Oslo, 12 May 2020 - Observe Medical ASA (OSE: OBSERV) today released its
presentation of the first quarter 2020, including an updated market study
indicating a doubling of the potential market value for the company's first
product, Sippi®. The company's long term revenue ambition for Sippi® is
increased accordingly to NOK 500 million.

"During the first quarter, the healthcare system across the globe has been put
under tremendous pressure, and the COVID-19 pandemic has emphasised the need for
increased capacity and efficiency in intensive care units. We expect this to be
a strong driver for both volume and value growth of the market for Sippi®, CEO
of Observe Medical Björn Larsson says.

Although certain customer prospects have slowed down during the COVID-19
pandemic, Observe Medical experiences strong customer commitment in resuming
Sippi® implementation, once the situation at hospitals normalizes.

"We have full focus on preparing our organization to grasp the opportunity for
growth going forward. Our scientific advisory board is now operational,
emphasizing the clinical and commercial roadmap for Sippi®," Larsson says.

The company's ambition is to drive growth by leveraging its expertise in
commercialization of medical technology products in combination with targeted
M&A. The company's first product, Sippi® is a unique and proprietary solution
for urine monitoring in hospitals. Sippi is the only automated digital urine
meter with wireless data transfer to patient data management systems, and is
hindering bacterial migration which can lead to urinary infections.

Observe Medical's revenues in the first quarter of 2020 came in at NOK 32
thousand, as the company is still in launch stage, while the company's EBITDA
was negative NOK 4.4 million (negative NOK 2.7 million in the same quarter in
2019). The net result in the period ended at negative NOK 0.4 million (negative
4.1 million), as the result was affected positively by significant exchange rate
fluctuation in the period.

Observe Medical is hosting a presentation of the first quarter 2020 financial
results at Felix Konferansesenter, Aker Brygge, Oslo, Tuesday 12 May at 08.30
CET. The event will be webcasted live on www.observemedical.com - Investor
relations and https://channel.royalcast.com/webcast/hegnarmedia/20200512_4/

EBITDA and other alternative performance measures (APMs) are defined and
reconciled to the IFRS financial statements as a part of the APM section of the
attached quarterly presentation.

For further information, please contact:
Björn Larsson, CEO.
Mobile: +46 76 620 17 25 E-mail: bjorn.larsson@observemedical.com

Per Arne Nygård, CFO
Mobile: +47 411 04 345 E-mail: perarne.nygard@observemedical.com

About Observe Medical ASA: Observe Medical develops and markets innovative
hospital products that contribute to increased patient safety and a more
efficient care system. The company's headquarter is in Oslo and its operations
are based out of Sweden. Observe Medical's initial product was Sippi®, the only
automated digital urine meter with wireless data transfer to the hospital
patient data management systems, and also prevents bacterial migration that can
lead to urinary infections (Sippcoat®). Sippi® is CE marked and is currently
being launched at selected hospitals in Europe

This information is subject to the disclosure requirements pursuant to section 5
-12 of the Norwegian Securities Trading Act.