Inion Appoints Seppo Nevalainen as
General Manager – Tampere

Experienced Medical Device Professional Joins Executive
Management Team

Tampere, Finland, 26 June 2006. Inion [LSE: IIN.L], a Finnish company focused on the development of novel biodegradable medical implants, is pleased to announce that Seppo Nevalainen has been appointed as General Manager- Tampere, where he will be responsible for all of the company’s operations. Inion’s site in Tampere is at the centre of the company’s business carrying out R&D, marketing, manufacturing, logistics, customer support as well as certain quality and IT, financial and legal functions. Mr Nevalainen will be a member of the Executive Management Team and report to Dr Auvo Kaikkonen, Inion’s CEO.

Mr Nevalainen has spent the last 19 years working in the medical devices industry and most recently, he was General Manager for GE Healthcare, formerly Instrumentarium, Life Support Division of Europe, Middle-East and Africa, a company focused on the anaesthesia and critical care markets. Mr Nevalainen is an experienced marketing business professional who has managed a number multi-functional organisations focused on developing and supporting a network of international distributors.

Commenting on Mr Nevalainen’s appointment, Dr Auvo Kaikkonen, Inion CEO said: “We are very pleased to welcome Seppo to the team. His many years of business experience in the medical device industry, combined with his operational management expertise and leadership skills will ensure that he plays a key role in the development of Inion’s business.”

Seppo Nevalainen commented, “Inion has an exciting future based on its biodegradable medical implant technology. I am looking forward to using my international medical business experience to successfully manage the company’s operations in Tampere and to further develop cooperation between the company’s distributor and partner network. These are two key activities which are central to Inion becoming a highly successful and profitable business."

-Ends-

 For further information, please contact:

Inion Oy    

Dr Auvo Kaikkonen, Chief Executive Officer

Tel: +358 3 230 6600
Tel: +44 (0)1279 874 222

Citigate Dewe Rogerson

Mark Swallow / David Dible / Helena Galilee
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 five strategic business areas – cranio-maxillofacial surgery, orthopaedic trauma, sports medicine, dental surgery and most recently in the spinal implant area – in nearly 50 countries worldwide.

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.