17.01.2008 Hoiatusteade Ypsomed Holding AG tegevuse kohta (SWX Šveitsi Börs)

SWX Swiss Exchange issues reprimand against Ypsomed Holding AG

The SWX Swiss Exchange has issued a reprimand against Ypsomed Holding AG for violation of
the IFRS accounting standards in connection with the company's 2005/2006 annual report. The
deficiencies identified by the SWX Swiss Exchange relate to the improper reporting of
prepayments as non-current assets, as well as the presentation of securities transactions in the
cash flow statement. The company has meanwhile corrected these deficiencies in its 2006/2007
consolidated financial statements.

In its consolidated financial statements for the 2005/2006 fiscal year, Ypsomed Holding AG (Ypsomed),
which is listed in the main segment of the SWX Swiss Exchange (SWX), recorded prepayments for
production equipment that it acquired at the behest of its customers as non-current assets rather than as
prepaid expenses under current assets. This equipment, which was merely of a transitory nature, did not
meet the IFRS requirements for being reported as non-current assets. In addition to this improper
presentation in the balance sheet, there was also an incorrect presentation of the corresponding cash
flows from operating and investing activities in the cash flow statement.

Furthermore, in its cash flow statement, Ypsomed recorded purchases and sales of securities and
financial interests as cash flows from financing activities. Under IFRS rules, however, the corresponding
securities transactions should have been correctly recorded as cash flow from investing activities. This
improper reporting resulted in the fact that the related cash flows from investing activities and financing
activities were incorrectly reflected in the cash flow statement.

The company has corrected and disclosed the identified accounting deficiencies within the framework of
its 2006/2007 IFRS-compliant annual report.

Taking into account all aspects of the matter, the SWX has issued a reprimand against Ypsomed.
Periodic reporting in compliance with applicable financial reporting and auditing provisions forms an
integral part of the information that contributes to a properly functioning market in accordance with the
provisions of the Stock Exchange Act and the Listing Rules. One of the tasks of SWX is to enforce the
transparency provisions that apply.

Information on financial reporting regulations can be found at:
http://www.swx.com/admission/being_public/financial_reporting_en.html
Previous sanctions issued by SWX in connection with financial reporting can be found at:
http://www.swx.com/admission/being_public/sanctions/media_releases/financial_reporting_en.html