euro adhoc: LION bioscience AG / Mergers - Acquisitions - Takeovers / Ad-hoc release: LION bioscience announces the take over of the operative business of Axaron Bioscience through acquisition of the

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Disclosure announcement transmitted by euro adhoc.
The issuer is responsible for the content of this announcement.
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05.07.2006

Heidelberg, July 5, 2006 - With the sale of its bioinformatics
business unit in March this year, LION bioscience AG disposed most
of its operational business and, thereby, reached a major
milestone within the restructuring process which has been initiated
at the end of 2004. As a consequence, the Management
examined various alternatives for the future orientation and
evaluated different individual cases. Today, after approval of the
supervisory board, LION bioscience AG signed a contract together
with two investment-companies of the family of SAP-founder
Dietmar Hopp, BASF Aktiengesellschaft as well as Axaron
Bioscience AG; according to this agreement LION bioscience AG shall
acquire all shares of the company SYGNIS Bioscience GmbH & Co. KG
which is owned by the other contracting parties. Depending on the
approval of its General Meeting, Axaron Bioscience AG shall assign
its entire operating business to SYGNIS Bioscience GmbH & Co. KG.
Axaron Bioscience, which was founded in 1997, develops with its 35
employees promising novel therapies to treat neurodegenerative
diseases. AX200, a product for the treatment of strokes, is the most
advanced compound and currently being tested in a phase IIa clinical
trial. Furthermore, the management and supervisory board of
LION bioscience AG resolved on July 5, 2006 to use 78.6 percent
of its authorized capital to acquire all the shares in SYGNIS
Bioscience GmbH & Co. KG. In exchange for these shares some
7.8 million new LION shares will be issued to the
shareholders of SYGNIS Bioscience GmbH & Co. KG. The new shareholder
structure after the transaction will be as follows: Hopp family
20.5 percent, Dr. Friedrich von Bohlen and Halbach (founder and
chairman of the supervisory board of LION) 7.6 percent, BASF
Aktiengesellschaft and Bayer AG 5.1 percent each, today's
shareholders/freefloat of LION bioscience AG 61.7 percent.

Furthermore, both investment companies of the Hopp family and BASF
Aktiengesellschaft committed further capital inflow of more than 18 million
Euro in LION bioscience AG.
For further information, please contact:
|Peter Willinger |Dr. Franz-Werner Haas |
|Chief Executive Officer |General Counsel |
|Tel: +49 (0) 6221-4038 293 |Tel: +49 (0) 6221-4038 340 |
|Email: |Email: |
|peter.willinger@lionbioscience.com |franz.werner.haas@lionbioscience.c|
| |om |
| | |
###
Except for the historical information contained herein, the matters set forth
in this press release are forward looking. These forward-looking statements may
include projections, assumptions, estimates, targets, and descriptions of
future events. Such statements are based on currently available information and
on LION's current expectations as to future events that may not prove to be
accurate. These statements are not guarantees of future performance and involve
risks and uncertainties that are difficult to predict. Many factors could cause
the actual results, performance or achievements of LION to be materially

different from those that may be projected, expected, targeted,
expressed or implied by such statements. All roll-out plans and
future dates with respect to completion of development and market
release of LION products are target dates only based on the
company's current planning and may change in the future. Any delays
in the current product release schedule will have a materially
adverse effect on the company's targets for fiscal year. ###

end of announcement euro adhoc 05.07.2006 21:25:35
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ots Originaltext: Lion Bioscience
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Stephan Trautvetter
Director Finance & Accounting
Telefon: +49(0)6221 4038 476
E-Mail: stephan.trautvetter@lionbioscience.com

Branche: Biotechnology
ISIN: DE0005043509
WKN: 504350
Index: CDAX, Prime All Share, Technologie All Share
Börsen: Frankfurter Wertpapierbörse / regulated dealing/prime
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