Bactiguard Holding

Regulatory Filings • Jul 7, 2014

Press release Stockholm, 7 July 2014

Bactiguard expands market presence in Southern Africa

Bactiguard establishes market presence in Southern Africa and has entered into exclusive distribution agreements, covering seven sub-Saharan countries and Bactiguard's complete portfolio of solutions for infection control. An initial order for Foley catheters has already been shipped to Zambia.

The order is for Foley catheters, primarily intended for the University Teaching Hospital in Lusaka (UTH). Zambia, like most countries in Africa faces major challenges with healthcare associated infections (HAI), and antibiotic resistant bacteria.

"We are very pleased to enter into this partnership with Bactiguard as it enables the UTH to address issues of infection control and use of antibiotics within the hospital. Bactiguard's know-how and high quality products will indeed be able to free hospital beds, which is a concern for us," Dr Lackson Kasonka, hospital director at UTH, said at the signing of a letter of intent with Bactiguard last year.

Through these agreements, Bactiguard expands its business to 49 countries worldwide, and establishes a solid market presence in sub-Saharan Africa. The African countries, including South Africa, Angola, Mozambique, Zambia, Republic of Congo, Democratic Republic of Congo and Gabon, have a combined population of 190 million inhabitants and experience increasing problems with healthcare associated infections and multi-resistant bacteria, like the rest of the world.

The healthcare sector is growing in the region and the market for products within Bactiguards focus area e.g. Foley catheters, CVCs and ETTs, is currently estimated at approximately 35 MEUR. The demand is estimated to grow by at least the same rate as overall healthcare spending, at about 10 percent annually.

"Hospital acquired infection and antibiotic resistant bacteria are a huge global concern. The fact that emerging markets with major healthcare challenges and limited budgets see the value in using Bactiguard's technology as a preventive measure is very encouraging", says Johan Rugfelt, CEO Bactiguard.

"We initiated our market activities in Africa just over a year ago and this work is now bearing fruit. We will have a strong market presence in Southern Africa and establish our business in

growing economies with large populations, with special emphasis on South Africa and Zambia.

The initial order from Zambia is primarily intended for the University Teaching Hospital in Lusaka, the largest hospital in the country with more than 1,600 hospital beds. What we have achieved this far is beyond our expectations," says Johan Rugfelt, CEO.

For further information, please contact:

Johan Rugfelt, CEO, switchboard: +46 8 440 58 80 Cecilia Edström, Director of Communications, mobile: +46 722 262 328

About Bactiguard

Bactiguard is a Swedish medtech company with a business concept of preventing healthcare-related infections, reducing the use of antibiotics and saving lives by developing and supplying infection prevention solutions for the healthcare industry. The company's patented coating prevents healthcare-associated infections by reducing bacterial adhesion and growth on medical devices. Bactiguard®-coated urinary catheters are market leading in the US and Japan, and in recent years the company has developed its own product portfolio of coated catheters for the urinary and respiratory tract and the blood stream. Bactiguard is currently in a strong expansion phase, focused on new markets in the EU, Middle East, Asia and South America. The company reported sales of approximately SEK 130 million in 2013 and has 60 employees, headquarters in Stockholm and production facilities in Markaryd and Malaysia. The Bactiguard share is listed on NASDAQ OMX Stockholm. Read more at www.bactiguard.se.