BioGaia

Capital/Financing Update • Dec 1, 2015

Press Release 1 December 2015

BioGaia makes further investment in MetaboGen

In December 2014 BioGaia reported its decision to invest SEK 12 million in MetaboGen AB, Gothenburg, Sweden. The investment should be made over a two year period.

The first investment of SEK 4 million took place in December 2014 and as MetaboGen has reached the agreed milestones the second investment of SEK 4 million was made today.

BioGaia thereafter owns 27% of the share capital of MetaboGen, and if further milestones will be reached, the last investment of SEK 4 million will take place at the end of 2016. BioGaia's share of the company will then be 35%.

MetaboGen is a research company, which was founded in 2011 in Gothenburg by Professor Fredrik Bäckhed at the University of Gothenburg and Professor Jens B Nielsen at Chalmers University of Technology together with GU Holding, which commercializes research results and develops companies linked to the University of Gothenburg. MetaboGen researches in metagenomics, the research intensive and fast developing field of gene sequencing of all genes in the microbial communities of for example the human gut to find previously unknown members and patterns of the microbial diversity related to health and disease. The aim is to develop new treatments and products for different metabolic and other microbial associated diseases by influencing large parts of the microbiota.

Peter Rothschild is chairman of the board and Sara Malcus is president in MetaboGen AB.

For further information please see BioGaia's press release from 1 December 2014 on BioGaia's website: www.biogaia.com/press-releases

For additional information please contact

Peter Rothschild, President, telephone: +46 8 555 293 20

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BioGaia has published this information in accordance with the Swedish Securities Market Act. The information was issued for publication on 1 December 2015 10:00 am CET.

BioGaia is a healthcare company that develops, markets and sells probiotic products with documented health benefits. The products are primarily based on the lactic acid bacterium Lactobacillus reuteri which has probiotic, health-enhancing effects. The class B share of the Parent Company BioGaia AB is quoted on the Mid Cap list of the NASDAQ OMX Nordic Exchange Stockholm. www.biogaia.com