Zealand Pharma

Share Issue/Capital Change • Dec 9, 2010

Company Announcement No. 11/2010

9 December 2010

Zealand Pharma issues new shares in connection with the exercise of warrants

Zealand Pharma A/S hereby announces that it has increased the share capital by nominal DKK 852,407 divided into 852,407 new shares with a nominal value of DKK 1 each as a consequence of the exercise of warrants granted under certain of the Company's warrant programs. At the time of publication of the prospectus dated 3 November 2010, The Company expected that 1,013,194 new shares would be issued as a consequence of the exercise of warrants.

Members of the Company's Board of Directors and Executive Management with warrants under the 2005, 2007 and 2009 warrant programs have exercised all vested warrants, which would otherwise have lapsed.

The subscription price for the new shares is: DKK 26.32 (EUR 3.53*) per share of nominal DKK 1 each in respect of the 2005 warrant program and the 2007 warrant program and DKK 26.84 (EUR 3.60*) per share of nominal DKK 1 each in respect of the 2009 warrant program.

Following registration of the new shares, the share capital of Zealand Pharma A/S is nominal DKK 22,870,523 divided into 22,870,523 shares with a nominal value of DKK 1 each.

Each share of nominal DKK 1 carries one vote at general meetings in Zealand Pharma A/S.

287,319 of the new shares shall give rights to dividend and other rights from the time of the warrant holders exercise notice.

565,088 of the new shares shall give rights to dividend and other rights from the time of the completion of the initial public offering.

The proceeds to Zealand Pharma A/S from the capital increase amounts to DKK 22,727,867.

The new shares will be listed on NASDAQ OMX Copenhagen following registration of the capital increase with the Danish Commerce and Companies Agency.

The content of this announcement has no impact on the Company's financial outlook for 2010.

* Figures converted into euro as supplementary information, based on the DKK/EUR exchange rate of DKK 7.4553 = EUR 1.00 on 23 November 2010 (LTM average was 7.45).

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For further information, please contact:

Zealand Pharma A/S

David Solomon, President and Chief Executive Officer Tel: +45 4328 1200

M:Communications

Mary-Jane Elliott / Emma Thompson / Amber Bielecka Tel: +44(0) 20 7920 2330

About Zealand Pharma A/S

Zealand Pharma is a Danish biopharmaceutical company dedicated to the discovery and development of innovative peptide drugs. The Company targets diseases where it believes existing treatments fail to adequately serve the medical needs of patients and the market potential for improved treatments through the use of peptide drugs is high.

Zealand Pharma focuses on three therapeutic areas: metabolic (diabetes and obesity), gastrointestinal and cardiovascular diseases. The Company's expertise in peptide discovery, optimization and development has resulted in a strong and growing pipeline of novel peptide drug candidates with favourable therapeutic attributes.

Since 1999, Zealand Pharma's scientists have built a pipeline that includes five compounds in clinical development, four of which have been out licensed, two of these with major pharmaceutical companies (sanofi-aventis and Helsinn Healthcare). All of Zealand Pharma's compounds emerged from the Company's own drug discovery.

Zealand Pharma is based in Copenhagen. For more information please visit the Company's web site: www.zealandpharma.com.