4SC AG — Capital/Financing Update 2007

May 21, 2007

News Details

Ad-hoc | 21 May 2007 19:46

Capital Increase and Placement of new 4SC AG Shares

4SC AG / Capital Increase

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Planegg-Martinsried, Germany, 21 May 2007 - The Martinsried-based drug
discovery and development company 4SC AG (Frankfurt, Prime Standard: VSC)
announces the placement of new shares, after the Management Board, with the
approval of the Supervisory Board, passed a resolution to authorise an
increase of share capital on 2 May 2007. The capital increase was
accompanied by Conrad Hinrich Donner Bank AG and M.M. Warburg. The capital
increase from the authorised capital included a collateral rights offering
to existing shareholders at a subscription price of 2.80 Euro. Some of the
remaining unsubscribed shares were used for a private placement at the
subscription price. Following the completion of the capital increase, a
total of 1,206,519 new shares were placed. The capital increase generated
approx. 3.4 million Euros in gross proceeds for the company. The company
will use the proceeds for the further development of the existing project
pipeline, and to add new projects.

As a result of the capital increase, 4SC AG’s subscribed capital increased
to 12,667,884 Euros, and the free float to 24.78 percent of issued shares.

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Information and Explaination of the Issuer to this News:

4SC AG will be using the proceeds from the capital increase to further
develop the existing project pipeline, but also to include more projects in
the development pipeline which have additional value creation potential and
also ensure more risk diversification in the project portfolio. Current
research work by 4SC AG has shown that certain development candidates could
act as a platform for more than one project involving different
indications. This is particularly true of the clinical development
substance SC12267, which is currently undergoing Phase IIa testing in
patients with active rheumatoid arthritis, and which has been granted a US
patent. Here, there are new opportunities for testing the substance in the
treatment of other indications such as atopic dermatitis and psoriasis,
chronic inflammatory intestinal diseases and multiple sclerosis, thereby
opening up additional market potential. In these areas, because of previous
experience with SC12267, clinical development can be achieved at a
relatively moderate cost and in a relatively short time.

About 4SC:
4SC AG (ISIN DE0005753818) has been listed in the Prime Standard of
Frankfurt Stock Exchange since 15 December 2005. Founded in 1997 and now
with a staff of 60, the company develops novel drug candidates for
inflammatory diseases and cancer using a cheminformatics based technology
platform. Traditional high throughput screening of therapeutic agents has
been transferred from the lab to the computer. Thus, the company offers
substantial cost and time advantages as well as increased success rates in
drug development. 4SC AG uses its patented technology platform to create a
sustainable product pipeline for active agents that are developed in early
clinical phases ('proof of concept') and subsequently result in upfront and
milestone payments as well as participation in sales generated by
out-licensed products to the pharmaceutical industry. There are currently
six projects in the pipeline. The first project on the treatment of
rheumatoid arthritis is currently undergoing clinical phase IIa. Four other
product candidates are in preclinical development and another project is in
the research stage. Furthermore, the company has its technology platform in
co-operation projects with biotech and pharma companies and is already
generating initial revenues.

Legal Note
This document may contain projections or estimates relating to plans and
objectives relating to our future operations, products, or services; future
financial results; or assumptions underlying or relating to any such
statements; each of which constitutes a forward-looking statement subject
to risks and uncertainties, many of which are beyond our control. Actual
results could differ materially, depending on a number of factors.

DGAP 21.05.2007

Language: English
Issuer: 4SC AG
Am Klopferspitz 19a
82152 Martinsried Deutschland
Phone: +49 (0)89 7007 63-0
Fax: +49 (0)89 7007 63-29
E-mail: public@4sc.com
www: www.4sc.de
ISIN: DE0005753818
WKN: 575381
Indices:
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin-Bremen, Düsseldorf, München, Stuttgart

End of News DGAP News-Service

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