Interim report January – June 2014

Record quarter and first half sales with reduced operating loss.
Financial summary January – June 2014

  ·
Global net sales increased by 12% to SEK 77.5m (69.4)*. Adjusted for currency
fluctuations, net sales increased by 8% Year over Year (Y-o-Y).

    ·
Net sales for clinical use of NIOX MINO/NIOX VERO increased by 16% despite a
decrease in the US of 15% (15% in local currency) primarily due to the refocus
of the sales force and selling process.

    ·
Strategic sales (sales to pharmaceutical companies and CROs for clinical trials)
increased by 7%. These sales fluctuate substantially between quarters.

  ·
Total worldwide quantity of tests sold (repeat and initial) reached almost 1.2m
(1.0) tests, an increase of 17% Y-o-Y and in the US for clinical use decreased
by 8%. Total repeat test volume for clinical use increased by 22% and in the US
by 19%.

  ·
The Gross Margin for the 1H was 69% (72%). The reduction vs prior year was
driven by a change in channel mix with more sales going through distributors
with a lower overall margin. This strategic shift was balanced by lower
operating expenses as we were able to reduce headcount in areas now serviced
through distributors.

  ·
The loss after tax improved to SEK 107.6m (110.0), corresponding to a loss per
share before and after dilution of SEK 0.7 (0.7). The operating loss improved to
SEK 88.4m (106.1).

Financial summary April – June 2014

  ·
Global net sales increased by 19% to SEK 42.5m (35.7)*. Adjusted for currency
fluctuations, net sales increased by 15% in the quarter.

    ·
Net sales for clinical use of NIOX MINO/NIOX VERO increased globally by 19%
reaching SEK 32.9m (27.8), making it the best clinical quarter, in-spite of a
decrease in the US of 17% (17% in local currency).

    ·
Strategic sales increased by 34% to SEK 8.3m (6.2).

  ·
Total worldwide quantity of tests sold (repeat and initial) reached almost 0.7m
(0.5) tests, an increase of 20% Y-o-Y and in the US for clinical use decreased
by 12%. Total repeat test volume for clinical use increased by 24%, and in the
US by 21%.

  ·
Gross Margin for the quarter was 68% (70%).

  ·
The loss after tax amounted to SEK 54.7m (55.7), corresponding to a loss per
share before and after dilution of SEK 0.4 (0.4). The operating loss amounted to
SEK 43.7m (52.6).

Significant events April – June 2014

  ·
On April 2nd, NICE (National Institute for Health and Care Excellence) published
guidelines (http://www.nice.org.uk/newsroom/news/SimpleTestToHelpDiagnoseAndMana
g 
eAsthma.jsp) recommending the use of Aerocrine’s NIOX MINO® and NIOX VERO® to
help guide the diagnosis and management of asthma in both adults and children.

  ·
On June 12th, Aerocrine announced changes in leadership as Marshall Woodworth
was appointed as the new Chief Financial Officer and Anders Murman was promoted
to Chief Technological Officer.

AEROCRINE IN BRIEF

+-----------------------------+-----+------+------+------+----------+------+
|                             |April - June|Jan - June   |Full year        |
+-----------------------------+-----+------+------+------+----------+------+
|SEKm                         |2014 |2013  |2014  |2013  |Rolling-12|2013  |
+-----------------------------+-----+------+------+------+----------+------+
|Net sales                    |42.5 |35.7  |77.5  |69.4  |144.3     |136.2 |
+-----------------------------+-----+------+------+------+----------+------+
|-of which strategic sales    |8.3  |6.2   |12.6  |11.8  |26.8      |27.3  |
+-----------------------------+-----+------+------+------+----------+------+
|Gross profit/loss            |29.0 |25.0  |53.5  |50.2  |101.1     |97.8  |
+-----------------------------+-----+------+------+------+----------+------+
|Gross margin %               |68%  |70%   |69%   |72%   |70%       |72%   |
+-----------------------------+-----+------+------+------+----------+------+
|Operating profit/loss        |-43.7|-52.6 |-88.4 |-106.1|-188.0    |-205.7|
+-----------------------------+-----+------+------+------+----------+------+
|Net profit after tax         |-54.7|-55.7 |-107.6|-110.0|-223.2    |-225.6|
+-----------------------------+-----+------+------+------+----------+------+
|Cash flow, current operations|-47.1|-54.2 |-105,2|-118.2|-199.0    |-212.1|
+-----------------------------+-----+------+------+------+----------+------+
|Total cash flow              |-47.9|260.8 |-107,3|194.9 |-212.5    |89.7  |
+-----------------------------+-----+------+------+------+----------+------+

For further information, please contact:

Scott Myers, CEO: +46 768 788 379 or +1 970 368 0336            or Marshall
Woodworth, CFO: + 1 919 749 8748

www.aerocrine.com or www.niox.com

*Note all numbers in ( ) are the corresponding period previous year and in the
same unit.

This is information that Aerocrine AB (publ) is required to publish in
accordance with the Swedish Securities Markets Act and/or the Swedish Financial
Trading Act. This information was submitted for publication on July 24, 2014, at
8.00 a.m.