Announcement no. 03/2020
14 January 2020

Revised guidance for 2019 based on
preliminary results for Q4 2019

Össur revises its financial guidance due to
soft prosthetics sales in the fourth
quarter of 2019.The main reasons for soft
sales in Q4 2019 are lower than
expected sales to a certain customer and soft
sales in a few key markets. The
slowdown in sales in Q4 2019 is largely
considered to be of a temporary nature.

Preliminary results suggest that sales
for FY 2019 amounted to USD 686 million,
corresponding to 5% organic growth and
16% growth including acquisitions (local
currency growth). Preliminary EBITDA
before special items for FY 2019 amounted
to USD 150 million or 22% of sales.
Based on the preliminary results, full year
sales are therefore approximately
1% below guidance.

Preliminary sales in Q4 2019 amounted to USD 180 million,
corresponding to 1%
organic growth and 10% growth including acquisitions (local
currency growth).
Preliminary EBITDA before special items for the Q4 2019
amounted to USD 37
million or 21% of sales.

The preliminary results have not
been audited.

Based on the preliminary results, Össur now expects organic
growth of ~5% for FY
2019 (previous ~6%) and EBITDA margin before special items
of ~22% for FY 2019
(previous ~23%). Other guidance parameters remain
unchanged.

Jon Sigurdsson, President & CEO, comments: "The preliminary results
for the
fourth quarter are disappointing while sales for the full year are
strong with
growth of 16% in local currency and 5% organic growth. Despite the
temporary
slowdown in prosthetics sales in the fourth quarter, we are confident
that our
market position continues to be strong and we expect continued organic
growth in
2020. Profitability for the full year was lower than we expected
which can
largely be attributed to lower than expected sales in Q4 2019.”

For
2020, Össur expects organic growth to continue to be in line or above
estimated
market growth and continued gradual increase in underlying
profitability. The
financial guidance will be further specified as part of the
2019 annual
report.

Össur will release its Q4 2019 interim report and 2019 annual report
as
scheduled on 4 February 2020.

Conference call details

Össur will host a
conference call today, Tuesday 14 January 2020 at 15.00 CET
(14.00 GMT), about
the revised guidance and preliminary results. The conference
call will be
conducted in English.

Link to webcast:
https://edge.media-server.com/mmc/p/pp8j5ffd

To participate in the conference
call please call one of the following telephone
numbers:

DK: +45 35445577
UK:
+44 3333000804
SE: +46 856642651
US: +1 6319131422
IS: +354 8007437

PIN CODE
to access the call: 42051814#

Further information

David Hreidarsson, Investor
Relations, dhreidarsson@ossur.com, +354 515 1380

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About Össur

Össur (Nasdaq Copenhagen: OSSR)
is a global leader in non-invasive orthopaedics
that help people live a life
without limitations. A recognized “Technology
Pioneer,” Össur focuses on
improving people’s mobility through the delivery of
innovative technologies in
Prosthetics and Bracing & Supports, by investing
significantly in research and
product development to create award-winning
designs with consistently strong
market positions. Successful patient and
clinical outcomes are further
empowered via Össur’s educational programs and
business solutions.  As part of
Össur’s long-standing commitment to social
responsibility, the company has been
a signatory to the United Nations Global
Compact since 2011, and also
participates in the Nasdaq Nordic and Baltic
exchanges’ voluntary guidelines
for Environment, Social and Corporate Governance
(ESG). Össur is headquartered
in Iceland, with major operations in the Americas,
Europe and Asia, and
additional distributors worldwide. www.ossur.com