MediGene Significantly Increased Revenues in the First Nine Months 2007

9 november 2007 * Significant increase in total revenues to 18.6 million EUR compared to 13.4 million EUR (9M-2006) * Loss on EBIT-level increased to -23.2 million EUR compared to -10.9 million EUR (9M 2006) * Cash and cash equivalents on September 30, 2007: 54.6 million EUR (31.12.2006: 52.5 million EUR) * Forecast for the year adjusted Martinsried/Munich, November 9, 2007. In the first nine months and in the third quarter 2007, the biotech company MediGene AG (Frankfurt, Prime Standard: MDG) achieved a significant increase in revenues. At the same time there has been a considerable rise in net loss for the period, due to the company's increase in research and development expenses. Total revenues increased by 39 % to 18.6 million EUR in the first nine months of 2007, compared to 13.4 million EUR in last year's reporting period. The increase in the third quarter was particularly significant: total revenues rose by 64 % to 6.2 million EUR (Q3 2006: 3.7 million EUR). Revenues were generated mainly from the commercialization of EligardÒ in Europe, whereas a 4.1 million EUR milestone payment made by MediGene's partner Bradley Pharmaceuticals Inc. contributed to the nine-months result in 2006. The loss before interest and tax (EBIT) in the first nine months increased by 113 % to -23.2 million EUR (9M 2006: -10.9 million EUR). In the third quarter 2007, the loss on EBIT basis increased by 30 % to -7.5 million EUR (Q3 2006: -5.8 million EUR). This increase is mainly a consequence of the consolidation of MediGene Ltd. since September 2006, and an extension of the clincial and preclinical development programs. Consolidated Income Statement (abbreviated) in T¤ Q3 2007 Q3 2006 Change 9M 2007 9M 2006 Change Total revenues 6,151 3,743 64 % 18,605 13,356 39 % Cost of sales -4,541 -2,843 60 % -14,181 -6,430 121 % Gross profit 1,610 900 79 % 4,424 6,926 -36 % Selling, general, and -2,052 -1,640 25 % -6,836 -4,588 49 % administrative expenses Research and development -7,068 -5,016 41 % -20,788 -13,250 57 % expenses Operating -7,510 -5,756 30 -23,200 -10,912 113 % result (EBIT) % Result before -7,371 -5,444 35 -22,280 -9,983 123 % income tax % (EBT) Net loss for -7,249 -5,444 33 % -20,041 -9,983 101 % the period Compared to the closing date December 31, 2006, the cash position increased by 4 % to 54.6 million EUR as a result of financing activities. Cash flow from operating activities in the same period was -26.2 million EUR. Major events since the beginning of 2007: * Approval procedure in Europe for the six-months dosage of Eligard® completed, product launched in Germany * Marketing authorization application for the Polyphenon® E Ointment for the treatment of genital warts submitted to the regulatory authorities in Germany, Austria, and Spain * Decision about European marketing authorization for Oracea® postponed to 2008 * Initiation of a further phase II trial of EndoTAG®-1 in the indication triple receptor-negative breast cancer * Clinical phase IIa trial of RhuDex® for the treatment of rheumatoid arthritis initiated Outlook and forecast 2007: For the ongoing financial year 2007, MediGene expects total revenues of 24 million ¤. In contrast to the previous years, the revenues will be generated mainly by product sales arising from the commercialization of Eligard®. In addition, revenues include payments received under the terms of research cooperations as well as public grants. The original revenues forecast for 2007, i.e. revenues of 35 million ¤, included initial product sales of Oracea®, the approval for which is now expected in 2008, as well as additional proceeds from new cooperation agreements which MediGene no longer expects for this year. However, MediGene expects a lower loss in financial year 2007 than originally planned. Compared to the original forecast of 35 million ¤ EBIT-based loss, the company now expects a loss of approximately 32 million ¤. Although research and development activities were significantly extended compared to last year, operational costs did not increase to the extent originally expected. Due to lower operational costs than expected, and as a consequence of successful capital increases, year-end cash reserves are expected to be approximately 45 million ¤ (original forecast: 25 million ¤). MediGene assumes that the commercialization of the six-months depot formulation will give additional impetus to Eligard® sales. Moreover US market launch of the Polyphenon® E Ointment by MediGene's partner Bradley Pharmaceuticals is expected by the end of the year. MediGene expects the decision about the marketing authorization application for Oracea® in the first six months of 2008. In the field of research and development, MediGene expects the conclusion of the clinical part oft the phase IIa trial of the drug candidate RhuDex® for the treatment of rheumatoid arthritis. The data from this trial are expected now in the first half of 2008. The results from the first phase II trial of EndoTAG®-1 are scheduled for publication in the first six months of 2008. MediGene's detailed 9-Months Report is accessible on the Internet at: http://www.medigene.de/englisch/quartalsberichte.php?jahr=2007 This press release contains forward-looking statements that involve risks and uncertainties. The forward-looking statements contained herein represent the judgment of MediGene as of the date of this release. These forward-looking statements are no guarantees for future performance, and the forward-looking events discussed in this press release may not occur. MediGene disclaims any intent or obligation to update any of these forward-looking statements. EndoTAGTM-1 and the MediGeneTM Logo are trademarks of MediGene AG, Eligard® is a trademark of Atrix Laboratories/Sanofi-Aventis, Polyphenon E® is a trademark of Mitsui Norin, Oracea® is a trademark of CollaGenex, Inc., RhuDex® is a trademark of MediGene Ltd. - ends - MediGene AG is a publicly quoted (Frankfurt: Prime Standard: MDG) biotechnology company located in Martinsried/Munich, Germany, with subsidiaries in Oxford, UK and San Diego, USA. MediGene is the first German biotech company with a drug on the market. Another drug obtained marketing authorization for the USA and a further drug is currently undergoing the European approval procedures. Furthermore MediGene has several drug candidates for the treatment of various types of cancer and autoimmune diseases in clinical development, and possesses innovative platform technologies for drug development. Contact MediGene AG: Email: investor@medigene.com Fax: ++49 - 89 - 85 65 - 2920 Julia Hofmann/Dr. Georg Dönges, Public Relations Tel.: ++49 - 89 - 85 65 - 3317 Dr. Michael Nettersheim, Investor Relations Tel.: ++49 - 89 - 85 65 - 2946 --- End of Message --- MediGene AG Lochhamer Strasse 11 Martinsried / München Germany WKN: 502090; ISIN: DE0005020903 ; Index: Prime All Share, CDAX, TECH All Share, HDAX, MIDCAP, TecDAX; Listed: Prime Standard in Frankfurter Wertpapierbörse, Freiverkehr in Bayerische Börse München, Freiverkehr in Börse Düsseldorf, Freiverkehr in Börse Stuttgart, Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr in Niedersächsische Börse zu Hannover, Geregelter Markt in Frankfurter Wertpapierbörse;