Inion Signs Exclusive US Distribution Agreement for its Sports Medicine Product Range with Richard Wolf Medical Instruments Corp

Tampere, Finland and Takeley, UK. 26^th October 2005…Inion [LSE: IIN.L], a rapidly growing company focused on the development of novel biodegradable medical implants, announces that it has entered into an exclusive agreement with Richard Wolf Medical Instruments Corporation for the distribution of the Inion Sports Medicine range of biodegradable medical devices.

Richard Wolf is a global leader in endoscopic diagnosis and therapy systems in the field of human and veterinary medicine. In particular, it is a major innovator in the development of medical equipment focusing on minimally invasive, arthroscopic surgery as used frequently to treat many common sports-related injuries.

The agreement is initially for a period of 12 months and covers the United States. The package of Richard Wolf’s widely respected arthroscopic instrumentation combined with the advanced biodegradable technology of Inion implants will be marketed and sold through a direct sales organization of specialist sales representatives in the US.

The Inion Sports Medicine products are already sold in Europe through a network of specialist distributors, including Aesculap (part of B. Braun), and globally target a combined and growing market worth an estimated US$250-300m. Inion products include:

Inion Hexalon^TM Interference Screw, which is used to secure a repaired cruciate ligament in the knee through an arthroscopic procedure.

Inion Trinion^TM Screw to repair splits and tears in the meniscus (cartilage) in the knee, which acts as a shock-absorber and is often damaged in sports like football and rugby.

Inion Anchron^TM Suture Anchor for soft tissue reattachment most commonly in shoulder surgery repair to re-attach tendons that have become detached through sporting injuries. The Inion Sports Medicine portfolio was completed in mid 2005 with the receipt of both CE mark in the EU and 510(k) in the US for this product.

Dr Auvo Kaikkonen, CEO of Inion commented, “We welcome this agreement with the Richard Wolf organisation. This new focused distribution channel will open up a significant opportunity for Inion in the world’s largest market and the combination of Inion implants with Richard Wolf arthroscopy instruments and equipment will provide an extremely attractive proposition to surgeons in the US. With the increasingly active aging population of the US the demand for this type of product is an interesting growth area for our businesses, particularly as these technologies could speed the return to active life following injury.”

Alfons Notheis, Chief Executive of Richard Wolf USA, commented: “We are delighted to be working with Inion. We believe that the new biodegradable technology that Inion offers will enable us to better answer the needs of our customers and, ultimately, to improve the service that patients receive. We have found that patients are becoming increasingly aware of the benefits that biodegradable implants bring – they are beginning to exercise more personal choice and are looking for more biocompatible materials.”

-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

Richard Wolf                                                              + 1 800 323-WOLF (9653)

Alfons Notheis, Chief Executive Officer                         

Kevin Gallagher, Corporate Director of Sales and Marketing

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 has operations in the UK, R&D and production facilities in Tampere, Finland, and a US office in Oklahoma City, OK.

About Richard Wolf (www.richard-wolf.de and www.richardwolfusa.com)

Richard Wolf Medical Instruments Corporation (RWMIC), a subsidiary of the Germany based Richard Wolf GmbH, is located in Vernon Hills, IL, just North of Chicago. It services the United States and its facility houses manufacturing, assembly, sales and marketing, repair, customer services and administration functions.

The mission of Richard Wolf GmbH is to advance the science of Endoscopy through the continual advancement of research with leading Universities and Physicians. Richard Wolf supports a broad range of endoscopic surgical specialties with an extensive product offering in the specialties of Gynaecology, Urology, General Surgery, Arthroscopy, Spine, ENT and Video.

Richard Wolf core competencies are in the design of optical lens systems, precision stainless-steel instruments and endoscopic video equipment. Recently, its product portfolio has expanded to include the video integration CORE system (Complete Operating Room for Endoscopy).

With its primary manufacturing facilities in Southern Germany since 1947, Richard Wolf, GmbH established its US subsidiary in 1970 as Richard Wolf Medical Instruments Corporation. Other Richard Wolf subsidiaries operate in the UK, Belgium, France, Austria, Dubai and Singapore. All other major world markets are serviced by exclusive independent agents.