Intercell AG

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Intercell AG and Biological E. Ltd Enter into a Strategic Alliance for the Development, Manufacture and Sales of its Japanese Encephalitis Vaccine

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Vienna (Austria), March 17, 2005 - Intercell AG, a leading developer of next generation vaccines for the prevention and treatment of major infectious diseases, announced today that it has signed an agreement with Biological E. Ltd. (Hyderabad, India), for the development, manufacture and sales of its Japanese Encephalitis vaccine in Asia. This is an important step in the implementation of Intercell’s global marketing and commercialization strategy for its modern cell culture based Japanese Encephalitis vaccine. Intercell is planning to market the product independently from the alliance with Biological E in the United States, Europe and Australia targeting the travelers and armed forces market to replace current suboptimal vaccines produced on mouse brain. In order to optimally cover and meet the requirements of the market where the disease is endemic, Intercell has been seeking for a strategic alliance for the marketing and selling of its vaccine in certain Asian countries. Biological E. will be Intercell's strategic partner for marketing and selling the Japanese Encephalitis vaccine in certain Asian countries. Under the terms of the agreement, Biological E. will manufacture the product in India for the Asian endemic market. Intercell AG and Biological E anticipate that they will broaden their strategic alliance by collaborating on the development of future vaccines by combining the strength of Intercell’s Antigen Identification Program in identifying new, protective antigens with Biological E’s experience as a leading Asian vaccine manufacturer. "A safe and effective high-standard Japanese Encephalitis vaccine for adults and in particular children in the endemic areas throughout Asia will meet a high medical need", states Gerd Zettlmeissl, Chief Operating Officer of Intercell AG. "This agreement with a leading Asian vaccine manufacturer leverages the commercialization of our Japanese Encephalitis vaccine and will be another step in our efforts to continue to develop and commercialize our broad portfolio of vaccine candidates and technologies". Dr. Vijay Kumar Datla, Chairman and Managing Director of Biological E. Limited added: "We are excited about this partnership with Intercell that enables us to offer a novel and safe vaccine to combat Japanese Encephalitis. There is an urgent need to respond to this epidemic throughout India and Asia where large-scale immunization is critical. Our partnership furthers the aim of ensuring a sustainable supply at the earliest."

About Intercell’s JE vaccine Intercell´s novel Japanese Encephalitis vaccine is a purified, inactivated vaccine for active immunization of adults against the Japanese Encephalitis virus and has successfully concluded Phase II clinical trials and will start Phase III clinical trials in 2005. In a Phase II head-to-head comparison with JE-VAX®, Intercell’s vaccine was shown to be: • Less reactogenic - both in frequency and intensity • More potent - higher antibody levels at all doses studied one month after the immunizations; this vaccine also showed high seroconversion rates one month after a single dose • More convenient - 2 doses versus 3 doses and liquid versus freeze-dried format • More persistent - higher persistence of antibodies two years after primary immunization

About Biological E. Ltd Over the last 50 years, Biological E. Ltd. (BE) has been a leading vaccine and pharmaceutical company. The company produces a range of critical vaccines and has been an active partner in the National Immunization Program of India. The company is currently commissioning large scale cGMP facilities in order increase its capacities and product range to offer these vaccines on a global basis. In addition to its current pipeline of combination vaccines that are entering pivotal trials, BE has R&D programs to develop novel vaccines for both vector borne and enteric diseases. The company has entered into a number of strategic collaborations with leading biotech companies and research institutes for basic R&D. Biological E. is a privately held company. For more information please visit:

This communication expressly or implicitly contains certain forward-looking statements concerning Intercell AG and its business. Such statements involve certain known and unknown risks, uncertainties and other factors which could cause the actual results, financial condition, performance or achievements of Intercell AG to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Intercell AG is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.

The information contained herein is not for publication or distribution in the United States of America. This press release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from Intercell AG and that will contain detailed information about the company and management, as well as financial statements.

end of announcement                                euro adhoc 17.03.2005 08:56:29

Further inquiry note: Intercell AG Mag. Katharina Wieser Head of Corporate Communications Tel. +43 1 20620-303

Branche: Biotechnology
ISIN:      AT0000612601
Börsen:  Wiener Börse AG / official market

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