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Eckert & Ziegler steps up biotechnology business

(Ad hoc press release)

Berlin, December 13, 2001. The Supervisory Board of Eckert & Ziegler Strahlen- und Medizintechnik AG has authorized the Managing Board to invest up to EUR 10 million as a capital contribution in the Berlin company NEMOD Immuntherapie AG in the coming two years. The payments are milestoned and can later be converted into a majority interests in that Berlin-based glycoprotein company. "After having established a profitable company that achieved earnings per share of one euro in 2001, it is painful to reduce earnings to 30 cents per share starting in 2002 as a result of additional research expenditures", said Dr. Andreas Eckert, chairman of the company's managing board. "However, the valuation slump in the biotechnology sector offers the unique opportunity to acquire a complete development and patent portfolio in the cancer segment. We do not want to pass up this opportunity for portfolio expansion and lasting increase in value". The oncology division of Eckert & Ziegler AG had already commissioned NEMOD with the development of antibodies marked with a radioactive tracer against blood cancer in the summer of 2001. The expansion adds six cancer medications in an advanced pre-clinical stage to the development portfolio. They include a vaccine against breast cancer and ovarian cancer, a liver metastasis inhibitor and a adjuvants based on fully functional dendritic cell lines. At least three of these development projects are expected to be transferred to Phase I in clinical tests by the end of 2003. Further development in Phase II and onwards is to be carried out with Eckert & Ziegler AG's various pharmaceutical and biotechnology partners. The company expects turnover of EUR 30 million and earnings per share of one euro for the 2001 business year.

The Board of Directors