27.04.2006 – 09:24

Zeltia Group

Zeltia Increases R&D Investment by 32.2% in the First Quarter 2006

Madrid (ots/PRNewswire)

• Revenue Amounted to 14.8 Million Euros
• Marketing Expenditure Increased 52.1% to 5.1 Million Euros
• The Group Invested 11.8 Million Euros in Research and Development, Up 32%

Zeltia S.A. (ZEL SM; ZEL MC) today presented its financial results
for the first quarter of 2006, which showed a significant increase in
Research & Development (R&D) spend, to 11.8 million euros. This
represents a 32% increase compared to the same period in 2005.
Zeltia's PharmaMar subsidiary accounted for most of that sum, at 9.5
million euros (+25% compared to last year) while Neuropharma reported
expenditure of 1.9 million euros (+90%) in R&D.

The Group recorded losses of 11.5 million euros and the reason for
this is twofold: an increase in R&D investment as described above,
together with a 52.1% rise in marketing expenditure to 5.1 million
euros, primarily for the promotion of new brands and product lines at
Zelnova and Xylazel.

The Group generated net revenue of 14.8 million euros. Zelnova
sales of air fresheners and insecticides increased 7.1%, while at
Xylazel, engaged in the manufacture and commercialization of paints
and varnishes, sales decreased due to the slow down in the
construction sector. As a whole, total sales of the Group's chemicals
divisions amounted to 13.4 million euros.

Operating expenses were 16.9% lower than in the comparable period
of 2005 as a result of the cost optimization processes performed by
the Group.

As at the period end, the Group had cash and cash equivalents
of 78 million euros (cash and cash equivalent plus current financial
investments, less current debt).

During the first quarter of 2006, Neuropharma, the subsidiary
specializing in the research and development of drugs for the
treatment of neurodegenerative diseases, presented the dossier for
the start of clinical tests of its first compound. At the same time,
Nanofarma, led by the Zeltia Group, obtained a 14.6 million euros
grant from the Cenit Program of the CDTI (the Government's Center for
Technology and Investigation), for a project it presented. PharmaMar,
involved in the research and development of treatments for cancer,
continued to advance all of its clinical programmes.

Enquiries:
    Isabel Lozano
    CEO
    PHARMAMAR, S.A.
    C/ Reyes, 1.Colmenar
    Viejo
    Madrid
    Telephone +34-91-846-60-00
    Catherine Moukheibir
    Head of Capital Market
    Strategy
    ZELTIA, S.A.
    José Abascal, 2.
    Madrid
    Telephone +34-91-444-45-00
    Ma Luisa de Francia
    CFO
    ZELTIA, S.A.
    José Abascal, 2.
    Madrid
    Telephone +34-91-444-45-00

For a copy of the full report, please contact Claire Rowell at
Financial Dynamics on +44-(0)-20-7269-7285 or  claire.rowell@fd.com.

About Zeltia:

Zeltia S.A. is the pioneer and leading biotechnology group in
Spain, and fourth in Europe in stock market apitalisation with 1.2
billion euros. The Zeltia Group comprises the following companies:
PharmaMar, the world-leading biotechnology company engaged in
advancement in the field of anti-cancer treatment through the
discovery and development of innovating drugs of marine origin.
Neuropharma, a biotechnology company focused on the discovery and
development of new drugs to combat Alzheimer's and other
neurodegenerative diseases of the nervous system. Genómica, the
number one Spanish company in molecular diagnosis. Finally, Zelnova
and Xylazel, two traditional companies in the chemical sector, highly
profitable and leaders in their respective market segments.

Contact:

Isabel Lozano, CEO, PHARMAMAR, S.A., C/ Reyes, 1.Colmenar, Viejo,
Madrid, Telephone +34-91-846-60-00; Catherine Moukheibir, Head of
Capital Market, Strategy, ZELTIA, S.A., José Abascal, 2., Madrid,
Telephone +34-91-444-45-00; Ma Luisa de Francia, CFO, ZELTIA, S.A.,
José Abascal, 2., Madrid, Telephone +34-91-444-45-00; For a copy of
the full report, please contact Claire Rowell at Financial Dynamics
on +44-(0)-20-7269-7285 or claire.rowell@fd.com.