SOURCE: Geneart AG

February 09, 2007 01:01 ET

GENEART publishes preliminary results for 2006

REGENSBURG, GERMANY -- (MARKET WIRE) -- February 9, 2007 --

- GENEART increased sales by more than 70 percent to EUR 7.8M

- EBIT improvements from EUR 0.1M to EUR 1.0M have been far more than proportionate

- GENEART builds on its leadership role in the growth market gene synthesis

Regensburg, February 9th, 2007 - GENEART AG, the world's leading specialist in the production and optimization of synthetic genes, has once again significantly improved sales and earnings in 2006. Preliminary data show an increase in sales by more than 70% from EUR 4.5M in 2005 to EUR 7.8M in 2006. In this time, total revenues have increased by 65% to EUR 7.9M. Having passed the threshold to becoming a profitable company in 2005 with earnings of EUR 0.1M (EBIT), GENEART has now been able to fulfill positive expectations for more than proportionate earnings increases and achieved a result of EUR 1.0M (EBIT).

In 2006, the world market in the field of synthetic biology has continued its dynamic development and GENEART has been able to take advantage of this development - in addition to achieving sustained gains in the company's original market segment in the field of gene synthesis. GENEART synthesizes optimized genes for the development of innovative therapeutics and vaccines in the pharmaceutical industry and for the improvement of industrial enzymes which are used for example in detergent products.

GENEART has reached important milestones in its company development in 2006. This has enabled the company to grow much faster than the overall market, thus further solidifying and expanding the company's position in the global markets. Thus GENEART has been able to double its production capacity as planned by the end of 2006. After the company had increased its production capacity to 500,000 base pairs only in March of 2006, the capacity has now reached the 2006-target of 1.0M base pairs. This keeps GENEART on course with its targeted doubling of the production capacity in 12-months intervals. Taking advantage of economy of scale effects due to higher output and due to advancement in the automation and miniaturization of the production processes, the company has further significantly reduced all important cost ratios. As the company has grown, so has the number of employees grown from 52 to 78 by the end of 2006.

To command the largest production capacity in the world is in particular significant for GENEART because it has helped the company to become the successful bidder for a large NIH contract (NIH = US National Institutes of Health). In part based on this contract, GENEART expects another increase of its sales for the current year from EUR 7.8M to a range of EUR 12.5 to EUR 14.0M. The prognosis for 2007 includes another more than proportionate increase of the company's earnings to between EUR 2.0 and EUR 2.4M (EBIT). This puts GENEART well on course for continued successful growth.

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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.

For further inquiries, please contact:

Bernd Merkl                  Frank Ostermair
GENEART AG                   Haubrok Investor Relations GmbH
Josef-Engert-Str. 11         Maximilianstraße 45
D-93053 Regensburg, Germany  80538 München
Tel.: +49-(0)941-942 76 - 38 Tel: 089-21027-204
Fax: +49-(0)941-942 76 - 11  Fax: 089-21027-298     
Background information:


GENEART was founded in 1999. Today, the company ranks as the leading global specialist in gene synthesis for research institutions, the pharmaceutical industry and for enterprises in biotechnology and chemistry. GENEART offers integrated product systems based on gene synthesis for the development of innovative drugs, in particular for DNA- and protein-based therapeutics and vaccines, and for the identification of improved industrial enzymes. Service offerings range from synthesizing artificial genes according to DIN EN ISO 9001:2000, via constructing gene libraries in the field of combinatorial biology, to the production and development of DNA-based active components. The team of more than 80 employees in Regensburg and with the subsidiary GENEART Inc. in Toronto/Canada reached break even in 2005. Since May 2006 GENEART AG is listed at the German Stock Exchange.

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