Inion Oyj - Company Announcement

Further Update on Financial Position

Inion Oy
(“Inion” or the “Company”)

Update on Financial Position

Tampere, Finland and Guildford, UK. 26 March 2009, Inion (LSE: IIN.L), a
company focused on the development and commercialisation of novel biodegradable
medical implants, today provides an update to the market further to previous
announcements made this year. 

In its Pre-Close Trading Statement on 12 January 2009, the company announced
that it continued to seek additional funding to support its strategy. The
Company has been holding discussions with shareholders and other potential
investors with the aim of raising additional equity capital. However, whilst it
has been able to obtain indicative commitments from a number of investors, in
light of prevailing equity market conditions, the Company has not been able to
secure a sufficient level of funding to enable it to continue with its current
strategy. 

On 19 March 2009, the Company announced that it is continuing with the
implementation of measures to reduce its overhead expenditure and headcount
levels to conserve its current cash resource. Despite these measures, the
Company continues to require additional funding to finance its working capital
requirements in the short term. 

With an equity fundraising now highly unlikely, the Company has initiated
discussions with a number of parties in relation to other strategic
transactions or divestment of certain assets to raise additional funding. There
is no certainty that these discussions will result in an injection of funds
into the Company and the Company will continue to keep the market updated, 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 / 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 Optima™ 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 USA, 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.