ZUIDEX obtains reimbursement in German hospitals

12/9/2003 11:03 AM EST

The German authorities have decided that treatment by injection for
urinary incontinence shall be included in the so-called Diagnosis
Related Groups system (DRG) during 2004.

Zuidex, which is Q-Med's product for the treatment of stress urinary
incontinence in women, will therefore be included in this refund system
as from January 1, 2004.

The fact that this form of treatment is now included in the DRG system
means that ZUIDEX will be covered by a refund when the product is used
in hospitals.

During 2004 Q-Med's sales activities in Germany will be directed at
hospitals. At the same time the work on obtaining reimbursement within
outpatient care in Germany will continue.

ZUIDEX is Q-Med's product for the treatment of stress urinary
incontinence in women. The product is used to strengthen the muscles
around the urethra and thus stops the involuntary leakage of urine that
can arise. The injection of ZUIDEX around the ureter makes it easier
for the muscles to hold tight in the event of stress. ZUIDEX is
injected with the aid of the IMPLACER injection device.

Queries should be addressed to:
Bengt Ågerup, President and CEO, Ph:+46(0)70-974 90 25.
Fredrik Hallstan, Manager, Investor Relations and Corporate
Communications,
Ph:+46(0)70-974 90 15.



Note: Q-Med AB operates under the name of Q-Med Scandinavia, Inc. in
the USA.


Q-Med is a rapidly growing and profitable biotechnology/medical device
company that develops, produces and markets medical implants. All
products are based on the company's patented technology for the
production of NASHA - Non-Animal Stabilized Hyaluronic Acid. The
products RESTYLANE, RESTYLANE Fine Lines and RESTYLANE Perlane are used
for the filling out of lips and facial wrinkles and today account for
the majority of sales. DUROLANE,
Q-Med's product for the treatment of osteoarthritis of the knee joint,
has been approved in Europe since May 2001. DEFLUX is a product which
has been approved in Europe and the USA for the treatment of
vesicoureteral reflux (malformation of the urinary bladder) in
children. ZUIDEX for the treatment of stress urinary incontinence in
women has been sold in Europe since July 2002. Since July Q-Med today
has 440 employees, with approximately 290 at the company's production
facility and head office in Uppsala. The Q-Med share was first listed
on the O-list of the Stockholm Stock Exchange in December 1999.