euro adhoc: Intercell AG / Joint Ventures/Cooperation/Collaboration / Intercell and Merck enter strategic alliance to develop monoclonal antibodies for the treatment of severe Staphylococcus aureus in

--------------------------------------------------------------------------------
Disclosure announcement transmitted by euro adhoc.
The issuer is responsible for the content of this announcement.
--------------------------------------------------------------------------------

11.05.2006

Intercell AG (VSE "ICLL") today announced that it has entered into a
strategic partnership with Merck & Co., Inc. to develop human
monoclonal antibodies against severe infections caused by
Staphylococcus aureus, a bacterium, that causes severe
hospital-acquired infections and has become increasingly resistant to
a variety of antibiotics. Under the terms of an agreement signed in
May 2004, Merck has exercised an option to receive worldwide rights
to develop and commercialize antibodies directed against proprietary
antigens that have been detected by Intercell’s Antigen
Identification Program (AIP®). This technology identifies
anti-bacterial targets. Pursuant to the agreement, Merck Inc. is
responsible for subsequent pre-clinical and clinical development,
registration and marketing of the product. Intercell is entitled to
an option exercise fee and additional milestone payments.
Furthermore, Intercell will receive royalties on future sales of the
product. There are no further costs involved for Intercell.
Antibacterial antibodies represent a novel approach to treat
infectious diseases, especially when antibiotic treatment is not
sufficient. "In addition to our recently initiated partnership with
Kirin, this is now the second broad application of our technology in
this newly arising and increasingly important field of modern
medicine", states Alexander von Gabain, Intercell’s Chief Scientific
Officer. "Our strong commercial partnerships, all based on our
Antigen Identification Program, emphasize the potential of our
technology to deliver even more monoclonal antibody targets and
potent vaccine candidates in the field of bacterial infections." "The
development of therapeutic human antibodies, in addition to our
ongoing development of a prophylactic Staphylococcus aureus vaccine,
clearly demonstrates our strong commitment to fight this important
disease. Using antigens identified by Intercell’s AIP for both, the
vaccine and the monoclonal antibodies, shows our confidence in the
potential of Intercell’s technologies", states John Shiver, Vice
President Vaccines and Biologics Research at Merck.

About Staphylococcus aureus infections

Hospital-aquired infections are one of the major causes of death and
serious illness worldwide, resulting in an annual burden of more than
$20 billion in the developed world. In the United States alone, about
two million patients become infected annually while receiving health
care in hospitals. The incidence of nosocomial infections is steadily
increasing due to medical interventions and most notably due to the
emergence of antibiotic resistant bacteria circulating in hospitals.
S. aureus is the most frequent cause of hospital acquired infections.
In addition to bloodstream infections with a mortality rate of up to
35%, infections of bone, heart and other inner organs are leading to
serious health complications, death and economic burden. Today,
approximately 50% of S. aureus strains isolated in hospitals
worldwide are resistant to multiple antibiotics, rendering
staphylococcal disease management increasingly difficult and
challenging.

About Monoclonal Antibodies

Antibodies are an important part of the body's natural defense system
and are normally produced by our immune system to help our bodies
fight disease. Antibodies are proteins that seek out, recognize and
bind to a particular site on cells, bacteria and other organisms in a
highly specific manner. This specificity makes antibodies useful in
the treatment of many types of disease, and antibodies have
relatively few side effects since they are a part of the body's own
natural immune system. Worldwide, pharmaceutical and biotechnology
companies, as well as universities, are exploring monoclonal antibody
technology to develop new therapeutic and in vivo diagnostic
products. Therapeutic antibody products are currently on the market
for a variety of indications, including cancer, heart disease, and
transplant rejection. To date, 17 monoclonal antibody products are
approved by the U.S. Food and Drug Administration for use as
therapeutic products in the United States. According to Datamonitor,
the therapeutic antibody market is expected to triple in size by 2010
as a result of significant technology advancements and
commercialization of a number of safer, more effective humanized and
fully human antibodies. Global sales of the monoclonal antibodies
market increased by 48 % in 2004 and surpassed the USD 10 billion
(EUR 7.8 billion) mark, building on the momentum from previous years.

end of announcement euro adhoc 11.05.2006 17:13:14
--------------------------------------------------------------------------------

ots Originaltext: Intercell AG
Im Internet recherchierbar: http://www.presseportal.de

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

Branche: Biotechnology
ISIN: AT0000612601
WKN: A0D8HW
Börsen: Wiener Börse AG / official market