Probi : rights issue fully subscribed

Submitted for disclosure on 27 October 2016 at 08.00 (CET).

The information in this press release is not intended for distribution, publication or public release, directly or indirectly, in or into, Australia, Canada, Japan, the United States or any other jurisdiction where the publication or distribution of this press release may be unlawful.

Probi AB's (publ) ("Probi" or the "Company") share issue with preferential right for the Company's shareholders has been fully subscribed. The subscription period for the rights issue ended on 21October 2016. In the rights issue, 2,244,990shares, corresponding to approximately 98.5 percent of the offered shares, have been subscribed for with subscription rights. In addition, applications for subscription without subscription rights of 788,810 shares have been received, corresponding to approximately 34.6 percent of the offered shares. Through the rights issue, Probi will receive proceeds amounting to approximately SEK 602million before issue costs.

Those who have subscribed for shares without subscription rights will be allotted shares according to the principles outlined in the prospectus made public on 4 October 2016. Notification regarding allotment of shares to subscribers who have been allotted shares without subscription rights are expected to be distributed on 27 October 2016. Subscribed and allotted shares shall be paid in cash at the latest on the settlement day, 1 November 2016, in accordance with the instructions on the settlement note. Nominee registered shareholders will receive notification regarding allotment of shares in accordance with the respective nominee's procedures. Only those who are allotted shares will be notified.

Through the rights issue Probi's share capital will increase by SEK 11,394,125 from SEK 46,826,500 to SEK 58,220,625 and the total number of shares will increase by 2,278,825 shares from 9,365,300 shares to 11,644,125 shares when the rights issue is registered by the Swedish Companies Registration Office.

The new shares subscribed for with subscription rights are expected to start trading on Nasdaq Stockholm on 1 November 2016. New shares subscribed for without exercise of subscription rights are expected to start trading on Nasdaq Stockholm on 8 November 2016.

ADVISORS
Handelsbanken Capital Markets is acting as financial advisor and Mannheimer Swartling Advokatbyrå AB is acting as legal advisor to Probi in relation to the rights issue.

FOR FURTHER INFORMATION, CONTACT:
Peter Nählstedt, CEO, Probi, tel [phone], e-mail: [e-mail] Brandt, CFO, Probi, tel [phone], e-mail: [e-mail]

ABOUT PROBI
Probi AB is a Swedish publicly traded bioengineering company that develops effective and well-documented probiotics. Through its world-leading research, Probi has created a strong product portfolio in the gastrointestinal health and immune system niches. Probi's products are available to consumers in more than 30 countries worldwide. Probi's customers are leading food, health-product and pharmaceutical companies in the Functional Food and Consumer Healthcare segments. In 2015 Probi had sales of MSEK 216. The Probi share is listed on Nasdaq Stockholm, Small Cap. Probi has about 4,400 shareholders. Read more at www.probi.se.

IMPORTANT NOTICE
The information in this press release does not contain or constitute an offer to acquire, subscribe or otherwise trade in shares, subscription rights or other securities in Probi. Any invitation to the persons concerned to subscribe for shares in Probi is only made through the prospectus which Probi published on 4 October 2016.

This press release may not be released, published or distributed, directly or indirectly, in or into Australia, Japan, Canada, the United States or any other jurisdiction where participation would require additional prospectuses, registration or measures besides those required by Swedish law. Nor may this press release be distributed in or into such countries or any other country or jurisdiction in which distribution requires such measures or otherwise would be in conflict with applicable regulations. Any failure to comply with the restrictions described may result in a violation of applicable securities regulations.

No subscription rights, paid subscribed shares or shares in Probi have been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act") or the securities legislation of any state or other jurisdiction in the United States and no subscription rights, paid subscribed shares or shares may be offered, subscribed for, sold, resold, delivered or otherwise transferred, directly or indirectly, in or into the United States except under an available exemption from, or transaction not subject to, the registration requirements under the Securities Act and in compliance with the securities legislation in the relevant state or any other jurisdiction of the United States. There is no intention to register any securities referred to herein in the United States or to make a public offering of the securities in the United States.

This press release contains certain forward-looking information that reflects Probi's present view of future events as well as financial and operational development. Words such as "intend", "assess", "expect", "may", "plan", "believe", "estimate" and other expressions entailing indications or predictions of future development or trends, not based on historical facts, constitute forward-looking information. Forward-looking information is inherently associated with both known and unknown risks and uncertainties as it depends on future events and circumstances. Forward-looking information is not a guarantee of future results or development and actual outcomes may differ materially from the statements set forth in the forward-looking information.