Dividend policy

BioGaia’s ambition is to pay a shareholder dividend equal to 30% of profit after tax.

PROPOSED APPROPRIATION OF PROFITS 2010

The following funds in the Parent Company are at the disposal of the Annual General Meeting (SEK):

Retained profit:      33,308,727

Profit for the year: 48,352,167

Total:                     81,660,894

The Board of Directors proposes the following appropriation

To be paid as a dividend to the shareholders: 34,541,924 *)

To be carried forward to a new account:         47,118,970

Total:                                                               81,660,894

*) The proposed dividend consists of an ordinary dividend of SEK 0.92 per share, and in view of the company´s good liquidity and strong balance sheet an extra ordinary dividend of SEK 1.08 per share, amounting to a total dividend of SEK 2.00 per share.