GENEART Boosts Earning Power While Sales Continue to Grow in the First Nine Months of 2007

- Total revenue up by 105 percent - Operating result increased by 95 % to Euro 1.4M - GENEART well on track regarding net sales and earnings forecast for 2007 - Improved DNA-based therapeutics and vaccines through GENEART technology Regensburg, November 14, 2007 - GENEART AG, the world's leading producer of synthetic genes and specialist in the field of synthetic biology, continued its growth trend in net sales and earnings in the first nine months and in the third quarter of 2007.GENEART has advanced the production of synthetic genes to an industrial level. This step by step replaces older, time and cost-intensive genetic engineering methods, some of which have been in use for as many as 30 years. Owing to the new technologies, GENEART AG has become a more and more important R&D partner in the pharmaceutical, chemical and biotechnology industry, as well as for public research institutions. Clear indicators of this positive trend are the GENEART AG net sales figures, which have increased in the first nine months of the current business year from Euro 5.7M to Euro 9.0M. Relative to the same period in the previous year, this is an increase of 57 %. Relative to total revenues, the GENEART AG grew by 105 percent in the first nine months and even by a whopping 136 percent in the third quarter. The uptrend in earnings is particularly pleasant. This trend emphasizes the sustainability of the GENEART earning power and along confirms the exceptional role of the company in the German biotechnology sector. In the first nine months of the current year, the GENEART AG increased its operating result by 95 % to Euro 1.4M. In the third quarter the operating results increased by 204 %. The net income after interest and taxes for the first nine months were Euro 1.6M. The net income for the equivalent period last year were approximately minus Euro 1.5M. This negative figure is, however, in part explained by the extraordinary effects of the IPO and the repayment of silent partners. Based on the achieved 9-monthresult, GENEART considers itself well on track with regard to the expected net sales between Euro 12.5M and 14.0M and the expected EBIT between Euro 2.0M and 2.4M. The company has also met the self-set objectives for operational and technological progress in the first nine months and in the third quarter of 2007. The planned capacity increase continues as scheduled. The production capacity will have doubled once again by the end of this year, bringing it up to two million base pairs per month. In addition, GENEART has developed and implemented a new technology module for the production of particularly complex genes. This gives GENEART the capability to produce even very complex gene sequences cost-effectively in a high-throughput process. The EuroVacc Foundation Project for the development of a HIV vaccine shows another kind of future dynamics in addition to the established GENEART service business, and outside already existing projections: GENEART has optimized and synthesized two HIV vaccine candidates which have been further developed by Sanofi-Pasteur and the RIMMH (Regensburg Institute for Medical Microbiology and Hygiene). The two vaccine candidates have successfully passed phase I clinical trials. GENEART owns basic patent applications for these two vaccine candidates and has granted a research license to the EuroVacc Foundation. More information about this project will be published in the fourth quarter. This example shows how the GENEART expertise and technology - when bolstered by a savvy patent strategy - can be used to generate additional sales and earnings opportunities, while excluding the potential project risks inherent in clinical approval processes. The company also plans on using such license-driven exploitation strategies for the results of the research project 'Autonomous Gene Evolution' and for a novel method of gene optimization ('CpG Optimization'). Independent of the HIV vaccine's success in the approval process, the project strikingly demonstrates the great value of the GENEART gene optimization and gene synthesis technology for pharmaceutical research. GENEART AG (Group) Performance in the First Three Quarters of 2007 +-------------------------------------------------------------------+ | Data in Million Euro | 01/01 - 09/30 | 01/01 - | Change | | | 2007 | 09/30 | | | | | 2006 | | |------------------------------+---------------+-----------+--------| | Net Sales | 9.0 | 5.7 | 56 % | | Total Revenues | 11.7 | 5.7 | 105 % | | Gross Profit | 8.8 | 4.7 | 87 % | | EBIT | 1.4 | 0.7 | 95 % | | EBIT Margin on Sales | 15.6 % | 12.5 % | --- | | Net Income | 1.6 | -1.5 | --- | | Employees at the End of the | | | | | Third Quarter | 184 | 71 | 159 % | +-------------------------------------------------------------------+ For further inquiries, please contact: Bernd Merkl GENEART AG Josef-Engert-Str. 11 D-93053 Regensburg Germany Phone: +49-(0)941-942 76 - 638 Fax: +49-(0)941-942 76 - 711 Frank Ostermair Better Orange IR & HV AG Haidelweg 48 D-81241 München Germany Phone: +49-(0)89-88 96 906-10 Fax: +49-(0)89-88 96 906-66 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 180 people. Since May 2006, GENEART is listed on the German Stock Exchange.