CLS focus entirely on its successful neurosurgery business positioning the company for sustainable high-margin growth with a more streamlined operation

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With the recent addition of Peter Mantas and Peter Max to the board, the latter as the new Chairman, the Company is committed to prioritizing high margin and high returns on invested capital, positioning itself for long-term success.

In response to a growing demand for Prism® Neuro Laser Therapy Systems and its sterile consumables, CLS has outlined a focused plan to drive sustainable high-margin growth and financial strength.

Key actions include:

Immediate exit from non-core low margin business segments: CLS will gradually close unprofitable `direct-to-clinic' operations, including its prostate and urology business, to concentrate resources on high-potential areas.

Cost optimization: CLS cost-cutting initiative will be enhanced to further streamline operations, ensuring the Company operates with maximum efficiency and focus.

Focused on high-margin commercial strategy: CLS will dedicate all resources to accelerating the commercialization of its neurosurgery segment through its strategic partner, ClearPoint Neuro Inc., driving success in this high-demand market.

Expansion of the capital light partner model: The Company will no longer operate as a `direct-to-clinic' sales entity and will expand its `razor/razor blade' commercial partnership model across therapy-enabling organizations in market segments also outside of neurosurgery, ensuring broader market reach.

The increased demand within the neurosurgery segment, combined with a robust cost-cutting program and shift to a platform partnership-driven high margin `razor/razorblade' model, positions CLS for sustainable high-margin growth. The Company anticipates that these actions will see operating expenditure reduce by at least 30% in 2025 compared to 2024, and anticipates gross margins growing to 60% by YE26, with recurring disposable margins of 80% or above.

Dan J. Mogren, CEO of CLS, commented:

"These strategic decisions make us a leaner, more focused organization, allowing us to channel our resources into a platform company with the greatest growth and margin potential. Our high-margin capital light `razor/razorblade' business is currently experiencing unique and accelerating tailwinds. We are confident this will strengthen CLS, enabling us to better serve our partners and patients while delivering value to our shareholders."

For more information, please contact

Dan J Mogren, CEO Clinical Laserthermia Systems AB (publ)

Phone: +46 (0) 70-590 11 40

E-mail: dan.mogren@clinicallaser.com

About CLS

Clinical Laserthermia Systems AB (publ), develops and sells TRANBERG®|Thermal Therapy System and ClearPoint Prism Neuro Laser Therapy System with sterile disposables, for minimally invasive treatment of cancer tumors and drug-resistant epilepsy. The products are marketed and sold through partners for image-guided laser ablation and are used in studies for treatment with imILT®, the company's interstitial laser thermotherapy for immune stimulating ablation with potential abscopal treatment effect. CLS is headquartered in Lund, Sweden, with subsidiaries in Germany, the United States and a marketing company in Singapore. CLS is listed on Nasdaq First North Growth Market under the symbol CLS B. Certified adviser (CA) is FNCA Sweden AB.

For more information about CLS, please visit the Company's website: www.clinicallaser.se

This disclosure contains information that CLS is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 23-10-2024 11:00 CET.