Zeltia Raises EUR 65 Million Through Institutional Placing

Madrid (ots/PRNewswire) - Zeltia S.A.(ZEL SM; ZEL.MC), the Spanish biotechnology company, today announces that it has raised Eur 65 million of new funds through a private placement of 10.75 million new ordinary shares with qualified institutional investors at a price of Eur 6.05 per share. This transaction is one of the four largest executed in European biotech in the last four years.

The funds raised will be used to further the continued research, development and commercialisation of cancer products being developed by PharmaMar, Zeltia's biopharmaceutical subsidiary. HSBC acted as sole bookrunner for the transaction.

Commenting on the announcement, José Maria Fernández - Sousa, Chairman of Zeltia, said:

"PharmaMar has a number of products in its pipeline which have the potential to realize substantial value for shareholders in the near future and these funds will give us the necessary resources to secure that value. We were delighted to see the fundraising supported by a broad range of 30 new, international institutional investors and we welcome them to the company and thank them for their support."

The new shares should be admitted to listing on the Spanish Stock Exchanges today and trading will commence on the New Market trading segment of the Automated Quotation. Following the offering, Zeltia will have a total of 211,476,660 ordinary shares outstanding.

The Company has also granted to HSBC an option, exercisable in whole or in part up to and including 12 July 2005 to subscribe up to 750,000 additional new ordinary shares of Zeltia at the offer price.

About PharmaMar

PharmaMar is a biopharmaceutical company pioneer in the discovery and development of novel anticancer drugs derived from marine organisms. PharmaMar's clinical portfolio currently includes five compounds: Yondelis in Phase II/III trials for solid tumours (co-developed with Johnson & Johnson Pharmaceutical Research & Development), designated Orphan Drug for STS and ovarian cancer by the European Commission (E.C.) and the FDA. Yondelis is being developed as a single agent and in combination therapy. Aplidin, in Phase II for solid and haematological tumours, designated Orphan Drug for acute lymphoblastic leukaemia and for multiple myeloma by the FDA and the E.C. Kahalalide F in Phase II for solid tumour and severe psoriasis. ES-285 and Zalypsis in Phase I trials for solid tumours.

About Zeltia

Zeltia S.A. is the pioneer biotechnology company in Spain with a market capitalization of around 1.2 billion Euros. The group is comprised of the following subsidiaries: PharmaMar, founded in 1986, a biopharmaceutical company devoted to the discovery and development of novel anticancer drugs derived from marine organisms; Neuropharma devoted to the discovery and development of novel drugs against Alzheimer and other degenerative diseases of the central nervous system; Genomica which produces and sells DNA diagnostic tools; and Zelnova and Xylazel, two very profitable companies that build on Zeltia's heritage in the chemicals business.

Isabel Lozano
C/ Reyes, 1.Colmenar Viejo
Telephone +34-91-846-60-00
Catherine Moukheibir
Head of Capital Market Strategy
José Abascal, 2
Telephone +34-91-444-45-00
Ma Luisa de Francia
José Abascal, 2
Telephone +34-91-444-45-00

Rückfragen & Kontakt:

Enquiries: Isabel Lozano, CEO, PHARMAMAR,S.A., C/ Reyes, 1.Colmenar
Viejo, Madrid, Telephone +34-91-846-60-00; Catherine Moukheibir, Head
of Capital Market Strategy, ZELTIA, S.A., José Abascal, 2, Madrid,
Telephone +34-91-444-45-00; Ma Luisa de Francia, CFO, ZELTIA, S.A.,
José Abascal, 2, Madrid, Telephone +34-91-444-45-00