Observe Medical — Earnings Release 2020

Feb 23, 2021

Observe Medical ASA: Interim report fourth quarter 2020

Observe Medical ASA: Interim report fourth quarter 2020

Oslo, February 23[rd], 2020 - Observe Medical ASA (OSE: OBSRV) today released

its presentation of the fourth quarter 2020, reporting continued progress in

terms of the commercialization and go-to-market strategy for its first product

Sippi®. Sippi® is a unique and proprietary solution for digital automated urine

monitoring in hospitals.

"Sippi® contributes to improved clinical outcome for hospitalized patients,

enhances the working situation for health care professionals and drives

efficiency for clinics. During Q4 2020 and the beginning of 2021 we have brought

more systems into clinical use both in Sweden and Italy. This will serve as

reference for other customers going forward," said CEO of Observe Medical, Björn

Larsson.

In Q4 2020, Observe Medical closed the acquisition of Sylak AB, a Swedish

medtech company with a strong sales team and a product portfolio synergistic

with Sippi®, now fully integrated into the Observe Medical sales operations.

"We have a strong and highly competent Nordic sales operations, which will be

instrumental in accelerating the rollout of Sippi® into clinical use in the

Nordics. We have also strengthened our commercial footprint in Norway through

collaborations with Yallow Life Science AS and Norway Health Tech," said Björn

Larsson.

In the Nordics, Observe Medical has reported that Nya Karolinska Sjukhuset in

Sweden will resume the implementation of Sippi® in clinical use, after a pause

in 2020 due to Covid-19. Observe Medical is also ramping up in Italy and

reported recently that Sippi® is installed in clinical use at the ICU department

of a major Hospital in Northern Italy.

"We are pleased that Nya Karolinska Sjukhuset - a leading university hospital in

Europe, has decided to resume the implementation of Sippi® at the Cardiothoracic

ICU Department and that the cooperation with our Italian distribution partner

SIM Italia has proven to work exceptionally well. We expect these recent

advancements to serve as a reference for other departments at the same hospitals

as well as at other hospitals", said Björn Larsson.

Observe Medical's revenue in the fourth quarter of 2020 was NOK 2.9 million, up

from approx. NOK 94 thousand in the same quarter in 2019. The increase was

primarily driven by the added revenue from the acquired sales and distribution

activities in Sweden. The Company's EBITDA was negative NOK 9.5 million

(negative NOK 3.6 million in the same quarter in 2019), affected by increased

cost related to increased headcount, market activities and transaction expenses

related to M&A. The net result in the period ended at negative NOK 20.4 million

(negative 4.5 million), affected by finance expenses mainly related to increased

non-cash contingent consideration liabilities.

Observe Medical is hosting a presentation of the fourth quarter 2020 financial

results as a video webcast Tuesday, February 23[rd], 2021. The event will start

at 08.30 CET and will be webcasted on www.observemedical.com - Investor

relations and on the following link:

https://channel.royalcast.com/landingpage/hegnarmedia/20210223_2/

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

Nygård.

Viewers are welcome to ask written questions during and after the presentation

through the webcast player.

For further information, please contact:

Björn Larsson, CEO.

Mobile: +46 76 620 17 25

E-mail: bjorn.larsson@observemedical.com

Per Arne Nygård, CFO

Mobile: +47 411 04 345

E-mail: perarne.nygard@observemedical.com

About Observe Medical

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 headquarter 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 bacterial migration that can lead to urinary infections

(Sippcoat®). Sippi® is CE marked and is currently being launched with focus on

selected markets and hospitals in Nordics and in Europe.