SOURCE: Geneart AG

April 30, 2008 01:08 ET

GENEART AG Presents Financial Statements for 2007 and Preliminary Results for the First Quarter 2008

REGENSBURG, GERMANY--(Marketwire - April 30, 2008) -


- Net sales in 2007 increased by 59 % to EUR 12.3M
- EBIT increased in the same time period by 147 % to EUR 1.8M
- Positive business  development is expected  for 2008: According  to
preliminary data, net  sales during  the first quarter  are EUR  3.9M
(2007: EUR 2.4M)
- EBIT in the first quarter 2008 amounts to EUR 0.5M (2007: EUR 0.4M)

Regensburg, April 30, 2008 - GENEART AG, the global leader in gene synthesis and specialist in the field of Synthetic Biology, continued its strong growth of 2007 into the first quarter of 2008, thus confirming its positive outlook for 2008. According to preliminary results for the first quarter 2008, net sales increased to EUR 3.9M. This corresponds to an increase of more than 60 % compared to the prior year (2007: EUR 2.4M). According to preliminary IFRS results, the operating result (EBIT) in the first quarter of 2008 is EUR 0.5M (2007: EUR 0.4M). For the first time, the GENEART Group reports current year results for the first quarter 2008 according to International Financial Reporting Standards (IFRS). Due to this change, final results for the first quarter 2008 will be published on May 29, 2008, as scheduled.

With its final results for 2007, GENEART now confirmed the preliminary results 2007, published in February, in their entirety. In 2007, GENEART has achieved significant growth in net sales and EBIT. Compared to the same period of the prior year, proceeds in net sales increased by 59 % from EUR 7.8M to EUR 12.3M. The 2007 EBIT was EUR 1.8M, and increased disproportionately (2006: EUR 0.7M). The previous year was characterized by a major contract from the National Institutes of Health (NIH) that was almost completed in its entirety in 2007 with the production of more than 3,500 genes. Recently, the contract with NIH has been extended with a net sales volume of at least USD 1.9M for year 2008.

Professor Dr. Ralf Wagner, CSO of GENEART AG commented: "In 2007, we demonstrated strong corporate growth and increased the order volume significantly. Through continued advancement of existing technologies, we were able to synthesize a large number of genes with previously unprecedented complexity for the major order from NIH. The extension of the collaboration with NIH demonstrates our extraordinary performance in this project. To further strengthen our leading position in terms of technology, we are planning to increase our research budget in 2008 to EUR 2.5M. We will focus on further development of production processes and expansion of our product and service portfolio. Approximately 40 % of research expenses in 2008, that is approximately EUR 1M, are financed through granted public research funds (Federal Ministry of Education and Research in Germany and European Union)".

Due to the order from NIH, net sales in 2007 were the most dynamic in North America. 50 % of net sales were achieved in Europe, 44 % in North America and 6 % in the rest of the world. As of December 31, 2007, the order backlog was at EUR 2.3M and therefore 77 % above the figure of the prior year. In 2007, the EBIT margin with respect to net sales was 14.6 %; and the pre-tax return was 17.9 %.

For 2008 and beyond, GENEART expects continued growth in all areas of operation. Based on this, GENEART expects in 2008 a rise in earnings and to achieve an EBIT of EUR 2.5M to 2.8M. In 2008, sales are projected to increase to EUR 16.5M to 18.0M. "We are proud that today more than 500 customers place orders with GENEART, including almost all of the 20 internationally leading pharmaceutical companies. It is our goal to increase sales per customer significantly and to extend our position in Synthetic Biology. The successful completion of the NIH contract has provided us with a worldwide unique reference project, which enables us to obtain further large contracts in coming years", commented Christian Ehl, CFO of GENEART AG.

With the award of several patents in the first quarter 2008, GENEART achieved further important steps to establish a license based business model. In this context, GENEART has granted for example a license to EuroVacc Foundation to test gene sequences, protected in USA and in Europe, in a clinical phase I/II study as an HIV vaccine.

As of today, the entire annual report 2007 is available as PDF file for downloading at www.geneart.com.


For further inquiries, please contact:

Bernd Merkl
GENEART AG
Josef-Engert-Str. 11
93053 Regensburg
Germany
Phone: +49-(0)941-942 76-638
Fax: +49-(0)941-942 76-711
ir@geneart.com
www.geneart.com

Frank Ostermair
Better Orange IR & HV AG
Haidelweg 48
81241 Munich
Germany
Phone: +49-(0)89-8896906-10
Fax: +49-(0)89-8896906-66
info@better-orange.de
www.better-orange.de

Legal Information

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.


About GENEART AG

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.


GENEART AG Presents Financial Statements for 2007 and Preliminary Results -- http://hugin.info/136633/R/1214749/253187.pdf




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