29 June 2000 -  Eurogentecs results for 1999/2000: further strengthening

Sart-Tilman, 29th of June 2000 - Eurogentec, an important Belgian company providing research and development services in the field of Genomics, posted a consolidated turnover of BEF 716 million at the end of the 1999/2000 financial year . Its operating cash flow (EBITDA) reached BEF 113 million, whereas consolidated profits stand at BEF 60 million. The RoE is 25%.

The financial year has also been marked by the integration of the subsidiary Oswel Research Products Ltd in Great Britain, the creation of a Scientific Board under the direction of Professor Joseph Martial and a greater diversification of the offered products and services, particularly in the area of DNA chips and functional Genomics.

During the 2000/2001 financial year Eurogentec will introduce new product lines, increase its production capacity and pursue its growth strategy, both geographically and technologically.

Founded in 1985 as a ‘spin off’ from the University of Liège, the activities of Eurogentec are divided into two main areas: custom made production and the sale of research tools with a high added value in "life sciences" (Genomics, Proteomics), and research and development services for the biopharmaceutical industry. Eurogentec is located in the Science Park in Sart Tilman (Liège); it has a second infrastructure in the Industrial Park in Hauts Sarts and a production site in Southampton (Oswel Research Products Ltd). In addition the company has commercial subsidiaries in France, Germany and the Netherlands, as well as a branch in Switzerland. At the end of the 1999/2000 financial year, the company employed about 170 people; of these more than 20 are Doctors of Science. Eurogentec is currently the sixth largest producer of oligonucleotides in the world.

During the 1999/2000 financial year, Eurogentec achieved a consolidated turnover of BEF 716 million, an increase of 13% compared to the previous financial year. This amount is distributed as follows: 65% research tools, 19% for kits and consumables and 16% for biopharmaceutical services. A quarter of the turnover is realized in Belgium. The remainder is mainly realized in France, Great Britain, Germany, the Netherlands and Switzerland.

The increase of the "Research Tools" division has reached 36%, Oswel Research Products Ltd not included. The turnover of the English subsidiary (Oswel Research Products Ltd) was down by 14%, subsequent to the ending of a important fixed term contract it held with the British Department of Forensic Medicine. Oswel have initiated a research programme in order to recover this market and to explore new areas of development in the field of genotyping.

The turnover for "Kits and consumables" has increased by 16%, whilst the turnover of the "Biopharmaceuticals" division has dropped by 8% . The latter decrease is due to the ending of an exclusive contract with Smithkline Beecham, which has led to a temporary and limited fall in production. However, Smithkline Beecham are still placing orders with Eurogentec though on a non-exclusive basis. This new availability has permitted Eurogentec to successfully offer its services to other clients: the order book is already full until spring 2001, to such a degree that an increase of production capacity is planned at short term.

The EBITDA is fixed at BEF 113 million and the consolidated profit at BEF 60 million. Eurogentec has moreover achieved a RoE of 25%. These figures illustrate the profitable nature of the activities of the group.

Accelerated growth of markets and new areas of development

The requirement for research tools is increasing every month. To meet this demand, Eurogentec is currently in the process of expanding its production capacity for the synthesis of oligonucleotides and peptides, and for the sequencing of DNA.

As a European leader in the field of Genomics and Proteomics, Eurogentec is especially well positioned to take up the challenges associated with the exploration of the human genome and particularly its functional analysis.

These developments involve the understanding and analysis of the new DNA sequences produced by research laboratories. In particular, Eurogentec is developing two new tools (DNA chips and quantitative PCR), which will enable researchers to gain a better understanding of the functioning of genes and to assign new functions to genes that have yet to be identified.

As an extension of these trends, Eurogentec notes a large increase in the demand for peptides and antibodies. The company has the necessary resources and know-how to meet this demand.

For the 2000/2001 financial year, Eurogentec is counting on an increase in turnover of 15%, with the current group's structure. If any acquisition occurs, the objective would obviously be revised.

Scientific Board

Professor Joseph Martial, Chairman of the Board of Directors of Eurogentec, has founded a Scientific Board which gathers, within the different areas of activity of the group, highly talented scientists. These scientists originate from various European countries and constitute an invaluable source of information for the management of Eurogentec. Their acceptance to sit on this Board demonstrates the high level of credibility that the company enjoys in the scientific world.

Products and services

Eurogentec is organized into two divisions:

• Research tools:
• Custom made:
  development and manufacturing research tools such as oligonucleotides, peptides and antibodies as well as DNA sequencing and various other services in the area of DNA chips.
• Kits and consumables:
  marketing activities for transfection products, molecular biology kits for enzymes and biochemical compounds.
• Biopharmaceuticals:
  development of new medicines produced using the recombinant DNA technique under contracts from the pharmaceutical industry.

For any further information:

Jean-Pierre Delwart
Managing Director
Parc Scientifique du Sart Tilman
4102 Seraing,
Belgium
Tel: 32 (0)4 366 61 13 — Fax: 32 (0)4 365 16 04
email: j.p.delwart@eurogentec.com
web site: http://www.eurogentec.com