Inion Oyj - Interim Management statement

Interim Management Statement

Inion Oy                                    
                           (“Inion or the “Company”)                            

                          Interim Management Statement
                          
Tampere, Finland and Guildford, UK.19 May 2009, Inion (LSE: IIN.L), a company   
focused on the development and commercialisation of novel biodegradable medical 
implants, today publishes its Interim Management Statement (“IMS”) for the      
period 1 January 2009 to date.                                                  

- During the period, Inion continued to evaluate a range of options aimed at 
ensuring sufficient funding to enable it to continue with its current strategy. 
However, notwithstanding that certain indicative commitments were obtained from 
a number of investors, due to the prevailing equity market conditions, the      
Company has not been able to secure a sufficient level of funding. The Company  
is continuing discussions with a number of parties in relation to other         
strategic transactions or divestment of certain assets to raise additional      
funding.                                                                        

- In order to conserve existing cash resources, all current activities are now 
focused on generating sales in our key markets while other activities, including
manufacturing, have been suspended.                                             

- In March 2009, Inion received 510(k) regulatory clearance from the US Food
and 
Drug Administration (FDA) for its new Inion BioRestore™ Sahara bone filling     
implants for use in spinal and orthopaedic surgical procedures. This is an      
important product particularly for use in conjunction with Inion's new          
biodegradable spinal graft containment systems for spinal fusion procedures     
(Inion S-1™ and Inion S-2™ systems), which received 510(k) marketing clearance  
in the US in mid-2008 and provided a significant boost to sales in this market  
during the second half of 2008.                                                 

- Inion announced on 29 April 2009 that it intends to apply to cancel the 
admission of its Ordinary Shares on the Official List and to trading on the     
London Stock Exchange's market for listed securities. It is anticipated that the
effective date of the Cancellation will be 24 June 2009, pending approval by    
shareholders at an Extraordinary General Meeting to be held in Tampere, Finland 
on 26 May 2009. Full details can be found on the Company's website              
www.inion.com.                                                                  

- Invoiced sales for Q1 2009 are €697,000, with the order book at €242,000 at
the 
end of Q1 2008 (compared with €824,000 and €537,000, respectively at the end of 
Q1 2008). Sales for the period 1 January - 18 May 2009 were €1,209,000 (2008:   
€1,678,000) with the order book at €346,000.                                    

- The updated cash position of the Group as at 15 May 2009 was €0.7 million. As
a 
consequence of the actions taken to reduce overhead expenditure and headcount   
levels, future cash expenditure has been considerably reduced. The cash balance 
at the end of the month is expected to be €1.0 million.                         

Chris Lee, Inion's CEO, said: “The early part of 2009 has been a very difficult 
and disappointing time for Inion as we have tried unsuccessfully to raise the   
funds needed to support our business strategy. This is a very frustrating       
situation given the operational progress the Company has made in the last 12    
months, particularly in the US. We are now exploring a range of options that    
will allow us to generate as much value as possible for our shareholders and    
will continue to update the market as appropriate.”                             
	                                                                               
                                     -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.