(“Inion or the “Company”)

Results for the six months ended 30 June 2008

Tampere, Finland and Guildford, UK. 29 August 2008, Inion (LSE: IIN.L), a company focused on the development of novel biodegradable medical implants, today announces its unaudited half-year results for the six months ended 30 June 2008.

The Company is holding a meeting for analysts at 9.30am today at the offices of Piper Jaffray Ltd, One South Place, London EC2M 2RB. Conference call dial-in details are as follows:

Std International Dial in: +44 (0) 1452 567 588

Conference code: 6121081267#

A copy of the presentation and full announcement is attached below. 

Financial summary

Sales for H1 2008 were €2.59 million, up 12% on sales of €2.31 million for the same period in 2007. Sales development is in line with market expectation to achieve full year sales of approximately €7 million. 

Sales for Q2 2008 were €1.8 million, 115% higher than in Q1 2008, and 34% higher than in the corresponding period in 2007.

Operating loss down 20% to €4.85 million (H1 2007: €6.08 million), with pre-tax loss down 11% to €5.25 million (H1 2007: €5.92 million)

Cash, cash equivalents and short-term investments at €7.77 million as at 30 June 2008 (€13.82 million at 31 December 2007)

Currently evaluating a range of options available to the Company to ensure it is well-funded in order to  bridge the business to profitability

Operational summary (including post-period highlights)

FDA 510(k) marketing clearance received post the period end in July 2008 for Inion’s biodegradable graft containment systems for spinal fusion procedures allowing the Company to accelerate commercial activities in the spine market. Inion’s spinal surgery products received European marketing clearance in 2007

Inion’s commercial operation continues to develop and deliver increasing sales. In the USA, 40 distributors are currently engaged, with 22 focusing on the sales and distribution of speciality orthopaedics products and 18 focusing on spine product sales. US commercial activity is focused on the launch of the recently approved spinal graft containment systems alongside the training and engagement of high volume users in these areas. In the key markets within Europe and the Far East retraining the distributors’ sales force continues, focusing on the core business areas of spine and speciality orthopaedics

David Follows has been promoted to Chief Operating Officer, from Chief Commercial Officer and Dave Hawkes has been promoted to US National Sales Director, from Regional Sales Manager for the Central USA region.

Out-licensing agreement signed in August with US firm Curative Biosciences Inc. covering novel bioactive technology for promoting bone regrowth and repair when treating patients with broken bones.

Ian Paling, Inion’s Chairman, said: “Inion has a great product offering and a focused commercial operation run by an experienced and professional team. With these elements in place, the Company’s future is all about successful execution of its commercial strategy. We are pleased therefore to report today an improved sales performance during the first half of 2008 compared to the same period last year. Given the progress the Company has made over the past 18-24 months, we are confident we will see continued growth during the second half of the year, to achieve our sales target of approximately €7 million for the full year for 2008.”

 -ends-

For further information, please contact:

Inion Oy

Ian Paling, Chairman

Chris Lee, Chief Executive Officer

Julien Cotta, Chief Financial Officer

Tel: +44 (0)1483 685390

Citigate Dewe Rogerson

Mark Swallow / David Dible

Tel: +44 (0)207 638 9571

About Inion (www.inion.com)

Inion Oy is a medical devices company focused on the development and successful commercialisation of innovative and unique biodegradable surgical implants and bone graft substitutes in selected high value orthopaedic market segments.

Inion's core expertise and technology lies in the design and manufacture of innovative biodegradable plates, screws, pins and membranes, which are used to enhance the healing of bone or soft tissue injuries to the skeleton, such as those caused by trauma or by reconstructive surgery. Inion implants are made from its proprietary Inion® family of biodegradable materials, with properties tailored for specific surgical applications, in terms of strength, flexibility and rate of degradation

Inion is also focused on developing proprietary new biodegradable biomaterials that promote bone healing and accelerate patient rehabilitation.

Inion was incorporated in early 2000 and listed on the Official List of the UK Listing Authority in December 2004 (ticker: IIN). The Company has offices in the UK and USA, and its head office, R&D and production facilities are in Tampere, Finland.

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.

08_INI_18 Interim Results FINAL.pdf (67.79 kilobytes)

Interim presentation final 29 Aug 2008.pdf (781.32 kilobytes)