Interim Report and Interim Management Report by 30 June 2008

The Company
General information	04
Key figures	05
Shareholders' letter	06

Interim Management Report

Presentation of the course of business	09
Presentation of the situation	12
Risk and chance report	14
Events after the end of the reporting period	16
Business outlook	16

Financial Statements

Income statement	19
Balance sheet	20
Cash flow statement	21
Statement of changes in equity	22
Notes	23
Review report	29
Responsibility statement	30

Other Information

Financial calendar	31
Imprint	31

4SC AG

General information

Security code		Principal	4SC AG
number	575381	Office	Am Klopferspitz 19a
ISIN	DE0005753818		82152 Planegg-Martinsried
SE code	VSC		Germany
Management	Dr Ulrich Dauer, CEO	IR Contact	Bettina von Klitzing
Board	Dr Gerhard Keilhauer, CDO (until 2008-06-30)		E-Mail: [email protected]
	Dr Bernd Hentsch, CDO (since 2008-07-01)		Phone 0049 (0) 89 700 763-0
	Dipl.-Kfm. Enno Spillner, CFO		www.4SC.com
	Dr Daniel Vitt, CSO

Development of important key figures

	04-01 -	04-01 -
	2008-06-30	2007-06-30
	resp.	resp.	01-01 -	01-01 -
in KEUR	2008-06-30	2007-06-30	2008-06-30	2007-06-30

Net sales	1,341	348	1,982	635
Result from operating activities	- 2,386	- 2,101	- 4,706	- 4,259
Period result	- 2,238	- 2,085	- 4,459	- 4,241
Equity	15,306	6,710
Equity ratio	79.9%	71.6%
Balance sheet total	19,159	9,374
Cash flows from operating and investing activities	- 79	- 1,342	1,258	- 1,650
Cash flows from financing activities	0	2,989	0	2,989
Net change in cash and cash equivalents	- 79	1,647	1,258	1,339
Cash and cash equivalents1	11,593	3,861
Funds	13,559	4,730
Number of employees (at end of period)	77	61
The 4SC share
Earnings per share (undiluted and diluted) [EUR]	- 0.12	- 0.17	- 0.23	- 0.36
Shares in circulation (average, in thousands)	19,002	11,998	19,002	11,729
Percentage of freely tradeable shares2	100%	94%
3 resp. 6 month high (Xetra) [EUR]	3.35	3.61	3.44	3.85
3 resp. 6 month low (Xetra) [EUR]	2.83	2.65	2.50	2.65
Open at the beginning of period (Xetra) [EUR]	3.42	3.69
Close at the end of period (Xetra) [EUR]	3.11	3.05
Market capitalisation at the end of period [KEUR]	59,096	38,637
Average daily turnover (Xetra, Units)	4,019	19,503	5,085	11,072

1: This position does not include securities with an original maturity of more than three months, since they are included in cash flows from investing activities (see cash flow statement).

2: According with the regulations of Deutsche Börse (stock exchange) in Frankfurt concerning the determination of the percentage of freely tradeable shares, the free float of 4SC AG is about 28.7%. Accordingly, all of the shareholder's shares that make up an aggregate of at least 5% of a corporation's capital stock allocable to a share category are deemed to be largely held.

Dear shareholders,

4SC AG once again proved in the previous quarter that the company can assert its strategic capacity to act even in a difficult capital market environment. We have reinforced our development pipeline by buying in oncology compounds. The financing of this important transaction was secured via a successful capital increase. Our business model is therefore based on further promising drug candidates, which improves the risk profile of 4SC AG and underpins the sustainability of our business model. The enlarged pipeline has also further increased the attractiveness of 4SC AG for investors and pharma partners. For the sake of improving transparency, we are using the integration of new projects as an opportunity to give all the projects new names.

Clinical advances

We are already engaged in partnering talks for our phase II product, SC12267 (now 4SC-101), for treating rheumatoid arthritis. We have also started preparations for clinical trials in the indication chronic inflammatory bowel diseases (Crohn's disease, Colitis Ulcerosa).Thus, we want to develop the potential of SC12267 (now 4SC-101) for a further indication and considerably increase the added value of this original 4SC programme.We are also making good progress with our preclinical candidates. We are expecting to file an application with the appropriate authorities for clinical testing for other substances before the end of this year.

Strategic acquisition

We are expecting our recently announced acquisition of the oncology pipeline of the pharma company Nycomed, which we acquired for 14 million Euros, to make a significant contribution to our future growth. The acquisition includes a compound that is on the verge of completing a phase I clinical trial, and seven promising preclinical projects. In order to optimally combine our resources, we shall subject all these compounds to a further assessment in the coming months in order to then decide which candidates to concentrate our additional research and development work on first.

In this connection we are especially pleased to have added Dr Bernd Hentsch, an experienced oncological development expert and biotech entrepreneur, to our management team at the beginning of July 2008, who will play an important role in supporting our company in the promotion of our development projects as Chief Development Officer (CDO).

New research partners

At the same time, 4SC AG has extended its scientific knowhow through new alliances.

The cooperation agreement with Erlangen-based Viro-Logik GmbH stipulates that both companies will cooperate in the development of SC68896 (now 4SC-206) in the field of viral diseases.

In contrast, the stake in Nexigen GmbH, which specialises in protein analysis, grants us the option to take over the company within the next 15 months. Nexigen operates on the one hand as a service provider for the discovery of therapeutic target molecules and, on the other hand, the company carries out research into drug candidates with the focus on HIV infections.

Dr Ulrich Dauer Chairman of the management board

Economic successes

Turnover increased virtually fourfold, i.e. by around 1.3 million Euros, in the last quarter compared to the same period in the previous year. In the same period research costs also increased by more than 60 percent, which takes account of the advances in product development. The financial scope of 4SC AG has improved significantly, namely the increase in cash capital completed in July after the end of the reporting period has brought in a good 29 million Euros in liquid funds through the issue of new shares.

We are convinced that our most recent successes will also attract more attention in a difficult capital market environment and will strengthen our IR and PR activities in this respect. Since the annual low in January the share price of 4SC AG has already increased by more than 25 percent. We would like to thank you for your continued trust and look forward to your continued support as shareholders in this exciting phase of the company's history.

Dr Ulrich Dauer

Chairman of the management board

Interim Management Report of 4SC AG

In the second quarter of 2008 4SC AG underpinned the sustainability of its business model with various activities.

1. Presentation of the course of business

1.1 Current developments in the biotech industry

Despite the increase in positive news about German biotech companies in the reporting period, the capital market environment also continues to be difficult for biotech companies.

Industry news in the second quarter were especially characterised by takeover coups. In the USA Millennium Pharma, a big player in the industry, was taken over by the second-biggest Japanese pharma giant Takeda for USD 8.8 billion. A Japanese pharma player also went on a shopping spree in Germany, with Daiichi Sankyo paying USD 235 million for the cancer specialist U3 from Martinsried. Amongst the German biotech companies, the Aachenbased biotech company Paion went into action, taking over its British competitor CeNeS for EUR 13.7 million in shares in order to fill its pipeline.

The motives for the takeovers are obvious. Pharma corporations are threatened by sales shortfalls due to expiring patents in the case of numerous blockbusters. Biotech corporations with innovative technologies and promising product candidates are meant to fill these gaps – and this is getting increasingly easier, as, especially in Europe, a growing number of companies are suffering from a shortage of capital and low valuations.

At the end of the day positive news prevailed once again in the operative business of German biotech companies. MediGene obtained approval from the EMEA for Oracea, a preparation for treating a skin disease. At the end of May the company finally reported very good efficacy data for its drug EndoTAG. Jerini in turn achieved at least a partial success, with the expert body CHMP (Committee of Medicinal Products for Human Use) of the European authority EMEA advocating the approval of Firazyr, which was then granted after the expiry of the reporting period. This product had previously been rejected by the US authority. 4SC AG also set a positive accent with the announcement that it would be taking over oncology projects of Nycomed.

These rather positive developments only met with a moderate response on the capital market. In the USA the industry indexes stagnated, with the NASDAQ Biotechnology Index closing at 793.43 points on 30 June 2008 and thus 0.6 percent higher than at the start of the quarter.The AMEX Biotechnology Index stayed virtually unchanged at 737.81 points. In Germany the Biotechnology Performance Index fell by 0.6 percent to 169.86 points in the same period.

1.2 Development of the company 1.2.1 General development

In the second quarter of 2008 4SC AG underpinned the sustainability of its business model with various activities. In May the company acquired a stake of almost four percent in Bonn-based Nexigen GmbH. This company, which was founded in 2007, specialises in research of protein-protein interactions and their targeted interruption. This stake will give 4SC AG access to this technological expertise. At the same time 4SC AG acquired a takeover option, which includes the exclusive right to take over Nexigen completely within 15 months.

In May 4SC AG also reported the successful conclusion of a licensing and cooperation agreement for the drug candidate SC68896 (now 4SC-206). The Erlangen-based company ViroLogik GmbH is to further develop this substance in the field of viral diseases. 4SC AG is itself carrying out research into this preparation as a drug for treating cancer.The financial milestone potential for 4SC AG resulting from this cooperation stands at up to EUR 56.5 million, depending on the success of the clinical development and marketing.

4SC AG also set a positive accent with the announcement

that it would be taking over oncology projects of Nycomed.

Another highlight of the second quarter then followed at the beginning of June, namely the contract for the acquisition of a total of eight projects from the oncology division of the pharma company Nycomed. The sale price amounted to EUR 14 million in cash. To finance this transaction, a capital increase for cash from authorised capital was approved on 20 June 2008 by the management board and the supervisory board of 4SC AG through the issue of up to 9,500,913 zero par value common bearer shares. The new shares were offered to the shareholders at a purchase price of EUR 3.10 per new share. On 14 July 2008 and therefore after the end of the reporting period 4SC AG announced the successful completion of the capital measure. Initial trading of the newly issued securities is scheduled for November/December 2008.

1.2.2 Research and development (Drug discovery & development)

In the quarter under review research and development was mainly shaped by the announced takeover of the Nycomed projects. In June 2008 4SC AG had the one-off opportunity to significantly expand its own preclinical and clinical project pipeline by acquiring a total of eight oncology projects from Nycomed. In return Nycomed received a cash payment totalling EUR 14 million at the end of July. Completion of the transaction was therefore announced as planned on 31 July 2008 (after the end of the reporting period).

At the same time 4SC AG is using the integration of the

new projects into the existing project pipeline as an opportunity

to give all the projects new names.

At present all the individual projects arising from both its own pipeline and from Nycomed's oncology portfolio are being prioritised, in order to then decide what programmes to concentrate the available resources on first.

At the same time 4SC AG is using the integration of the new projects into the existing project pipeline as an opportunity to give all the projects new names. The new project names are intended to make it easier in future for business partners and shareholders of 4SC AG to differentiate better between the individual projects.

Irrespective of this transaction, progress was also made in the existing drug pipeline in the reporting period:

Therefore, preparations are continuing for an in-depth phase II study with the drug candidate SC12267 (now 4SC-101) for treating rheumatoid arthritis. The structure of the study is dictated by the market requirements for a new antirheumatic drug, which assume that it can especially be used in combination with already established therapy approaches. Parallel to this 4SC AG continued and intensified its talks with several interested parties with regard to a licensing partnership in the quarter under review.

In May 4SC AG concluded a licensing and cooperation agreement for the drug candidate SC68896 (now 4SC-206) with Erlangen-based ViroLogik GmbH concerning the further development of the substance in the field of viral diseases. Within the scope of the cooperation the two companies are going to exchange the know-how which is relevant for the cooperation partner on a regular basis. In addition, they are going to carry out joint development activities.The resultant development costs will be shared. On the basis of this agreement, 4SC AG will be in a position to push ahead with its own development of the substance for treating cancer diseases even more quickly. Parallel to this, new preclinical data showed in the reporting period that it appears sensible to check other oncological application methods. For example, at present an intracranial formulation and thus application of the substance directly into the tumour is being checked.

In the quarter under review, within the scope of the preparations for a clinical trial involving the substance SC71710 (now 4SC-203) for treating acute myeloid leukaemia, a contract research institute for carrying out a corresponding phase I study was chosen. As a final step the current safety data is currently being evaluated at 4SC AG and the last toxicity studies are being performed. Once this study has been completed the basis will have been laid for filing for a clinical trial with this drug candidate.

1.2.3 Research collaborations (Collaborative business)

In the quarter under review the "Collaborative Business" segment continued to be defined by the cooperation with Wuppertal-based AiCuris GmbH & Co. KG for research into anti-infective compounds and the cooperation with the US-american company QuoNova LLC.

1.2.4 Personnel

Number of employees

4SC AG had a total workforce of 77 employees (including the management board) as of 30 June 2008 compared to 61 at the end of the second quarter of 2007. Thereof which 56 people worked in the field of research and development,

19 in administration and sales and 2 in the area of information technology. A Director Clinical Trials was recruited in the quarter under review and a part-time employee for the personnel department.At the same time a position that had been vacant since March 2008 in the field of pharmacology & preclinical development was filled.

Changes to the management board

In the quarter under review the company announced that Dr Gerhard Keilhauer had declared his intention to resign as a member of the management board for personal reasons and would be leaving the management board of 4SC AG with effect as of 1 July 2008. In his function as Chief Development Officer Dr Gerhard Keilhauer was mainly responsible for the execution of all the advanced preclinical and clinical trials within the scope of development projects of 4SC AG. The supervisory board appointed Dr Bernd Hentsch as the new Chief Development Officer with effect as of 1 July 2008 at its meeting on 5 June 2008. Dr Hentsch assumes all functions of Dr Gerhard Keilhauer to the full extent.

Changes to the supervisory board

At the end of the annual general meeting on 5 June 2008 the members of the supervisory board Dr Robert B. O'Connell and Dr Brian Morgan resigned their mandates. Dr Thomas Strüngmann, Chief Executive Officer of ATHOS Service GmbH, and Helmut Jeggle, Head of Business Planning & Analyzing of ATHOS Service GmbH, were appointed to the supervisory board for the period until the end of the annual general meeting, which approves the discharge of the supervisory board for the financial year 2009.

2. Presentation of the situation

2.1 Earnings position

Net sales

Net sales in the second quarter of 2008 amounted to KEUR 1,341 after KEUR 348 in the equivalent period in 2007. In particular, sales in the "Drug Discovery & Development" segment amounting to KEUR 750 (previous year: KEUR 0), which originated from the licensing and cooperation agreement with ViroLogik GmbH, Erlangen, contributed to this increase. The "Collaborative Business" segment

In the first half of the year sales could be more than tripled

compared to the previous year's figure.

amounting to KEUR 591 also posted an increase compared to the figure from the second quarter of 2007 (KEUR 348). In this case, revenues were generated through both Wuppertal-based AiCuris GmbH & Co. KG and the US-American company QuoNova LLC. For this reason, sales could be more than tripled in the first half of the year compared to the previous year's figure. The "Drug Discovery & Development" segment, with KEUR 750 (previous year: KEUR 0), and the "Collaborative Business" segment, with KEUR 1,232 (previous year KEUR 635), contributed to the total revenue of KEUR 1,982 (previous year: KEUR 635).

Operating expenses

As was already the case in the first quarter of 2008, research and development costs also increased significantly in the reporting period. A key influencing factor was the further development of the project pipeline, combined with increased external services.At the same time, staff costs stemming from the reinforcement of the team in scientific areas in order to provide additional capacities for research and development added to this. Thus, research and development costs increased in the second quarter from KEUR 1,658 in 2007 to KEUR 2,695 in 2008 and on a cumulative basis from KEUR 3,241 in the first six months of 2007 to KEUR 4,669 in the current half-year under review.

Administrative expenses increased in the period under review to KEUR 837 after KEUR 657 in the second quarter of 2007.The main reason for this increase was the recording of transaction costs for capital increases, which can only be offset against equity pursuant to IAS 32.35 after they have been successfully executed and therefore "distort"the picture. Whilst transaction costs of just under KEUR 100 could be reclassified from expenses against the agio last year due to the capital increase successfully completed in May 2007, costs of KEUR 57 connected with the capital increase occurring in July 2008 were first booked under expenses in the second quarter of 2008. Adjusting for these effects, an increase in administrative costs by only approximately KEUR 20 could be posted in the last quarter, mainly due to rising personnel costs. From an accumulative perspective, the administrative costs of KEUR 1,515 exceeded the previous year's figure of KEUR 1,354 by KEUR 161, also primarily due to higher personnel costs.

Result from operating activities

The result from operating activities in the second quarter of 2008 amounted to KEUR - 2,386 after KEUR - 2,101 in the corresponding period last year. Losses in the first six months of 2008 amounted to KEUR - 4,706, compared with KEUR - 4,259 in the same period in 2007.

Financial result

The financial result amounted to KEUR 148 in the reporting period after KEUR 16 in the year-earlier quarter.The financial income rose above all thanks to the interest-bearing investment of cash and cash equivalents and the incomestatement related valuation of securities from KEUR 92 to KEUR 193. At the same time, financial expenses fell from KEUR 62 to KEUR 45, as an improvement in the period-end exchange rate of the US dollar compared to 31 March 2008 could be posted. In addition, the pro rata loss arising from the financial assets accounted for by the equity method in connection with the associated company QuoNova LLC. was recorded in the financial result in the previous year (KEUR 0 in 2008 after KEUR - 14 in 2007). Cumulatively the financial result came to KEUR 247 after KEUR 18 in the previous year. In this case, the increase in financial income from KEUR 156 to KEUR 402 compares with the increase in financial expenses to KEUR 155 (previous year KEUR 87) – mainly caused by foreign currency losses arising from the US dollar in the first quarter. The result from financial assets accounted for by the equity method, which amounted to KEUR - 51 in the first six months of 2007, came to KEUR 0 in the current half-year under review.

Period result

The period result for the period from April to June 2008 thus amounted to KEUR - 2,238 (second quarter of 2007: KEUR - 2,085). In the months January to June 2008 an income of KEUR - 4,459 could be posted (first six months of 2007: KEUR - 4,241).

Earnings per share (EPS)

The undiluted and diluted earnings per share came to EUR - 0.12 in the quarter under review.This is an improvement of EUR 0.05 compared to the previous year's figure (EUR - 0.17). On a cumulative basis a reduction in loss by EUR 0.13 to EUR - 0.23 per share could be posted (first six months of 2007: EUR - 0.36).

2.2 Net assets position

Non-current assets

The non-current assets fell compared to 31 December 2007 from KEUR 5,689 to KEUR 4,981.The key influencing factor was the reduction of long-term financial investments, although in the period under review the stake in Bonn-based Nexigen GmbH totalling KEUR 154 was recorded in this item. At the same time, the accounts receivables from associated companies fell. Conversely the fixed assets increased. In this case, the investment sum exceeded depreciation in the period under review.

Current assets

The current assets also fell by KEUR 2,196 to KEUR 14,178 (31 December 2007: KEUR 16,374).The crucial factor in this case was the other financial assets, whose reduction was however partly compensated for by increasing cash and cash equivalents. On the other hand, an increase in trade accounts receivables could be posted. These amounted to KEUR 555 and resulted solely from receivables from AiCuris GmbH & Co. KG, which were not due as of the balance sheet date.

Equity

The negative result for the period of KEUR – 4,459 is the main reason for the change in the equity from KEUR 19,616 as of 31 December 2007 to KEUR 15,306 as of 30 June 2008. Therefore, the equity ratio fell by nine percentage points to 79.9% (88.9% as of 31 December 2007).

Non-current and current liabilities

Non-current liabilities remained virtually unchanged compared to 31 December 2007 at KEUR 56. However, an increase could be posted in current liabilities, caused by two key items, namely, on the one hand, trades payable increased from KEUR 480 to KEUR 1,179 due to the cut-off date. At the same time, other liabilities, especially due to not yet billed external services, patent, legal and consultancy fees, increased from KEUR 951 to KEUR 1,728.

The undiluted and diluted earnings per share came to

EUR - 0.12 in the quarter under review.

Balance sheet total

The balance sheet total fell due to the described effects from KEUR 22,063 as of 31 December 2007 to KEUR 19,159 as of 30 June 2008.

2.3 Financial position

Cash flows from operating activities

The cash flows from operating activities came to KEUR - 2,874 in the first six months of 2008, with a negative period result of KEUR - 4,459. Thus, they largely stayed unchanged versus the previous year's figure of KEUR - 2,683. The reason for this was due to both the interest received and the development of the working capital – in this case mainly the increase in trade accounts payables and other liabilities.

Cash flows from investing activities

As an inflow of funds of KEUR 4,884 could be achieved from the sale of financial instruments, the cash flows from investing activities came to KEUR 4,132 in the period under review. On the other hand, an outflow of liquid funds could be posted due to payments for investments in intangible assets (KEUR 62) and in fixed assets (KEUR 540) and due to the acquisition of the stake in Bonn-based Nexigen GmbH. In the equivalent period in the previous year the purchase and sale of financial instruments came to KEUR 1,080 with a simultaneous investment volume of KEUR 47. Thus, an inflow of funds from investing activities amounting to KEUR 1,033 was generated in total in the first six months of 2007.

Cash flows from financing activities

In the first six months of 2008 no cash flows were generated from financing activities. On the other hand, net funds of KEUR 2,989 were acquired in the same period in the previous year as part of the capital increase of 21 May 2007.

Liquid funds

The stock of cash and cash equivalents amounted to KEUR 11,593 at the end of the reporting period. Other funds amounting to KEUR 985 have been invested in short-term fixed and variable, interest-bearing securities and fixed deposits. In addition, KEUR 981 has been invested as financial instruments with a residual term of more than one year. Thus funds are amounting to KEUR 13,559 (31 December 2007: EUR 17,193).

3. Risk and chance report

Compared to the report within the scope of the annual financial report for the year ended 31 December 2007 and within the scope of the quarterly report as of 31 March 2008, there were the following key changes in the risk and chance position of 4SC AG:

Opportunities and risks connected with the takeover of Nycomed oncology projects

The reported takeover of the Nycomed oncology projects at a purchase price of EUR 14 million will significantly improve the chance situation of 4SC AG in the opinion of the management. On the one hand, there are synergies with its own projects, technology and expertise. On the other hand, the pipeline will be strengthened by the additional projects and therefore there will be a diversification of risk in the portfolio. In addition, 4SC AG can achieve nongeneric growth without the costly integration processes associated with acquisitions or mergers. At the same time, the goodwill and balance sheet total will increase. Moreover, the company is expecting an increased frequency in its

clinical news flow, which should increase the amount of attention paid to 4SC AG by capital market players.

On the other hand, 4SC AG cannot rule out that unexpected safety or activity-related events will arise during the currently running clinical phase I for the new 4SC-201 project (Nycomed project HD01: a compound for treating cancer diseases) and the follow-up preclinical projects, despite a comprehensive due diligence process, which could lead to delays or even jeopardise the successful execution of the relevant studies. In addition, the negative operating result of 4SC AG might increase if the necessary additional development costs cannot be compensated for by increasing sales or additional licensing revenues.

The risks also arising from the transaction with regard to the transfer of assets – in the form of non-fulfilment of obligations arising from the contract by Nycomed and/or 4SC AG – could be eliminated after the end of the quarter under review. Successful completion of the transaction was therefore announced as planned on 31 July 2008.

Increase in value due to licensing

In order to develop its own drug candidates up to market approval and then market them, 4SC AG relies on concluding development and licensing partnerships with pharma and biotech companies. In the quarter under review 4SC AG was able to validate its business model by means of the licensing and cooperation agreement concluded in May 2008 with Erlangen-based ViroLogik GmbH. The medium and long-term sales potential could be increased, as 4SC AG will receive milestone payments of up to EUR 56.5 million and a percentage-based sales commission, in addition to the already received licensing fee of KEUR 750, depending on the success of the clinical development and the marketing.

Opportunities arising from the stake in Nexigen GmbH

In addition to a stake of almost four percent, 4SC AG also acquired the exclusive right to take over Nexigen GmbH in full within 15 months. The company specialises in research of protein-protein interaction processes and their targeted interruption, so that 4SC AG will obtain access to this technological expertise through its stake.

Risks connected with the denial of taxable losses carried forward

A positive development occurred in connection with the denial of taxable losses carried forward. As reported in the annual financial report for the year ended 31 December 2007, the losses carried forward up to 31 December 2004 amounting to KEUR 28,052 with respect to corporation tax and amounting to KEUR 27,694 in connection with the trading loss were initially disallowed by the responsible tax office with the tax assessment as at 31 December 2005. Pro rata losses carried forward were also disallowed for the financial year 2005. 4SC AG lodged an appeal against the tax assessments. On 27 May 2008 the amended assessments for the financial year 2005 were issued by the tax office.The restrictions for net loss carryover applied to date for corporation and trade tax were cancelled in full. At the same time, the relevant follow-up assessments for the year 2006 were adjusted accordingly in the carried forward figures.

Nevertheless, against the background of additionally effected financing measures, we must still expect that the tax authorities will question the losses carried forward in the tax returns from the financial year 2007 and will partially or completely query them and disallow them again according to the new legislation in § 8c of the German Corporation Tax Act (KStG).

Risks arising in connection with QuoNova LLC.

An increased risk currently exists in connection with the stake in QuoNova LLC. The possibilities for increased funding from its main investor, the US company XL Tech-Group, are difficult to estimate at present.This is leading to an unclear situation at the present time with regard to Quo-Nova LLC. in terms of the requirements for safeguarding its liquidity in future, which might have a negative effect on 4SC AG. If QuoNova LLC. cannot meet its payment obli-

A positive development occurred in connection with the denial

of taxable losses carried forward.

gations in whole or in part, this would result in valuation allowances, which would have a negative effect on the net assets, financial and earnings position of 4SC AG. In the worst case this could mean a complete valuation allowance of the outstanding receivables from the assignment of the worldwide exclusive rights to the QSB substances in the amount of USD 1 million. At the same time, this might affect the ongoing cooperation with QuoNova LLC. A reduction in the FTEs to be billed or even the full termination of the cooperation agreement would have a negative effect on the sales trend of 4SC AG and thus the financial and earnings. In addition, the value of the stake might become totally void and would then no longer contribute to an increase in value of 4SC AG.

4. Events after the end of the reporting period

On 14 July 2008 4SC AG announced the completion of the capital increase approved on 20 June 2008. The capital increase from the authorised capital included a collateral rights offering to existing shareholders at a subscription price of EUR 3.10 per share.The remaining unsubscribed shares were completely used for a private placement at the subscription price.The capital increase generated approx. EUR 29.45 million in gross proceeds for the company. The proceeds were used to finance the purchase price for the acquisition of the Nycomed oncology projects totalling EUR 14 million.

In total 9,500,913 new shares were placed within the scope of the capital increase. Thus, the issued capital of 4SC AG rose to EUR 28,502,739.00 with the implementation of the capital increase.

On 31 July 2008 the takeover transaction with regard to the Nycomed oncology projects was successfully completed through payment of the purchase price and the acquisition of the full rights to a total of eight projects.

5. Business outlook

The goals set for the company in the current financial year continue to apply. Several clinical development projects are to be initiated in the "Drug Discovery & Development"segment by the end of 2008. In addition, the individual projects

Several clinical development projects are to be initiated

in the "Drug Discovery & Development" segment by the end of 2008.

arising from both its own pipeline and from the newly acquired oncology portfolio are currently being prioritised, in order to then decide what programmes to concentrate the available resources on first, so as to achieve appropriate advances in these projects. The development costs will increase moderately compared to the original budget for 2008 in connection with the successful expansion of the project pipeline and its increasing clinical maturity. Personnel capacities will also be further expanded, in order to guarantee high-grade development quickly and in terms of quality.

The development strategy for the lead substance SC12267 (now 4SC-101) will not be affected. In this respect, the company is still conducting in-depth talks with the biopharmaceutical industry with a view to a possible licensing agreement. Parallel to this, a clinical phase II trial is being prepared for this drug candidate with regard to rheumatoid arthritis and a clinical phase IIa trial for chronic inflammatory bowel diseases (Crohn's disease, Colitis ulcerosa).

On the basis of the extended project portfolio, the company will also increase its activities in business development over the next few months, in order to develop new partnering possibilities for the individual projects in the short term.

Management board of 4SC AG (from left to right): Dr Bernd Hentsch, Dipl.-Kfm. Enno Spillner, Dr Daniel Vitt and Dr Ulrich Dauer

Planegg-Martinsried, 4 August 2008

Dr Ulrich Dauer, CEO Dr Bernd Hentsch, CDO Dr Daniel Vitt, CSO Dipl.-Kfm. Enno Spillner, CFO

Financial Statements of 4SC AG (IFRS)

Income statement	19
Balance sheet	20
Cash flow statement	21
Statement of changes in equity	22
Notes	23
Review report	29
Responsibility statement	30

The goals set for the company in the current financial year continue to apply.

Income statement for the period from 1 January to 30 June 2008

in KEUR	04-01 - 2008-06-30	04-01 - 2007-06-301	01-01 - 2008-06-30	01-01- 2007-06-301	Notes

Net sales	1,341	348	1,982	635
Cost of sales	- 196	- 86	- 406	- 191
Gross profit	1,145	262	1,576	444
Distribution costs	- 122	- 87	- 236	- 168
Research and development costs	- 2,695	- 1,658	- 4,669	- 3,241
Administrative costs	- 837	- 657	- 1,515	- 1,354
Other operating income	123	39	138	60
Result from operating activities	- 2,386	- 2,101	- 4,706	- 4,259
Financial result
Result from an associate
accounted for by the equity method	0	- 14	0	- 51
Finance income	193	92	402	156
Finance expenses	- 45	- 62	- 155	- 87
Financial result	148	16	247	18
Period result	- 2,238	- 2,085	- 4,459	- 4,241
Earnings per share
(undiluted and diluted) [EUR]	- 0.12	- 0.17	- 0.23	- 0.36	3.

1: The other operating expenses, reported separately in the previous years' interim report, were assigned to the individual areas of activities.

Balance sheet for the period ended 30 June 2008

in KEUR	2008-06-30	2007-12-31
ASSETS
Non-current assets
Intangible assets	1,915	1,865
Fixed assets	1,462	1,072
Other financial assets	1,135	1,972
Accounts receivables from associated companies	312	623
Other non-current assets	157	157
Non-current assets	4,981	5,689
Current assets
Inventories	30	19
Trade accounts receivables	555	131
Accounts receivables from associated companies	340	376
Other financial assets	985	4,886
Cash and cash equivalents	11,593	10,335
Other current assets	675	627
Current assets	14,178	16,374
Total assets	19,159	22,063
EQUITY AND LIABILITIES Equity
Subscribed capital	19,002	19,002
Agio	28,395	28,395
Reserves	779	630
Balance sheet loss	- 32,870	- 28,411
Equity	15,306	19,616
Non-current liabilities
Other liabilities	56	53
Non-current liabilities	56	53
Current liabilities
Trade accounts payable	1,179	480
Accounts payable to associated companies	0	103
Financial liabilities	890	860
Other liabilities	1,728	951
Current liabilities	3,797	2,394
Total equity and liabilities	19,159	22,063

Cash flow statement for the period from 1 January to 30 June 2008

in KEUR	01-01 – 2008-06-30	01-01 – 2007-06-30
Cash flows from operating activities
Period result before taxes	- 4,459	- 4,241
Corrections for:
Depreciation on fixed assets and intangible assets and impairment of goodwill	162	241
Financial result	- 247	- 18
Non-cash affecting ESOP1	151	108
Non-cash affecting expenses and income	- 9	0
Interest received	309	88
Interest paid	- 18	- 18
Increase/Decrease of trade accounts receivables	- 424	119
Decrease of accounts receivables from associated companies	347	453
Increase of inventories	- 11	- 6
Increase/Decrease of other current assets	- 48	48
Increase/Decrease of trade accounts payable	699	- 110
Decrease of accounts payable to associated companies	- 103	- 29
Increase of other liabilities	777	682
Cash flows from operating activities	- 2,874	- 2,683
Cash flows from investing activities
Payments for investments in intangible assets	- 62	- 1
Payments for investments in fixed assets	- 540	- 46
Payments from the sale of fixed assets	4	0
Payments for investments	- 154	0
Purchase of financial assets that are no cash equivalents	0	- 370
Sales of financial assets that are no cash equivalents	4,884	1,450

Cash flows from investing activities	4,132	1,033
Cash flows from financing activities
Payments to subscribed capital	0	1,207
Payment to agio	0	1,782

Cash flows from financing activities	0	2,989
Net change in cash and cash equivalents	1,258	1,339
+ Cash and cash equivalents at the beginning of the period	10,335	2,522
= Cash and cash equivalents at the end of the period	11,593	3,861

1: ESOP = Employee stock option programme for employees and management board

The cash flow statement was prepared in accordance with the provisions of IAS 7.

Statement of changes in equity for the period from 1 January to 30 June 2008

					Retained earnings		Balance sheet loss
	Subscribed	capital	Reserves			Revaluation reserve
in KEUR		Agio	ESOP1,2				Total
				Reserves
Balance on 2007-01-01	11,461	16,361	246	67	0	- 20,281	7,854
Issued options (ESOP 2001/2003)			3				3
Issued options (ESOP 2004/2004)			7				7
Issued options (ESOP 2004/2005)			7				7
Issued options (ESOP 2004/2006/1)			3				3
Issued options (ESOP 2006/2006/2)			54				54
Issued options
(ERSATZ-ESOP 2001/2006/3)			34				34
Capital increase of 21 May 2007	1,207	1,782					2,989
Overall result 01-01 - 2007-06-30						- 4,241	- 4,241
Period result 01-01 - 2007-06-30						- 4,241	- 4,241

Balance on 2007-06-30	12,668	18,143	354	67	0	- 24,522	6,710

Balance on 2008-01-01	19,002	28,395	583	67	- 20	- 28,411	19,616
Issued options (ESOP 2001/2003)			1				1
Issued options (ESOP 2004/2004)			3				3
Issued options (ESOP 2004/2005)			7				7
Issued options (ESOP 2004/2006/1)			3				3
Issued options (ESOP 2006/2006/2)			71				71
Issued options
(ERSATZ-ESOP 2001/2006/3)			64				64
Issued options (ESOP 2006/2007)			2				2
Overall result 01-01 - 2008-06-30					- 2	- 4,459	- 4,461
Valuation of financial instruments					- 2		- 2
Period result 01-01 - 2008-06-30						- 4,459	- 4,459

Balance on 2008-06-30	19,002	28,395	734	67	- 22	- 32,870	15,306

1: ESOP = Employee stock option programme for employees and management board

2: Reclassification of the prior year item Additional paid-in capital convertible bonds to reserves ESOP

Notes to the interim report dated 30 June 2008

1. Summary of significant accounting and valuation policies

1.1 Basis of preparation

This interim report was created in accordance with the accounting principles of the International Financial Reporting Standard (IFRS) in consideration of IAS 34 (interim financial reporting) in accordance with the requirements of the International Accounting Standards Board (IASB).The recommendations of the Standing Interpretations Committee (SIC) and the International Financial Reporting Interpretations Committee (IFRIC) have been taken into account. All of the IFRS and IFRIC adopted by the European Commission have been taken into account, not adopted IFRS and IFRIC have not been taken into account. New standards issued by the IASB are applied without exception starting in the financial year in which their application becomes mandatory.

This interim report represents the individual Financial Statements of the Germany-based 4SC AG, and in addition to 4SC AG, also takes account of the associated companies, quattro research GmbH, Planegg-Martinsried and QuoNova LLC., Melbourne, Florida, USA, as well as the new investment in the Nexigen GmbH, Bonn, recognised in accordance with IAS 39.

The interim report was approved for publication by the management board on 4 August 2008.

1.2 Significant accounting and valuation policies

The applied accounting and valuation policies correspond to those used for the Financial Statements for the year ending 31 December 2007.

1.3 Use of estimates

In producing this interim report it was necessary for management to make estimates and assumptions impacting the disclosed value of assets and liabilities, the disclosure of uncertain assets and contingent liabilities as of the balance sheet date as well as expenses and income within the reporting period. Actual values may vary from such estimated values.The discretionary decisions taken correspond to the Financial Statements for the year up to 31 December 2007.

1.4 Seasonality of interim operation

The operating activity of 4SC AG does not vary with the season.

2. Changes in company structure / investments

4SC AG has had a 3.7% stake in Bonn-based Nexigen GmbH since May 2008. With this share, 4SC AG has received a take-over option which gives it the exclusive right to take over Nexigen completely within 15 months (i.e. by August 2009).

4SC AG cannot exert any significant influence on the associate company.The share in the associate company falls significantly short of the 20% limit. It also has no substantial business transactions with Nexigen GmbH and only provides one of three advisory board members.According to IAS 28.8, potential voting rights which can currently be exercised or converted also have to be taken into consideration when assessing whether it has significant influence. However, as the right to purchase Nexigen can be exercised at the earliest at the end of the eighth month after entry of the joint venture agreement in the commercial register, but not before 1 January 2009, no significant influence can be derived therefrom as of the balance sheet date.

Consequently, the stake involves securities which can be categorised as available-for-sale according to IAS 39. They are valued pursuant to IAS 39.43 at the fair value that corresponds to the transaction price as of the balance sheet date.

3. Segment report

The following segment reporting has been prepared in accordance with the principles of IAS 14.The primary segment report format is the business segments in which 4SC AG is active. According to IAS 14.26, the secondary report format is geographical segments.

4SC AG operates in the two business segments of "Drug Discovery & Development"and "Collaborative Business." In the "Drug Discovery & Development"segment, 4SC AG is the holder of proprietary and patent rights and takes the decision on the progress of projects. In contrast, the cooperation partner in the "Collaborative Business" segment is the holder of proprietary and patent rights and takes decision on the progress of projects.

in KEUR	Drug Discovery & Development		Collaborative Business		Not assigned		Total
	01-01 - 06-30		01-01 - 06-30		01-01 - 06-30		01-01 - 06-30
	2008	2007	2008	2007	2008	2007	2008	2007
Net sales	750	0	1,232	635	0	0	1,982	635
Personnel costs	- 1,081	- 1,033	- 487	- 207	- 868	- 782	- 2,436	- 2,022
Depreciation	- 80	- 168	- 33	- 40	- 49	- 33	- 162	- 241
Other operating income and expenses	- 3,028	- 1,795	- 235	- 153	- 827	- 683	- 4,090	- 2,631
Segment result/Result from operating activities	- 3,439	- 2,996	477	235	- 1,744	- 1,498	- 4,706	- 4,259
Financial result							247	18
Period result							- 4,459	- 4,241
Other information:
Segment assets	1,727	1,772	934	212	16,498	7,390	19,159	9,374
Segment liabilities	290	6	0	0	3,563	2,658	3,853	2,664
Investments	338	22	126	12	138	13	602	47

Segment report according to business segments:

In particular, administrative costs are not assigned. Net sales are realised and shown both with external customers and with the associated company QuoNova LLC., Melbourne, Florida, USA.

Net sales according to headquarters of the performance recipient:

in KEUR	Germany USA			Total
	01-01 - 06-30		01-01 - 06-30		01-01 - 06-30
	2008	2007	2008	2007	2008	2007
Net sales	1,506	12	476	623	1,982	635

Germany is the geographical location of the overall segment assets and the segment investments.

4. Earnings per share

The undiluted earnings per share are calculated in accordance with IAS 33.9 et sqq. by dividing the period result attributable to the shareholders (numerator) by the average weighted number of shares in circulation in the reporting period (denominator). This is based on a period result for the second quarter 2008 amounting to KEUR - 2.238 (Previous year: KEUR - 2.085) and a share count of 19.001.826 (Previous year: 11.997.596). In the first six months of 2008 the period result is KEUR - 4.459 (Previous year: KEUR - 4.241) at a share count of 19.001.826 (Previous year: 11.729.480).

Because the options issued are not diluted by 4SC AG's loss situation, and because the share price has currently dropped below the exercise price of the options, i.e. the options are currently "out of money", the diluted conforms to the undiluted earnings per share.

in EUR	2008-04-01 - 2008-06-30	2007-04-01 - 2007-06-30	2008-01-01 - 2008-06-30	2007-01-01 - 2007-06-30
Earnings per share
(undiluted and diluted)	- 0.12	- 0.17	- 0.23	- 0.36

5. Share property and directors' dealings

The table below shows the shares and stock options which were held by the management board and the supervisory board as of 30 June 2008 well as the changes of ownership of the same, compared to the beginning of the year.

Share quantity in units	Shares 2008-01-01	Shares 2008-06-30
Dr Ulrich Dauer	410,639	410,639
Dr Daniel Vitt	39,803	396,803
Dr Gerhard Keilhauer	13,537	13,537
Dipl.-Kfm. Enno Spillner	9,600	9,600
Share property	830,579	830,579

Share property of members of the management board:

Options quantity in units	Options 2008-01-01	Options 2008-06-30	Max. number of subscribed shares
Dr Ulrich Dauer	40,600	40,600	35,800
Dr Daniel Vitt	40,600	40,600	35,800
Dr Gerhard Keilhauer	71,500	71,500	66,700
Dipl.-Kfm. Enno Spillner	138,000	138,000	124,800
Options property	290,700	290,700	263,100

Share property of members of the supervisory board:

Share quantity in units	Shares 2008-01-01	Addition	Shares 2008-06-30
Dr Jörg Neermann	77,000	0	77,000
Dr Robert O'Connell1	10,000	0	10,000
Dr Manfred Rüdiger	5,000	5,000	10,000
Share property	92,000	5,000	97,000

1: According to last official information, he abandoned his brief in the shareholders' meeting dated 2008-06-05

The following notifiable transactions in shares or options of 4SC AG were carried out by officers in the second quarter of 2008 according to § 15a of the German Security Trading Act (WpHG):

• On 9 April 2008, the supervisory board member Dr Manfred Rüdiger acquired 5,000 shares at EUR 2.95 per share on the Düsseldorf Stock Exchange with a total transaction volume of KEUR 15 (DGAP-notification of 11 April 2008).

6. Related party disclosure

For the period 1 January 2008 to 30 June 2008 4SC AG transacted the following business with related parties:

4SC AG maintains legal relations with quattro research GmbH, Planegg-Martinsried, in which it holds a 48.8% stake of the share capital since its founding at the beginning of 2004. In particular, there is a software service contract for further development, support and database maintenance, related to software created by 4SC AG for the support of research activities. For the period January to June 2008 this contract had a net volume of KEUR 128 (2007: KEUR 128). Moreover, there is an IT service contract, on the basis of which quattro research GmbH provides upkeep and maintenance services for 4SC AG's infrastructure. In the first six months of 2008, 4SC AG accrued net costs of KEUR 21 (2007: KEUR 21) as a result of this contract. A further KEUR 18 (2007: KEUR 0) in computer equipemnt was supplied to 4SC AG by quattro research GmbH. As of balance sheet date, there are no liabilities towards quattro research GmbH resulting from the named contracts (31 December 2008: KEUR 29).

Commensureate with an amortisation schedule agreed in connection with the sale contract of 7 January 2004 regarding the sale and transfer of software rights, quattro research GmbH pays annual instalments of the sale price. The accounts receivables from quattro research GmbH as of 30 June 2008 totalled KEUR 80, an increase compared to the amount of 31 December 2007 (KEUR 78) due to accrued interests for this half year, since the instalment only falls due in December.

In addition, there is a sublease agreement between 4SC AG as main tenant and quattro research GmbH as subtenant, including office equipment, telephone and Internet connection in the offices of 4SC AG. In the reporting period, income from subleasing amounted to KEUR 10 (2007: KEUR 8) was collected.

4SC AG also maintains legal relations with QuoNova LLC., Melbourne, Florida, USA, which was founded at the end of 2006, together with XL TechGroup, Melbourne, Florida, USA, and of which 4SC AG owns a 10.0% stake. As of 28 December 2006 4SC AG has sold its worldwide exclusive rights for its QSB substances to QuoNova LLC. Of its total sales proceeds of USD 2 million, 4SC AG received the second instalment in the reporting period. On 30 June 2008, the receivables from QuoNova LLC., related the sales proceeds, totalled KEUR 571 (31 December 2007: KEUR 921).

As part of the cooperation agreement for the further development of QSB signed between 4SC AG and Quo-Nova LLC. at the end of 2006, 4SC AG provided research services and in return in the first halfyear received FTE payments of KEUR 476 (2007: KEUR 623). On the balance sheet date, receivables towards QuoNova LLC. resulting from this cooperation totaled KEUR 14 (31 December 2007: liabilities of KEUR 103).

On 23 June 2008, 4SC AG concluded an agreement with the Conrad Hinrich Donner Bank, Hamburg, for the ralisation of the capital increase for 4SC AG in June / July 2008. One of the Conrad Hinrich Donner Bank's management board members, Marcus Vitt, is a brother of 4SC AG's CSO, Dr Daniel Vitt. In the reporting period, 4SC AG accrued expenses related to this contract of KEUR 35 (2007: KEUR 214).

Subject to the December 2005 contract, CHD has also assumed the function of payment and deposit facility for 4SC AG, for which an annual expense of KEUR 3 will accrue, which is due in the first quarter.

On 27 June 2008, a consultancy agreement was concluded with Morgan Consulting. The agreement commences on 1 July 2008 and will run until 31 December 2009 with a monthly volume of EUR 1,000. The managing director of Morgan Consulting is Dr. Brian Morgan, a member of the supervisory board who resigned during the reporting period.

A consultancy agreement was also concluded with Catalyst Consulting on 27 June 2008. The agreement commences on 1 July 2008 and will run until 30 December 2010 with a monthly volume of EUR 2,000. The managing director of Catalyst Consulting is Robert B. O' Connell, deputy chairman of the supervisory board who resigned during the reporting period.

On 4 June 2008, 4SC AG and its largest single shareholder, Santo Holding (Deutschland) GmbH, concluded a loan agreement for a sum of up to EUR 25 million. The shareholder's loan will be used to cover the financing needs of 4SC AG for the acquisition of the oncology pipeline of Nycomed GmbH and to further develop the product portfolio. This loan had not been utilised as of the balance sheet date and will not be called off in the future either, as the funds required for this transaction have been secured through the capital increase which was started in June and will be finished after the end of the reporting period.

At the same time as 4SC AG acquired the stake in Nexigen GmbH, Bonn, this spring, Santo Holding (Deutschland) GmbH also obtained a shareholding in Nexigen GmbH as a main investor during this financing round.

7. Review

The interim financial statements and the interim management report as of 30 June 2008 have been subjected to a review by KPMG Deutsche Treuhand-Gesellschaft Aktiengesellschaft Wirtschaftsprüfungsgesellschaft, Munich.

8. Events after the end of the reporting period

Further explanation regarding events after the end of the reporting period can be found in paragraph 4 of the management report.

In the course of the capital increase completed on 14 July 2008, the financial and net asset position of 4SC AG developed positively. Gross issuing proceeds of approximately EUR 29.45 million could be acquired through the issue of 9,500,913 new shares at a price of EUR 3.10 per share. The subscribed capital of 4SC AG increased to EUR 28,502,739.00 upon implementation of the capital increase. The proceeds were used to finance the purchase price for the acquisition of the oncology projects of Nycomed totalling EUR 14 million.

On 31 July 2008, the takeover transaction for the oncology projects of Nycomed was successfully completed through payment of the purchase price and the acquisition of all the rights to a total of eight projects.This transaction will affect the net assets, financial and earnings position of 4SC AG.The purchase price reduced cash and cash equivalents by EUR 14 million and was simultaneously capitalised in full as an intangible asset, whereby the balance sheet total increased accordingly.The development costs will increase moderately compared to the original budget for 2008.

Review Report

To 4SC AG, Planegg, District of Munich

We have reviewed the condensed interim financial statements – comprising the balance sheet, the income statement, cash flow statement, statement of changes in equity and selected explanatory notes – together with the interim management report of the 4SC AG, Planegg, District of Munich, for the period from January 1 to June 30, 2008 that are part of the semi annual financial report according to § 37 w WpHG ["Wertpapierhandelsgesetz": "German Securities Trading Act"]. The preparation of the condensed interim financial statements in accordance with those IFRS applicable to interim financial reporting as adopted by the EU, and of the interim management report in accordance with the requirements of the WpHG applicable to interim management reports, is the responsibility of the Company's management. Our responsibility is to issue a report on the condensed interim financial statements and on the interim management report based on our review.

We performed our review of the condensed interim financial statements and the interim management report in accordance with the German generally accepted standards for the review of financial statements promulgated by the Institut der Wirtschaftsprüfer (IDW). Those standards require that we plan and perform the review so that we can preclude through critical evaluation, with a certain level of assurance, that the condensed interim financial statements have not been prepared, in material aspects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, and that the interim management report has not been prepared, in material aspects, in accordance with the requirements of the WpHG applicable to interim management reports. A review is limited primarily to inquiries of company employees and analytical assessments and therefore does not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not performed a financial statement audit, we cannot issue an auditor's report.

Based on our review, no matters have come to our attention that cause us to presume that the condensed interim financial statements have not been prepared, in material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, or that the interim management report has not been prepared, in material respects, in accordance with the requirements of the WpHG applicable to interim management reports.

Munich, August 4, 2008

KPMG Deutsche Treuhand-Gesellschaft Aktiengesellschaft Wirtschaftsprüfungsgesellschaft

[Original German version signed by:]

Wolfs Rahn Wirtschaftsprüfer Wirtschaftsprüfer [German Public Auditor] [German Public Auditor]

Responsibility statement

"To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the company, and the interim management report of the company includes a fair review of the development and performance of the business and the position of the company, together with a description of the principal opportunities and risks associated with the expected development of the company for the remaining months of the financial year."