SOURCE: Geneart AG

August 13, 2008 01:07 ET

GENEART AG Combines Net Sales Growth with Strong Earnings in the 1st Half- year of 2008

REGENSBURG, GERMANY--(Marketwire - August 13, 2008) -

- Net sales increase by 43 % to a total of EUR 7.9M
- GENEART confirms the prognoses for 2008
- GENEART has  expanded its  leading position in  the gene  synthesis
- The collaborations with QIAGEN and Boehringer Ingelheim  strengthen
the GENEART position as a leading provider for the pharmaceutical and
biotechnology industries

Regensburg, August 13, 2008 - GENEART AG, the global leader in gene synthesis and specialist in the field of Synthetic Biology, is operating in a strong running market environment with its gene synthesis core business. The demand for optimized synthetic genes in research as well as in the pharmaceutical and biotechnology industries grows steadily. Supported by the market development, the GENEART AG was again able to significantly increase its net sales and operating result (EBIT) in the 1st half of 2008 while expanding its leading market position.

In the 1st half of 2008, the net sales increased by 43 % to a total of EUR 7.9M (prior year: EUR 5.5M). The total revenue increased to EUR 8.3M (prior year: EUR 7.0M). The operating result (EBIT) in the first six month of 2008 was EUR 0.9M and higher than the EBIT of the 1st half year of 2007 with EUR 0.8M. The net sales-based EBIT margin for the 1st half of 2008 was 11.4 % (EBIT margin for the 1st half of 2007: 14.2 %). The net profit for the period was EUR 0.7M. The net profit for the same period of 2007 was EUR 0.5M according to IFRS accounting standards.

During the 2nd Quarter 2008 GENEART achieved net sales of EUR 4.0M. GENEART was able to increase net sales by 29 % compared to the 2nd Quarter 2007 with net sales of EUR 3.1M. The EBIT of EUR 0.4M and the earnings before taxes (EBT) of EUR 0.5M equaled those of the previous year.

Christian Ehl, CEO/CFO of GENEART AG comments: "With the successful 1st half of 2008 we are on the right track to meeting our prognoses for the entire year. The large NIH order has greatly influenced the net sales and earnings in 2007. However, fast growing business activities and NIH follow-up orders have by and large already compensated for the completion of the first large NIH order by the end of 2007. Through the rest of 2008, we expect to continue profiting from the currently completed preparations of our capacity increases."

Professor Ralf Wagner, CEO/CSO of GENEART AG points out: "We are ready for the next step. At the end of 2007 we had increased our capacities to 2M base pairs per month. That means our capacities more than quadrupled in the past two years. For the next quantum leap we are now advancing our technology, the software and also our proprietary processes to entirely new levels. Therefore we systematically invest in new automation and process technologies, thus creating the prerequisites for further capacity expansions to 5M base pairs per month by the end of 2009 and to 10M by the end of 2010."

In the 2nd Quarter 2008, GENEART kept underpinning its excellent position in the gene synthesis market through new projects and orders and once again through the collaboration with the NCI (US National Cancer Institute, part of the US American National Institutes of Health NIH). In 2007, GENEART had successfully fulfilled the largest and most voluminous single gene synthesis order worldwide. Now, after the close of the reporting period, GENEART was awarded the second NIH follow-up order in the amount of USD 0.8M. Overall, NIH have placed orders with GENEART totaling USD 2.7M in 2008 as part of the "Mammalian Gene Collection" program.

Through technology and distribution collaborations with QIAGEN and Boehringer Ingelheim GENEART was also able to further strengthen its position as a leading provider for the pharmaceutical and biotechnology industries.

The strategic partnership with QIAGEN to distribute synthetic standard mammalian genes ideally complements GENEART's core business to synthesize genes according to individual customer requests. These standardized genes are optimized and synthesized by GENEART and distributed via QIAGEN's GeneGlobe internet portal.

The partners Boehringer Ingelheim and GENEART collaborate in the areas of design and production services for DNA-based therapeutics and vaccines. As a result, the partners offer customers unique and comprehensive system solutions for their projects in this fast growing market segment. The transfer of the Boehringer Ingelheim technology for production and purification to GENEART guarantees customers the consistent quality of delivered biopharmaceutical agents throughout the entire development process. This provides customers with the benefit of avoiding unnecessary and expensive delays in the development of DNA-based therapeutics and vaccines caused by repeated studies to prove consistent agent quality. In this collaboration GENEART designs and produces the biopharmaceuticals for research and preclinical experiments and Boehringer Ingelheim for clinical studies and the global market.

The GENEART AG in the 1st Half of 2008:

in Million EUR                 1st Half of 2008 1st Half of 2007
Net Sales                      7.9              5.5
Total Revenue                  8.3              7.0
Earnings before Taxes (EBT)    1.1              1.0
EBIT                           0.9              0.8
EBIT Margin Based on Net Sales 11.4 %           14.2 %

For further inquiries, please contact:

Bernd Merkl
Josef-Engert-Str. 11
93053 Regensburg
Phone: +49-(0)941-942 76-638
Fax: +49-(0)941-942 76-711

Frank Ostermair
Better Orange IR & HV AG
Haidelweg 48
81241 Munich
Phone: +49-(0)89-8896906-10
Fax: +49-(0)89-8896906-66

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This document may contain estimates, prognoses and opinions about company plans and objectives, products or services, future results, opinions about these results or opinions leading up to these results. All these projections into the future are subject to risk, uncertainty and unforeseeable change outside the control of the GENEART Group. Many factors may lead to actual results, which considerably deviate from the given projections for these results.


In 2000, GENEART entered the gene synthesis market and has since become the global market leader. Today, the company is one of the leading specialists in the Synthetic Biology field. Experts at GENEART provide key technologies for the development and production of new therapeutics and vaccines. Customers also take advantage of GENEART services to customize enzyme attributes, such as the attributes of enzymes used as detergent additives, and to construct bacteria, which produce complex biopolymers or break down polymers, such as synthetics, petroleum components, etc. Our production and service spectrum spans a wide range, from the production of synthetic genes according to DIN EN ISO 9001-2000, to the creation of gene libraries in the combinatorial biology, to the development and production of DNA-based biologically active substances. The GENEART AG in Regensburg (Germany) and the subsidiary GENEART Inc. in Toronto (Canada) employ more than 190 people. Since May 2006, GENEART is listed on the German Stock Exchange.

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