Acquisition of the Gibaud Group

1. Acquisition of the Gibaud Group Jón Sigurðsson, President & CEO

2. Forward-looking statements This presentation contains forward-looking statements as the term is defined in the US Private Securities Litigation Act of 1995. These statements reflect the Management’s current views with respect to certain future events and financial performance. Although the statements are based upon estimates Management believes to be reasonable, there is no assurance that these statements will be achieved. Statements containing the financial outlook for 2006 and the following years naturally involve risks and uncertainties, and consequently actual results will differ, and may differ materially, from those projected or implied in the forward-looking statements. The uncertainties may include unexpected developments in the international currency exchange and securities markets, market driven price decreases for Össur’s products, delay or failure of development products, production problems and unexpected cost increases, development of new technologies by competitors, the introduction of competing products within Össur’s core areas, exposure to product liability and other lawsuits, changes in reimbursement rules and governmental laws.

3. Who are we? • Global Orthopaedic Company • Growing through Innovation • Transforming through acquisitions • Ossur - becoming a leader • in the Orthopaedic Industry

4. Vision 2010 and strategy Becoming a leading player in non-invasive orthopaedics with $750 million in sales and a 23% EBITDA margin Strategy: • Technical innovation leadership • Sales and operational cost leadership • Increase focus on emerging markets • Consolidate through acquisitions • Add value through partnerships ...supported by a high performance culture and adequate financial resources.

5. Acquisitions History Gibaud Group Designer & manufacturer of orthopaedic products $134 million PS

6. Enterprise value €101 million Sales 2005/2006* €41 million EBITDA 2005/2006 21% Estimated sales 2006/2007 €44 million One time restucturing cost € 5 million Inventory step-up € 2 million Bank of America advised on the transaction Kaupthing bank advised on the financing and provided bridge financing of €100 million An equity offering is planned for the spring of 2007 The acquisition of the Gibaud Group in France Transaction summary *The fiscal year of Gibaud is from July to June

7. Adds meaningful scale in France, a key European market Possibilities to broaden and diversify the current Ossur product offering with phlebology and new Bracing & Support products Possibilities to broaden Gibaud’s product offering with current Ossur products Very well known brands A potential base for further European expansion, especially in Southern Europe Will be operated as a stand alone unit at least for 18-24 months – limited synergies The acquisition of the Gibaud Group is in line with Ossur’s strategy of expanding in the European bracing & support market through strategic acquisitions Strategic rationale

8. - operte medical Leading French manufacturer of phlebology Entered “Gr and Public” Market in 2005 to u u - #2 % Market Share) 2 products #3 France (1 - % Market Share) 0 diversify income stream and seek new avenues of growth #2 France for comfort shoes (15% - Pharmacies are th Acquired TBI in 2002 u u market share) 26% of production is outsourced A new production facility in Trevoux (Lyon) was u u 100% of production outsourced built at the end of 2005 u Plans to move basic production from St. l Etienne to Thailand over 3 years to reduce 70% of phlebology production is outsourced from u costs by 17 - 25% France Plan to shift production to own plants in l Trevoux and lower complexity offerings to Thailand to improve margins ` Bandages & Tights Comfort Shoes Key Products u u u supports, ankle guard s and knee guards Stockings Thermo regulated T - - Shirts u u Tailor made products & podology products - Knee - highs u u ble products Stump socks u u Shoulder & Wrist Devices u ` Key Competitors Gibaud Group • Founded 1890 • Employees 361 • Locations • - Saint Etienne (headquarters) • - Trevoux Gibaud Braces & Supports Other Phlebology 06 Sales € 26 m € 13m € 2 m Sales Contribution 65 % 3 0 % 5 % (2) Forecast Growth 6% 8% 5% Leading French manufacturer of phlebology productcts #3 France (10% market share) New facility in Trevoux (Lyon) was built at the end of 2005 70% of phlebology production is outsourced from France Mainly comfort shoes - #2 France for comfort shoes (15% market share) 100% of production outsourced Description Leading manufacturer of non-operative medical devices - #2 in France (22% market share) Pharmacies are the key distribution channel 26% of production is outsourced Exports contributed sales of Eur 6 million u • Comfort shoes • Cervical Collars, Lumboscral & abdominal • Supports, ankle and knee guards • Custom made products & podolgy products • Thermoformable products • Bandages & Tights • Stockings • Kneehights • Stump socks Thuasne Ganzoni Scholl u u u Lohmann & Rauscher Innothera u u `

9. 11% of sales Wholesaler 16% of sales 71% of sales 2% of sales Exports - 15% Other - 1% Dispensary Pharmacies Hospitals / Clinics/ Specialists Strong distribution network in France Gibaud Group 55 sales representatives / 10 specialized salesreps / sales force has increased by 33% since year-end 2004

10. Other 22% Thuasne 31% Axmed (DJ) 7% Coop. Pharm. 7% L&R Gibaud 9% 24% Other 6% Cognon-Morin 8% Ganzoni Thuasne 40% 11% Gibaud 13% Innothera 22% Market overview - France Braces & support COMPETITIVE POSITIONING • Market size estimated $ 130 million – growth approx. 5% • Healthcare services in France are tightly regulated by • the Government, social security finances 80% • Increased sales to hospitals and pharmacies • Aging population and related orthopaedic problems • Improved marketing and clinical education • Compression therapy is a preferred treatment for venous ulcers • and edema and involves application of external pressure on the • vascular elements to assist in pumping blood back to the heart • Market size estimated at $ 130 million – growth approx. 8% • Static compression therapy (phlebology) constitutes 65-70% • Compression therapy is reimbursed by the Government • Improved marketing and clinical education of compression products • Aging population and related orthopaedic problems Phlebology

11. The European Bracing & Support market The acquisition of the Gibaud Group adds meaningful scale in the European Bracing & Support market Current situation Post acquisition

12. Sales by markets Q3 2006 Össur & Gibaud

13. Sales by product segment Q3 2006 Össur & Gibaud