Lifecare ASA

Business and Financial Review • Jan 3, 2024

LIFE: Letter from CEO - Happy New Year

LIFE: Letter from CEO - Happy New Year

The technology development and company progress were fantastic in 2023. We

expect nothing less in 2024, in our mission to make life easier for patients

and pets with diabetes.

One year ago, we communicated Lifecare's focus in 2023 to continue the core

product development, achieve ISO 9001 and ISO 13485 certifications and

production preparations. Furthermore, we disclosed the intention to initiate

new development projects.

The entire Lifecare organization has executed the core development focus and

preparations in accordance with the communicated plan. Lifecare's share price

development of +146.7% throughout the year is a confirmation that this

execution was well received by the market. Lifecare was by far the best

performing healthcare stock, and the overall 5th best performing stock at Oslo

Stock Exchange in 2023.

In 2023 Lifecare passed several company milestones and development events of

which we want to highlight:

Technology development

* Finalization of our first Clinical study (LFS-SEN-001), providing a clear

Proof of Concept in humans.

* In addition, the data from LFS-SEN-001 confirmed that Lifecare's sensor

technology has an accuracy of MARD 9,7%. This result indicates a sensitivity

in line with the regulatory "gold standard", hence clinical decisions can be

based on the Lifecare Sencell CGM.

* Lifecare's laboratory experiments (in-vitro) confirmed that an operational

lifetime of minimum 6 months can be expected.

* The European Patent Office communicated its intentions to issue a new patent

to Lifecare.

* Representatives from the Lifecare Group have published several publications

and presentations in various journals and global diabetes technology

congresses throughout the year.

Regulatory compliance

* Our German main site Lifecare Laboratory GmbH was ISO 9001 certified in

March 2023.

* In November 2023 Lifecare Laboratory was successfully audited under the ISO

13485 standards. The formal certification is expected in January 2024.

* The Norwegian Food Safety Authority issued regulatory approval for

LFS-SEN-002 longevity study.

* The Norwegian Medicines Agency confirmed that Lifecare's microchip

nanosensor is considered as a medical device in the veterinary market and

consequently that Lifecare's Sencell CGM will not be subject to any specific

regulatory requirements for veterinary use.

Product and production development

* In April 2023 Lifecare signed a lease agreement for 1000 sqm production and

laboratory premises in Mainz where the company's main production facility

will be located.

* In May 2023, Lifecare launched Lifecare Veterinary to manage veterinary

product development, and prepare product launch in the veterinary market.

* From Q2 2023 Lifecare has focused on transforming the company and the

technology towards automated production and market launch in the veterinary

market.

* In Q4 2023 Lifecare has placed several orders for advanced production

equipment essential for the automated production planned to be ready by the

end of Q2 2024.

* In September and November 2023 Lifecare reported progress relating to the

company's Product Development Agreement with Sanofi.

Company development and valuation

Throughout 2023 Lifecare have continued to strengthen the organization with

additional human resources, including key personnel for transformation of the

company towards production and commercialization.

In October 2023 Lifecare successfully closed a capital increase of 42.5 MNOK

ensuring financing to bring the company into the production and product ready

phase. The capital increase led to a company market cap of 337.5 MNOK.

In November 2023, Lifecare published a commissioned technology valuation

report from the Danish Life Science Valuation company Xplico. The report

concludes that Lifecare's technology have a risk-adjusted Net Present Value of

247 MEUR.

However, while we look back on 2023, we can conclude that the actual trading

price increased with 146.7%, and the market cap of Lifecare increased with

276% to 600 MNOK throughout the year. The share price increase positioned

Lifecare as the best performing healthcare stock and the overall 5th best

performing share at Oslo Stock Exchange in 2023.

Exciting year coming up

The main focus for 2024 is to continue the transformation towards marked

readiness based on establishing automated production by end of Q2 2024. On

this basis we aim to launch our first product in the veterinary market in

2024, as well as to initiate our longevity study in dogs (LFS-SEN-002) and our

next clinical study (LFS-SEN-003). The clinical study LFS-SEN-003 will be the

first of a sequence of activities specifically aimed towards obtaining the CE

mark for launch in the humane market.

In parallel with the production and product preparations we will intensify our

efforts to take advantage of our technology's platform potential. We aim to

exploit product potential in new markets, including sensing and/or monitoring

of analytes beyond glucose. It is likely that our veterinary initiative will

play a major role in the additional business developments.

The Lifecare Group is better positioned than ever before as we prepare to

execute on our mission to make life for patients and pets with diabetes

easier, better, and more predictable.

Everyone at Lifecare wishes all our shareholders, partners, and other

stakeholders a happy and prosperous new year.

Joacim Holter

CEO, Lifecare

About us

Lifecare AS is a clinical stage medical sensor company developing technology

for sensing and monitoring of various body analytes. Lifecare's main focus is

to bring the next generation of Continuous Glucose Monitoring ("CGM") systems

to market. Lifecare enables osmotic pressure as sensing principle, combined

with the ability to manipulate Nano-granular Tunnelling Resistive sensors

("NTR") on the sensor body for read-out of pressure variations. Lifecare's

sensor technology is referred to as "Sencell" and is suitable for identifying

and monitoring the occurrence of a wide range of analytes and molecules in the

human body.

Contacts

For further information, please contact:

Joacim Holter, CEO, Lifecare AS, joacim.holter@lifecare.no, +47 40 05 90 40

Asle Wingsternes, Head of Communications & Public Affairs,

asle.wingsternes@lifecare.no, +47 41 61 42 52