Theraclion Achieves Strong Sales and Business Development Momentum in H1 2016

Regulatory News:

THERACLION (Alternext, FR0010120402 – ALTHE)(Paris:ALTHE), a company specialized in leading-edge medical equipment for echotherapy, today provided and update on financial results and milestones for the 1st half of 2016, ending on June 30, 2016.

David Caumartin, CEO of Theraclion says: ”Following an exceptional closing in 2015, Theraclion continued its growth during the first half of 2016 with the signature of five commercial agreements¹. Germany became the first market for the company, thanks to the reimbursement agreements obtained from several health insurance companies. This first half, particularly active, not only prepared a strong acceleration of sales and treatments, but also filled our agendas for the coming months with interested leads from congresses, reflecting the growing adoption of our echotherapy solution.”

Already 5 commercial agreements¹ signed during the first quarter

In the 2016 1^st half, the company recorded five commercial agreements¹: two Echopulse® sales in Germany and three contracts for the provision of material against fee for treatment in strategically important sites, among which two in Germany and one in Italy. Revenue of one of the two Echopulse sales in Germany was not recognized as a sale in the first half.

The two systems sold in 2013 and 2014, which are no longer under manufacturer warranty, are now covered by service contracts accounted pro rata temporis.

Number of treatments 1^st half 2016

The tripling of the number of sites offering echotherapy in routine clinical practice in 2015 drives the strong growth in equipment rentals and consumables sales. Also the number of treatment performed outside Theraclion sponsored clinical trials has grown by a factor of 3: 125 treatments were performed in the first 6 months of 2016 compared to 44 treatments in the same period last year.

Ninth echotherapy center in Germany: a regional reference center in almost every German Federal State

The private clinic group REGIOMED-KLINIKEN GmbH is the first cross-"Bundesland” clinic group covering clinics in both Bavaria (2^nd largest Bundesland) and Thuringia and will now offer echotherapy as a non-invasive treatment alternative to their patients suffering from breast fibroadenoma or thyroid nodules. The group comprises 4 clinics in 6 different locations, but also 12 ambulatory care centers and employs 4,500 people to treat approximately 65,000 inpatient and 75,000 outpatient cases per year.

"This ninth center in Germany shows the traction that echotherapy has created in Germany: about one third of all treatments take place in Germany today.” says Anja Kleber, VP Marketing and Market Access Theraclion. "In almost all federal states patients now have access to our technology.”

Bpifrance funds "Strategic Industrial Innovation” project with € 0.4million

Theraclion also achieved the grant of a new funding as part of its TUCE project with the company SuperSonic Imagine (Euronext: SSI FR0010526814, PEA-SMEs-eligible).

The TUCE project aims to combine the echotherapy technology with the innovative imaging solution of SuperSonic Imagine: The effect of the treatment on the tissues could be monitored and validated in real-time. The grant of this new financing of 433K€, in the form of repayable advances of Bpifrance, follows the one of 1,089 K € received in July 2015. This new grant rewards the success of a key milestone in the development which notably includes the results of the clinical trials in Europe and an interim review of trials (breast) in the United States.

"We are pleased to see the progress of Theraclion’s TUCE project, which is part of our "Strategic Industrial Innovation" program. We support future champions of the French industry and we renew today our support for Theraclion developing an advanced medical device in the non-invasive treatment of tumors and we welcome the success of the first treatments," says Nicole Tannières, project monitoring manager at the BpiFrance "Direction de l’Expertise”.

Strong clinical adoption in Asia and progress in future strategic partnership for China

Shortly after the hiring of a new Business Development Director for Theraclion in Asia, the first reference center for the Asian market for both breast fibroadenoma and benign thyroid nodule treatments with echotherapy was opened. Since November 2015, 45 treatments have been performed at the University of Hong-Kong Queen Mary Hospital by Dr. Brian Lang, Clinical Associate Professor of the University of Hong Kong and Chief of Endocrine Surgery of Queen Mary Hospital and Tung Wah Hospital.

Queen Mary Hospital is the first hospital in Asia and in Hong Kong to introduce echotherapy for the treatment of benign thyroid nodules. Unsurprisingly, Hong-Kong media were strongly interested in discovering this non-invasive alternative to surgery and 8 of them assisted in the first press conference organized with Dr. Brian Lang. During the conference, Dr. Brian Lang presented preliminary results showing volume reductions at 6 months of 60%.

"Leveraging this clinical success Theraclion is actively looking for a future strategic partner to access the Chinese market. This could result in a creation of a joint venture and we welcome the opportunity.” concludes Sylvain Yon, Deputy CEO and VP Asia of Theraclion.

About Theraclion

Theraclion is a French company specializing in high-tech medical equipment using therapeutic ultrasound. Drawing on leading-edge technologies, Theraclion has designed and manufactured an innovative solution for echotherapy, the Echopulse®, allowing non-invasive tumor treatment through ultrasound-guided high-intensity focused ultrasound. Theraclion is ISO 13485 certified and has received the CE mark for non-invasive ablation of breast fibroadenomas and thyroid nodules. Based in Malakoff, near Paris, France Theraclion has brought together a team of 34 people, 50% of whom are dedicated to R&D and clinical trials. For more information, please visit Theraclion’s website: www.theraclion.com.

Theraclion is listed on Alternext Paris

PEA-PME eligible

Mnemonic: ALTHE - ISIN Code: FR0010120402

¹ Commercial agreements cover material sales, and material provisions for which Theraclion receives either rents or fee for treatment.

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