OctoPlus to raise additional funds for the further development of its product pipeline

OctoPlus N.V. ("OctoPlus" or the "Company") (Euronext: OCTO), the drug delivery and development company, announces today that it plans to raise up to ¤ 25 million in a follow-on financing through a public offering of new shares in the Netherlands and a private placement of new shares with institutional investors in certain other jurisdictions. The offer price will be determined on the basis of a book-building process. The proceeds of the offering will be used primarily for the further development of OctoPlus' product pipeline, including its lead product Locteron(TM). Cowen International Limited and Kempen & Co have been appointed as joint bookrunners and joint global coordinators for the offer, and SNS Securities will act as co-manager (collectively, the "Underwriters"). The availability of the prospectus and the commencement of the subscription period are expected to be announced on 12 November 2007 by a further press release. OctoPlus completed its initial public offering (the "IPO") in October 2006. Since then, the Company has successfully completed patient treatment in a 12-week Phase IIa clinical trial to evaluate the safety, tolerability and preliminary efficacy of Locteron for the treatment of chronic hepatitis C. Results of the study showed that Locteron was generally safe and well tolerated. In addition, the results to date have shown that 12 weeks of treatment with Locteron in combination with ribavirin was effective in reducing hepatitis C virus levels. The proceeds of this offering will, among other things, be used for the further development of OctoPlus' product pipeline, including a Phase IIb clinical study with Locteron. Joost Holthuis, Chief Executive Officer of OctoPlus, comments: "We have made significant progress with our product pipeline since our IPO and we want to build on this momentum. The additional funds we plan to raise will give us the leveraging capital we need to keep up our current pace and work towards successfully commercialising our products within our target timeframe." The Offer The offer consists of an offering (the "Offer") to raise proceeds of up to ¤ 25 million in newly issued ordinary shares with a nominal value of ¤ 0.12 per share. The Offer consists of a public offering in the Netherlands and a private placement with institutional investors in certain other jurisdictions. OctoPlus intends to grant to the Underwriters an option, exercisable within 30 calendar days after the listing date of the newly issued ordinary shares, pursuant to which the Underwriters would be able to require OctoPlus to issue additional new shares at the offer price for an amount up to 15% of the amount of the Offer. Use of Proceeds OctoPlus intends to use the net proceeds from the Offer primarily for the further development of its product pipeline, and for general corporate purposes including capital expenditures and working capital. Expenditure on the product pipeline includes supporting a Phase IIb study for Locteron, and continuing the Phase II clinical development of OP-145 CSOM, its product for chronic middle ear infection (chronic suppurative otitis media). In addition, the proceeds will be used to advance pre-clinical and clinical development for the three earlier-stage products, OP-286 CR for type II diabetes and the single-shot vaccines for hepatitis B and Japanese encephalitis. The Company will also use the proceeds for manufacturing and material costs for its products. Press Conference OctoPlus will hold a telephonic press conference call today at 10:00 AM CET. Members of the press are invited to dial in on telephone number +31 (0) 45 631 6902. After a short introduction, Joost Holthuis, CEO of OctoPlus, and Hans Pauli, CFO, will be available to answer questions. For further information, please contact: Rianne Roukema, Corporate Communications: +31 (0) 71 524 1071 About OctoPlus OctoPlus N.V. is a product-oriented biopharmaceutical company committed to the creation of improved pharmaceutical products that are based on OctoPlus' proprietary drug delivery technologies and have fewer side effects, improved patient convenience and a better efficacy/safety balance than existing therapies. Rather than seeking to discover novel drug candidates through early stage research activities, OctoPlus focuses on the development of long-acting, controlled-release versions of known protein therapeutics, other drugs, and vaccines. Our pipeline consists of 5 products in pre-clinical and clinical development. Our lead product is Locteron, a controlled-release formulation of interferon alfa for the treatment of chronic hepatitis C, which we are co-developing with Biolex Therapeutics. OctoPlus has completed patient treatment in a Phase IIa clinical study with Locteron. Furthermore, our pipeline comprises a product candidate for the treatment of chronic middle ear infection, which is in Phase II clinical development, a pre-clinical GLP-1 analogue product candidate for the treatment of diabetes and two pre-clinical-stage single-shot vaccines. In addition, OctoPlus is a European leading provider of advanced drug formulation and clinical scale manufacturing services to the pharmaceutical and biotechnology industries, with a focus on difficult to formulate active pharmaceutical ingredients. The earnings and expertise that we derive from rendering formulation and manufacturing services help to support our own drug development programs. OctoPlus is listed on Euronext Amsterdam under the symbol OCTO. For more information about OctoPlus, please visit our website www.octoplus.nl. This document may contain certain forward-looking statements relating to the business, financial performance and results of OctoPlus N.V. and the industry in which it operates. These statements are based on OctoPlus N.V.'s current plans, estimates and projections, as well as its expectations of external conditions and events. Forward-looking statements involve inherent risks and uncertainties and speak only as of the date they are made. In particular the words "expect", "anticipate", "predict", "estimate", "project", "plan", "may", "should", "would", "will", "intend", "believe" and similar expressions are intended to identify forward-looking statements. We caution investors that a number of important factors, and the inherent risks and uncertainties that such statements involve, could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements. These factors include, but are not limited to those discussed under "Risk Factors" in the prospectus to be made generally available in the Netherlands in connection with the Offer. In the event of any inconsistency between an English version and a Dutch version of this document, the English version will prevail over the Dutch version. The contents of this announcement have been prepared by and are the sole responsibility of OctoPlus. Cowen International Limited, Kempen & Co N.V. and SNS Securities N.V. are acting exclusively for OctoPlus and no one else. Cowen International Limited, Kempen & Co N.V. and SNS Securities N.V. will not be responsible to anyone other than OctoPlus for providing the protections afforded to their respective clients, or for advice in relation to the Offer, the contents of this announcement or any of the matters referred to herein. The distribution of this announcement and other information in connection with the Offer may be restricted by law in certain jurisdictions. Persons into whose possession this announcement or such other information should come are required to inform themselves about and to observe any such restrictions. This announcement may not be used for, or in connection with, and does not constitute, any offer to sell, or an invitation to purchase, any securities. Any offer to acquire shares pursuant to the proposed Offer will be made, and any investor should make an investment, solely on the basis of information that will be contained in the prospectus to be made generally available in the Netherlands in connection with such offering. If the Offer is completed, the final offer price, offer proceeds and number of Shares offered in the Offer will be set forth in the pricing statement. When made generally available, copies of the prospectus and the pricing statement may be obtained at no cost from OctoPlus, Kempen & Co N.V. or SNS Securities N.V., or through the website of Euronext Amsterdam (Dutch residents only). This announcement is not an offer to sell or the solicitation of any offer to buy any Shares or other securities of OctoPlus (the "Securities") in the United States or in any other jurisdiction. The Securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States unless registered under the Securities Act or an exemption from such registration is available. The shares have not been and will not be registered under the applicable securities laws of Australia, Canada or Japan and may not be offered or sold within Australia, Canada or Japan. In the United Kingdom, this announcement is directed only at persons who (i) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the "Financial Promotion Order"), (ii) are persons falling within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc") of the Financial Promotion Order, (iii) are outside the United Kingdom, or (iv) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated. This document is directed only at such persons and must not be acted on or relied on by persons in the United Kingdom who are not such persons. Any investment or investment activity to which this announcement relates is available in the United Kingdom only to such persons and will be engaged in only with such persons and no other persons in the United Kingdom should rely or act upon this announcement. All investment is subject to risk. The value of the shares may go down as well as up. Past performance is no guarantee of future returns. Potential investors are advised to seek expert financial advice before making any investment decision. In connection with the Offer, the Underwriters, through Kempen & Co N.V. acting as stabilisation manager or its affiliates or agents, may engage in transactions that have the effect of raising or maintaining the market price of the Shares or preventing or retarding a decline in the market price of the Shares. As a result, the price of the shares in the open market may be higher than it would otherwise be in the absence of these transactions. The Underwriters are not required to enter into such transactions. These transactions may be effected on the Euronext Amsterdam stock exchange, in the over-the-counter market or otherwise and, if commenced, may be discontinued at any time.