The Board of Directors of Episurf Medical AB (publ) ("Episurf", or the "Company") has taken note of a press release published by Ilija Batljan Invest AB (publ), reg. no 559053-5166 ("IBI") on 9 October 2026, according to which IBI intends to make an offer to repurchase all bonds issued by IBI with ISIN SE0016101810 (the "Bonds") in return for a cash payment equivalent to 100 percent of the outstanding nominal amount of the Bonds, together with accrued and unpaid interest in accordance with the terms and conditions of the Bonds, subject to the condition that bondholders who accept the offer waive and release all current and future claims and demands relating to the Bonds against the Company, the agent and other bondholders (the "Tender Offer"). The Tender Offer is intended to be made no later than 9 November 2026 at 12:00 (CET). Episurf holds, through its wholly-owned subsidiary Frusipe Intressenter Target 1 AB (the "Subsidiary"), Bonds with a nominal value amounting to SEK 332,500,000.

The Board of Directors of Episurf considers, as set out below, that it is in Episurf's interest that the Subsidiary accepts the Tender Offer in respect of such Bonds held by the Subsidiary (the "Transaction").

As a result of the Transaction, the Subsidiary will acquire a claim against IBI corresponding to the nominal amount of the Subsidiary's Bonds together with accrued interest (the "Repurchase Claim"). Upon completion of the Transaction, Episurf intends, through payment with a promissory note, to allow the Subsidiary to assume the debt of SEK 350,000,000 that Episurf owes to Frusipe Intressenter Holding AB in accordance with the promissory note issued as part of the payment for Episurf's acquisition of the Subsidiary from Frusipe Intressenter Holding AB (the "Promissory Note Claim"). It is Episurf's understanding that IBI intends to, at the same time, acquire the Promissory Note Claim. The Subsidiary and IBI subsequently intend to set off the Repurchase Claim, less SEK 20,000,000, against the Promissory Note Claim (the "Set-off").

IBI has also notified Episurf that IBI further undertakes to pay Episurf the remaining SEK 20,000,000 in cash as final settlement of the Repurchase Claim in connection with the Set-off.

The Board's assessment is that the completion of the Transaction is in the interests of Episurf's shareholders and that the Transaction has been agreed on terms that are reasonable from a financial perspective. Episurf has obtained a so-called fairness opinion from MLT Corporate Finance AB ("MLTCF"). In its opinion dated 10 October 2026, MLTCF has assessed that the completion of the Transaction is reasonable from a financial perspective for Episurf's shareholders.

Pursuant to Chapter 16a of the Swedish Companies Act, material transactions between a subsidiary of a public limited company whose shares are admitted to trading on a regulated market and its related parties must be submitted to the general meeting of the public company for approval (subject to certain exceptions). The Subsidiary is a subsidiary of Episurf, which is such a public limited company and IBI is a related party to Episurf pursuant to Chapter 16a, Section 3 of the Swedish Companies Act, as Ilija Batljan, who is Vice-Chairman of the Board of Episurf, directly and indirectly through a company, owns the shares in IBI. The Subsidiary's acceptance of the Tender Offer is therefore conditional upon approval by the Extraordinary General Meeting of Episurf.

A notice convening the Extraordinary General Meeting to be held on 12 November 2026 will be published by Episurf today, on 12 October 2026.

For further details, please contact:

Jens Andersson, CEO, Episurf Medical

Tel: +46 (0) 768 55 67 02

Email: jens.andersson@episurf.com

This information is information that Episurf Medical AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU) No 596/2014. The information was submitted for publication, through the agency of the contact person set out above, at 07:20 CEST on 12 October 2026.

About Episurf Medical AB

Episurf Medical is a property company with exposure to a diversified portfolio of property assets. The Company's objective is to create value growth through the acquisition and management of Nordic properties. The Company also has a medical technology business based on the individualised Episealer® implant and associated surgical instruments, which are used to treat cartilage damage in joints. Episurf Medical's head office is located in Stockholm, Sweden.