MOLOGEN submits report on third quarter: The course is

set on a positive future

The third quarter 2005 was marked by crucial decisions for MOLOGEN AG (ISIN DE0006637200) - decisions that set the course on a positive business development. The company succeeded in obtaining significant production licenses, in initiating promising negotiations with industry partners, and in substantially expanding its liquidity. The operative methods that have thus been introduced are expected to yield visible results in the quarters to come.

MOLOGEN’s profit and loss statement reflects the typical situation of a biotech enterprise at the threshold of a commercial rollout of its proprietary products and technologies. At 0.2 million Euros, the turnover in the third quarter reached the expected level. In the corresponding period of the previous year, turnover was 0.6 million Euros. EBIT in the third quarter of this year was -0.8 million Euros, in the same period of 2004, -0.6 million Euros. Simultaneously, MOLOGEN AG succeeded in significantly upgrading its liquidity by attracting institutional investors. By the valuation date September 30, 2005, the company’s liquid funds had risen to 6.5 million Euros. This number does not fully reflect the results of the corporate action of October. The overall increase of liquid funds by the end of September was more than 4.2 million Euros as compared to previous year’s valuation date.

As one of the major operative advancements in the third quarter, MOLOGEN obtained the production license according to the German Pharmaceuticals Law (AMG) for the active components of the MIDGE®-based DNA vaccine against certain infectious diseases in animals. This production license is the basis for the licensing-out, which MOLOGEN is planning for the near future.

MOLOGEN has continued to receive increased attention from national and international economic and financial media. In scientific journals as well as on relevant congresses and conventions, MOLOGEN has received consistently high attention.

MOLOGEN’s board of directors is highly satisfied with the recently completed quarter, and optimistic as to the future business development.

About MOLOGEN

MOLOGEN uses its proprietary DNA technologies to create and develop treatments for high-unmet-need illnesses. The main focuses are the unique and patented MIDGE and dSLIM technologies. Based on these platforms, MOLOGEN is developing DNA-based vaccines and therapeutics to prevent or cure a wide range of diseases.

Going public in 1998, MOLOGEN was one of the first German biotechnology companies to be floated on the stock exchange. The MOLOGEN shares are traded on the Geregelter Markt in Frankfurt.

Disclaimer concerning prognoses

Certain statements in this communication contain formulations or terms referring to the future or future developments, as well as negations of such formulations or terms, or similar terminology. These are described as forward-looking statements. In addition, all information in this communication regarding planned or future results of business segments, financial classification numbers, developments of the financial situation, or other financial or statistical data contains such forward-looking statements. The company cautions prospective investors not to rely on such forward-looking statements as certain prognoses of actual future events and developments. The company is neither responsible nor liable for these forward-looking statements. It is not responsible for updating such information, which only represents the state of affairs on the day of publication.

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