Össur hf. - Company Announcement

Össur hf. to offer up to 29,500,000 new shares in a private placement at market price

Not for release, publication,  or distribution in Australia,  Canada,
Japan or the United States.


                                         Press release from Össur hf.
                                Reykjavik, 2 November 2009, GMT 17:15



The Board of  Directors of Össur  hf. (Össur) has  today resolved  to
launch a directed offering and private placement (the "Offering")  of
up to 29,500,000  new shares  in Össur  at market  price and  without
preemptive rights for its existing shareholders.

The Offering will be executed  via an accelerated book-building of  a
maximum number of  29,500,000 shares with  a nominal value  of ISK  1
each (the "New  Shares"), representing  up to  approximately 7.0%  of
Össur's current issued share capital of nominal ISK 423,000,000.  The
offer price will  be determined  upon completion  of the  accelerated
book-building process. Based on the closing price on 2 November  2009
of DKK 5.20 the gross proceeds  from the Offering will correspond  to
approximately DKK  153 million  (USD 30  million) assuming  that  the
Offering is fully subscribed.

The purpose of the Offering is to strengthen the Company's  financial
flexibility and ensure a  foundation for future  growth. In the  past
years, Össur has  transformed into  a global  player in  non-invasive
orthopaedics. Today,  Össur is  an established  global market  leader
with an attractive market position in its major product segments. The
Company has a proven track record of continuously increasing  product
value  through  innovation  as  well  as  growing  through  strategic
acquisitions. Össur's  management considers  the long-term  prospects
for the Company's operations to be promising. Market developments and
acquisition opportunities are continuously  monitored. Össur is  well
positioned to take advantage of opportunities in a growing market.

Furthermore, Össur wishes to increase free-float and thereby  improve
liquidity and pricing of the Össur share.

The Offering

The Offering  is  being  made  to  certain  institutional  and  other
qualified investors  residing  in Denmark  and  internationally.  The
Offering is  not being  made to  investors residing  in Iceland.  The
Offering is being made without pre-emption rights to Össur's existing
shareholders pursuant to the authorisation contained in the Company's
Articles of Association, section B, second paragraph of Art. 2.01.
SEB Enskilda  is acting  as Sole  Lead Manager.  Subscription  orders
shall be placed  and purchases shall  be made through  the Sole  Lead
Manager.
The  book-building  process  will  start  immediately.  Pricing   and
allocation are  expected  to  be announced  as  soon  as  practicable
following the closing of the book-building process.

Resolution on share capital increase

The Board of Directors of Össur  has resolved to launch the  Offering
of up to a maximum of 29,500,000 shares with a nominal value of ISK 1
each. The resolution to increase  the share capital is made  pursuant
to  the  authorization  contained   in  the  Company's  Articles   of
Association, section B, second paragraph of Art. 2.01.

Admission for trading and official listing

NASDAQ OMX Iceland and NASDAQ OMX Copenhagen have confirmed that  the
New Shares will be  admitted for trading  and official listing  under
the existing ISIN code IS0000000040  after registration of the  share
capital increase  with the  Icelandic  Register of  Enterprises.  The
temporary ISIN code  IS0000019669 will  be merged  with the  existing
ISIN code in Icelandic Securities  Depository and VP Securities.  The
temporary ISIN  code for  the New  Shares will  not be  admitted  for
trading and official listing on NASDAQ OMX, but only registered in VP
Securities to facilitate subscription of the New Shares.

Expected timetable for the Offering

The offer  price and  the size  of the  Offering are  expected to  be
announced through NASDAQ OMX no later than on: 3 November 2009
Expected date of payment against delivery: 6 November 2009
Expected date  of  registration  of the  capital  increase  with  the
Icelandic Register of Enterprises: 6 November 2009
Expected date of admission  for trading and  official listing of  New
Shares on NASDAQ OMX under the existing ISIN code: 9 November 2009
It is expected that the dates  of admission for trading and  official
listing, payment  and registration  of the  capital increase  may  be
brought forward if the Offering is closed earlier than expected.  The
Company may at any time close or  extend the offer period at its  own
discretion.

Lock-up

The Company has agreed that, for a period of 180 calendar days  after
the New Shares have been admitted for trading on NASDAQ OMX, it  will
not issue, or publicly announce the intention to issue, any shares or
securities convertible or  exchangeable into  shares or  representing
rights to subscribe  for shares,  without having  obtained the  prior
written consent of the Sole Lead Manager (which consent shall not  be
unreasonably withheld or  delayed) in each  case, except as  required
under mandatory Icelandic law or Danish law or in relation to  shares
to be  issued  as  consideration  in  connection  with  acquisitions,
provided that such newly issued shares do not exceed 5% of the  share
capital of  the  Company at  the  time  of the  acquisition  or  upon
exercise of options  granted to employees  according to the  existing
stock option plans.

The New Shares

The New Shares will rank pari  passu with existing Össur shares.  The
New Shares  will be  registered in  the  name of  the holder  in  the
company's register of shareholders and be issued and registered  with
the Icelandic Securities Depository and VP Securities.
No shares, including the New Shares, carry or will carry any  special
rights. The New  Shares will  be negotiable instruments  and will  in
every respect carry the  same rights as  the existing shares.  Rights
conferred by the  New Shares,  including voting  rights and  dividend
rights, will  apply  from  the  time when  the  capital  increase  is
registered with the Icelandic Register of Enterprises.
Trading with Icelandic financial instruments is currently subject  to
Icelandic Foreign Exchange  Rules. The  Central Bank  of Iceland  has
granted exemptions to  the rules  allowing certain  transfers of  and
trade in Össur shares. Investors  domiciled outside Iceland will,  in
general, be able to trade the New Shares freely on the Danish market.
More detailed information on the possibilities to transfer and  trade
Össur    shares    can     be    found     on    Össur's     website:
www.ossur.com/investors.

Registration of shares, clearing and settlement

Össur's  shares  are   registered  with   the  Icelandic   Securities
Depository hf., Laugavegi 182, 105  Reykjavik and VP Securities  A/S,
Weidekampsgade 14, DK-2300 Copenhagen S.
Össur's shares are traded under ISIN code: IS0000000040.
Clearing and settlement of trades of Össur shares, including the  New
Shares, made on NASDAQ  OMX Iceland and  NASDAQ OMX Copenhagen  takes
place through Ossur's issuing agents in Iceland and Denmark.

Nordea Bank Danmark A/S  is the issuing agent  for Össur's shares  in
respect of  shares,  including the  New  Shares, registered  with  VP
Securities A/S in Denmark.

Taxation and dividends

According to Icelandic law, payment of dividends to limited liability
companies is  in  general  subject  to 10%  withholding  tax  and  to
individuals 15%. Limited liability companies in the EU or the EEA can
reclaim any withholding tax applied.  Payment of withholding tax  may
be exempt  or reduced  according to  double taxation  treaties.  Each
investor is  encouraged  to  make  its  own  assessment  of  the  tax
consequences related to investing in shares in Ossur.

Other information

Össur is a public limited  company incorporated and registered  under
the  laws   of  Iceland,   registration  number   560271-0189.Össur's
financial year runs from 1 January until 31 December.
Further   information   can    be   found    on   Ossur's    website:
www.ossur.com/investors.

Össur contacts:
Jon Sigurdsson, President & CEO, Tel: +354 515-1300
Hjorleifur Palsson, CFO, Tel: +354 515-1300
Sigurborg Arnarsdottir, IR Manager, Tel: +354 664-1044



Össur (OMX: OSSR)  is a  global leader  in non-invasive  orthopaedics
that help people  live a  life without limitations.  Its business  is
focused on  improving  people's  mobility  through  the  delivery  of
innovative technologies  within  the  fields  of  bracing,  supports,
prosthetic limbs and compression therapies. A recognized  "Technology
Pioneer",  Össur  invests  significantly  in  research  and   product
development; its award-winning designs ensuring a consistently strong
position in the market. Successful patient and clinical outcomes  are
further empowered  via  Össur's  educational  programs  and  business
solutions. Headquartered in  Iceland, Össur has  major operations  in
the  Americas,  Europe   and  Asia,   with  additional   distributors
worldwide.

*****

This announcement  is not  an offer  for sale  of securities  in  the
United States. Securities may  not be offered or  sold in the  United
States absent registration  or an exemption  from registration  under
the US  Securities  Act  of  1933  as  amended.  The  issuer  of  the
securities has not registered, and  does not intend to register,  any
portion of the offering in the United States, and does not intend  to
conduct a public offering of securities in the United States.
This announcement is only being  distributed to and is only  directed
at (i) persons who  are outside the United  Kingdom or (ii) that  are
qualified  investors  within  the  meaning  of  Article  2(1)(e)   of
Directive 2003/71/EC ("Prospectus Directive") and that are either (x)
investment  professionals  falling  within   Article  19(5)  of   the
Financial Services and Markets  Act 2000 (Financial Promotion)  Order
205 (the "Order") or (y) high net worth companies, and other  persons
to whom  it  may lawfully  be  communicated, falling  within  Article
49(2)(a) to (d) of the Order (all such persons in (i) and (ii)  above
together being referred to as "relevant persons"). The New Shares are
only  available  to,  and  any  invitation,  offer  or  agreement  to
subscribe, purchase  or otherwise  acquire  such securities  will  be
engaged in  only with,  relevant persons.  Any person  who is  not  a
relevant person should not act or rely on this document or any of its
contents.
This announcement is an advertisement and is not a prospectus for the
purposes of the Prospective  Directive, together with any  applicable
implementing measures in  the relevant  home Member  State under  the
Prospectus Directive.
In  any  EEA  Member  State  that  has  implemented  the  Prospective
Directive this  communication  is  only  addressed  to  and  is  only
directed at  qualified  investors in  that  Member State  within  the
meaning of the Prospectus Directive.

*****

This  announcement  contains   certain  forward-looking   statements,
including statements about the  Company's business and the  Offering.
Such forward-looking statements  are based on  data, assumptions  and
estimates that  the  Company considers  to  be reasonable.  They  may
change or be amended owing to uncertainties related to the  economic,
financial,  competitive  and   regulatory  environment,  and   market
conditions. In addition,  the Company's business  activities and  its
ability to meet its goals may be adversely affected if one or more of
the risks  that are  set  forth in  the   summary document  that  was
prepared in connection with the listing of shares in Össur on  NASDAQ
OMX Copenhagen in addition to  the section "Risk factors" in  Össur's
Annual  Report  2008  materialise,  or  if  other  risks,   currently
unforeseen or  considered  insignificant, materialise.   The  Company
does not undertake to  meet or give any  guarantee that it will  meet
its goals. Investors are urged in particular to pay careful attention
to the  risk  factors described  in  the summary  document  that  was
prepared in connection with the listing of shares in Össur on  NASDAQ
OMX Copenhagen in addition to  the section "Risk factors" in  Össur's
Annual Report 2008.