Oslo, 1 July 2025

Observe Medical ASA ("Observe Medical" or the "Company", OSE ticker "OBSVR") is pleased to announce the strengthening of its strategic partnership with its key manufacturing partner, Jiangsu Hongxin Medical Technology Co. Ltd ("Jiangsu"), through Jiangsu's subscription for 6,000,000 shares in the Company. This agreement not only solidifies our collaboration but also delivers a significant positive liquidity effect, freeing up capital to accelerate the commercial rollout of UnoMeter.

Reference is furthter made to the stock exchange announcement by Observe Medical ASA (the "Company" or "Observe Medical", OSE ticker "OBSVR") on 11 June 2025, regarding the successful placement of a private placement in the Company raising gross proceeds totalling NOK 36,445,000 million (the "Private Placement"), including, inter alia, the conditional allocation of 6,000,000 offer shares to Jiangsu Hongxin Medical Technology Co. Ltd ("Jiangsu") through conversion or contribution of parts of its accounts receivables towards the Company and/or its subsidiaries (the "Jiangsu Conversion").

At the extraordinary general meeting of the Company held on 7 January 2025, the board of directors was, inter alia, granted an authorisation to increase the Company's share capital in connection with set-off/contribution of loans and accounts payable etc. by up to NOK 11,266,171 (the "Board Authorisation").

Based on and in accordance with the Board Authorisation, the board of directors has today resolved to increase the Company's share capital by NOK 2,520,000, by the issuance of 6,000,000 new shares, each with a nominal value of NOK 0.42, to Jiangsu, at a subscription price of NOK 0.50 per share (the "Jiangsu Conversion Shares"). The share consideration shall be settled through set-off against a receivable amounting to NOK 3,000,000 that Jiangsu has against the Company (following transfer of said receivable from Observe Medical AB to the Company pursuant to a debt transfer agreement dated 27 June 2025).

Completion of the abovementioned share capital increase is conditional upon the extraordinary general meeting of the Company to be held on 3 July 2025 resolving to increase the Company's share capital by issuing the other offer shares in connection with the Private Placement as set out in items 4 and 5 of the notice of the extraordinary general meeting (the "Other Offer Shares")(the "Condition").

Subject to satisfaction of the Condition, it is expected that the share capital increase pertaining to the Jiangsu Conversion Shares will be registered in the Norwegian Register of Business Enterprises on or about 4 July 2025.

Following the issuance of the Jiangsu Conversion Shares, but prior to the issuance if the Other Offer Shares, the Company's share capital will be NOK 10,608,533, divided into 25,258,412 shares, each with a nominal value of NOK 0.42, of which Jiangsu will hold 6,000,000 shares in the Company (representing approximately 23.75% of the issued share capital and votes). Following the issuance of the Jiangsu Conversion Shares and the Other Offer Shares, the Company's share capital will be NOK 38,702,333, divided into 92,148,412 shares, each with a nominal value of NOK 0.42, of which Jiangsu will hold 6,000,000 shares in the Company (representing approximately [6.51]% of the issued share capital and votes.

The Jiangsu Conversion Shares will upon issuance be registered with the Norwegian Central Securities Depository Euronext Securities Oslo (the "VPS") on a separate ISIN from the existing shares of the Company, pending approval and publication by the Company of a prospectus (the "Prospectus") and will thus not be tradable on Euronext Expand Oslo until the Prospectus has been approved by the Financial Supervisory Authority of Norway (the "NFSA") and published by the Company, upon which the Jiangsu Conversion Shares will be transferred to the Company's ordinary ISIN in the VPS and be admitted to trading on Euronext Expand Oslo. The Prospectus is expected to be approved by the NFSA and published by the Company at the end of Q3 2025.

This information is subject to the disclosure requirements pursuant to article 19 of the EU Market Abuse Regulation and section 5-12 of the Norwegian Securities Trading Act.

CEO Jørgen Mann  

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 commercialisation 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.