Inion Oyj - Company Announcement

Inion embarks on cost-reduction programme

Inion Oy                                    
                           (“Inion or the “Company”)                            

                   Inion embarks on cost-reduction programme                    

Tampere, Finland and Guildford, UK. 25 November 2008, Inion (LSE: IIN.L), a     
company focused on the development and commercialisation of novel biodegradable 
medical implants, today announces it has commenced actions with a view to       
reducing its costs while it evaluates its re-financing options.                 

As a first step, the Company has initiated cooperation negotiations with        
employees based in Tampere, Finland, which under Finnish law are required of the
employer prior to making any decisions on possible workforce reduction. This    
process resembles the ‘fair consultation' required from UK employers in a       
similar situation.                                                              

In a situation where the employer anticipates the loss of ten or more jobs the  
statutory minimum length of the process is approximately seven weeks.           

                                     -ends-                                     

For further information, please contact:                                        

Inion Oy                                                                        
Chris Lee, Chief Executive Officer                                              
Julien Cotta, Chief Financial Officer                                           
Tel: +44 (0)1483 685390                                                         

Citigate Dewe Rogerson                                                          
Mark Swallow / Helena Galilee / 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 and bioactive surgical 
implants 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 biomaterials, with properties tailored for 
specific surgical applications, in terms of strength, flexibility and rate of   
degradation                                                                     
                                                                                
Inion is also focused on developing proprietary new bioactive and 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 US, 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.