Interim report 2nd quarter & 1H 2010

Content

Highlights

Second quarter 2010 and 1H 2010 Key Figures

Segment Vitaflo

Segment New Business

Financials

Summary and outlook

23-04-20 2

Highlights

Improved profitability in Vitaflo, following improved Gross Margin, positive EBITDA in 1H 2010 and reduced operating costs

Registration of the Aspen portfolio progressing according to plan. Product launches expected from 2H 2011

Extended cooperation with ASPEN – Navamedic to distribute 8 GlaxoSmithKline products recently purchased from GSK by ASPEN. Revenues expected from Q3 2010.

New CFO hired as of September 1, 2010

23-04-20 3

New CFO

Bjørn Lindholt (55) employed as new CFO from September 1

Extensive experience from managing financial departments in an international environment

10 years experience as CFO in Profdoc ASA

Master of Business and Marketing from Oslo School of Management

23-04-20 4

Content

Highlights

Second quarter 2010 and 1H 2010 Key Figures

Segment Vitaflo

Segment New Business

Financials

Summary and outlook

23-04-20 5

Key figures Q2 2010 vs Q2 2009

Navamedic Group Navamedic Group Aspen Vitaflo

Figures in TNOK Q2 10 Q2 09 Q2 10 Q2 09 Q2 10 Q2 09

Operating revenues 12 669 12 734 - - 12 669 12 734

Gross profit 5 681 4 738 - - 5 681 4 738

Gross margin 45% 37% n/m n/m 45% 37%

EBITDA - 1 523 - 2 846 - 1 911 - 388 -2 846

EBIT - 3 191 - 4 974 - 1 911 - - 1 281 - 4 999

23-04-20 6

Key figures 1H 2010 vs 1H 2009

Navamedic Group Navamedic Group Aspen Vitaflo

Figures in TNOK 1H 10 1H 09 1H 10 1H 09 1H 10 1H 09

Operating revenues 25 723 24 905 - - 25 756 24 905

Gross profit 10 717 10 005 - - 10 717 10 005

Gross margin 42% 40% n/m n/m 42% 40%

EBITDA - 2 767 - 2 640 - 3 665 - 898 -2 640

EBIT - 6 093 - 6 454 - 3 665 - - 2 428 - 6 454

23-04-20 7

Content

Highlights

Second quarter 2010 and 1H 2010 Key Figures

Segment Vitaflo

Segment New Business

Financials

Summary and outlook

23-04-20 8

Key developments in Vitaflo

Reduced operating costs with 2.4 million in Q2 and 2.7 million in 1H

Sales development: The revenue was flat 1H 2010 compared to 1H 2009 due to a

renegotiated agreement with Vitaflo Int. regarding the Netherlands

From April 1 2010 Vitaflo Int. took over responsibility for sales and marketing of the IEM products in the Netherlands

Sales in the Netherlands accounted for MNOK 1,8 of the revenues in Q2 2009

Vitaflo will still receive a 25% margin on all Vitaflo Int. sales of IEM products in the Netherlands for additional 5 years

Gross margin is improved mainly due to additional sales of high margin products and the renegotiated agreement with Vitaflo Int.

23-04-20 9

Sales development in key Knowledge areas

23-04-20 10

Sales in Q2 2010 vs Q2 2009

(1 000)

-

1 000

2 000

3 000

4 000

5 000

6 000M

edic

al N

utriti

on

Abus

e

Ora

l Med

icin

e

Der

mat

olog

y

Gas

tro

Neu

rolo

gy

Fem

ale

Care

Ost

eoar

thriti

s

Oft

alm

olog

y

Oth

er

Q2 2010

Q2 2009

NOK 000NOK 000

Sales development in key Knowledge areas

23-04-20 11

Sales in 1H 2010 vs 1H 2009

-

2 000

4 000

6 000

8 000

10 000

12 000M

edic

al N

utriti

on

Abus

e

Ora

l Med

icin

e

Der

mat

olog

y

Gas

tro

Neu

rolo

gy

Fem

ale

Care

Ost

eoar

thriti

s

Oft

alm

olog

y

Oth

er

YTD 2010

YTD 2009

NOK 000NOK 000

Content

Highlights

Second quarter 2010 and 1H 2010 Key Figures

Segment Vitaflo

Segment New Business

Financials

Summary and outlook

23-04-20 12

Key developments in New Business

The marketing Authorization (MA) approval process for Aspen products initiated during Q1 2010First launch in November 2011

Increased cooperation with Aspen with Navamedic taking responsibility for 8 products as of September 1, 2010These products are former GlaxoSmithKline products with a

market in the Nordic countries worth approx. MNOK 15

Expanded Regulatory department with new employees to focus on MA approvals

23-04-20 13

Content

Highlights

Second quarter 2010 and 1H 2010 Key Figures

Segment Vitaflo

Segment New Business

Financials

Summary and outlook

23-04-20 14

Financials remarks

Operating revenues;MNOK 12,7 in Q2 2010 vs MNOK 12,7 in Q2 2009

MNOK 25,8 in 1H 2010 vs MNOK 24,9 in 1H 2009

Gross margin; 45% in Q2 2010 vs 37% in Q2 2009

42% in 1H 2010 vs 40% in 1H 2009

EBITDA;MNOK -1,5 in Q2 2010 vs MNOK -2,8 in Q2 2009

MNOK -2,7 in 1H 2010 vs MNOK -2,6 in 1H 2009

23-04-20 15

Financials remarks

A dividend of NOK 1 per share was paid to shareholders during Q2 2010Total dividend payment was NOK 7.5 million

The Company held cash and liquidity of total NOK 23.7 million June 30 2010

Navamedic has the financial strength to make investment in new business and in existing business

23-04-20 16

Content

Highlights

Second quarter 2010 and 1H 2010 Key Figures

Segment Vitaflo

Segment New Business

Financials

Summary and outlook

23-04-20 17

Summary and outlook

The management is forecasting increased sales 2H

Management will continue to reinforce the marketing and sales organization in Vitaflo

Strategy Navamedic maintains its strategy to remain a Specialty Pharma player and

to be the partner of choice for companies wishing to enter the Northern European market.

Future key action: Develop and fine tune the business in Vitaflo Scandinavia AB Kick off the new cooperation with Aspen Pharma (GSK products) and

continue the registration work of products Search for new products and new business opportunities Launch Smartfish product line

18

QUESTIONSQUESTIONS

23-04-20 19

Profit and Loss Statement

23-04-20 20

(In NOK '000) Q2 Q2 YTD YTD FY2010 2009 2010 2009 2009

Operating revenues 12 669 12 734 25 756 24 905 52 593

Cost of goods sold 6 988 7 996 15 039 14 900 31 963Gross profit 5 681 4 738 10 717 10 005 20 630

Payroll expense 3 338 3 384 5 945 5 030 10 541Other operating cost 4 294 4 325 8 155 7 751 13 312Other (losses)/gains - net 428 125 616 136 715Operating costs 7 204 7 584 13 484 12 645 23 138

EBITDA (1 523) (2 846) (2 767) (2 640) (2 508)

Depreciation 10 39 15 78 172Amortization 1 658 1 664 3 311 3 311 6 623Write offs - 425 - 425 692

OPERATING RESULT (EBIT) (3 191) (4 974) (6 093) (6 454) (9 995)

Financial income and expenses

Financial income - 117 - 274 90Other financial income 18 0 42 0 302Financial expenses (3) (160) (4) (463) (688)Other financial expenses (147) - (183) 0 (1 626)Net financial result (132) (43) (145) (189) (1 922)

PROFIT BEFORE TAXES (3 323) (5 017) (6 238) (6 643) (11 917)

Tax on profit 933 427 1 761 447 8 384

(2 390) (4 590) (4 477) (6 196) (3 533)

- 682 - 1 276 16 349Net profit in the period (2 390) (3 908) (4 477) (4 920) 12 816

Other comprehensive income Q2 Q2 YTD YTD FY2010 2009 2010 2009 2009

Profit for the year (2 390) (3 908) (4 477) (4 920) 12 816

Currency translations differences 1 445 2 805 3 182 (8 129) (11 150)Total comprehensive income for the period (945) (1 103) (1 295) (13 049) 1 666

(In NOK '000) Q2 Q2 YTD YTD FY2010 2009 2010 2009 2009

Operating revenues 12 669 12 734 25 756 24 905 52 593

Cost of goods sold 6 988 7 996 15 039 14 900 31 963Gross profit 5 681 4 738 10 717 10 005 20 630

Payroll expense 3 338 3 384 5 945 5 030 10 541Other operating cost 4 294 4 325 8 155 7 751 13 312Other (losses)/gains - net 428 125 616 136 715Operating costs 7 204 7 584 13 484 12 645 23 138

EBITDA (1 523) (2 846) (2 767) (2 640) (2 508)

Depreciation 10 39 15 78 172Amortization 1 658 1 664 3 311 3 311 6 623Write offs - 425 - 425 692

OPERATING RESULT (EBIT) (3 191) (4 974) (6 093) (6 454) (9 995)

Financial income and expenses

Financial income - 117 - 274 90Other financial income 18 0 42 0 302Financial expenses (3) (160) (4) (463) (688)Other financial expenses (147) - (183) 0 (1 626)Net financial result (132) (43) (145) (189) (1 922)

PROFIT BEFORE TAXES (3 323) (5 017) (6 238) (6 643) (11 917)

Tax on profit 933 427 1 761 447 8 384

Net income for the period from continuing operations (2 390) (4 590) (4 477) (6 196) (3 533)

- 682 - 1 276 16 349Net profit in the period (2 390) (3 908) (4 477) (4 920) 12 816

Other comprehensive income Q2 Q2 YTD YTD FY2010 2009 2010 2009 2009

Profit for the year (2 390) (3 908) (4 477) (4 920) 12 816

Currency translations differences 1 445 2 805 3 182 (8 129) (11 150)Total comprehensive income for the period (945) (1 103) (1 295) (13 049) 1 666

Profit (loss) after tax for the period from dicontinued operations

Disclaimer/Restrictions

THIS PRESENTATION AND ITS ENCLOSURES AND APPENDICES (HEREINAFTER JOINTLY REFERRED TO AS THE “PRESENTATION” HAS BEEN PREPARED BY NAVAMEDIC ASA (THE “COMPANY”) EXCLUSIVELY FOR INFORMATION PURPOSES. THIS PRESENTATION HAS NOT BEEN REVIEWED OR REGISTERED WITH ANY PUBLIC AUTHORITY OR STOCK EXCHANGE. RECIPIENTS OF THIS PRESENTATION MAY NOT REPRODUCE, REDISTRIBUTE OR PASS ON, IN WHOLE OR IN PART, THE PRESENTATION TO ANY OTHER PERSON.

THE CONTENTS OF THIS PRESENTATION ARE NOT TO BE CONSTRUED AS LEGAL, BUSINESS, INVESTMENT OR TAX ADVICE. EACH RECIPIENT SHOULD CONSULT WITH ITS OWN LEGAL, BUSINESS, INVESTMENT AND TAX ADVISER AS TO LEGAL, BUSINESS, INVESTMENT AND TAX ADVICE.

THERE MAY HAVE BEEN CHANGES IN MATTERS THAT AFFECT THE COMPANY SUBSEQUENT TO THE DATE OF THIS PRESENTATION. NEITHER THE ISSUE NOR DELIVERY OF THIS PRESENTATION SHALL UNDER ANY CIRCUMSTANCE CREATE ANY IMPLICATION THAT THE INFORMATION CONTAINED HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO THE DATE HEREOF OR THAT THE AFFAIRS OF THE COMPANY HAVE NOT SINCE CHANGED, AND THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE OR CORRECT ANY INFORMATION INCLUDED IN THIS PRESENTATION.

THIS PRESENTATION INCLUDES AND IS BASED ON, AMONG OTHER THINGS, FORWARD-LOOKING INFORMATION AND STATEMENTS. SUCH FORWARD-LOOKING INFORMATION AND STATEMENTS ARE BASED ON THE CURRENT EXPECTATIONS, ESTIMATES AND PROJECTIONS OF THE COMPANY OR ASSUMPTIONS BASED ON INFORMATION AVAILABLE TO THE COMPANY. SUCH FORWARD-LOOKING INFORMATION AND STATEMENTS REFLECT CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS, UNCERTAINTIES AND ASSUMPTIONS. THE COMPANY CANNOT GIVE ANY ASSURANCE AS TO THE CORRECTNESS OF SUCH INFORMATION AND STATEMENTS.

AN INVESTMENT IN THE COMPANY INVOLVES RISK, AND SEVERAL FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED BY STATEMENTS AND INFORMATION IN THIS PRESENTATION, INCLUDING, AMONG OTHERS, RISKS OR UNCERTAINTIES ASSOCIATED WITH THE COMPANY’S BUSINESS, SEGMENTS, DEVELOPMENT, GROWTH MANAGEMENT, FINANCING, MARKET ACCEPTANCE AND RELATIONS WITH CUSTOMERS, AND, MORE GENERALLY, GENERAL ECONOMIC AND BUSINESS CONDITIONS, CHANGES IN DOMESTIC AND FOREIGN LAWS AND REGULATIONS, TAXES, CHANGES IN COMPETITION AND PRICING ENVIRONMENTS, FLUCTUATIONS IN CURRENCY EXCHANGE RATES AND INTEREST RATES AND OTHER FACTORS. SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIES MATERIALISE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THIS DOCUMENT. THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE OR CORRECT THE INFORMATION INCLUDED IN THIS PRESENTATION.

23-04-20 21

Changes in Equity

23-04-20 22

(In NOK '000) Paid in capital

Other paid in capital/

reserves

Translation differences

Retained earnings

Total

Balance at 31 December 2008 128 912 -362 7 987 -26 293 110 244

Balance at 1. January 2009 128 912 -362 7 987 -26 293 110 244

Share option scheme -126 - - - -126 Gains and Losses on Currency Outright Agreements - - - - - Translation difference - - -11 150 - -11 150 Net profit of the period - - 12 816 12 816 Balance at 31 December 2009 128 786 -362 -3 163 -13 477 111 784

Balance at 1 January 2010 128 786 -362 -3 163 -13 477 111 784

Paid out dividend - - -7 537 -7 537 Share option scheme 67 - - - 67 Translation difference - - 3 182 - 3 182 Net profit of the period - - - -4 477 -4 477 Balance at 30 June 2010 128 853 -362 19 -25 491 103 019

Cash Flow

23-04-20 23

(In NOK '000) Q22010

Q22009

YTD2010

YTD2009

FY2009

Profit before taxes, continued operations -3 323 -5 017 -6 238 -6 643 -11 917 Profit before tax, discontinued operations (note 13) - 682 - 1 276 22 707 Net profit from sold assets - - - -29 884 Depreciation, Amortization and Write Off from continued operations 1 669 2 128 3 326 3 814 7 487 Write down of inventory - - - - 9 500 Share options 34 20 68 -83 126 Net financials 131 43 145 189 1 922 Changes in working capital 990 3 668 -593 723 723 Cash flow from operations -499 1 524 -3 292 -724 664

Net financials -131 -43 -145 -189 -1 082 Taxes paid -575 -233 -1 332 -573 -1 228 Net cash flow from operations -1 205 1 248 -4 769 -1 486 -1 646

Cash flow from investmentsNet cash from assets sold - - - - 38 389 Purchase of tangible assets -62 -83 -62 -83 -17 Purchase of intangible assets - - - -102 - Interest paid in - - - - 89 Net cash flow from investments -62 -83 -62 -185 38 461

Cash flow from financial activitiesChanges in currency 201 - 396 - -1 521 Dividend paid out -7 537 - -7 537 - - Borrowing from financial institutions - -4 000 - -4 000 -16 000 Net cash flow from financial activities -7 336 -4 000 -7 141 -4 000 -17 521

Net change in cash during the period -8 603 -2 835 -11 972 -5 671 19 294

Cash and cash equivalents at the beginning of the period 32 299 13 538 35 668 16 374 16 374 Cash and cash equivalents at the end of the period 23 696 10 703 23 696 10 703 35 668

Balance Sheet

23-04-20 24

(In NOK '000) 30.06.2010 30.06.2009 31.12.2009

Fixed and Intangible Assets

Intangible assets 81 782 88 335 81 889Deferred tax assets 4 946 3 060 3 738Tangible assets 83 117 33Investments in shares - 1 438 -Total fixed and intangible assets 86 811 92 950 85 660

Current Assets

Inventories 7 581 7 862 7 986Short term receivables 8 289 11 771 7 237Cash at hand, in banks 23 696 10 703 35 668Discontinued operations classified as held for sale - 16 993 -Total current assets 39 566 47 329 50 891

Total assets 126 377 140 279 136 551

Shareholders equity and liabilities

Shareholders equity

Paid in capital 128 853 128 476 128 786Other reserves -25 834 -31 343 -17 002Total equity 103 019 97 133 111 784

Debt

Deferred tax 12 253 14 059 12 563Long term debt to financial institutions - 4 000 -Total long term debt 12 253 18 059 12 563

Trade debtors 6 418 8 548 7 391Interest-bearing short term debt - 8 000 -Received license fees from customers - 3 456 -Other short term debt 4 687 5 083 4 813Total short term debt 11 105 25 087 12 204

Total debt 23 358 43 146 24 767

Total shareholders equity and liabilities 126 377 140 279 136 551