocure develops and commercializes highly

selective and effective solutions within disease areas with high unmet medical

need, such as bladder cancer, HPV and precancerous cervical lesions, colorectal

cancer and skin conditions. Our aim is to provide solutions which can improve

health outcomes for patients worldwide. Photocure is listed on the Oslo Stock

Exchange (OSE: PHO). Information about Photocure is available at

www.photocure.com.

All trademarks mentioned in this release are protected by law and registered

trademarks of Photocure ASA.

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1850959]