DIREVO Announces Incorporation of Industrial Biotechnology Subsidiary

DIREVO Announces Incorporation of Industrial Biotechnology Subsidiary

COLOGNE, GERMANY, Jul 28, 2008 ----DIREVO Biotech AG announced today the incorporation of a fully owned subsidiary named DIREVO Industrial Biotechnology GmbH. The new company was formed to spin-out DIREVO's industrial biotechnology business unit established at the beginning of 2007 and the recently acquired AC Biotec GmbH. The new company focuses on Food & Feed and Biorefinery markets and provides solutions through discovery, development and scale up of enzymes and strains. It develops products both independently and with global leaders such as Danisco/Genencor and Nestle. The collaboration with Danisco A/S, for instance, has yielded a significantly improved enzyme which is marketed as part of a Danisco/Genencor product.

The company will be lead by Mr. Anindya Mukherjee, who joined DIREVO from DSM in the year 2007, and Dr. Hans-Guenter Bruenker, who joined DIREVO coming from amaxa AG beginning of the year 2008. Additional members of the senior management team are Dr. Henrik Moellgaard as Head of R&D, who joined from Christian Hansen in 2007, and Dr. Simon Curvers, Managing Director of AC Biotec GmbH that was acquired in 2007.

"This is an important milestone in DIREVO's history, because it maximizes our long-term growth potential by improving the chances for the successful development of both DIREVO Industrial Biotechnology GmbH and DIREVO Biotech AG" said Dr. Thomas von Rueden, CEO of DIREVO Biotech AG. "This allows the two companies to focus on their respective core businesses."

"DIREVO's unique and proven technology platform and outstanding technical expertise along with relevant industry experience and background is an important starting point for the growth and success of DIREVO Industrial Biotechnology," Anindya Mukherjee, Managing Director of Industrial Biotechnology, added.

The company will start its operations with a total of 17 full-time employees and will seek new investors for building up its infrastructure as well as to secure its long-term growth.

DIREVO Biotech AG

DIREVO Biotech AG generates superior bioengineered products and processes for industrial and pharmaceutical markets by enhancing nature's potential. The company's portfolio includes optimized proteins, optimized bioprocesses and other bio-molecules, in research, in commercial development and on the market. DIREVO develops products both independently and with global leaders such as Danisco/Genencor, Nestle, AstraZeneca/MedImmune and Pfizer. DIREVO Biotech is committed to a tailored approach to addressing customer needs and market opportunities.

DIREVO Industrial Biotechnology GmbH focuses on Food & Feed and Biorefinery markets and provides solutions through discovery, development and scale up of enzymes and strains. It develops products both independently and with global leaders such as Danisco/Genencor and Nestle. For example, a collaboration with Danisco A/S has yielded a significantly improved enzyme which is marketed as part of a Danisco/Genencor product.

DIREVO's biopharmaceutical business generates improved second generation therapeutics and discovers and optimizes novel first-generation therapeutics. DIREVO offers early stage partnering from internal therapeutic antibody and protease discovery programs as well as collaborations on the optimization of a wide range of therapeutic proteins.

DIREVO Biotech AG is privately held and located in Cologne, Germany. Additional information is available at: www.direvo.com

This press release was brought to you by DIREVO Biotech AG.