Lund, Sweden — 10 October 2017 — Dignitana AB (publ) today announces
additional
details about the company's financial and market situation to
provide clear
information to the market.

On 29 September 2017, Dignitana
announced production delays due to changes at a
subcontractor’s operations
which will cause a 4 million SEK decline in sales in
the second half year of
2017. It mainly concerns postponements of deliveries and
invoicing to non-US
distributors.

Dignitana’s target for 2017 is now to have about 130 installed
systems on the
U.S. market by year-end. Dignitana had previously stated a goal
of 200 systems.
The reasons for this are several:

-       There is always a
slow start up phase when introducing new medical
technology. The market
introduction of DigniCap® has taken longer than expected.

-       Some systems
have had quality defects, which has caused a delay in
machine deliveries. Since
Johan Ericsson and an additional Quality Manager were
added in early 2017, they
have worked with our contract manufacturer to identify
and dramatically reduce
production- related quality issues.

-       Customers now have more than one
supplier to choose from. Most sites
want to quote multiple suppliers and
evaluate them for a longer period.

-       The systems take time to install
and require training of staff at the
clinics. Dignitana has therefore
introduced a new integration program to make
the process as smooth and
efficient as possible. That has required a larger
organization which has led to
increased costs.

Despite the delays of installed systems, both sales and
number of treatments
have increased month-over-month in 2017 and continue to do
so.

On 3 October 2017, Dignitana announced additional growth in the U.S.  with
The
DigniCap® Scalp Cooling System available at 95 clinical sites across 21
states.
Due to confidentiality agreements, all 95 sites are not included on
the
availability list on the DigniCap website.

Since its’ clearance in 2015
the DigniCap System has had a number of
enhancements and improvements. These
ongoing product developments are undertaken
to enhance patient outcomes and
improve clinical efficiencies. Dignitana is
committed to providing the best
product and scalp cooling treatment on the
market. Therefore, the company is
developing a next-generation system, which is
expected to be introduced to the
market in 2018. The system is based on a new
platform and has additional
features and a lower production cost. It will be
smaller and offered for single
use. It will also be easier for customers to
install and handle.

Dignitana has
previously stated that break-even was expected to be reached in
the first
quarter of 2018. Today, the company estimates that break-even can be
reached by
the end of 2018.

On 29 August 2017, Dignitana announced that the company
received a loan from
Union Business Leasing, Inc. to finance existing systems
installed on the US
market in the form of a credit facility valued at up to
$2.5 million. To date,
Dignitana has utilized $1.5 million of that total.
Continued credit utilization
is dependent on installed systems. Borrowings are
amortized and repaid under a
rolling 30-month term schedule.

Dignitana is
evaluating a range of financing solutions in the near future to
ensure
continued operations and growth.
Media Contacts:

Caren
Browning                                              Semmy Rülf

King +
Company                                             Chairman of the
board,
Dignitana AB

00 1 212 561-7464                                          +46
(0)709-312730

Caren.Browning@kingcompr.com                  
semmy.rulf@dignitana.se
About Dignitana AB (publ)

Dignitana is a Swedish
public company based in Lund and manufacturer of the
medical cooling device
DigniCap®. Dignitana AB is listed on Nasdaq First North
Stockholm and has
appointed Erik Penser Bank as Certified Adviser. Headquartered
in Dallas Texas,
Dignitana, Inc. is the U.S. subsidiary of Dignitana AB. For
more information
visit www.dignitana.se

About The DigniCap® Scalp Cooling System­­

DigniCap®
is a patented scalp cooling system that offers cancer patients the
ability to
keep their hair during chemotherapy. DigniCap® provides continuous
cooling with
high efficacy, safety and acceptable patient comfort.
www.dignicap.com

This
information is information that Dignitana AB is obliged to make public
pursuant
to the EU Market Abuse Regulation. The information was submitted
for
publication, by the above contact, for publication at 19:30
(CET), 10
October, 2017.