Meda divests manufacturing unit Euromed in Spain

Meda has entered into a definitive agreement with The Riverside Company
(“Riverside”) for the sale of Euromed S.A. (“Euromed”), a business-to-business
manufacturer of herbal extracts and natural active substances located in Spain.
The total consideration is EUR 82 million in upfront cash for the shares of
Euromed. The unit generates sales of around EUR 40 million and an EBITDA margin
of around 20% on an annual basis.

Euromed is a legacy Rottapharm subsidiary, now part of Meda, and has
historically been the supplier of the key Legalon API. Meda and Riverside have
entered into a favorable long-term strategic supply arrangement with fixed
prices for a considerable time. In addition to the Legalon API, Euromed
currently supplies high quality products to over 350 customers worldwide
accounting for around 70% of its sales.

“The divestment of Euromed is in line with our stated strategy to focus on
Meda’s core business of selling and marketing Rx and Cx/OTC products in key
markets. The transaction will enhance Meda’s cash flow profile but also
positively impact profitability” said Dr. Jörg-Thomas Dierks, Group President
and CEO of Meda. “Furthermore we secure a long-term supplier for the API of our
key product, Legalon”.

The disposal of Euromed must be reported to the competition authorities in
Germany. Competition filings will be initiated within days and the transaction
is expected to complete in Q1 2016 following such clearances.

Closing of the transaction is not subject to any other material conditions.

Rothschild is acting as financial advisor to Meda and Latham & Watkins is acting
as legal advisor to Meda in connection with the transaction.

For further inquiries, please contact:

Paula Treutiger, VP Corporate Communications &
Sustainability ph: +46 733
-666 599

Meda AB discloses the information provided herein pursuant to the Securities
Markets Act and/or the Financial Instruments Trading Act. The information was
submitted for publication on December 1, 2015, at 08:00 CET.

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