Episurf accelerates its transformation into a pure-play property company and concludes the strategic review of the medtech operations

Episurf Medical AB (publ) ("Episurf" or the "Company") is accelerating its transformation into a pure-play property company and will going forward concentrate the Company's resources and capital allocation on the Nordic property operations. As part of this, the board of directors has, within the framework of the previously communicated dual-track process, resolved to initiate an orderly wind-down of the operational medical technology business. The Company assesses that a sale or spin-off of the business in its current form would require a lengthy process and substantial resources. Episurf instead intends to seek to realise the value of the Company's patent portfolio and other intangible assets.

On 20 April 2026, Episurf announced that the board of directors had resolved to carry out a strategic review of the medical technology business through a dual-track process, with the objective of fully separating the business from the group. Since then, the Company has evaluated the conditions for both a sale and a spin-off.

The board's overall assessment is that these alternatives do not currently offer a sufficiently attractive combination of feasibility, time requirement, capital requirement and expected value for the shareholders. The Company will therefore wind down its own production and other operational medical technology activities and instead focus on realising the value of the patent portfolio and other intangible assets.

The FDA process regarding Episealer® MTP

As part of the board's assessment, the continued regulatory process for Episealer® MTP, the Company's individualised implant for the treatment of osteoarthritis in the first MTP joint of the foot, has also been taken into account.

The Company has received feedback from the US Food and Drug Administration (FDA) within the framework of the ongoing 510(k) process. The feedback means that further validation data will be required in order to advance the process towards a potential market clearance in the US.

This entails additional time and investment. The board's assessment is that the continued development and regulatory process for Episealer® MTP is better placed with a larger player with the resources to take the process forward.

The decision does not reflect any changed assessment of the underlying technology or its potential value. Episurf's patents, technology and the knowledge built up over many years of development work remain assets whose value the Company intends to seek to realise.

The transformation into a pure-play property company is accelerated

The decision means that Episurf's ongoing transformation into a pure-play property company is accelerated. The Company's resources and capital allocation will going forward be concentrated on building and managing the Nordic property platform.

The wind-down of the operational medical technology business will gradually reduce the Company's ongoing cost base and is assessed to have a positive effect on the Company's earnings from the second quarter of 2027.

"Episurf is undergoing a rapid transformation into a pure-play Nordic property company. When we initiated the dual-track process, the objective was to find the solution for the medtech business that creates the best long-term value for our shareholders. Our assessment is that a continued sale or spin-off process for the operational business would require considerable time and resources. The FDA's feedback regarding Episealer® MTP reinforces that assessment. We continue to see value in the technology and the patent portfolio, but assess that the next phase of development is best driven by a larger industrial player. The decision allows us to concentrate our resources on continuing to build Episurf's property operations while reducing the group's cost base."

– Jens Andersson, CEO, Episurf Medical

For further information, please contact:

Jens Andersson, CEO, Episurf Medical

Tel: +46 (0) 768 55 67 02

Email: jens.andersson@episurf.com

About Episurf Medical

Episurf Medical is a property company with exposure to a diversified portfolio of property assets. The Company's objective is to create value growth through the acquisition and management of Nordic properties. The Company also has a medical technology business based on the individualised Episealer® implant and associated surgical instruments, which are used to treat cartilage damage in joints. Episurf Medical's head office is located in Stockholm, Sweden.

This information is information that Episurf Medical AB is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was submitted for publication, through the agency of the contact person set out above, at 20:00 CEST on 22 August 2026.

THIS PRESS RELEASE HAS BEEN PUBLISHED IN SWEDISH AND ENGLISH. IN THE EVENT OF ANY DISCREPANCY BETWEEN THE LANGUAGE VERSIONS, THE SWEDISH VERSION SHALL PREVAIL.