Arcam: Interim report January – June 2013

Regulatory News:

Arcam (STO:ARCM):

Increased turnover and strong order intake

· Net sales increased by 80% to 92.1 (51.3) MSEK

· Profit after financial items increased to 7.6 (1.2) MSEK

· Earnings per share amounted to 1.98 (0.32) SEK

· Net profit margin increased to 8.3% (2.3)

· Cash at the end of the period was 166.7 (25.9) MSEK (cash includes advanced research grants of approx. 6.1 (9.6) MSEK)

· Order intake amounted to 13 (7) systems

· 11 (4) EBM systems were delivered during the period

· Order book at the end of the period was 12 (4) systems

· Strategic alliance formed with DiSanto Technology Inc.

· Introduction of new EBM system, Arcam Q10

· New share issues have raised a total of 113 MSEK in cash

For the second quarter:

· Sales increased by 67% to 54.0 (32.4) MSEK

· Profit after financial items 7.7 (7.8) MSEK

· Order intake amounted to 7 (5) systems

· 7 (2) EBM systems were delivered in the second quarter

Significant events after the end of June:

· Order for Arcam Q10 from Implantcast in Germany

The strong growth in the second half of 2012 continued during the first half of 2013. Sales increased 80% and earnings improved substantially compared with the first half of 2012. Trailing 12-month turnover is 179.8 MSEK and net profit is 21.4 MSEK. The strong order intake continues with 13 machine orders in the first six months, compared with 7 machine orders in the first half of 2012. Trailing 12-month machine orders is 30 systems. The aftermarket is developing well and aftermarket sales in the period were 30.6 MSEK.

Strategic alliance with DiSanto Technology

The orthopedics market is one of Arcam's two main markets and Arcam’s EBM technology is since 2007 used for industrial manufacturing of orthopedic implants. Advanced orthopedic implants manufactured with Arcam's EBM technology are used by orthopedic surgeons in the US and in Europe. Arcam works long term to further broaden the acceptance and usage of the Arcam EBM technology for the production of orthopedic implants.

In February, a strategic partnership was formed with the contract manufacturer DiSanto Technology Inc. (DTI) in the U.S. The partnership gives Arcam the ability to offer existing and new customers contract manufacturing of advanced orthopedic implants based on the Arcam EBM technology. The combination of DTI’s knowledge of traditional implant manufacturing and Arcam's cutting-edge Additive Manufacturing technology will accelerate the implant industry’s acceptance of the EBM technology for production of orthopedic implants. Two Arcam Q10 systems were installed at the DTI during the period. The agreement with DTI gives Arcam an option to acquire DTI.

Introduction of Arcam Q10, for the implant market

Arcam Q10 was introduced in March. Arcam Q10 is the first of a new generation of EBM systems, developed for industrial production. Arcam Q10 was developed in close cooperation with leading implant companies and the development has been partly financed by Vinnova. Arcam Q10 replaces Arcam A1, which has become an industry standard for Additive Manufacturing of orthopedic implants. Arcam Q10 offers higher productivity and resolution, improved ergonomics, and Arcam LayerQam ™, a proprietary and patented camera-based system for quality control of manufactured parts. Arcam Q10 is designed to meet the high standards for efficient volume production of orthopedic implants in an industrial environment. In addition to the delivery of two Arcam Q10 systems to our partner DiSanto Technologies, three Arcam Q10’s have been ordered for delivery in 2013. This includes an order from Implantcast, Arcam's first order from a German implant company.

The aerospace market - Important new order and continued deepening of cooperation with customers

The airline market is a market with very high technical requirements. During the period, we continued to take important machine orders in this market and in particular an order for four systems from an existing customer. The deal shows both a lot of confidence from the customer and the fact that we quickly approach volume production in the aerospace industry. The potential in the aerospace industry is very large and intensive efforts are underway to make the company ready for the volumes and requirements in the aviation industry. An important part of this is strict quality assurance and after extensive work our business is now certified to ISO 9001.

Private placement of new shares - strong financial position

Arcam has high ambitions in two very demanding markets. While both system and aftermarket sales are increasing rapidly and with good margins, increased turnover and activity will require a larger working capital. With a strong financial position, we also have the possibility to exercise the option to acquire DiSanto Technologies.

The company raised more than 113 MSEK through private placements during the second quarter. We thus have a financial position that provides us the financial strength needed to continue to grow the company.

A strong order book and a positive business situation lays a solid foundation for continued strong growth in 2013.

Mölndal, July 19, 2013

Magnus René, President & CEO

The information has been made public in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. The information was published on July 19, 2013 at 08.30 (CET).

Arcam provides a cost-efficient Additive Manufacturing solution for production of metal components. The technology offers freedom in design combined with excellent material properties and high productivity. Arcam’s market is global with customers mainly in the orthopedic and aerospace industries. The company was founded in 1997 and is listed on NASDAQ OMX Stockholm, Sweden. Head office and production facilities are located in Mölndal, Sweden. Support offices are located in the US, UK, Italy and China.

Arcam AB • Krokslätts Fabriker 27A • SE-431 37 Mölndal, Sweden • 46-31-710 32 00 • www.arcam.com

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