Report On Operation For the Nine Months Ended Sept. 30, 1997.

LUND, Sweden--(BUSINESS WIRE)--November 10, 1997--

Invoiced Sales Up 31.4 Percent After Nine Months

-- Gambro's invoiced sales for the first nine months of 1997 amounted to SEK 10,555 (8,032), an increase of 31.4 percent. Adjusted for the acquisition of Vivra, the increase amounted to 14.2 percent.

-- Operating earnings amounted to SEK 1,229 (1,079), an increase of approximately 14 percent.

-- The number of dialysis patients in clinics operated by the Gambro Group at the end of the period under review was approximately 32,000.

Business area trends

The Dialysis Products business area reported sales over the period of SEK 5,426 million, an increase of 5 percent for the period January-September, and of approximately 7 percent for the third quarter. This means that the volume trend largely followed market growth.

The trend of volume in Europe is following market growth, while most of the markets in the Far East and Latin America are reporting higher growth. It is estimated that the trend in the United States is largely following market growth.

The favorable trend of sales for disposable products continued, especially for the BiCart bicarbonate cartridge. The increased demand for dialyzers - primarily those with synthetic membranes - is largely believed to have reached a state of balance during the third quarter. With the decisions taken to proceed with investments aimed at increasing production capacity for dialyzers with synthetic membranes at the production plants in Hechingen, Germany, and Meyzieu, France, it is expected that the increaseed demand within this segment can be satisfied.

The continuing production of the new generation of AK-series dialysis machines is progressing favorably. Following its approval by the Federal Drug Administration, the Prisma emergency dialysis machine has been introduced in the American market.

On Oct. 12, the Group's first fully automated European distribution center was inaugurated by Hechingen, Germany. This is the first of a planned five such centers, which during the next two years will take over the distribution and storage of products for the European sales units. The project is expected to lead to increased service levels and a reduction in the amount of tied-up capital.

The Dialysis Care business area reported sales of SEK 3,722 million for the January-September 1997 period, corresponding to an increase of 96 percent.

The acquisition of new clinics continues. During the period, five clinics were acquired in the United States: -- Jefferson Dialysis, Charlottesville, Virginia -- Four dialysis centers in southern California, formerly called

"Dialysis Centers of Upland, Pomona, Fontana and Chino" -- Three clinics were started in the U.S. during the same period:

Pascua Yaqui Tribe Dialysis center in Tucson, Arizona, and

centers in Atlanta and Baxley, Georgia -- The Kungdialysen clinic was also acquired in Uppsala, Sweden -- In Argentina, 14 clinics with a total of 800 patients were

acquired during the period.

In total, this means that approximately 32,000 patients are now receiving care in dialysis clinics owned and operated by the Gambro Group.

The integration of the former Vivra chain's 270 clients into Gambro Healthcare Patient Services, the Group's American chain of dialysis clinics, is proceeding according to plan. The administrative and technical service operations have been co-ordinated. The former Vivra clinics are currently being integrated in the IT system developed and used within Gambro Healthcare Patient Services for some time. Work on the blood analyses, test samples and related items for the new clinics is being transferred as planned to the Group's analysis laboratory located in Fort Lauderdale, Florida.

The Blood Component Technology business area developed favorably during the period, reporting sales of SEK 777 million, an increase of 13 percent. Sales rose by 17 percent during the third quarter. Growth was particularly good in the U.S.

Sales of the Spectra blood separator continued to be successful, due among other reasons to the broad acceptance to the Leukocyte Reduction System (LRS) introduced last year and used in conjunction with the Spectra to remove white blood cells on a continual basis as the blood platelets, or stem cells, are collected.

Excorim's system for separating antibodies from the blood achieved greater penetration in European markets. An application has been submitted to the relevant authorities for permission to sell the system in the U.S.

Following approvals received from the FDA, the Trima Collection System, a powerful version of the Spectra blood separator, was launched in the U.S. in October. The Trima Collection System enables all types of blood components, including red blood cells, to be collected, which results in a broader area of application.

The Cardiopulmonary Care business area reported sales of SEK 862 million, which is largely in line with the preceding year. Volumes, which are following market growth, were five percent.

In terms of sales, the year got off to a weak start but the trend has gradually become more positive. Sales in the U.S. remained at the level achieved last year, while certain export markets continue to note weaker sales trends. It is estimated that the earlier sharp decline in the price of oxygenerators in the U.S. has leveled off.

Sales of the Blue Ribbon Pack, which contains an oxygenerator with an integrated lines system, developed favorably.

The new-generation Century Perfusion System was launched during the third quarter, resulting in a favorable level of order bookings.

Operating Earnings

Operating earnings amount to SEK 1,229 million (1,079).

The operating margin before depreciation (EBITDA) amounted to 19.5 percent following the third quarter, which was slightly better than the figure for the first six months 1997.

The weakening of the SEK had only a marginal positive impact on operating earnings for the period. -0-

                         Gambro Group

Statement of Income

                       Jan. 1-Sept.30  Jan. 1-Sept.30 Jan. 1-Dec. 31
SEK in millions              1997           1996            1996

Sales                       10,555          8,032          10,964
Cost of goods sold,
 exclusive depreciation     -6,393         -4,621          -6,352

Gross profit                 4,162          3,411           4,612

Research and development
 expenses                     -389           -336            -461

Selling, general and
 administrative expenses    -1,709         -1,507          -2,002

Depreciation and
 amortization                 -835           -489            -659

Operating income             1,229          1,079           1,490

Equity in income of
 affiliates                    -27            -28             -36


                            GAMBRO GROUP

Statement of Income
                    Jan 1-March 31   April 1-June 30   July 1-Sept. 30
                     1997    1996     1997     1996     1997     1996
SEK in millions

Sales                2,904   2,616   3,437    2,764    4,214    2,652

Cost of goods
 sold, excluding
  depreciation      -1,688  -1,477  -2,019   -1,587   -2,686   -1,557

Gross profit         1,216   1,139   1,418    1,177    1,528    1,095

Research and
 development
  expenses            -119    -117    -138     -114     -132     -105

Selling, general
 and administrative
  expenses            -565    -528    -586     -503     -558     -476

Depreciation and
 amortization         -187    -167    -263     -178     -385     -144

Operating income       345     327     431      382      453      370

Equity in income of
 affiliates             -7      -6     -11      -12       -9      -10

Operating margin      11.9%    12.5%   12.5%   13.8%    10.7%   14.0%

NOTE: The next financial report from Gambro will be published on March 9, 1998. This report is a separate account of Gambro as the Medical Technology business area within the parent company Incentive AB. It has not been subject to special examination by the Company's auditors.

CONTACT: Berthold Linquist

[phone]

Jan Gustavsson

[phone]

Inger Larsson

[phone]

Bengt Modeer

[phone]

or

Citigate Communications, New York

Ray McNulty, 212/508-3400