Inion Oyj - Company Announcement

Inion to close Cambridge Research Facility

Inion to close Cambridge Research Facility                   


Tampere, Finland and Guildford, UK. 5 November 2007…Inion [LSE: IIN.L], a       
company focused on the development of novel biodegradable medical implants,     
announces that it is closing its research facility in Cambridge, UK. The        
facility, which opened in November 2005, has been engaged in two key activities:
(1) to identify the molecular mode of action of N-methyl-pyrrolidone (NMP), the 
bioactive component in Inion OptimaPLUS™; and (2) to strengthen the intellectual
property surrounding NMP. The decision to close the facility was taken because  
these activities have now been completed and follows the Company's strategic    
plan to become more focused on the commercialisation of its existing products   
and the development of new products in its core areas of orthopaedic trauma and 
spinal surgery.                                                                 

The Company's development of Inion OptimaPLUS™ is unaffected by this closure and
its current clinical programme will continue as planned.                        

The closure, which is expected to be complete by the end of December, will      
result in the loss of four R&D jobs and will contribute approximately €1.5      
million in annual savings for the Company. The total cost of the closure is     
expected to be up to €0.5 million, of which approximately half will be a cash   
outlay.                                                                         

Inion is assessing its options for other intellectual assets created at the     
facility, which include six filed patents on new bioactive molecules with novel 
modes of action.                                                                

Chris Lee, Inion's CEO, said: “With the key objectives achieved at the Cambridge
facility and the termination of other long-term research projects, the closure  
of Cambridge has unfortunately resulted in a small number of redundancies. We   
continue to focus strongly on key areas of the business, particularly in        
establishing effective commercial routes for our products, making them more     
accessible to surgeons.”                                                        

                                     -Ends-                                     

For further information, please contact:                                        
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| Inion Oy                                   | Tel: +44 (0)1483 685390         |
| Chris Lee, Chief Executive                 |                                 |
| Officer                                    |                                 |
| Julien Cotta, Chief Financial              |                                 |
| Officer                                    |                                 |
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| Citigate Dewe Rogerson                     | Tel: +44 (0)207 638 9571        |
| Mark Swallow /                             |                                 |
| David Dible                                |                                 |
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About Inion (www.inion.com)                                                     
Inion Oy is a medical devices company focused on the development and successful 
commercialisation of innovative biodegradable and bioactive implants in key     
target markets. The Company's target segments are Spine and Specialty           
Orthopaedics.                                                                   

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. The Company has an office and an R&D        
facility in the UK and head office, R&D and production facilities 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.