3 July 2025

Crystal Amber Fund Limited

("Crystal Amber")

Morphic Medical Inc ("MMI") obtains European regulatory approval for its obesity and diabetes treatment

The Board of Crystal Amber is pleased to announce that MMI, the medical device company in which it owns 98% of the issued share capital, has received CE Mark certification for its revolutionary RESET® therapy. This is the first endoscopic, non-surgical treatment for both obesity and Type 2 diabetes in Europe.

This CE designation, which ensures RESET® has met all European Commission safety, health and environmental protection requirements, will allow access to treatment for the estimated 93 million patients in Europe living with obesity and type 2 diabetes.

With CE Mark approval now in place, MMI will begin offering RESET® in Germany, with plans to expand across the European Union and other countries recognising CE certification. UK approval for RESET® is expected in the coming weeks.

Clinical studies have shown that RESET® significantly exceeds international safety and effectiveness standards for endoscopic weight-loss treatments. On average, patients lost 19% of their total body weight within a year - outperforming the threshold set by leading medical societies.

Importantly, both the European Society for Gastrointestinal Endoscopy (ESGE) and the American Society for Gastrointestinal Endoscopy (ASGE) have endorsed RESET® in their latest clinical guidelines for obesity treatments - a strong validation from the medical community.

The treatment is a simple, 20-minute outpatient procedure that delivers long-lasting benefits for both weight loss and blood sugar control, allowing patients to avoid alternatives such as more invasive gastric surgery or expensive GLP-1 drug therapies, which typically result in patients regaining weight once they discontinue the drug.

RESET® works by placing a temporary liner in the small intestine, helping patients improve their metabolism and control blood sugar levels without major surgery. The product essentially works to enhance the body's GLP-1 hormones which transmit a feeling of fullness to the brain.  This helps reduce the risk of serious complications like heart disease and worsening diabetes.

With nearly 60% of adults in Europe living with overweight or obesity, and type 2 diabetes rates rising sharply, healthcare systems are under increasing financial pressure as Governments balance the cost of managing chronic diseases against other priorities like increasing defence spending.

RESET® offers a new, affordable, and highly effective option that could reduce the long-term burden on public health budgets, with diabetes costing the NHS almost £14bn alone in 2021/22 according to one 2024 study (York Health Economics Consortium).

Christopher Waldron, Chairman of Crystal Amber, commented:

"Since 2020, Crystal Amber has been the sole provider of development capital of more than £25 million to support MMI. Our continued activism, vision and commitment has yielded a 98 per cent shareholding in a business with the potential to help millions of people improve their health, while offering governments a cost-effective alternative to drug-based treatments. In a time when public spending is stretched thin, solutions like this could be even more valuable than ever. We are very excited by the scale of the opportunity."

For further enquiries please contact:

Sodali & Co - Financial PR adviser to Morphic Medical Inc

Victoria Palmer-Moore / Russ Lynch / Sam Austrums

Tel: 020 7250 1446

morphicmedical@sodali.com

Crystal Amber Fund Limited

Chris Waldron (Chairman)

Tel: 01481 742 742

www.crystalamber.com

Allenby Capital Limited - Nominated Adviser

Jeremy Porter/ Dan Dearden-Williams

Tel: 020 3328 5656

Winterflood Investment Trusts - Broker

Joe Winkley/Neil Langford

Tel: 020 3100 0160

Crystal Amber Advisers (UK) LLP - Investment Adviser

Richard Bernstein

Tel: 020 7478 9080