Inion Signs Three-Year Development Agreement with
University of Cambridge

Collaboration with Medical Materials Group to extend next-generation bioactive materials platform

Tampere, Finland and Takeley, UK. 10^th November 2005…Inion [LSE: IIN.L], a rapidly growing company focused on the development of novel biodegradable medical implants, has entered into a three-year collaboration agreement with The Cambridge Centre for Medical Materials at the University of Cambridge Department of Materials Science & Metallurgy.

The collaboration will focus on developing a new medical materials platform combining the proprietary Inion Optima[TM] biodegradable polymers with nano-phase bioactive ceramics under development at the University.

These new Biodegradable Bioactive Nano Composite (BBNC) materials are complementary to Inion’s own Optima PLUS[TM] bioactive platform in development, which combines Inion Optima[TM] polymers with N-methyl-pyrollidone (NMP). In time it is expected that both platforms will be used to manufacture innovative medical fixation devices for a broad range of clinical applications.

The Cambridge Centre for Medical Materials (CCMM) is world-renowned in the field of innovative medical materials. The centre was set up in 2000 by Prof. William Bonfield, at the University of Cambridge, Department of Materials Science and Metallurgy, and has strong links with the prestigious Orthopaedic Research Unit, headed by Prof. Neil Rushton, Professor of Orthopaedics at Addenbrooke’s Hospital.

The co-directors of CCMM, Dr Serena Best and Dr Ruth Cameron, and their research team are among the most highly regarded in the field of therapeutic materials, and the group’s research has pioneered the development of bioactive technologies to promote tissue healing.

Commenting on the agreement, Dr Cameron and Dr Best stated; “We are delighted to be entering into this project with Inion. The technologies that each partner has developed have the potential to converge and produce an entirely novel technology platform. Once this platform is established it will offer many potential applications throughout the body. Our experiences have shown that by carefully selecting complementary technologies we are able to deliver results that match, and even improve on, the body’s ability to heal itself.”

Auvo Kaikkonen, CEO of Inion said; “We are thrilled to be working with such a prestigious group as the CCMM. Through our many relationships with academic institutions across the world we have been able to develop technologies that offer real benefits to patients and clinicians alike. This latest project has the potential to match these achievements and provides greater breadth in our ability to develop next-generation biomaterials and medical implants designed to enhance the healing process.”

Inion will make a small financial contribution to the collaboration and has taken a non-exclusive, non-royalty bearing licence for commercialising any resulting products. The Company has an option to make the licence exclusive in return for making royalty payments on future product sales. The University of Cambridge will retain intellectual property rights to the use of the technology it is contributing to this collaboration. 

-Ends-

For further information, please contact:

Inion Oy    
Dr Auvo Kaikkonen, Chief Executive Officer
Tim Hirst, Corporate Communications
Tel: +358 3 230 6600
Tel: +44 (0)1279 874 222

University of Cambridge
Karen Dean, Press and Publications Office
Tel: +44 (0)1223 765 542

Citigate Dewe Rogerson
Mark Swallow / Helena Podd
Tel: +44 (0)207 638 9571

About Inion (www.inion.com)

Inion Oy is a Finnish company that specializes in the development of biodegradable medical implants.

The Inion core expertise and technology lies in the design and manufacture of innovative biodegradable plates, screws, pins and membranes that are used to enhance the healing of skeletal injuries (bone and soft tissue), such as those caused by trauma or by reconstructive surgery. Inion implants are made from its proprietary Inion Optima™ family of biomaterials, with properties tailored for specific surgical applications, in terms of strength, flexibility and rate of degradation.

Inion has developed and launched products in four strategic business areas – cranio-maxillofacial surgery, orthopaedic trauma, sports medicine and dental surgery – in more than 40 countries worldwide. In addition, the Company has recently received a CE Mark for its first biodegradable product in the significant spinal implant area.

Inion was incorporated in early 2000 by an international team of experts in biodegradable materials and their clinical applications, and listed on the Official List of the UK Listing Authority in December 2004. The Company’s has operations in the UK, R&D and production facilities in Tampere, Finland, and a US office in Oklahoma City, OK.

About Cambridge Centre for Medical Materials (www.msm.cam.ac.uk/ccmm)

Cambridge Centre for Medical Materials was founded in 2000 to pioneer research into novel materials for medical application. It is part of the Department of Materials Science and Metallurgy (www.msm.cam.ac.uk) at the University of Cambridge (www.cam.ac.uk), and is now co-directed by Dr Serena Best and Dr Ruth Cameron, both Readers at the University.

Existing medical implants are, in the main, merely tolerated by the surrounding tissue.  CCMM’s research concerns the next generation of medical materials which interact therapeutically with the body, having bioactive structures which encourage the tissue’s natural function, as well as, for example, providing tailored mechanical support, or releasing drugs at a controlled rate. The group has a strong track record in the fields of skeletal implants, medical prostheses and devices, drug delivery systems, tissue engineering, bioceramics and bioactive coatings and resorbable and stable polymers for implantation. 

CCMM works closely with the prestigious Orthopaedic Research Unit, headed by Prof. Neil Rushton, at Addenbrooke’s Hospital, and has many national and international collaborations with both academic and industrial partners.

This announcement includes "forward-looking statements" which include all statements other than statements of historical facts, including, without limitation, those regarding the Group's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Group's products), and any statements preceded by, followed by or that include forward-looking terminology such as the words "targets", "believes", "estimates", "expects", "aims", "intends", "will", "can", "may", "anticipates", "would", "should", "could" or similar expressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Group's control that could cause the actual results, performance or achievements of the Group to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Group's present and future business strategies and the environment in which the Group will operate in the future. Among the important factors that could cause the Group's actual results, performance or achievements to differ materially from those in forward-looking statements include those relating to Inion’s funding requirements, regulatory approvals, reliance on third parties, intellectual property, key personnel and other factors. These forward-looking statements speak only as at the date of this announcement. The Group expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this announcement to reflect any change in the Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. As a result of these factors, prospective investors are cautioned not to rely on any forward-looking statement.