Intercell announces Q4 and preliminary full-year 2007 results

First profitable year in company history – Vaccine against Japanese Encephalitis fully on track towards all markets – Excellent progress in product pipeline and strategic partnerships – focus on new vaccines against hospital-acquired infections and improved Influenza vaccines

• EUR 5.0 m net profit and positive operating cash flow of EUR 41.7 m
• Revenues of EUR 53.3 m, an increase of 127.5 percent – driven by payments from strategic alliances
• R&D costs of EUR 40.4 m enabled all programs to be progressed forward at full speed in order to fully take advantage and create the maximum possible value from the development programs and technology platforms
• Strong cash position with EUR 287.6 m – plus, unconditional EUR 40.0 m payment already committed for 2008
• Clear revenue and profit growth expected in 2008 based on the approval of the Japanese Encephalitis vaccine and on income from product and technology partnerships
• Given this result and strategy, Intercell joined the ranks of the few profitable biotechnology companies worldwide

• Market Authorization Application (MAA) in Europe and Biological License Application (BLA) with the US Food and Drug Administration (FDA) submitted in December 2007, and already excepted
• Licensure application to Australian Therapeutic Goods Administration (TGA) submitted in February of 2008
• Intercell Biomedical Ltd. (Scotland) received Manufacturer's License for commercial manufacturing
• FDA pre-approval inspection of the facilities pre-scheduled for April of 2008
• Data from pediatric clinical trials in endemic countries expected within the next weeks
• Intercell’s cooperation with the US Army, geared toward the long-term supply of the JE-vaccine for the military, is progressing well – contractual agreement expected latest upon FDA approval

• Phase I clinical trial for an improved seasonal Influenza vaccine formulated with IC31® completed successfully – Intercell's adjuvant IC31® demonstrates very good safety and tolerability profile. Novartis will continue clinical Phase I/II development of IC31® adjuvanted flu vaccines in 2008
• Joint therapeutic vaccine program against HCV met primary endpoints in Phase II – data confirms findings of the interim analysis from Q3 2007 – statistically significant viral load reduction and excellent safety profile – further clinical trials in co-development with Novartis to include IC31®
• Cooperation with Novartis is based on a major strategic partnership that was signed in July of 2007

• S. aureus vaccine – Merck & Co., Inc. has initiated Phase II clinical development by the end of 2007. Intercell expects further extension of clinical program into additional indications in early 2008
• Pseudomonas vaccine – preparations for start of clinical Phase II/III trials in 2008 underway
• Pre-clinical candidates for further nosocomial vaccine and antibody product targets including Klebsiella have been identified

• Further clinical trials started at the Department of Infectious Diseases at the Leiden University Medical Center, Netherlands, within the new global franchise to fight Tuberculosis
• Tuberculosis vaccine will be further developed in a collaboration between Sanofi Pasteur and Statens Serum Institut (SSI) including Intercell's adjuvant IC31®, strongly supported by the Aeras Global Tuberculosis Foundation and the EU

• Pneumococcus vaccine candidate funded by PATH on course to entering clinical Phase I trials in 2008
• Developmental programs and partnerships in the field of vaccines and monoclonal antibodies for Group B Streptococcus and hospital-acquired infections to be accelerated
• New partnerships for adjuvant IC31® and the definition of new vaccine candidates from AIP® expected for 2008

• The Management Board, with Gerd Zettlmeissl as Chief Executive Officer, Werner Lanthaler as Chief Financial Officer, and Alexander von Gabain as Chief Scientific Officer appointed for a further three-year term. Thomas Lingelbach appointed as new member of the Management Board as Chief Operating Officer.

"We made significant progress in 2007 in regards to our mission of becoming the global innovation leader in the field of vaccines. We will continue to give the highest strategic priority to fostering our innovative power on the basis of sustained profitability. We are thoroughly convinced that this will create the highest additional shareholder value," stated Gerd Zettlmeissl, Intercell CEO.

"Achieving sustainable profitability earlier than planned, and even before bringing our first product to market, is a unique success. Given the significantly lowered risk profile of the company through a diversified portfolio of product candidates, world-class partnerships, and a very strong cash position, we have built a solid basis for innovation and aggressive growth," stated Werner Lanthaler, Intercell CFO.

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• Intercell announces Q4 and preliminary full-year 2007 results:
  First profitable year in company history – Vaccine against Japanese Encephalitis fully on track towards all markets – Excellent progress in product pipeline and strategic partnerships – focus on new vaccines against hospital-acquired infections and improved Influenza vaccines