(Tromsø/Oslo, 11 August, 2009) The biopharmaceutical company Biotec
Pharmacon awaits results of two phase III studies with SBG for
diabetic foot ulcer by the end of 2009, and has begun preparations
for submission of a market authorisation application in Europe next
year. The regulatory authority in the UK (MHRA) has allocated a slot
in July 2010, and the UK will act as reference member state for a
decentralized EU/EAA-wide procedure. Biotec Pharmacon is nearing
completion of patient inclusion in a phase III study with SBG for
prevention and treatment of oral mucositis, and expects results from
this study in the first quarter 2010.

The pharmaceutical activities are still in a development stage, and
all revenue is currently being generated in the non-pharmaceutical
businesses in Immunocorp Health Care and Biotec Marine Biochemicals.

Overall, the company reported revenue of NOK 11.4 million in the
second quarter 2009 (14.3) and NOK 23.7 million in the first half
year 2009 (26.2). The decline mainly reflects lower sales of skincare
products, especially in the US market. Revenue increased sharply in
the marine enzyme business. Due to cost reductions, the
non-pharmaceutical EBITDA improved to NOK 0.2 million in the second
quarter (-1.1) and to NOK -0.6 million in the first half year (-3.8).

Net costs related to Research and Pharmaceutical Development amounted
to NOK 20.1 million in the second quarter (10.0) and NOK 36.0 million
in the first half year (21.0). The increase reflects that three phase
III programs are nearing completion, and the company confirms its
full-year cost estimate of NOK 85-90 million.

Unallocated expenses amounted NOK -0.9 million in the second quarter
(-3.5) and NOK -1.1 million for the first half year (-5.1). Overall
EBITDA was thus NOK -20.8 million in the second quarter (-14.6) and
NOK -37.7 million in the first half year (-29.9).

Profit before tax was NOK -20.6 million for continuing business in
the second quarter (-13.4) and NOK -36.8 million in the first half
year (-27.7).

Net cash flow from operating activities was NOK -26.7 million in the
second quarter and NOK -43.1 million in the first half year,
reflecting the high level of activities in pharmaceutical Research
and Development.  Biotec Pharmacon had no interest bearing debt and
cash and cash equivalents of NOK 79.8 million at the end of the first
half 2009.

Biotec Pharmacon will in the second half of the year continue its
work to increase its financial flexibility and secure funding through
2010. The company is in the process of seeking additional funding
through available government backed loans and guarantees, and will
also consider options to untie funds currently tied up in its
non-pharmaceutical activities. Biotec Pharmacon believes that maximum
shareholders value is created if the company awaits the results from
the phase III studies before entering into partnership deals.

Please find attached the full interim report for the second quarter
and first half year 2009.

For further information, please contact:
CEO Lars Viksmoen, mobile: +47 40 62 08 70
CFO Jørn Lunde, mobile: +47 90 73 34 86

The full interim report for the second quarter and first half year
2009 is also available on www.newsweb.no and on www.biotec.no. The
company hosts a presentation of the interim results at 09:00 at Vika
Atrium Konferansesenter (Thon Conference Vika Atrium), Munkedamsveien
45, Oslo. The presentation will also be available on www.newsweb.no
and on www.biotec.no.

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