GENEART is Awarded a Grant to Advance Its GeneOptimizer® Technology as Part of a Collaborative EU Project

- GENEART enters a contract worth EUR 0.3M for its contribution as a collaborating partner in the 7th Framework Program of the European Commission - The project is coordinated by sanofi pasteur and aims at the development of a broad spectrum vaccine against HIV - GENEART will improve its proprietary technology to custom-design gene sequences for the cost-effective vaccine production and will deliver the required genes Regensburg, March 17, 2008 - The GENEART AG, global market leader for the production of synthetic genes and specialist in the field of synthetic biology, enters a contract worth EUR 0.3M for its contribution as a partner in the major EU project titled "New HIV Vaccines Inducing Broadly Reactive Neutralising Antibodies".The project is coordinated by sanofi pasteur - the vaccines division of sanofi-aventis Group - and aims at the development of a broad spectrum vaccine against HIV. The consortium behind the project comprises 15 research groups and has received a total contribution of almost EUR 12M. GENEART develops and synthesizes the needed gene constructs for the efficient production of the vaccine candidates. To ensure the cost-effective production of future vaccines, GENEART creates custom-designed gene sequences ('genetic blueprints') for all vaccine candidates. In an iterative procedure, the gene sequences will be optimized for highest yields in the selected production system (bacterial strain). At the same time, GENEART will systematically analyze the influence of different sequence motives - specific successions of bases in a given gene - on production rates in the laboratory. Professor Dr. Ralf Wagner, CEO of GENEART AG, comments: "The project results will add to the systematic development of our GeneOptimizer® technology. We continue to perform production and gene expression studies in the laboratory to constantly check and improve the used software algorithm. In addition, we strive to identify new gene sequence motives to further increase protein production rates. With this expertise, we are first in offering customers a unique, quality-proven gene optimization software to realize cost savings in the production of protein-based therapeutics or vaccines. This sets GENEART apart as a partner for development projects in the pharmaceutical industry." The EU Collaborative Project Background: Within this project the collaboration partners aim at inducing broadly neutralizing antibodies by using derivatives of the HIV envelope protein. Given as a vaccine, this is expected to trigger the creation of antibodies able to block the virus at the gate in blood and in mucosa, thus preventing the initial infection step. As this targets a common mechanism of HIV entry, it is expected that the vaccine could be effective against a broad range of HIV-1 strains. For further inquiries, please contact: Bernd Merkl GENEART AG Josef-Engert-Str. 11 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 81241 Munich Germany Phone: +49-(0)89-8896906-10 Fax: +49-(0)89-8896906-66 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 190 people. Since May 2006, GENEART is listed on the German Stock Exchange.