Össur hf. - Company Announcement

Ossur hf. divests its Advanced Wound Care product line

Ossur hf. (OMX: OSSR), a leading global supplier of non-invasive
orthopaedic devices, has divested its Advanced Wound Care product
line to BSN medical GmbH, a leading global provider of wound care
products.

The divestiture strengthens Ossur's  focus on the vast  opportunities
in the Company's core business segments.

The transaction, which  closed today,  is valued at  USD 11  million.
Subject to certain  conditions, the transaction  value could  further
increase by up to  USD 6 million. As  previously disclosed, Ossur  is
involved in intellectual property litigation related to the  Advanced
Wound Care product line. The  Company will retain responsibility  for
these. Part of the transaction value is reserved for covering  future
litigation expense exposure.

Net sales gain recorded as other income in the first quarter of  2008
will be approximately USD 5.5 million.



About Ossur:
Ossur (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  braces,  supports,
prosthetic limbs and  compression therapy.  A recognized  "Technology
Pioneer",  Ossur  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  Ossur's  educational  programs  and  business
solutions. Headquartered in  Iceland, Ossur has  major operations  in
the  Americas,  Europe   and  Asia,   with  additional   distributors
worldwide.

About BSN medical:
BSN medical is  a global  leader in the  worldwide healthcare  market
specializing in  the areas  of Fracture  Management,  Physiotheraphy,
Lymphology,  Phlebology  and  wound  care.  BSN  is  focused  on  the
development of world-class branded  products that offer high  quality
solutions for its caregivers and patients. BSN medical was originally
formed as a  joint venture  in 2001  between Beiersdorf  and Smith  &
Nephew. In 2006, BSN medical became a fully independent player in the
Wound Care, Orthopaedics and Phlebology segments. It was acquired  by
funds advised by Montagu Private  Equity, a leading European  private
company established in 1968. With its headquarter located in Germany,
it has  major operations  in Europe,  in the  Americas and  Asia  and
operates via joint-ventures and distributors in other regions.