Strong growth and strategic acquisitions

    ·
Net sales increased by 70% to
339.0 (199.4) MSEK

    ·
Operating income increased to SEK 19.6 (14.5)
MSEK
(including non-recurring costs of approximately 9.3 (5) MSEK)

    ·
Net
income increased to 57.1 (15.4) MSEK
(including tax effects of approximately
15.8 MSEK)

    ·
Earnings per share increased to 3.10 (0.96) SEK

    ·
35
(25) EBM systems were delivered during the period

    ·
Order intake increased
to 42 (27) systems

    ·
Acquisition of the metal powder manufacturer AP&C in
Canada

    ·
Acquisition of the contract manufacturer DiSanto Technology
Inc.

For the fourth quarter:

    ·
Sales increased by 105% to 137.1 (66.9)
MSEK

    ·
Operating income increased to 13.2 (6.9) MSEK

    ·
Net income
increased to 15.0 (7.6) MSEK

    ·
Order intake increased to 21 (10) systems


   ·
15 (9) EBM systems were delivered in the third quarter

Significant events
after the end of the period:

  ·
Order for 5 new EBM systems in January
2015

Strong growth and strategic acquisitions

2014 was another eventful year
for Arcam and during the past twelve months Arcam
has developed significantly.
While sales of our EBM systems continue to
increase, we have also expanded our
business with the metal powder manufacturer
AP&C in Canada and the contract
manufacturer DiSanto in the US.
We now have an offering to our clients with our
EBM systems as a hub and metal
powders and contract manufacturing being
important supplementary products,
broadening our offering to the market and
providing recurring revenue.

After a strong fourth quarter, we closed the year
with a turnover of almost 339
MSEK and an operating income of 19.6 MSEK. Sales
increased by more than 70% and
operating income increased by 35%. The operating
profit includes non-recurring
costs associated with the acquisition of AP&C and
DiSanto of about 9.3 MSEK.

Acquisition of AP&C

In February 2014 we acquired
the metal powder producer AP&C from Raymor
Industries in Canada. AP&C is a
leading manufacturer of high quality metal
powder and supplier of titanium
powder to Arcam since 2006. Titanium powder is
an important part of our
offering and with this acquisition we have secured
access to the best
technology for the production of high quality metal powder
for our customers.
The acquisition is fully in line with our growth strategy and
complements our
EBM technology and product portfolio. The acquisition was
completed on February
11, and is consolidated from this date.

Acquisition of DiSanto Technology

In
September 2014 Arcam acquired DiSanto, a strategic partner since February
2013.
The acquisition combines Arcam’s cutting-edge Additive Manufacturing
technology
with DiSanto’s full-service contract manufacturing services for
orthopedic
implants. Through DiSanto we offer manufacturing of advanced EBM
based implants
and other components.

The combination of Arcam’s EBM technology and DiSanto´s
know-how in orthopedic
implant manufacturing will accelerate the market
adoption of Additive
Manufacturing in the implant industry.

DiSanto is a fully
equipped and certified production facility for the production
of finished
orthopedic implants with approximately 100 employees. The
acquisition was
finalized on September 2, 2014 and DiSanto is consolidated from
this
date.

During the year we have expanded our operations at DiSanto with a newly
built
facility for the production of EBM based implants.

Through these
acquisitions we now have a broad offering for our customers; metal
powders
through AP&C, acquired earlier this year, EBM systems and services
through
Arcam AB and contract manufacturing through DiSanto. The acquisition is
thus in
line with our growth strategy, and complements our technology and
product
portfolio.

Business status

During the year we received 42 new system orders,
an increase by over 50%
compared to the previous year. We see a continued
strong demand, particularly
from the aerospace industry and order intake for
our new large system, the Arcam
Q20, is strong. We enter 2015 with an order
book of 19 systems.

The Asian market continues to grow and over one third of
the order intake in
2014 comes from Asia.

The work to industrialize our
technology with the major players within the
aerospace and implant industries
continue and we can see good business
opportunities forward. Of the 35 systems
that were delivered during the period
the majority went to customers within the
medical implant or the aerospace
industry.

Growth – organic and through
acquisitions

In addition to the acquisition of AP&C and DiSanto we are in
rapid organic
growth. We thus continue to recruit qualified employees in order
to meet the
expectations from our customers. During the year we have
strengthened our
service office in China and the support and sales organization
in Sweden. We
also have strengthened our Key Account organization and appointed
a Chief
Operating Officer (COO) for the EBM business. We will maintain an
ambitious
recruitment pace in order to further develop our technology and
offering and
thus exploiting the present business situation.

A stable order
book, stable finances and a positive business situation lay a
solid foundation
for a continued strong growth in 2015.

Mölndal, February 5, 2015

Magnus René,
President & CEO

The information has been made public in accordance with the
Securities Market
Act and/or the Financial Instruments Trading Act. The
information was published
on February 5, 2015 at 14.00 (CET).
For further
information please contact:
Magnus René, CEO Arcam AB
Tel: 46 31 710 32 00,
alt. cell: 46 702 79 89 99, or e-mail:
magnus.rene@arcam.com
Arcam Group
provides cost-efficient Additive Manufacturing solutions for
production of
metal components. Arcam’s Electron Beam Melting (EBM®) technology
offers design
freedom combined with excellent material properties and high
productivity.
Arcam is, through its solution orientation and comprehensive
product offering,
an innovative partner for advanced manufacturing, primarily
for the aerospace
and medical industries. Arcam offers EBM systems through Arcam
AB in Sweden,
powder metals through AP&C in Canada and implant contract
manufacturing through
DiSanto in the U.S.The company is listed on Nasdaq
Stockholm and the Head
Office is located in Mölndal,
     Sweden.

_______________________________________________________________________
     __________
_______

Arcam
AB • Krokslätts Fabriker 27A • SE-431 37 Mölndal, Sweden • 46-31-710 32 00
•
www.arcam.com