24 May 2011: NorDiag has today entered into an agreement to sell all of its shares in Olerup International AB to LinkMed AB (publ) for a cash consideration of SEK 8 million. The transaction includes Olerup International's wholly-owned subsidiary Olerup GmbH (Austria). The cash payment for the shares is divided into two tranches, whereby SEK 5 million will be paid upon the transfer of the shares and SEK 3 million is payable no later than 31 October 2011. The initial investment by NorDiag in Olerup International in 2009 amounted to SEK 50,000. The distribution agreement for NorDiag's Arrow instrument and kits will be terminated upon the transfer of the shares, and NorDiag will accordingly take direct responsibility for the accounts in the previous HLA segment.  It is expected that the share transfer will take place June 1 2011.

Olerup International was established as a joint venture between NorDiag (50%), LinkMed (25%) and SSP Primers (25%) on 2 July 2009. Due to its rights under the shareholder agreement relating to Olerup International, NorDiag consolidated Olerup International into its accounts as a subsidiary from the same date. The purpose of Olerup International was to coordinate the joint venture partners' distribution strategy of products in the HLA/Tissue typing field. For all parties, the joint venture was seen as a timed partnership; attractive at the time, but with limited synergies and probably different strategic needs for the parties as markets and technologies changed. The business of Olerup International has been to distribute Olerup SSP and AbSorber products, and the Arrow instruments through its wholly-owned subsidiary Olerup GmbH.

Currently, there are 9 employees (counting 7.8 man-years) in Olerup GmbH, and there are no employees in Olerup International. The Board of Olerup International currently consists of Ingemar Lagerlöf, Olle Olerup, Mårten Wigstøl and Tone Kvåle, and the latter two board members will resign with effect from completion of the share transfer.

 "We believe that it is a right time for us to sell our shares in Olerup International now," says CEO of NorDiag, Mårten Wigstøl, and explains: "The success of the Arrow technology requires all our financial and managerial capacity, and at the same time new strategic partnerships with stronger synergies can be attractive." He believes the break up will not hinder continued success for the sale of the multi solution for cell and nucleic acid isolations in the HLA market. "Our value proposition with a cost effective instrument and a flexible and unique portfolio of applications will ensure our position", he states.

As of 31 December 2010, the total assets of Olerup International amounted to SEK 20.9 million on a consolidated basis, and total liabilities were SEK 14.3 million. The revenue of Olerup International for the year ended 31 December 2010 was SEK 87.9 million on a consolidated basis, with a net profit of SEK 10.0 million.

For NorDiag, the sale of Olerup International will mean a total divestment of its reported HLA segment. Operating revenue of the HLA segment was NOK 74 million of a total of NOK 103 million in 2010. The segment had a positive contribution to the operating profit before depreciation and write-offs (EBITDA) of NOK 7.4 million, whilst total EBITDA for the NorDiag Group was NOK - 30.7 million as of December 31, 2010.
 
Contact:
CEO Mårten Wigstøl       Phone +47 911 65775
CFO Tone Kvåle             Phone +47 915 19576   
 
About NorDiag:
NorDiag is a biotechnology company developing, manufacturing and marketing automated solutions (instruments and reagents) for sample preparation of DNA from difficult biological samples. DNA diagnostics give more rapid and precise answers, and are the fastest growing field within diagnostics. The Company's sample preparation solutions are today used in connection with STI, tuberculosis, MRSA, respiratory pathogens and viruses on instruments for large and small laboratories. NorDiag was founded in 2003 and has its headquarters in Oslo, Norway. The Company has offices and laboratories in Stockholm, Sweden, in West Chester (PA), USA and in Vienna, Austria. The group has today 41.1 man-labour years. NorDiag is listed on Oslo Stock Exchange with ticker NORD.

For further information - www.nordiag.com.

Read the notice in Norwegian here