Inion Optima^TM Biodegradable Implant Platform Receives 2005 Frost & Sullivan Technology Innovation of the Year Award

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 today announces that it has been recognized with a Frost & Sullivan Award for Technology Innovation of the Year.

Background to the Awards

Frost & Sullivan Technology Innovation of the Year Awards are bestowed upon companies or individuals that have carried out new research; which has resulted in innovation(s) that have or are expected to bring significant contributions to the industry in terms of adoption, change, and competitive posture. This award recognizes the quality and depth of a company’s research and development programme as well as the vision and risk-taking that enabled it to undertake such an endeavour.

Frost & Sullivan’s Assesment of Inion

Frost & Sullivan’s 2005 Technology Innovation of the Year Award in the field of ‘bioplastic’ medical implant devices is presented to Inion for its pioneering development of innovative, biodegradable orthopaedic fixation implants. Inion’s orthopaedic fixation implants are completely biodegradable with a predictable degradation profile, possess excellent biomechanical strength, and are safe and easy to use.

Inion’s leading position in biodegradable implants is based on its proprietary Inion Optima^TM family of biomaterials, made by blending rigid and elastic polymer components to create implants with the most appropriate-like strength, malleability and degradation profiles to meet specific clinical requirements. In a significant development, the company was granted in September 2005 its first patent for its next-generation Inion Optima PLUS^TM implant platform. This platform for new biodegradable devices incorporates bioactive components designed to stimulate new bone growth and accelerate the healing process. Preclinical research currently ongoing continues to show significant bioactivity and increased bone growth rates for some models.

Dr Auvo Kaikkonen, CEO of Inion commented, “We are delighted that our biodegradable Optima^TM technology has been recognised by Frost & Sullivan as a major innovation in the field of medical devices. From a commercial perspective the independent research carried out by Frost & Sullivan is a highly credible validation of our technology.”

The Award was presented at the 2005 Best Practices Awards Banquet held on 9^th November 2005 in Florida, USA.

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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

Citigate Dewe Rogerson
Mark Swallow / Helena Podd
Tel: +44 (0)20 7638 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.

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.