AUSTRIANOVA completes first closing of 35 M EURO Series B financing

Vienna (Austria) June 5 2007. Austrianova Biomanufacturing AG, an emerging European Biotech Company based in Vienna, Austria, today announced the first closing of a financing round in which it plans to raise a total of €35M. This substantial first closing was raised from Ryan Group Holdings (the ‘Ryan Group’) - headed by the Irish pharmacist Gerard Ryan.

The level and terms of the investment has not been disclosed at this stage but represents a substantial part of the planned €35M investment round. Austrianova has previously raised in excess of Euro 30 million from Austrian and international investors. Austrianova is a pioneer and technology leader in cell encapsulation, an innovative method of drug delivery. Its innovative drug delivery systems are being developed for use in a wide range of therapeutic applications as diverse as for treatment of various forms of cancer (e.g. pancreatic cancer and brain tumours) as well as for diabetes and other metabolic diseases.

Thomas Fischer, CFO of Austrianova, commented:

“We are delighted to announce this significant first closing of our fundraising that represents a multi-million euro investment. These funds will enable us to realise the full potential of our proprietary NovaCaps® in pancreatic and other cancer indications”

The fund raising will enable Austrianova to complete Phase III trials for ‘NovaCaps®’ and finance further partnering projects to develop other therapeutic approaches on the basis of its cell encapsulation technology. Austrianova’s reference product ‘NovaCaps®’ is the first encapsulated cell product targeting solid tumours that are difficult to treat. ‘NovaCaps®’ has received orphan drug designation from the European Medicines Agency (EMEA) for pancreatic cancer, a cancer that is currently the least well treated cancer indication. Austrianova is currently commissioning a GMP manufacturing facility for ‘Novacaps®’ in anticipation of obtaining Marketing Authorisation for the product in 2009/2010. Austrianova’s ‘Novacaps®’ treatment for pancreatic cancer has successfully completed Phase I/II clinical trials. Phase III trials are due to commence in early 2008. Trials of 'Novacaps®' for additional indications, including the treatment of liver cancer, head and neck cancer and ovarian cancer are due to commence in 2008.

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About Austrianova Biomanufacturing AG
Austrianova was founded in 2001 as the first spin-off from the University of Veterinary Medicine in Vienna, Austria and has a staff of 32 FTE and access to another 30 FTEs in R&D from its academic partner, the Research Institute for Virology and Biomedicine, Vienna.

The company also has a GMP compliant production facility in Frankfurt, Germany. Austrianova’s core strategy is to develop proprietary delivery technologies in orphan niche indications in the oncology sector and has developed a unique and versatile cell encapsulation technology that can be applied to a wide range of therapeutic applications. The capsules which show a high mechanical resistance, have adjustable pore sizes and are biocompatible, act both to immunoprotect cells and to restrain them on the site of application whilst allowing them excellent access to nutrients and other factors required for their long term survival in a patient. As of today, Austrianova is the only company worldwide to have an IP protected GMP industrial production line for the encapsulation of living cells in cellulose sulphate. This unique asset will enable the company to rapidly bring its reference clinical product NovaCaps® to market and diversify the commercialisation of its primary delivery technology into other non-orphan indications.

For further information please visit www.austrianova.com 

About The Ryan Group
The Ryan Group is a major shareholder in Firecrest Clinical Ltd., an Irish company providing information technology-based clinical trial solutions to the pharmaceutical industry. After only four years, Firecrest Clinical's success is evident by the fact that six of the top ten Pharma companies use its services globally. Firecrest Clinical currently employs a staff of 47 in Limerick and plans to employ an additonal 40 before the end of 2007. Ryan Group Holdings (the ‘Ryan Group’) is headed by the Irish pharmacist Gerard Ryan.

For further information, please contact:

Dr. Susanne Bach
Corporate Communications
Austrianova Biomanufacturing AG
Mobil: + 43 / 699 / 184 83 025
E-Mail: bach@austrianova.com 

Dr. Douglas Pretsell
Account Director
Northbank Communications
t : +49 (0)89 57 00 18 06
e: d.pretsell@northbankcommunications.com