* Total revenues of 4.9 million euro (H1-2004: 8.8 million euro) * Net loss -6.3 million euro (H1-2004: -4.2 million euro) * Operational cash flow -6.6 million euro (H1-2004: -4.3 Mio. euro) * Cash position 41.6 million euro (H1-2004: 32.8 million euro) * First-time adoption from US GAAP to International Financial Reporting Standards (IFRS) without any noteworthy effect MARTINSRIED, Germany and MUNICH, Germany and SAN DIEGO, Aug. 3 /PRNewswire-FirstCall/ -- The German-American biotech company MediGene AG (Frankfurt, Prime Standard: MDG) presents results for the first six months of 2005 that conform to the company's expectations, and confirms its forecast for the financial year. Total revenues in the first six months of the year amounted to 4,942 T euro (H1-2004: 8,830 T euro), and to 1,118 T euro in the second quarter of 2005 (Q2-2004: 4,920 T euro). These revenues were generated almost solely by the commercialization of the drug Eligard(R), and are made up of proceeds from product sales, license fees and milestone payments received from MediGene's marketing partner Astellas Pharma Europe Ltd. The increased revenues in the second quarter and in the first six months of 2004 resulted from advance and milestone payments due upon conclusion of the marketing partnership for Eligard(R). Consequently, the gross profit decreased to 3,666 T euro in the first six months of the year, and to 214 T euro in the second quarter. Gross profit margin is determined by milestone payments and the ratio of revenues from product sales to license payments, and is therefore subject to substantial fluctuations comparing individual reporting periods. The increase of general, administrative, and selling expenses to 3,048 T euro (H1-2004: 2,879 T euro), and to 1,634 T euro (Q2-2004: 1,481 T euro), respectively, is mainly due to the first-time adoption of IFRS, according to which stock options issued to employees are now recognized as expenses of 171 T euro in the first six months of 2005. Total R&D expenses increased to 7,558 T euro (H1-2004: 6,820 T euro), and to 4,260 T euro (Q2-2004: 3,025 T euro), respectively. This increase was mainly due to the EndoTAG program acquired in August 2004. Compared to last year's reporting periods, the net loss increased to -6,326 T euro (H1-2004: -4,195 T euro), and to -5,378 T euro (Q2-2004: - 2,692 T euro), respectively, since last year the company received higher milestone payments for the drug Eligard(R). Outlook: MediGene confirms the forecast for the year 2005, according to which the company expects to raise revenues to approximately 20 million euro, and to reduce the loss below 10 million euro. Major milestones to be reached are the NDA submission for the Polyphenon(R) E Ointment against genital warts to the US regulatory authority, the conclusion of a marketing partnership for the Polyphenon(R) E Ointment, the initiation of a clinical phase II trial of the drug candidate EndoTAG-1, as well as the launch of Eligard(R) in other European countries. Alexander Dexne, MediGene's Chief Financial Officer, comments: "In the second half of 2005 we expect a significant increase in revenues and a considerable improvement of our financial result. The launch of Eligard(R) in other European countries and the conclusion of a marketing partnership for our Polyphenon(R) E Ointment will form the basis for this improvement. Although the results obtained in the trial in the indication actinic keratosis did not meet our expectations, we assume that the NDA for our Polyphenon(R) E Ointment will be submitted to the US regulatory authority as scheduled, and that we will conclude a marketing partnership for this product." Consolidated Income Statement (Abbreviated) in T euro Q2-2005 Q2-2004 Change H1-2005 H1-2004 Change Total revenues 1,118 4,920 -77 % 4,942 8,830 -44 % Cost of sales 904 3,225 -72 % 1,276 3,253 -61 % Gross profit 214 1,695 -87 % 3,66 5,577 -34 % General, administrative, and selling expenses 1,634 1,481 10 % 3,048 2,879 6 % Research and development expenses 4,260 3,025 41 % 7,558 6,820 11 % EBIT -5,680 -2,811 -102 % -6,940 -4,122 -68 % Net loss from continued operations -5,383 -2,673 -101 % -6,330 -3,895 -63 % Result from discontinued operations 5 -19 126 % 4 -300 101 % Net loss -5,378 -2,692 -100 % -6,326 -4,195 -51 % The complete 6-Months Report 2005 is available at http://www.medigene.de/englisch/quartalsberichte.php . 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. MediGeneTM is a trademark of MediGene AG. MediGene AG is a publicly quoted (Frankfurt: TecDAX30), German-American biotechnology company located in Martinsried, Germany and San Diego, USA. MediGene is the first German biotech company with a drug on the market. The company has the most mature drug development pipeline in the German biotech industry with oncological drug candidates undergoing clinical phase I - III trials (phase III completed). In addition, MediGene possesses innovative platform technologies with its HSV technology and the newly acquired EndoTAG technology. MediGene's core competence lies in research and development of novel approaches for the treatment of various tumor diseases. Thus MediGene focuses on indications of high medical need and economic opportunities. DATASOURCE: MediGene AG CONTACT: Dr. Georg Donges, Public Relations, +49 - 89 - 85 65 - 3317 or Dr. Michael Nettersheim, Investor Relations, +49 - 89 - 85 65 - 2946, both of of MediGene AG Web site: http://www.medigene.de/englisch/quartalsberichte.php

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