Update on acquisition of Ferrari L. and Shareholder Letter

20 Apr 2023 09:30 CEST

Oslo, 20 April 2023 - Observe Medical ASA ("the Company" or "Observe Medical")
today announces it has informed Ferrari L., an Italian manufacturer of medical
equipment, that the Company has decided to discontinue the process of acquiring
Ferrari L. The contemplated acquisition was originally announced in a press
release on 14 December 2022.

This decision is the result of Observe Medical having identified a more cost
-efficient manufacturer alternative, which is expected to secure high-quality
volume production of the Observe Medical products. This decision will reduce the
Company's future funding needs and will have an impact on the previously
communicated run-rate target of NOK 200-250 million by year-end. Observe Medical
will provide further information concerning the financial impact of not
acquiring Ferrari L. in due course.

More information concerning the decision is available in the attached
Shareholder Letter.

For further information, please contact:


Rune Nystad, CEO Observe Medical
Mobile: +47 916 24 683
E-mail: rune.nystad@observemedical.com

Per Arne Nygård, CFO of Observe Medical
Mobile: +47 411 04 345
E-mail: perarne.nygard@observemedical.com

About Observe Medical
Observe Medical is a Nordic medtech company that develops, markets and sells
innovative medtech products for the global market. The Company is committed
to improving patient welfare and patient outcomes, improving clinical data
accuracy and promoting positive health economics.

The Company seeks to drive growth by leveraging its expertise in sales
and commercialization of its broad portfolio of medical technology products,
mainly in urine measurement, ultrasound, anesthesiology/ICUs, surgery and wound
care, in combination with targeted M&A. The Company is headquartered in Oslo,
Norway, with additional offices in Narvik, Norway and Gothenburg, Sweden, and
subsidiaries in Finland and the US. In addition, Observe Medical has a direct
sale organization in the Nordics and a distributor network internationally.

Further information is available at www.observemedical.com.

More information:
Access the news on Oslo Bors NewsWeb site

588031_Observe_Medical_Update_on_acquisition_of_Ferrari_L_and_Shareholder_Letter.pdf
588031_Observe_Medical_Shareholder_letter_April_2023.pdf