Hofseth BioCare had operating revenues of NOK 14.3m (26.4m) in the fourth quarter of 2018. Sales revenues for 2018 amounted to NOK 60.6m (66.2m).

Cost of Goods Sold (CoGS) amounted to NOK 9.9m (19.8m) in the quarter. Operational profit (EBITDA) for the fourth quarter 2018 was negative NOK 18.7m (11.8m).

Cash and cash equivalents decreased by NOK 9.4m during the quarter, leaving total holding of cash and cash equivalents at NOK 48.6m by the end of 2018.

In the fourth quarter 2018, HBC Midsund processed 2,650 tons of salmon and trout raw materials, which is 158 tons more than the previous quarter. Year to date 2018 production was 10,378 tons compared to 9,229 tons in 2017, giving an increase of 12.5 %. Raw material availability from our core suppliers is good. We expect the processed raw material to continue increasing in 2019.

HBC Berkåk produced 361 tons of finished products in the fourth quarter, including the capacity lease manufactured products, compared to 321 tons in the previous quarter. Total 2018 production at Berkåk was at record high 1,390 tons.

HIGHLIGHTS IN THE FOURTH QUARTER 2018

• A new study published in December 2018, shows that HBCs calcium product CalGo®, is superior to traditional calcium sources on osteoblast and calcium deposition. CalGo® is a hydroxyapatite form of calcium and is highly bioavailable with more than 24 % fish bone collagen.
• An invitro study on the regulation of oxidative protective genes after treatment with ProGo® peptides has been published in the journal Functional Foods in Health and Disease. The study shows a possible utility for ProGo® bioactive peptides in the modulation of gastrointestinal stress in irritable bowel syndrome and enterocolitis.
• Installed a new scrubber at the Berkåk plant to clean the processing air, after record production volumes and capacity utilization.
• Several patents and trademarks filed, and new important IPR jurisdictions expected in the near future.

Please find the Fourth Quarter 2018 Financial Report attached.

For further information, please contact:
Roger Hofseth, CEO of Hofseth BioCare ASA
Mob: +47 95147941
E-mail: rh@hofseth-as.no

Jon Olav Ødegård, CFO of Hofseth BioCare ASA
Mob: +47 93632966
E-mail: joo@hofsethbiocare.no

About Hofseth BioCare ASA:

HBC is a Norwegian biotech company that offers high-value ingredients and finished products for humans and pets. The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, HBC is able to preserve the quality of salmon oil, proteins and calcium, prepared of fresh salmon off-cuts. HBC's objective is to contribute to the efficient use of marine resources and deliver quality products for ingredients and finished consumer products in the nutrition market.

Hofseth BioCare's headquarters are located in Ålesund, Norway with branches in Oslo, Chicago, Mumbai and Tokyo. HBC is listed on Oslo Stock Exchange Axess list with ticker "HBC". More information about Hofseth BioCare at www.hofsethbiocare.com and www.facebook.com/hofsethbiocare

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

Attachment

• 190208 - Q4 2018 Financial Report