euro adhoc: Intercell AG / Joint Ventures/Cooperation/Collaboration / Intercell agrees on a marketing and distribution agreement for its Japanese Encephalitis Vaccine

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Disclosure announcement transmitted by euro adhoc.
The issuer is responsible for the content of this announcement.
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12.06.2006

» Intercell has agreed to enter into an agreement with Novartis for
the marketing and distribution of its Japanese Encephalitis Vaccine
(IC51) in the United States, Europe and certain other markets in Asia
and Latin America. Intercell intends to initially commercialize the
vaccine on its own in the armed forces and military personnel market.

» Under this marketing and distribution agreement, Intercell will be
entitled to milestone payments of up to EUR 37 million from Novartis,
depending on final Phase III clinical trial data and US and EU
regulatory approvals.

» Novartis has committed to an equity investment of up to EUR 30
million in shares of Intercell in a public offering that was
announced by Intercell today.

Vienna (Austria), June 13, 2006 - Intercell AG (VSE, "ICLL")
announced today that it has agreed the principle terms of a marketing
and distribution agreement with Novartis for its Japanese
Encephalitis Vaccine in the market for travellers in the United
States, Europe and certain other markets in Asia and Latin America
where the product is not partnered yet. Intercell´s Japanese
Encephalitis Vaccine (IC51) is a modern cell culture based vaccine
which is manufactured in Intercell´s manufacturing plant in Scotland.
Intercell will retain all development and production rights and will
continue to lead the global development and regulatory pathway.
Intercell has recently announced positive results for IC51 in a
pivotal Phase III clinical trial and expects US and EU approval in
2007 and 2008, respectively.

In connection with the marketing and distribution agreement for IC51,
Intercell will receive milestone payments of up to EUR 37 million
from Novartis, depending on final Phase III clinical trial data as
well as US and EU regulatory approvals. Furthermore, Novartis will
make an equity investment of up to EUR 30 million in Intercell’s
shares, which will also give Novartis the first negotiation rights to
certain existing product candidates derived from Intercell’s
technology platform. Details of the offering in which Novartis will
make the investment were disclosed by Intercell today in a separate
ad-hoc announcement.

Intercell intends to initially distribute IC51 in the market for the
armed forces and military personnel on its own with the US Army
expected to be a key customer. For the marketing and distribution of
the vaccine in Australia, where the disease is endemic, Intercell has
partnered with CSL Ltd. For marketing and distribution in certain
endemic countries in Asia, Intercell has entered into a strategic
partnership with the Indian company Biological E. Ltd.

"Our partnership with Novartis provides another leading industry
player that validates our product candidates and technologies,
following previous agreements with Merck & Co., sanofi pasteur and
Kirin. We believe that the global market potential for a vaccine
against Japanese Encephalitis will be expanded significantly with
IC51, given its novel and safer product profile. Novartis is an ideal
partner for the marketing and distribution of IC51 especially
considering its high strategic commitment in the field of vaccines
and its excellent travel vaccine portfolio," states Dr. Werner
Lanthaler, Chief Finance Officer and Senior Vice President for
Marketing and Sales of Intercell.

This communication expressly or implicitly contains certain
forward-looking statements concerning Intercell AG and its business.
Such statements involve certain known and unknown risks,
uncertainties and other factors which could cause the actual results,
financial condition, performance or achievements of Intercell AG to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
Intercell AG is providing this communication as of this date and does
not undertake to update any forward-looking statements contained
herein as a result of new information, future events or otherwise.

end of announcement euro adhoc 13.06.2006 06:25:00
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ots Originaltext: Intercell AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Intercell AG
Mag. Katharina Wieser
Head of Corporate Communications
Tel. +43 1 20620-303
kwieser@intercell.com

Branche: Biotechnology
ISIN: AT0000612601
WKN: A0D8HW
Börsen: Wiener Börse AG / official market