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

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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

Further inquiry note:
Intercell AG
Lucia Malfent
Head of Corporate Communications
Tel. +43 1 20620-1303
lmalfent@intercell.com

end of announcement euro adhoc
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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: investors@intercell.com
WWW: www.intercell.com
sector: Biotechnology
ISIN: AT0000612601
indexes: ATX Prime, ATX
stockmarkets: official market: Wiener Börse AG
language: English

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