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AUSTRIAN COMPANY ACQUIRES A BIO-MANUFACTURING PLANT IN SCOTLAND

4 March 2004

Vienna based Intercell AG has acquired a state of the art bio-manufacturing plant in Livingston – its first in the world.

The company, which develops products and technologies for the prevention and treatment of infectious diseases and cancer, will manufacture vaccines at its new 30,000 square foot facility formerly owned by Excell Biotech. Intercell is also integrating a local team of highly experienced staff with a broad background in process development, manufacturing and quality management of viral and recombinant products.

“This strategically very important acquisition will allow Intercell to fully control the clinical and future commercial manufacturing of our Japanese encephalitis vaccine, which is planned to enter Phase III clinical trials in early 2005. Furthermore we will develop and produce our future recombinant bacterial vaccines resulting from our highly efficient Antigen Identification Program at the new Intercell site in Livingston”, commented Intercell’s Chief Operating Officer Gerd Zettlmeissl, who was responsible for Chiron Vaccines global manufacturing and quality operations, before he joined Intercell in late 2001.

“Scotland’s vibrant science community and excellent reputation for the quality of its research and production was a big incentive for Intercell to expand its operation to Edinburgh”, emphasized Alexander von Gabain, Intercell’s Chief Executive Officer.

Intercell has been supported by Scottish Development International and Scottish Enterprise Edinburgh and Lothian.

Scotland’s Enterprise Minister Jim Wallace said:

“I am delighted that Intercell has decided to establish a presence in Scotland. The news that the company is to begin operations in the former Excell facility and will be employing some of those affected by Excell’s receivership is to be warmly welcomed.

“This investment is a boost to Scotland’s biotechnology sector and is clear recognition of the quality of the workforce in Livingston. I wish Intercell every success in this venture.”

Jim McFarlane, Chief Executive, Scottish Enterprise Edinburgh and Lothian, said: “The decision by Intercell to establish its first Scottish biomanufacturing operation in Livingston is excellent news. A relatively young company, focusing its research on the development of vaccines for the treatment of infectious diseases and cancer, it is rapidly establishing itself as a leader in its field. They have had real success in raising significant funds in a difficult investment climate. Intercell is an innovative and knowledge driven company that will complement Scotland’s growing reputation as a centre of excellence in the field of biotechnology and the life sciences.”

He added: “It is particularly pleasing that they will utilise the excellent existing facilities formerly occupied by Excell Biotech and create employment for many of that company’s employees.”

Notes to Editors:-

1. Intercell is a biotechnology company focused on the development of vaccines against infectious diseases. Intercell’s lead products are a therapeutic hepatitis C vaccine, which has entered Phase II clinical testing in November 2002, and a vaccine against Japanese encephalitis that has successfully undergone a phase II clinical study. A phase III clinical study is planned for early 2005. Intercell’s proprietary Antigen Identification Program has delivered most relevant vaccine antigens against various bacterial infections, which will be the basis for own development programs, but are also successfully partnered with major vaccine players in selected indications. Furthermore Intercell has developed an outstanding new synthetic Immunizer (adjuvant) IC31, which will enable the next generation of protective and therapeutic vaccines, and is an important component of Intercell’s vaccine technology. To date, Intercell has succeeded in raising venture capital totalling more than € 100 million since becoming operational. For further information on Intercell AG visit: www.intercell.com

2. In October 2001, “Scotland: A Global Connections Strategy”, was launched as part of the Scottish Executive’s guiding principles for the Enterprise Networks, “A Smart Successful Scotland.” It set out a radical new approach to Scotland’s international economic development, focusing on how we support Scottish knowledge out to world markets and attract knowledge from overseas for exploitation in Scotland. It replaced the former inward investment group Locate in Scotland, and the former export promotion group, Scottish Trade International with a new unified international economic development department, Scottish Development International, which is jointly operated by the Scottish Executive and Scottish Enterprise.

3. Scottish Enterprise is the main economic development agency for Scotland covering 93% of the population from Grampian to the Borders. The Scottish Enterprise Network consists of Scottish Enterprise and 12 Local Enterprise Companies. Working in partnership with the private and public sectors the Network aims to build more and better businesses, to develop the skills and knowledge of Scottish people, and to encourage innovation to make Scottish business internationally competitive. Further information on Scottish Enterprise is available at: hhtp://www.scottish-enterprise.com

For further information please contact:-

Dr. Werner Lanthaler

Chief Financial Officer

Intercell AG

Phone:

E-mail:

Kirstie Crawford

Senior Press & PR Executive

Scottish Enterprise

Tel:

Mobile:

E-mail:

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