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2016-10-26

ADDvise Group AB: ADDvise signs Letter of intent regarding acquisition of Hettich Labinstrument AB

* ADDvise Group AB (publ) (”ADDvise”) has signed a Letter of intent with Hans
Nilsson Holding AB regarding an acquisition of 100 percent of the shares in
Hettich Labinstrument AB (”Hettich”), all together (”the Acquisition”).
* The purchase price amounts to 15.3 MSEK based on a cash and debt free basis
and is intended to be paid through a combination of cash and newly issued
ADDvise shares of series B. A possible additional earn-out of 4.7 MSEK may
be added to the purchase price given that certain earning targets are
reached.
* For the fiscal year 2016 Hettich is expected to reach a turnover of 48.8
MSEK with an EBITDA of 4.5 MSEK.
* If Hettich is consolidated on pro forma basis, ADDvise’s turnover is
estimated to amount to 248.4 (146.6) MSEK with an EBITDA of 21.5 (4.4) MSEK
for 2016.
* The Acquisition is subject to a conducted due diligence and that the
parties will agree to enter into a share purchase agreement.
* The Acquisition is expected to have a positive effect on ADDvise earnings
per share.

Reasons for the acquisition
Hettich contributes to a significant increase in ADDvise’s net sales and
operating profit. The Acquisition is strategically important for ADDvise and
will increase the range of products and strengthen the competence within the
group. The Acquisition will generate both industrial and financial synergies.

–”An acquisition of Hettich enables a higher growth rate and gives us a new
range of products, extensive expertise and vital sales channels”, says Rikard
Akhtarzand, CEO of ADDvise.

Hettich in short
The company began operations in 1995 as a Swedish distributor of laboratory
centrifuges from the German Hettich Zentrifugen and has over the years
extended its product range and is now a leading supplier of consumables,
instruments and laboratory equipment to health care, research and the
industrial sector. In addition to sales of products the company has a service
department to perform service on medical equipment. For the fiscal year of
2016 Hettich is expected to have a turnover of 48.8 MSEK and to generate an
EBITDA of 4.5 MSEK.

Proforma

If Hettich is consolidated on a pro forma basis ADDvise’s turnover is
estimated to amount 248.4 (146.6) MSEK with and EBITDA of 21.5 (4.4) MSEK for
2016.[1]This represents an increase of 69 percent in turnover and 389 percent
in EBITDA.

[1]Proforma is based on ADDvise’s net sales and EBITDA (including
non-recurring costs and income) for H1 2016 and Hettich estimated sales and
EBITDA for the full year 2016. ADDvise subsidiary LabRum AB is consolidated
on a proforma basis from March 1, 2016 i.e. only 10 months.

Payment of the purchase price

The purchase price amounts to 15.3 MSEK based on a cash and debt free basis
and is intended to be paid through a combination of cash and newly issued
ADDvise shares of series B. Furthermore, the Acquisition is conditional to
that Hettich has a requisite amount of working capital at the admission date.
A possible additional earn-out of 4.7 MSEK may be added to the purchase price
given certain earning targets are reached. The total purchase price will be
distributed as follows:

* 5.0 MSEK to be paid on the admission date through newly issued ADDvise
shares of series B.
* 10.3 MSEK to be paid in cash on the admission date.
* The additional earn-out is estimated to 4.7 MSEK and paid in cash,
indicative in Q2 2018.

Indicative time schedule

The signing of the share purchase agreement is expected to be completed before
the end of 2016 and the Acquisition is expected to be completed early 2017.

Advisors

Mangold Fondkommission AB is financial advisor to ADDvise in connection with
the Acquisition.

For further information, please contact:

Rikard Akhtarzand, CEO. +46 765-25 90 71

rikard.akhtarzand@addvisegroup.se

www.addvisegroup.se

Important information:

This information is required for ADDvise to disclose under the EU market abuse
regulation. The information was submitted for publication on October 26, 2016
at 08:45 CET.

About ADDvise:

ADDvise Group AB (publ) is an expansive group which through its subsidiaries
IM-Medico Svenska AB, KEBO Inredningar Sverige AB, ADDvise Tillquist AB,
LabRum AB, Sonesta Medical AB, Sonesta Medical Inc and Surgical Tables Inc
offers comprehensive solutions in the form of products and services to
healthcare and research facilities. ADDvise Group's customers are located in
both the private and public sectors. The Company's share is listed on First
North Premier and Mangold Fondkommission AB, +46 8-503015 50, is the
company's Certified Adviser and liquidity provider.

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