April 2011

Medicom CEO leadership change

Dear Bang & Olufsen Medicom Business Partner,

I am pleased to announce a number of changes in Bang & Olufsen Medicom a/s’ (Medicom) leadership, which will further strengthen our competences and growth potential:

· Morten Nielsen joins the company as CEO as of early April.
· Erik Trock-Jansen will join the Medicom Board as Chairman, and I will continue in the Board as Vice Chairman.

Medicom is very pleased to have attracted Morten as the new CEO with a focus on growth. Morten has an extensive technical and commercial background within the medical device and pharma consulting business. Before joining Medicom, Morten was a Partner with PA Consulting Group responsible for the Life Sciences business in the Nordics. Prior to PA, Morten held various leadership positions within product development, regulatory affairs, quality systems, process optimization, outsourcing, certifications (EU/FDA), and business development.

The Board is also pleased to have Erik continuing as Chairman as it will ensure continuity and momentum. Erik joined the organization as interim-CEO in June 2010 with the purpose of focusing our strategy and strengthening our organizational competences. This has now been accomplished. We now have a clear focus on development of advanced devices for injection and inhalation, in addition to electronic stethoscopes complemented with pilot and low volume production. This is supported by a stronger organization in a simplified structure.

I am thus pleased to announce a more flat and simple leadership structure. Reporting to Morten are:

Sales, Business Development & Innovation (BD&I) headed up by Soren Vestergaard Jacobsen. Soren has been 10 years with Medicom, most recently as VP R&D & Operations. Soren has also been promoted to Vice-CEO, in addition to his new position as Head of Sales, BD&I.

Product Development headed up by Kent Mosier. Kent has been with Medicom for over a year and has previously worked with medical device development and commercialization for Johnson & Johnson among other companies. Kent has more than 17 years experience in the medical device field.

Production will be headed up by Gitte Holmgaard Dale. Gitte has been five years with Medicom leading Production and Logistics.

Finance, IT & Administration will be headed up by Claus Bjerg as CFO. Claus has been with Medicom for one year and has worked with finance and IT in leadership positions for more than fifteen years.

Quality Department. We expect that a new Head will be in place by the end of 2nd quarter, until then Claus Bjerg is interim Head.

Medicom has a strong position in our focus areas - development of advanced devices for injection and inhalation, along with electronic stethoscopes complemented by pilot and low volume production. We can provide advanced solutions using our expertise in mechanics, electronics, and software along with the unique integration of development and low volume production to provide our clients with a speed to market proposition in relation to clinical trials and market launches.

First and foremost, we are interested in our clients’ success: This is our prime objective of the organizational initiatives above.

Yours Sincerely

Peer Nørkjær
Chairman of the Board

Bang & Olufsen Medicom a/s