Inion

1. Inion

2. Piper Jaffray Healthcare Conference25 June 2008 - LondonChris LeeChief Executive Officer

3. Inion History • Founded in 2000 • Floated on LSE – November 2004 @130p • Market Cap - £8m • Employees – 85 • Facilities – HQ in Tampere, Finland. Sales Offices, UK/USA

4. Our Mission Inion aims to be the leading company focused on the development and successful commercialisation of innovative, unique, biodegradable and bioactive surgical implants in selected high-value orthopaedic market segments

5. Inion’s Proprietary PositionOPTIMATMTechnology • Fracture healing is complex mixture of biological and mechanical processes • Different applications are better addressed by different combinations of strength, malleability and biodegradability • OPTIMATM implants are made from blend of rigid and elastomeric polymers

6. Outcome of Strategic Review • Reduce business units from five to two • Focus on Spine and Specialty Orthopaedics (Foot & Ankle and Upper Extremity) market segments. Divest other business units • Geographical focus • Priority market USA and select territories in rest of world • Change distribution channels • Move from corporate partnerships to independent distributor networks • Shift emphasis from R&D to commercial enterprise • Close research lab and long-term projects • Hire experienced commercial leadership

7. Operational Highlights • Hired experienced commercial leadership • Restructured and realigned internal operations • Reduced headcount and cost base • Distribution network radically overhauled • US operation fully functioning • Portfolio enhanced with new products • Transition to commercial orientation • Sales in line with expectations – sustainable platform for growth

8. Revenue

9. Cash Burn

10. Key Activities – 2008 • Divestment options • Development of US model • Value proposition to support new products • New product approvals/launches • Continued focus on cost structure

11. The US Leadership Team • Dave Hawkes, National Sales Director, Inion USA • Highly successful career in sales and marketing with Stryker and DePuy • 3 Regional Sales Managers • West Coast – Josh Sewell – RSM with Nexa and previously managing his own Orthopaedic distributorship • Central – Eric Haugan – Principle of independent distributor company with great success in Spine. Previously with Aesculap Spine. • East Coast – Eric Halbower – Field marketing and RSM experience with DePuy and a background in Spine and Biologics

12. US Business Model • 32 independent distributors hired • 22 specialty orthopaedics • 14 spine • 40 planned by end H1 2008 and 50 by year end 2008 • 150 Sales rep coverage, 300 by year end • Dedicated sales trainer relocated from the UK • $2m investment in instrument sets in 2008

13. The US Opportunity – Spine • Cervical Plating • 187,000 procedures per annum1 • €357m market value1 • Value per procedure – €2,200 • Market share in 2008 – 0.4% • Specialist surgeons perform 15 - 20 cases per month • One surgeon contributes between €400k - €500k pa 1Source: Millennium Research Group 2007

16. BioRestoreTM

17. The US Opportunity – Foot & Ankle • Ankle Plating System (Inion FreedomPlate™) • 140,000 procedures per annum1 • Procedure price – €1,700 - €2,200 • Market share in 2008 – 1.9% • Two customer groups – F&A surgeons and podiatrists • Unique product in underserved market • Multiple applications for FreedomPlate™ - potential to expand sales revenues 1Source: Millennium Research Group 2007

18. FreedomPlateTM

19. What Do Our Customers Think? • Ohio Distributor • “The S-1 is a truly unique offering that enhances my reputation as a spine distributor” • Spine Surgeon – West Virginia • “I have been waiting for an alternative to the Mystique plate which works and this fits the requirement in every respect” • Surgical Podiatrist – Chicago • “The FreedomPlateTM is the real deal. Versatile easy to use and customisable to every single patient”

20. Value Proposition • New product launch plans • Clinical evidence • Strength and degradation • Versus the ‘Gold Standard’ • Focus on the proprietary position of Inion Optima™ • Economic benefits • Surgeon champions • National and local podium presentations • New marketing material to capture ‘value’

21. Our Product Portfolio – 2008 Q108 S-1 Two-level Plate Product roll-out OUS BioRestore (BioGlass) Bone Filler Product roll-out US & OUS S-2 Lumbar Plate Product roll-out OUS S-1 Two-level Plate Initiation of clinical study S-1 Cervical Plate Case reports Spine BioRestore (BioGlass) Bone Filler Initiation of clinical study S-2 Lumbar Plate Initiation of clinical study S-1 Cervical Plate Study results S-1 Two-level Plate Product roll-out US S-2 Lumbar Plate Product roll-out US Q208 Q308 Q108 Q208 Q408 Specialty Orthopaedics HEXALON Foot & Ankle Product roll-out US & OUS BioRestore (BioGlass) Bone Filler Product roll-out US & OUS OTPS Ankle Plate Study Results OTPS New Procedure kits Roll-out US & OUS OTPS Headless Screws FDA approval & CE-mark OTPS New Instruments Roll-out US & OUS Approval obtained Approvalpending New product

22. Key Market Activity – 2008 • Area Sales Manager for Northern Europe • New distributors hired in Italy, Benelux and Germany • Reviewing distribution options in France and UK • Recertification on sales training in all key markets • Drive growth in Korea, Taiwan and Australia • Registration of full portfolio in China

23. Summary • Inion is positioned for sustainable growth • Sales execution is the priority • Early signs in the US are encouraging • Divestments will provide cash inflow and sharpen focus on target segments • Value proposition will accelerate adoption