Oslo, May 14, 2025 - Observe Medical ASA («Observe Medical» or the «Company») refers to the stock exchange announcement dated 25 October 2024, regarding the preliminary letter from the Norwegian Financial Supervisory Authority («NFSA» or «Finanstilsynet») on the review of the Company's financial reporting. Reference is also made to section 4.3.2 of the prospectus published by the Company on 19 November 2024 in which the preliminary letter from the NFSA is described in more detail.

The NFSA has issued a final decision and upholds its preliminary decision described in detail in the prospectus. In addition to the errors corrected in the Company's interim report for H2 2024, the following corrections will be made in the Annual Report for 2024:

• Goodwill Write-Down: The Company recorded a write-down of goodwill related to the Ultrasound Cash Generating Unit (CGU) in its 2024 interim results. The NFSA has concluded that this write-down should have been recorded in 2023 and will be adjusted to reflect the decision in the 2023 comparable figures in the 2024 financial statements.
• Capitalized Expenses: The Company capitalized in 2023 NOK 4.5 million in expenses, of which NOK 1.7 million was expensed to the income statement in the 2023 comparable figures in the reporting of the 2024 interim results. The NFSA has concluded that the remaining NOK 2.8 million capitalized as development costs also should be expensed in the 2023 comparable figures. The NFSA considers these to be start-up costs reducing the profit for the 12-month period ended 31 December 2023.
• Convatec Transaction: The NFSA has concluded that a relative share of the consideration for the Convatec transaction should have been allocated to the related license agreement and to customer lists. The Company will remeasure the value of these assets, which will result in higher amortization expenses over the two-year license period.

Observe Medical has confirmed to the NFSA that these corrections will be implemented in the 2024 Annual Report.

These corrections will not impact on the Company's revenues, gross margin, or liquidity. The Company is currently preparing its 2024 Annual Report and concluding on all accounting effects to be recognized in the 2024 financial statements. As part of this process, additional impairments may be recognized.

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

This stock exchange announcement was published by Johan Fagerli, CFO of the Company, on 14 May 2025 at 16:35 hours CET on behalf of the Company.

For further information, please contact:

Jørgen Mann, CEO Observe Medical
Mobile: +45 408 67 558
E-mail: jorgen.mann@observemedical.com

Johan Fagerli, CFO Observe Medical
Mobile: +47 958 12 765
E-mail: johan.fagerli@observemedical.com

About Observe Medical

Observe Medical is a Nordic medtech company that develops, markets and sells innovative medtech products for the global market. The Company is committed to improving patient welfare and patient outcomes, improving clinical data accuracy and promoting positive health economics.

The Company seeks to drive growth by leveraging its expertise in sales and commercialization of its broad portfolio of medical technology products, mainly in urine measurement and ultrasound, in combination with targeted M&A and distribution. Observe Medical is working with a network of leading distributors to provide outstanding solutions for healthcare professionals globally.

The Company is headquartered in Oslo, Norway.

Further information is available at www.observemedical.com.