Inion Expands Biodegradable Medical Implant Product Ranges in US

510(k) clearances received for additional OTPS™ Biodegradable Screws and CPS™ Baby plates

Tampere, Finland and Takeley, UK. 20^th June 2005…Inion [LSE: IIN.L], a rapidly growing company focused on the development of novel biodegradable medical implants, has received 510(k) regulatory clearances in the US to market additional products in its range of biodegradable implants for both orthopaedic and cranio-maxillofacial applications. 

Inion’s OTPS™ 2.5mm, 2.8mm and 3.1mm biodegradable screws are used, either alone or in conjunction with Inion OTPS™ biodegradable plates, to maintain the alignment and fixation of bone fractures, osteotomies, arthrodeses or bone grafts (i.e. autografts or allografts) in the presence of appropriate additional immobilization (e.g. rigid fixation implants, cast or brace).

The range of OTPS™ biodegradable screws are made from Inion’s proprietary OPTIMA™ biomaterial and were previously cleared only for use in the hand. This new clearance will allow the company to address a wider range of fractures, and particularly those requiring stronger support, for example, in the foot and leg.

In addition, Inion has received 510(k) clearance for 40-hole and 64-hole biodegradable plates, which form part of the Inion CPS™ Baby (Paediatric Compact Plating System) product range.

Inion CPS™ Baby is intended for use in the fixation of craniofacial fractures and osteotomies in children. The new products will be used by surgeons carrying out corrective surgery on infants and children with a range of birth defects including craniosyntosis. This condition, which affects one in 20,000 babies, is caused when the bones of the skull fuse together prematurely after birth, resulting in the skull developing an unusual shape, and can only be treated with surgery.

510(k) clearance is required to medical device manufacturers prior to commercial distribution in the US.

-Ends-

For further information, please contact:

Inion Oy    

Dr Auvo Kaikkonen, Chief Executive Officer                                               
+358 3 230 6600

Tim Hirst, Corporate Communications                                                      
+44 1279 874 222 

Citigate Dewe Rogerson                                                                                                                                   +44 (0)20 7638 9571

Mark Swallow / Helena Podd

About Inion (www.inion.com)

Inion Oy is a Finnish company that specialises in the development of biodegradable medical implants. Inion’s 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’s implants are made from its proprietary 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, and has a number of international distribution agreements in place, with among others Stryker Corporation and Aesculap (part of B.Braun).

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 (LSE: IIN). The Company’s has corporate headquarters in the UK, R&D and production facilities in Tampere, Finland, and a US office in Oklahoma City, OK.

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.