Inion Receives US Patent for the Pioneering Use of Colour in Biodegradable Surgical Implants

First products developed for Sports Medicine and Orthopaedic Applications

Tampere, Finland and Takeley, UK 14^th December 2006…Inion Oy (LSE: IIN.L) (“Inion”), a company focused on the development of novel biodegradable medical implants has been granted a US patent (US patent No. 7,135,025) for the use of colour in its biodegradable surgical implants for sports medicine and certain orthopaedic applications.

In 2002, Inion launched its first coloured biodegradable product, the Inion Hexalon™ screw for repair of cruciate ligament injuries of the knee. Inion Hexalon™ is a significant development in the field of biodegradable implants as it allows clear visibility during arthroscopic insertion (keyhole surgery). All of Inion’s sports medicine implants range have incorporated this innovation, including Inion Trinion™ (meniscal repair device), Inion Anchron™ (suture anchor for soft tissue to bone fixation) and Inion OTPS™ pins for orthopaedic applications.

Before the introduction of Inion Hexalon™, biodegradable materials were typically translucent and consequently often poorly distinguishable from tissue during implantation. Inion discovered that an implant dyed with D&C Green No. 6 was clearly distinguishable from tissue and also that such implants retained their colour after sterilization using radiation. Accordingly, Inion’s coloured implants are easily visible when used in surgical procedures, and provide a significant advantage over implants that are not dyed or that use dyes that fade upon irradiation.

Dr Auvo Kaikkonen, CEO of Inion commented: “The granting of this patent for the use of colour in biodegradable implants reinforces Inion’s position as a pioneer in the field of medical implants. Inion worked closely with orthopaedic surgeons to develop coloured implants that offer significant surgical benefits to their standard translucent predecessors. The importance of this innovation is such that other companies are following Inion’s lead in this area.”

The US patent, which was recently granted, covers surgical fixation implants sterilized by radiation and made of resorbable polymer and dyed with a colouring agent D&C Green No. 6, the amount of the colouring agent being at most approximately 0.03 percent by weight.

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For further information, please contact:

Inion Oy      
Dr Auvo Kaikkonen, Chief Executive Officer
Dr Kirk Andriano, VP of R&D
Tel: +44 (0)1279 874 222

Citigate Dewe Rogerson
Mark Swallow / David Dible / Helena Galilee
Tel: +44 (0)207 638 9571
Mobile +44 (0)7903 737703

About Inion (www.inion.com)

Inion Oy is a Finnish company that specialises 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 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.