Observe Medical — Earnings Release 2021

Nov 3, 2021

Observe Medical ASA: Interim report for the third quarter and 2021

Observe Medical ASA: Interim report for the third quarter and 2021

Oslo, November, 3rd, 2021 - Observe Medical ASA (OSE: OBSRV) today released

its financial results and presentation of the third quarter of 2021. The Company

reports strong revenue growth for the Nordic portfolio, continued progress in

the commercialization and go-to-market execution for Sippi® including an update

on preparations for US market entry.

CEO of Observe Medical, Björn Larsson commented: "We are building a Nordic-based

medtech company with global reach, with the Sippi® digital urine meter as our

first product. The roll-out of Sippi® is the key focus for the company, and

during the third quarter we have taken important steps forward. Sippi® has been

successfully pre-launched in Poland, and hospitals in Italy and Finland have

decided to implement Sippi® connected to their data management platform. In

Sweden, Nya Karolinska Sjukhuset is the first customer to expand the use of

Sippi® outside the intensive care unit. Together with further strengthened

indications of the clinical benefits of Sippi® and health economic evidence of

the cost savings and economical value of the system, this makes us well equipped

to continue execution of the go-to-market strategy."

The roll-out of Sippi® is done through a close collaboration with distributors

in markets outside the Nordics, whereas Observe Medical has a direct sales

operations in the Nordics.

"We aim to expand the network of distributors and are currently screening and

targeting additional European partners. There is also a significant potential

for launch in the US market. During the third quarter we have strengthened our

US patent protection, and at the same time clarified the regulatory pathway in

the USA," said Björn Larsson.

Observe Medical's revenue in the third quarter of 2021 was NOK 7.6 million (NOK

9,000 in the same quarter in 2020). The increase from 2020 was primarily driven

by the added revenue from the acquired sales and distribution operations in

Sweden. On a comparable basis, Observe Medical grew revenues with 148 percent in

the third quarter 2021 compared to the same period in 2020.

Observe Medical's EBITDA in Q3 2021 was negative NOK 6.7 million (negative NOK

4.8 million in the same quarter in 2020), affected by increased headcount and

development projects in the quarter. The net result in the period ended at

negative NOK 8.4 million (negative 5.9 million).

Observe Medical ASA invites you to a presentation of the third quarter 2021. The

presentation will take place at Felix Konferansesenter in Oslo today, 3 November

2021. The event will start at 08.30 CET and will be webcasted live on

www.observemedical.com - Investor relations and at the following link:

https://channel.royalcast.com/landingpage/hegnarmedia/20211103_5/

Representatives from the Company will be: CEO Björn Larsson and CFO Per Arne

Nygård.  Shortly after the presentation the webcast recording will be published

on the same site.

For further information, please contact:

Björn Larsson, CEO of Observe Medical,

Mobile: +46 76 620 17 25

E-mail: bjorn.larsson@observemedical.com

Per Arne Nygård, CFO of Observe Medical,

Mobile: +47 411 04 345

E-mail: perarne.nygard@observemedical.com

About Observe Medical (https://obervemedical.com) Observe Medical develops and

markets and sells innovative hospital products that contribute to increased

patient safety and a more efficient care system. The company's ambition is to

drive growth by leveraging its expertise in sales and commercialization of its

broad portfolio of medical technology products, mainly in the areas of Urine

measurement, Anesthesiology/ICUs and wound care, in combination with targeted

M&A. The company's headquarters is in Oslo, Norway and its operations is based

out of Gothenburg, Sweden. Observe Medical has a direct sales organization in

the Nordics and a distributor network internationally. Observe Medical's product

Sippi® is the only automated digital urine meter with possibility for wireless

data transfer to the hospital patient data management systems and hinders

biofilm formation that can lead to urinary infections (Sippcoat®). Sippi® is

currently being launched with focus on selected markets and hospitals in Nordics

and in Europe.