Oslo, July 4, 2023 - Observe Medical ASA ("Observe Medical" or the "Company")
refers to its stock exchange notices dated 14 December 2022 and 23 March 2023,
concerning, among other things, its financing plans.

The stock exchange notice of 14 December 2022 concerned the proposed issuance of
a NOK 30-50 million bond loan in the first quarter of 2023, which was planned to
be followed by a NOK 100-150 million equity issue around mid-year 2023. The net
proceeds from these transactions were planned to finance potential acquisitions
of the Unometer urine measurement product range and the Ferrari L. production
facility in Verona, Italy, as well as required working capital and other growth
initiatives as per the stock exchange announcements dated 21 October 2022 and 14
December 2022, respectively.

While the proposed acquisition of the Ferrari L. production facility was not
pursued further (as informed in our announcement dated 20 April 2023), the
capital requirements for the contemplated acquisition of the UnoMeter and Abdo
-Pressure products from Convatec remain, as well as funding needs for working
capital and continued operations.

The stock exchange notice of 23 March 2023 confirmed the entry by the Company of
certain loan agreements with shareholder lenders for an aggregate loan of up to
NOK 10 million.

Given the current challenging state of the finance markets, the Company has
encountered difficulties in securing the contemplated capital alternatives.
Despite active efforts to pursue the contemplated bond issuance, new external
equity and alternative financing, the Company has so far not been successful in
securing its funding objectives. Consequently, the Company is facing liquidity
challenges in the short and medium term.

The Company is continuously working to find solutions to these liquidity
challenges, including additional funding from external sources. However, the
process of raising capital through equity and/or external debt cannot be
concluded before the summer holidays and is now expected to be continued in
July/August based on positive feedback from relevant sources. Meanwhile, the
Company has initiated short term cost-saving measures, including operational
measurements and a temporary layoff of staff. Moreover, the Company is engaged
in constructive dialogues with its operational creditors to manage short-term
liquidity, and remains in close and constructive dialogue in order to optimize
cash management in the short term.

Although the Company remains confident that required financing to address the
challenging liquidity situation can be secured, no assurance can be given that
the Company will be able to secure the financing required to meet its future
liquidity requirements. The Company will update the market and its stakeholders
on developments as it navigates these challenges to restore stability in its
liquidity position in the short term.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Rune Nystad, CEO Observe Medical
Mobile: +47 916 24 683
E-mail: rune.nystad@observemedical.com

Per Arne Nygård, CFO of Observe Medical
Mobile: +47 411 04 345
E-mail: perarne.nygard@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, ultrasound, anesthesiology/ICUs, surgery and wound care,
in combination with targeted M&A.

The Company is headquartered in Oslo, Norway, with additional offices in Narvik,
Norway and Gothenburg, Sweden, and subsidiaries in Finland and the US. In
addition, Observe Medical has a direct sale organization in the Nordics and a
distributor network internationally.

Further information is available at www.observemedical.com.

REGULATORY STATEMENTS

The information is deemed 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. The information was
submitted for publication by Per Arne Nygård, CFO at at 15.30 CET, 4[th] July
2023.