Intercell-Novartis alliance - next EUR 80 million payment received

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Wien (euro adhoc) - Vienna (Austria), November 23, 2007 - Intercell AG announced
the completion of the next step in implementing the strategic alliance entered
into with Novartis in July 2007. EUR 80 m of the upfront license and option fee
agreed with Novartis was received by Intercell today. Together with the EUR 150
m equity investment made in September 2007, this payment brings the cash
received to date by Intercell under this strategic alliance with Novartis to EUR
230 m. Another unconditional and committed payment out of this alliance of EUR
40 m is due in 2008.

"Only about half of this fee received from Novartis will be booked as revenue in
2007, nevertheless we expect this year to become the first profitable full year
of Intercell," commented Werner Lanthaler, Chief Financial Officer of Intercell,
and he added: "Our research and development teams have completed the kick-off
for the first key products within this alliance, including a novel Influenza
vaccine adjuvanted with IC31® and the co-development for a therapeutic Hepatitis
C Virus vaccine."

Intercell´s cash position is now more than EUR 290 m, which secures the optimal
speed of development programs and the strategic growth of the company.

About the Intercell-Novartis cooperation:

In July 2007 Intercell and Novartis signed a major strategic partnership to
accelerate innovation in vaccines development in infectious diseases. The
partnership includes a co-development and profit-sharing arrangement to bring
together both companies´ programs in the field of therapeutic Hepatitis C Virus
vaccines with the aim of expanding their combined leadership in this field.
Intercell´s adjuvant IC31® will be exclusively licensed to Novartis for the
development of improved Influenza vaccines. IC31® will also be non-exclusively
licensed to Novartis in other areas. Intercell retains the right to continue to
enter into partnerships for IC31® with third parties in infectious diseases,
cancer, allergies, and other indications.

About Intercell AG:

Intercell AG is a growing biotechnology company which focuses on the design and
development of novel vaccines for the prevention and treatment of infectious
diseases with substantial unmet medical need. The Company develops antigens and
adjuvants which are derived from its proprietary technology platforms, and has
in-house GMP manufacturing capability. 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 leading product, a prophylactic vaccine against Japanese
Encephalitis, successfully concluded pivotal Phase III clinical trials in 2006.
The regulatory process toward a Biologics License Application (BLA) to the U.S.
Food and Drug Administration (FDA) has been initiated. The broad development
pipeline includes a Pseudomonas vaccine in Phase II, a therapeutic vaccine for
Hepatitis C in Phase II, partnered vaccines for Tuberculosis and Staphylococcus
aureus which are in Phase I, and five products focused on infectious diseases in
preclinical development.
Intercell is listed on the Vienna stock exchange under the symbol "ICLL".
For more information please visit: www.intercell.com

Further inquiry note:
Intercell AG
Lucia Malfent
Head of Communications
Tel. +43 1 20620-303
[email protected]

end of announcement euro adhoc 23.11.2007 08:56:47
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emitter: Intercell AG
Campus Vienna Biocenter 6
A-1030 Wien
phone: +43 1 20620-0
FAX: +43 1 20620-800
mail: [email protected]
WWW: www.intercell.com
sector: Biotechnology
ISIN: AT0000612601
indexes:
stockmarkets: official market: Wiener Börse AG
language: English

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