Vitrolife acquires Cryo Management Ltd and thereby broadens the product portfolio

Vitrolife has entered into an agreement to acquire Cryo Management Ltd, one of
the world’s leading players within time-lapse for IVF, developer of Primo Vision
time-lapse embryo monitoring system. Through the acquisition Vitrolife gains
access to a product portfolio in the form of successful time-lapse products for
IVF and increased knowledge within IVF technology and embryo development.
Vitrolife has entered into an agreement to acquire 100% ownership in Cryo
Management Ltd by September for a purchase sum of EUR 5 million, which can be
increased to EUR 9 million upon the fulfilment of defined objectives primarily
related to sales during the period 2013 to 2015. The acquisition is conditional
on approved Due Diligence. The fixed purchase sum is financed by a corporate
acquisition loan of EUR 3 million and by payment of EUR 2 million in newly
issued shares or cash. If payment is in shares, this is planned to be carried
out after distribution of the subsidiary Xvivo Perfusion AB. Vitrolife
anticipates that the acquisition will have a marginally negative effect on
earnings per share for 2012 due to increased marketing activities and
transaction expenses but that the business will make a positive contribution as
from 2013.

Cryo Management Ltd and its subsidiary Cryo Innovation Ltd are located in
Budapest, Hungary. The company was formed in 2005, and has 20 employees and
budgeted sales of approximately EUR 2 million for 2012. The company has
successfully developed, produced and marketed time-lapse products, primarily for
the IVF market.

The Primo Vision time-lapse technology means that embryos (fertilized eggs) are
placed into a culturing dish in a microscope, which is located inside an
incubator. The microscope then takes images of the embryos at short intervals
during the cultivation process. The pictures are then played back as a film
which is analyzed by an embryologist. This method avoids, amongst other things,
today’s problem that the sensitive embryo is subjected to stress when being
evaluated as the embryo must be taken out of the incubator for assessment. The
time-lapse technology also enables the entire development of the embryo to be
studied, which gives greater opportunities to choose the most optimal embryo and
thereby improve the chances of pregnancy.

“Cryo Innovation and Vitrolife share the values and the desire to create results
for the customer in the form of greater chances of pregnancy by providing the
best possible quality and technology. The companies have the same customers in
the form of embryologists and gynecologists, which creates synergy gains in the
sales area. Through its state-of-the-art knowledge within embryology, image
processing and optics Cryo Innovation has successfully developed a world-leading
product portfolio within time-lapse. By combining Vitrolife’s media and Cryo
Innovation’s time-lapse system we assess that there are good opportunities to
offer improved treatment results for our customers. We are impressed by the
drive and competence in Cryo Innovation’s organization. The areas of technology
provided by the acquisition will be of great importance for future development
within Vitrolife,” says CEO Thomas Axelsson.

June 29, 2012
Gothenburg, Sweden
VITROLIFE AB (publ)
Thomas Axelsson, CEO
Queries should be addressed to:
Thomas Axelsson, CEO, phone 46 31 721 80 01
Mikael Engblom, CFO, phone 46 31 721 80 14

Vitrolife is required to publish the information in this press release in
accordance with the Swedish Securities Market Act and/or the Financial
Instruments Trading Act. The information was submitted for publication on June
29, 2012 at 3:00 p.m.

This is a translation of the Swedish version of the press release. When in
doubt, the Swedish wording prevails.
Vitrolife (http://www.vitrolife.com/en/Corporate/) is a global
biotechnology/medical device Group that works in the areas of Fertility and
Transplantation. The Fertility (http://www.vitrolife.com/en/Fertility/) product
area works with nutrient solutions (media), cryopreservation products and
advanced consumable instruments such as needles and pipettes, for the treatment
of human infertility. Work is also carried out to enable the use and handling of
stem cells for therapeutic purposes. The
Transplantation (http://www.xvivoperfusion.com/transplantation/) product area
works with solutions and systems for assessing and preserving organs outside the
body, so as to be able to select usable organs and keep them in optimal
condition pending transplantation.

Vitrolife (http://www.vitrolife.com/en/Corporate/) today has approximately 220
employees and its products are sold in almost 90 markets. The company is
headquartered in Gothenburg, Sweden, and there are also offices in USA,
Australia, France, Italy, United Kingdom, China and Japan. The Vitrolife
share (http://www.vitrolife.com/en/Corporate/Financial/The-share1/) is listed on
NASDAQ OMX
Stockholm (http://www.nasdaqomxnordic.com/aktier/shareinformation?Instrument=SSE
1 
3469), Small Cap.

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Vitrolife AB (publ), Box 9080, SE-400 92 Göteborg, Sweden. Corporate identity
number 556354-3452. Tel: 46 31 721 80 00. Fax: 46 31 721 80 99. E-mail:
info@vitrolife.com. Website: www.vitrolife.com/