Intercell-Novartis Vaccine alliance - Intercell receives next EUR 40 million payment

» EUR 40 m further option fee paid by Novartis

» Actual cash position more than EUR 200 m

» Development of key products within the Novartis alliance

progressing

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Wien (euro adhoc) - Vienna (Austria), September 25, 2008 - Intercell
AG announced the completion of the next step in implementing the
strategic alliance with Novartis which was initiated in July 2007. A
EUR 40 m option fee agreed with Novartis was received by Intercell
today. Together with the EUR 150 m equity investment made in
September 2007 and the EUR 80 m option fee and upfront licence fee
paid in November 2007, the payment brings the cash received to date
by Intercell under its strategic alliance with Novartis to a total of
EUR 270 m.

"After the payment of all costs associated with the recently
completed acquisition of IOMAI Corporation, Intercell's cash position
is now more than EUR 200 m. We also expect our cash position by the
end of 2008 to be around EUR 200 m. This secures the optimal speed of
all development programs and the strategic growth of the company",
states Werner Lanthaler, CFO of Intercell.

About the Intercell-Novartis cooperation

In July 2007, Intercell and Novartis signed a major strategic
partnership to accelerate innovation in the development of vaccines
against infectious diseases. The partnership grants Novartis option
rights to future vaccine candidates discovered by Intercell during
the long-term collaboration.

About Intercell AG

Intercell AG is a growing biotechnology company that designs and
develops novel vaccines for the prevention and treatment of
infectious diseases with substantial unmet medical needs. The
Company's technology platforms include an antigen-discovery system,
two proprietary adjuvants and a novel patch-based delivery system.
Based on these technologies, Intercell has strategic partnerships
with a number of global pharmaceutical companies, including Novartis,
Merck & Co., Inc., Wyeth, Sanofi Pasteur, Kirin and the Statens Serum
Institut. The Company's lead product is a vaccine against Japanese
Encephalitis. That vaccine successfully concluded pivotal Phase III
clinical trials in 2006, and Intercell is seeking marketing approval
in the United States, Europe and Canada. Approval in those markets is
anticipated during the second half of 2008. The Company's development
pipeline includes Phase II vaccine programs for Pseudomonas (in-house
development) and S. aureus, which is being developed with Merck & Co.
Inc. The Company's novel Travelers' Diarrhea vaccine patch will enter
Phase III testing in 2009. Intercell is also in clinical trials of a
vaccine enhancement patch with injected pandemic influenza vaccines
(one shot plus patch). In addition, five other products focused on
infectious diseases are in preclinical development. Intercell is
listed on the Vienna stock exchange under the symbol "ICLL". For more
information, please visit: www.intercell.com

end of announcement euro adhoc
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ots Originaltext: Intercell AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Intercell AG

Lucia Malfent

Head of Corporate Communications

Tel. +43 1 20620-1303

lmalfent@intercell.com

Branche: Biotechnology
ISIN: AT0000612601
WKN: A0D8HW
Index: ATX Prime, ATX
Börsen: Wiener Börse AG / official market