Össur - Third Quarter Report 2013 Highlights *

Highlights * Net profit was up by 28% and amounted to USD 13 million or 12% of sales, compared to USD 10 million and 10% of sales in Q3'12. * Sales amounted to USD 105 million compared to USD 99 million in Q3'12, corresponding to a 5% growth and 3% organic growth, both measured in local currency. * Bracing and supports sales grew by 6% and 1% organic, both measured in local currency. * Prosthetics sales grew by 5% and 4% organic, both measured in local currency. * Performance in EMEA continued to be strong across all markets. Americas showed some positive signs, however uncertainty in the US market is expected to continue. * Gross profit amounted to USD 65 million and 62% of sales, compared to USD 62 million and 63% of sales in Q3'12. * EBITDA amounted to USD 22 million and 21% of sales, compared to USD 18 million and 19% of sales in Q3'12. * OPEX as a ratio to sales declined and was 45% compared to 47% of sales in Q3'12. Cost savings initiatives executed in the second quarter are materializing. * Cash generated by operations was 23% of sales, compared to 17% in Q3'12. * On 1(st) of October Össur completed the acquisition of TeamOlmed, announced on 21(st) of May 2013. TeamOlmed will be included in the Össur consolidation as of 1(st) of October 2013. * Two minor acquisitions were closed during the quarter. Financial Guidance for 2013 * Management reiterates its previous guidance for 2013; LCY organic sales growth is expected to be in the range of 2-4% and adjusted EBITDA margin 18-19%. Jón Sigurðsson, President & CEO, comments: "We are pleased to see the results of the quarter, with the highest operating profits Össur has generated along with a very strong cash flow. In the second quarter we executed cost reduction initiatives which are having the intended impact in this quarter. Performance in EMEA continues to be good and we see some positive signs in Americas. However, we believe that it is realistic to expect some disturbance in the US for the next couple of quarters. In the third quarter we continued to strengthen our position and sales channels through two minor acquisitions, followed by the closing of the acquisition of TeamOlmed in October." Conference Call Össur will host a conference call on Thursday 24 October 2013 at 12:00 CET/ 10:00 GMT/ 6:00 EST. To participate in the call please dial Europe: +44 (0) 203 364 5374 or +46 (0) 8 505 564 74, The United States: + 1 855 753 2230, Iceland: 800 8660 [HUG#1737633]