OBSERVE MEDICAL ASA: Letter regarding review of financial reporting from the Norwegian Financial Supervisory Authority

25 Oct 2024 23:58 CEST

Oslo, 25 October 2024

Observe Medical ASA (the "Company" or "Observe Medical", OSE ticker "OBSVR") has
today received a letter from the Norwegian Financial Supervisory Authority (the
"NFSA") regarding the NFSA's ongoing review of certain accounting matters in the
Company's annual financial statements for 2023 and the interim report for the
first half of 2024.

The NFSA's assessment, as outlined in the letter, is that there are errors in
the annual financial statements for 2023 related to, inter alia, (i) the
Company's accounting with regards to the Convatec transaction (the Observe
Medical group's contemplated acquisition of the UnoMeterT portfolio from
Unomedical A/S and Unomedical s.r.o.), which errors are deemed to be material by
the NFSA, (ii) insufficient impairment testing, and (iii) incorrect accounting
in connection with debt renegotiations with Navamedic ASA.

The NFSA has also pointed out issues related to the interim report for the first
half of 2024, including (i) that disclosure regarding "significant uncertainties
related to going concern" has not been included, (ii) that impairment testing
has not been conducted, and (iii) that information has not been provided
regarding payment status and changes in due dates for payment instalments
related to the Convatec transaction.

It is noted that the letter serves as a preliminary notice of decision, and the
NFSA has not yet made a final decision regarding the financial review of the
Company.

The Company will assess the information and continue its dialogue with the NFSA
in order to seek to clarify the issues raised by them. The Company will also
discuss this with its auditor, Ernst & Young AS.

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to section 5-12 the Norwegian Securities Trading Act.

This stock exchange announcement was published by Johan Fagerli, CFO of the
Company, on 25 October 2024 at 23:55 hours CET on behalf of the Company.

For further information, please contact:

Jørgen Mann, CEO Observe Medical

Mobile: +45 408 67 558

E-mail: jorgen.mann@observemedical.com

Johan Fagerli, CFO Observe Medical

Mobile: +47 958 12 765

E-mail: johan.fagerli@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
commercialisation of its broad portfolio of medical technology products, mainly
in urine measurement and ultrasound, in combination with targeted M&A and
distribution. Observe Medical is working with a network of leading distributors
to provide outstanding solutions for healthcare professionals globally.

The Company is headquartered in Oslo, Norway.

Further information is available at www.observemedical.com.

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