Inion Oyj - Company Announcement

Pre-Close trading update

Inion Oy
(“Inion or the “Company”)

Pre-Close trading update

Tampere, Finland and Guildford, UK. 12 January 2009, Inion (LSE: IIN.L), a
company focused on the development and commercialisation of novel biodegradable
medical implants, provides an update on 2008 trading, ahead of its preliminary
results announcement expected in March 2009. 

Based on the unaudited figures for the year to 31 December 2008, the Directors
anticipate that revenues for 2008 will be approximately €5.8 million against
market expectations of approximately €6.0 million. This represents a 10%
overall increase on 2007 revenues, which were €5.2 million, while the core
business of spine and speciality orthopaedics saw growth of 19% compared to
2007. 

In the US, sales from the core business in Q4 2008 were up 255% compared to the
previous quarter. This compares with sales growth of 88% from Q2 to Q3 and 81%
from Q1 to Q2. Revenues in Q4 were driven by the rapidly accelerating sales of
key products for spinal surgery which received market clearance in the USA in
July 2008. 

Chris Lee, CEO of Inion, said: “Inion product sales in our core business areas
of spine and speciality orthopaedics have continued to gain momentum,
particularly in the USA, but also in our other key territories. This sales
growth provides us with confidence in the underlying customer demand for our
unique biodegradable product offering. While we continue to seek additional
funding to support our strategy, progress made during 2008 gives us the belief
that the commercial operation we have built will continue to drive revenue
growth and movement towards profitability.” 

-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.