Inion Expands Biodegradable Medical Implant Product Ranges in Europe

Inion ANCHRON™ Plus Suture Anchor System receives CE Mark

Tampere, Finland and Takeley, UK. 19 January 2007…Inion [LSE: IIN.L], a company focused on the development of novel biodegradable medical implants, has received CE Mark* from the British Standards Institution (BSI) for the Inion ANCHRON™ Plus Suture Anchor device for both orthopaedic and sports medicine applications. This product received equivalent 510(k) regulatory clearance for marketing in the USA in November 2006.

Inion ANCHRON™ Plus with CP-Fiber™ suture is an innovative biodegradable medical system for use in soft tissue to bone fixation (e.g. for repair of ligament/tendon rupture or detachment) and can be used for repairing a range of injuries. It has particular application in the shoulder, such as for rotator cuff and instability repairs (such as Bankart and SLAP lesions). The system can also be used to repair injuries in the elbow, ankle and knee. The high grade CP-Fiber™ suture offers special advantages over traditional polyester sutures, including superior handling properties and increased strength.

Inion ANCHRON™ Plus supersedes Inion ANCHRON™, Inion’s first biodegradable anchor system, and is a new addition to Inion’s range of sports medicine devices made from the Company’s proprietary Inion OPTIMA™ range of biomaterials. This range includes Inion HEXALON™, the world’s first coloured biodegradable repair device for the cruciate ligaments in the knee; Inion TRINION™, the biodegradable meniscal screw for the repair of torn knee cartilage; and Inion ANCHRON™, which received its CE Mark and 510(k) approval in 2005.

Dr Auvo Kaikkonen, CEO of Inion commented, “We are very pleased to have received a CE Mark for Inion ANCHRON™ Plus, allowing patients and surgeons across Europe access to a product that we believe offers a considerable performance advantage over other suture anchors currently available.”

CP-Fiber™ is a trademark of CP Medical, Inc., Portland, OR, USA.

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.

* CE Mark is required by a number of accredited bodies to medical device manufacturers prior to commercial distribution in the European Union.