France Biotech welcomes new French government measures to boost international investment in France
The French Government's new law on innovation follows France Biotech recommendations
Paris, December 10, 2002 - France Biotech welcomes today's decisions from the French government on innovation, the French biotechnology industry association ( www.france-biotech.org ) said today. The measures were announced by prime minister, Jean-Pierre Raffarin, Nicole Fontaine, minister for industry, and Claudie Haigneré, minister for research and new technologies.

The new status for innovative companies announced by the government closely follows France Biotech's earlier proposals to President Jacques Chirac and his government for the creation of a favorable environment for start-up companies, dubbed JEI (Jeunes Entreprises Innovantes - young innovative corporations). The new legislation will give total capital gains tax exemption to investors and other shareholders, drastically cut social costs paid by companies to the state and grant 100 percent relief on corporate income tax.

France currently occupies third position in terms of biotechnology enterprise creation in Europe. The new measures, according to France Biotech, will give a welcome boost to biotechnology companies, which are playing a major role in improving human health and boosting the economic growth.

"With these new measures, France is positioning itself as one of the most attractive countries in the world for investors, entrepreneurs and researchers," said Dr Philippe Pouletty, president of France Biotech. "The JEI status is highly significant for the biotechnology industry and other technology sectors, where costs in R&D are high and returns on investments are way longer than in other fields.

"This is a cultural step-change in France and the country can still catch up with its competitors. We are optimistic that France is becoming a haven for investors and enterprises," he added.

While welcoming these new measures, France Biotech believes further improvements need to be made to the innovation environment if France and Europe are to achieve a leadership position. These include:

* Legislation permitting "proximity" funds to boost public research
* Reform of public research organizations
* European Union reforms including:
- The creation of a EUCI (European Corporation for Innovation) with a European legal and fiscal status and taxation set at the level applying in the country with the most attractive regime
- Harmonization of stock exchange regulation and consolidation
- The creation of an EU-wide patent

About FRANCE BIOTECH
Founded in 1997, France Biotech is the industry representative for French biotechnology companies and their partners. A non-profit association, it interacts with the government, the pharmaceutical industry, research institutes, the media and financial communities. France Biotech has helped develop new legislation to better enable scientists start and join private companies, and attract larger resources to venture capital funds. France Biotech objectives include:
* Educating policy makers, the media and the general public on the scientific, medical and economic impact of biotechnology;
* Surveying the French and international biotechnology industry and providing financial and economic forecasts;
* Obtaining new legislation from French and European governments to accelerate the growth of the biotechnology industry, and assisting in the definition of new regulations in France and Europe;
* Promoting networking of French research laboratories and biotechnology companies on an international basis.

Contacts: 
France Biotech
Angelita de Francisco
Tel: +33 (0)1 55 60 29 10
france.biotech@wanadoo.fr 

Andrew Lloyd & Associates 
Keren Perrott 
Tel: +44 (0)1273 675100
keren@ala.com  

Andrew Lloyd & Associates 
Guillaume Zeller
Tel: +33 (0)1 56 54 07 00 
guillaume@ala.com 
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Keren Perrott

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