2. February 2004 Copyright Ossur Össur hf. Financial overview 2003.

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2. February 2004 Copyright Ossur Össur hf. Financial overview 2003

2. February 2004 Copyright Ossur Financial highlights 2003 Sales 2003 Expenses 2003 Balance sheet Q4 financial highlights GII Purchasing accounting

2. February 2004 Copyright Ossur Financial highlights 2003

2. February 2004 Copyright Ossur The EBITDA “gap” EBITDA 10% Unusual items 4% = Normalized EBITDA 14% R&D excess investment 3% GPM slide 3% = Targeted EBITDA20%

2. February 2004 Copyright Ossur Unusual items 2003 Severance & restructuring exp USD –Össur North America AV –Össur Engineering in Albion –Össur Engineering R&D in AV –Generation II USA in Seattle –Generation II Orthotics in Canada –Össur hf Litigation expenses USD DW relocation USD Expensed acquisition process USD Normalized EBITDA is 14%

2. February 2004 Copyright Ossur Income statement by quarters 2003

2. February 2004 Copyright Ossur Net sales

2. February 2004 Copyright Ossur Net profit Note: Unusual expenses ,3 million USD

2. February 2004 Copyright Ossur EPS

2. February 2004 Copyright Ossur Key ratios Note: Unusual expenses 2003 GPM= +0,5%, SG&A = -3,4%, R&D = -0,7%

2. February 2004 Copyright Ossur Key ratios 2003 / % +13% -34%-47%- 54% Note: Unusual expenses ,3 million USD

2. February 2004 Copyright Ossur Sales 2003

2. February 2004 Copyright Ossur Sales by markets

2. February 2004 Copyright Ossur Sales by markets % 43% +20% +2%+2% Generation II was acquired October 3rd GII sales in 2003 were 5.2 million in North America and 0,7 million in Europe.

2. February 2004 Copyright Ossur Sales growth 2003 in local currency

2. February 2004 Copyright Ossur Sales growth 2003 (excluding GII) in local currency Excluding Generation II sales of 5,9 million USD. Generation II was acquired October 3rd

2. February 2004 Copyright Ossur Net sales ,3 GII sales Q is 5,9 million USD

2. February 2004 Copyright Ossur Expenses 2003

2. February 2004 Copyright Ossur S&M Note: Unusual S&M expenses is 0,5% in 2003

2. February 2004 Copyright Ossur R&D Note: Unusual R&D expenses 2003 is 0,7%

2. February 2004 Copyright Ossur G&A Note: Unusual G&A expenses ,9% in 2003

2. February 2004 Copyright Ossur EBITDA by Q ,2 Note: Q4 unusual expenses 2.5 million USD

2. February 2004 Copyright Ossur EBITDA ratio

2. February 2004 Copyright Ossur Balance sheet

2. February 2004 Copyright Ossur Balance sheet Equity ratio43%56% Current ratio1.82.3

2. February 2004 Copyright Ossur Balance sheet 31. Dec 2003 Equity Fixed 43% 64%36% Current Long termShort term 38% 19%

2. February 2004 Copyright Ossur A/R 30. Dec % + 26% Note: GII A/R are 3,3 million USD. Decrease in Ossur receivables is 6%.

2. February 2004 Copyright Ossur Inventories 30. Sept % 0% Note: GII Inventories are 1,6 million USD. Decrease in Ossur inventories is 12%.

2. February 2004 Copyright Ossur Q4 financial highlights

2. February 2004 Copyright Ossur Key ratios Q / % 38% -102%-159%-133% Note: Unusual expenses 2.5 million USD in Q4 2003

2. February 2004 Copyright Ossur Key ratios Q Note: Unusual expenses 2.5 million USD in Q4 2003

2. February 2004 Copyright Ossur Sales by markets Q / % 16% +39% +17% Note: GII sales in Q4 were 5.2 million in North America and 0,7 million in Europe.

2. February 2004 Copyright Ossur Key ratios Q Note: Unusual expenses 2003 GPM= +0,6%, SG&A = -7,4%, R&D = -0,8%

2. February 2004 Copyright Ossur GII Purchasing accounting

2. February 2004 Copyright Ossur GII purchasing accounting Operating fixed assets 2,521,000 USD Liabilities- 2,171,000 USD Working capital 5,000,000 USD Intangible assets (amortized) 4,444,000 USD Goodwill (impairment test)22,801,000 USD TOTAL32,595,000 USD

2. February 2004 Copyright Ossur Thank you !