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Biotest AG:Biotest successfully completes acquisition of Nabi Biologics assets

Biotest AG / Acquisition

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Biotest successfully completes acquisition of Nabi Biologics assets

· Reduced net borrowings due to favourable dollar exchange rate
· Management team for US plasma protein business determined
· Sustainable structure for European pharmaceutical activities achieved

Boca Raton/Dreieich, 5 December 2007. Biotest AG has successfully completed
the first step in the acquisition of the plasma protein operations of Nabi
Biopharmaceuticals Corp., Boca Raton (Florida, USA). Yesterday evening
(EST), Biotest became the owner of various assets constituting the
Biologics business unit formerly owned by Nabi. The acquisition comprised
substantially all of the assets belonging to the unit, including nine
plasmapheresis stations, a modern plasma proteins production plant and the
head office in Boca Raton. The Nabi shareholders had already approved the
sale by a large majority a few weeks ago. The US merger control also did
not raise any objections concerning the transaction.

Biotest has submitted applications for manufacturing and sales and
wholesale distribution with the U.S. Food and Drug Administration and the
Florida Department of Health that, when issued, will enable Biotest to
assume full manufacturing and sales operations in the United States.
Management expects that such licences will be issued within the next six to
eight weeks.

The acquisition will make Biotest one of the six plasma protein providers
which operate at international level. It will facilitate the significant
expansion of plasmapheresis and pharmaceutical production capacities and at
the same time, extends the Group’s clinical development portfolio. The
number of employees has increased by around 500 to total approximately
1,750. Almost all employees in the Biologics business unit have accepted
the employment contract offered to them by Biotest.

The purchase price totalled USD 185 million (EUR 127 million). Due to
developments in the exchange rate between the US dollar and the euro, the
sum was around EUR 6 million less than the estimated original amount of EUR
133 million. Accordingly, there was a reduction in the net borrowings
required to finance the acquisition.

'We expect that the new US activities will generate positive operating
profit as early as the first financial year,' commented CFO Dr. Michael
Ramroth. 'Despite the rise in interest expense as a result of the
acquisition, we are continuing to aim to achieve a further increase in the
Group result for 2008.' From 2010 onwards, the US plasma protein business
is set to markedly improve sales and the quality of margins due to the
expected approval of the polyvalent immunoglobulin (IVIG) product.

The plasma protein business in the USA will be pooled in the new company
trading under the name Biotest Pharmaceuticals Corp. in Boca Raton.
Formerly Head of Biotest’s Pharmaceutical segment, Dr. Rainer Pabst has
been appointed as Chief Executive Officer of the new company. Chief
Financial Officer Jordan Siegel previously carried out a similar role in
his former position at Nabi Biopharmaceuticals.

At the same time as the acquisition of the US plasma protein operations,
Biotest AG arranged its European structures in line with the future global
growth strategy. The former Pharmaceutical segment forms the nucleus of two
divisions: Plasma Proteins and Biotherapeutics. In addition, the service
division Medical/Regulatory Affairs is responsible for clinical development
as well as regulatory approval across both divisions. The new structure
will enable Biotest to pool its expertise and increase flexibility – also
in terms of potential sales and development partners in the
Biotherapeutical segment. An external candidate will be recruited to manage
the Plasma Proteins segment in the near future.

Disclaimer

This document contains forward-looking statements on overall economic
development as well as on the business, earnings, financial and asset
situation of Biotest AG and its subsidiaries. These statements are based on
current plans, estimates, forecasts and expectations of the company and are
thus subject to risks and elements of uncertainty that could result in
deviation of actual developments from expected developments. The
forward-looking statements are only valid at the time of publication.
Biotest does not intend to update the forward-looking statements and
assumes no obligation to do so.

About Biotest
Biotest, Dreieich, Germany, is a company that researches and manufactures
pharmaceutical, biotherapeutic and diagnostic products and has specialised
in immunology and haematology. In its Pharmaceutical segment, Biotest
develops immunoglobulins, clotting factors and albumins based on human
blood plasma. These are used for diseases of the immune system or
haematopoietic system. In the Biotherapeutic segment, Biotest researches
into the clinical development of monoclonal antibodies, including in the
indications of rheumatoid arthritis and blood cancer. The Diagnostic
segment spans reagents and microbiology systems which are predominantly
used in hygiene control, as well as serology, used, for example, in blood
transfusions. Biotest has around 1,750 employees worldwide and its shares
are listed in the Frankfurt Stock Exchange's Prime Standard.

Biotest AG: 
Biotest AG, Landsteinerstr. 5, D-63303 Dreieich, www.biotest.de
Dr. Marion Wendorff, Tel: +49 (0) 6103 801-520, 
e-mail: marion_wendorff@biotest.de
Fax: +49 (0) 6103 801-347

WKN, ISIN ordinary share: 522720, DE0005227201
WKN, ISIN preference share: 522723, DE0005227235
Listed: Prime Standard/official trading
Frankfurt, Berlin, Düsseldorf, Hamburg, Stuttgart 
05.12.2007  Financial News transmitted by DGAP
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Language:     English
Issuer:       Biotest AG
              Landsteinerstr. 5
              63303 Dreieich
              Deutschland
Phone:        +49 - 6103 / 801 - 0
Fax:          +49 - 6103 / 801 - 150
E-mail:       mail@biotest.de
Internet:     www.biotest.de
ISIN:         DE0005227201, DE0005227235
WKN:          522720, 522723
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, Hamburg, Stuttgart
 
End of News                                     DGAP News-Service
 
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