Episurf — Share Issue/Capital Change 2019

May 9, 2019

Episurf Medical AB (publ) publishes prospectus

NOT FOR RELEASE, DISTRIBUTIONOR PUBLICATION, DIRECTLYOR INDIRECTLY, INOR INTO THEUNITED STATES OF AMERICA, AUSTRALIA, CANADA, THEUNITED KINGDOM, JAPAN, NEW ZEALAND, SINGAPORE, SWITZERLAND, SOUTH AFRICAOR ANYOTHER JURISDICTION IN WHICH THERELEASE, DISTRIBUTIONOR PUBLICATION WOULD BEUNLAWFUL

Episurf Medical AB (publ) ("Episurf Medical") announces that the prospectus for the share issue with preferential rights for the shareholders, which was announced by Episurf Medical on 5April 2019 and approved by the extraordinary general meeting on 7 May 2019, today has been approved by the Swedish Financial Supervisory Authority. The prospectus is now available on Episurf Medical's website, www.episurf.com. It will also be available on Redeye's website, www.redeye.se, and the Swedish Financial Supervisory Authority's website, www.fi.se.

Financial and legal advisors

RedeyeAB acts as financial advisor and DLA Piper Sweden acts as legal advisor to Episurf Medical in connection with the rights issue.

For more information, please contact:

Pål Ryfors, CEO, Episurf Medical Tel:+46 (0) 709 62 36 69 Email: pal.ryfors@episurf.com

Veronica Wallin, CFO, Episurf Medical Tel:+46 (0) 700 37 48 95 Email: veronica.wallin@episurf.com

About Episurf Medical

Episurf Medical is endeavoring to bring people with painful joint injuries a more active, healthier life through the availability of minimally invasive and individualised treatment alternatives. Episurf Medical's Episealer® individualised implants and Epiguide® surgical drill guides are developed for treating localised cartilage injury in joints. Episurf Medical's μiFidelity® system enables implants to be cost-efficiently tailored to each individual's unique injury for the optimal fit and minimal intervention. Episurf Medical's head office is in Stockholm, Sweden. Its share (EPIS B) is listed on Nasdaq Stockholm. For more information, go to the company's website: www.episurf.com.

This information is information that Episurf Medical AB (publ) is obliged to make public pursuant to the Financial Instruments Trading Act (1991:980). The information was submitted for publication, through the agency of the contact person set out above, at 14.30 CEST on 9 May 2019.

IMPORTANT INFORMATION

The information in this press release does not constitute an offer to acquire, subscribe for or otherwise trade with shares or other securities in Episurf Medical. No action has been taken, nor will any actions be taken, to permit an offer to the public in any other jurisdiction than Sweden. An invitation to eligible persons to subscribe for shares in Episurf Medical will only be made through the prospectus which Episurf Medical intends to publish on or about 9 May 2019.

The information in this press release may not be published or distributed, directly or indirectly, within or into the United States ofAmerica (including its territories and possessions, any state of the United States and the District of Columbia, the "USA"), Australia, Canada, Hong Kong, Japan, New Zealand, SouthAfrica, Switzerland, the United Kingdom or any jurisdiction where doing so might be unlawful, subject to legal restrictions or require other actions than the ones prescribed under Swedish law. Actions in violation of these instructions may constitute a breach of applicable securities law. This press release does not constitute an offer of invitation to acquire or subscribe for shares in the USA. No subscription rights, paid subscribed shares (BTA) or shares or other securities issued by the Company (the "Securities") have been, nor will they be, registered under the U.S. Securities Act of 1933, as amended (the "SecuritiesAct") or the securities laws in any other state or jurisdiction in the USA and no Securities may be offered, subscribed, used, pledged, sold, retailed, delivered or transferred, directly or indirectly, in or into the United States other than pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States. The Securities have not been and will not be approved or registered by the Securities and Exchange Commission (SEC), any state securities authority or other authority in the USA. No such authority has assessed or made any statements about the offer or the accuracy or reliability of the prospectus. To assert the contrary is a criminal act in the USA.

Within the European Economic Area ("EEA"), no offer of Securities is made in any other jurisdiction than Sweden. In other member states in the EEA which have implemented the Directive 2003/71/ECof the European Parliament and of the Council ("ProspectusDirective"), an offer of Securities may only be made in accordance with an exemption from the Prospectus Directive and any relevant implementation measures (including measures to implement the Directive 2010/73/EUof the European Parliament and of the Council).

This press release may contain certain forward-looking statements which reflect Episurf Medical's current view of future events and financial and operational developments. Words such as "intends", "estimates", "expects", "may", "plans", "deems", "believes", "assesses", "anticipates", "will", and other similar expressions which imply indications or predictions regarding future developments or trends, and which are not based on historical facts, constitute forwardlooking information. Forward-looking information is by nature affiliated with known and unknown risks and uncertainties since it is dependent on future events and circumstances. Forward-looking information does not constitute any guarantee regarding future results or development and the actual outcome may materially differ from forward-looking statements. The information, assessments and forward-looking statements in this press release are only relevant as of the date of this press release and may change without notice.