Q-Med Clarifies Article in Dagens Industri August 12

UPPSALA, Sweden, Aug. 15, 2005 (PRIMEZONE) -- In order to avoid any misunderstandings due to an article written by Jesper Ronnback in the newspaper Dagens Industri on Friday August 12, Q-Med wants to make the following clarifications.

The article was based on statements to the court made by the parties involved and these have been public for 20 days. DI's article makes it sound as if sales of RESTYLANE to Japan were in danger due to the fact that the company is in dispute with the company RHC regarding the interpretation of a distributor's agreement. This is not the case. Use of the products is today greater than previously in Japan and they have excellent prospects! One of Q-Med's success factors is that we place great demands on our partners.

Distribution and sales of esthetic implants in Japan RESTYLANE is an implant for esthetic treatment and it is today not possible to obtain registration and sales approval for such products in Japan. This means that there are no marketing or distribution rights that can be transferred to a potential distributor. Japanese doctors can, however, import RESTYLANE on their own initiative, as frequently occurs. In order to facilitate these imports, Q-Med engaged RHC as an exclusive service partner in 2004 and handed over the customer enquiries that existed at the time. RHC, however, failed to meet Q-Med's requirements. In addition the Japanese doctors looked for other service partners or abandoned RESTYLANE. Q-Med was therefore forced to inform RHC that they had forfeited their exclusive position through their own fault. Their business share had by then shrunk to a fraction of what they had taken over in 2004. RHC responded to this by suing Q-Med!

Ongoing legal dispute

The main issue in the ongoing dispute has not yet been tried. The court of appeal has, however, taken an interim decision that Q-Med shall continue its cooperation with RHC until the case has been tried in its entirety by a court. Q-Med has at no time opposed this. There is thus no dispute concerning a distribution agreement, but rather a dispute concerning a fading service agreement. We did not consider that any reason existed to inform the owners about this matter as its impact on current sales for the time being was considered to be of minor significance.

Discontinued legal action in the USA In the article DI has also misinterpreted the outcome of a patent dispute in the USA, since it states that Q-Med lost the case. After the unparalleled success of RESTYLANE in the USA, the largest competitor sued Q-Med for patent infringement. Three months ago it was decided to discontinue the legal action. No damages have been paid by Q-Med. Legal fees for the proceedings amounted to approximately SEK 30 million for Q-Med.

I am sorry that the article has, through its lack of objectivity, caused concern amongst Q-Med's owners. Q-Med's information to the stock market is and remains reliable, just like its information to the media.

Bengt Agerup

NASHA, DUROLANE, ZUIDEX, IMPLACER, DEFLUX and all the products within the RESTYLANE family are trademarks that belong to Q-Med.

In the US, Q-Med AB's affiliate is the wholly-owned subsidiary Q-Med Scandinavia, Inc.

Q-Med AB (publ) Seminariegatan 21, SE-752 28 Uppsala, Sweden Corporate identity number 556258-6882 Tel: +46(0) 18-474 90 00 Fax: +46(0) 18-474 90 01 info@q-med.com www.q-med.com

Q-Med is a rapidly growing and profitable biotechnology/medical device company that develops, produces and markets medical implants. All products are based on the company's patented NASHA technology - Non-Animal Stabilized Hyaluronic Acid. The products covered by the RESTYLANE trademark are used for the filling out of lips and facial wrinkles and for facial contouring and today account for the majority of sales. RESTYLANE is sold in over 70 countries and has been approved in the USA. DUROLANE, Q-Med's product for the treatment of osteoarthritis of the hip and knee joints, has been approved in Europe since May 2001. DEFLUX is a product which has been approved in Europe and the USA for the treatment of vesicoureteral reflux (a malformation of the urinary bladder) in children. ZUIDEX for the treatment of stress urinary incontinence in women has been sold in Europe since July 2002. Q-Med today has approximately 550 employees, with approximately 350 at the company's production facility and head office in Uppsala. The Q-Med share is listed on the O-list, Attract 40, of Stockholmsborsen.

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