euro adhoc: Intercell AG / Mergers - Acquisitions - Takeovers / Intercell AG closes Acquisition of Iomai Corporation

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Company Information

05.08.2008

» Intercell AG ("Intercell") closes the previously announced
acquisition of Iomai Corporation ("Iomai") for a total
consideration of 1,442,819 Intercell shares and a cash component of
EUR 75 million (USD 116 million) » Focus will be on the late stage
development and industrialization of the Travelers' Diarrhea patch
vaccine, the pandemic influenza patch vaccine, and the use of the
patch technology in new vaccine applications » Iomai to be delisted
from NASDAQ and renamed to Intercell USA, Inc., as a subsidiary of
Intercell AG. New management team implemented

Vienna (Austria), August 5, 2008 - Intercell AG (VSE: ICLL) today
announced the completion of the acquisition of Iomai. On May 12,
Intercell announced its intention to acquire Iomai and following the
positive Iomai shareholders vote on August 1 and the execution of all
important remaining closing conditions, the transaction is now
complete. Intercell issued 1,442,819 new shares from authorized
capital (representing about 3 % of Intercell's total outstanding
shares) at EUR 31.11 per share (closing price as of August 1) as
share consideration to former major Iomai shareholders. The cash
component of the transaction, totaling EUR 75 million (USD 116
million) for share-, warrant-, and option holders, was comfortably
financed from existing cash reserves of Intercell. In addition, a
part of the outstanding Iomai options will be replaced by Intercell
stock options.

Intercell expects to maintain profitability in 2008 despite the
additional costs associated with this acquisition.

Intercell will immediately focus on three strategic priorities to
realize the full value of the acquisition:

» Industrialization and Commercialization of Travelers' Diarrhea
Patch Vaccine The Travelers' Diarrhea patch is expected to be the
first vaccine protecting travelers against the major causes of
diarrhea. Based on compelling Phase II safety and efficacy data, the
start of a pivotal Phase III clinical trial is planned for the first
half of 2009. The estimated market potential for the new vaccine is
more than EUR 500 million in sales per year.

» Development of Pandemic Influenza Vaccines The immunostimulant
Vaccine Enhancement Patch has the potential for the development of
improved Influenza vaccines, especially in the field of pandemic
Influenza. Following the very encouraging Phase I/II data obtained
earlier this year the start of a Phase II clinical trial is expected
still this year. The development of the pandemic Influenza vaccine is
supported and funded by the US Department of Health and Human
Services (HHS).

» Leverage of Patch Technology into Other Vaccine Applications
Patches as a general vaccine delivery technology and the Vaccine
Enhancement Patches will be broadly leveraged to develop novel
vaccines that are more efficient and to reduce the number of
injections. This concept will be explored within Intercells' pipeline
(e.g. one time application for Japanese Encephalitis vaccine), and
also with outside partners.

Iomai Corporation located in Gaithersburg, Maryland (USA), where
about 110 people are employed, was renamed Intercell USA, Inc., and
became a subsidiary of Intercell AG upon closing. Intercell's Chief
Operating Officer Thomas Lingelbach was elected to also act as CEO of
Intercell USA. Iomai-founder Gregory Glenn was elected CSO of
Intercell USA, and Roman Necina and Reinhard Kandera were elected as
COO and CFO of Intercell USA, respectively.

Iomai will be delisted from NASDAQ.

Stanley C. Erck and Russell P. Wilson, the former CEO and CFO of
Iomai, left the company.

"We are very happy that we could close the transaction in a very
short period of time and that we now can put our full focus to
aggressively progress and leverage the patch based products and
technologies", states Gerd Zettlmeissl, Chief Executive Officer of
Intercell. "We would like to thank our new colleagues in the US and
the management team from Iomai for their excellent and hard work over
many years to develop the world leading vaccine patch franchise".

About Travelers' Diarrhea

This year, approximately 55 million international travelers will
visit countries where bacteria that cause travelers' diarrhea are
endemic, particularly Africa, Asia and Latin America. The Centers for
Disease Control and Prevention estimate that between 20 and 50
percent of international travelers contract diarrhea. The effects go
beyond the acute symptoms of the disease; between 10 and 30 percent
of those who develop travelers' diarrhea will develop the chronic
symptoms of irritable bowel syndrome. Because of the extent of the
problem and the lack of safe and effective prophylaxis, market
studies suggest that there is a large market for an effective
Travelers' Diarrhea vaccine, potentially exceeding EUR 500 million
annually. If approved, the Iomai vaccine would be the first vaccine
for travelers' diarrhea available in the United States.

About Pandemic Influenza

Three influenza pandemics have occurred in the 20th century leading
to the death of more than 50 million people globally. By US
government estimates, pandemic influenza has a greater potential to
cause deaths and illnesses than virtually any other natural health
threat. Signs of a pandemic influenza have emerged in Southeast Asia,
as lethal infections of poultry and humans with avian influenza virus
continue. The current virus is now endemic in bird populations,
having spread to more than 40 countries and causing the deaths of
hundreds of millions of birds. Furthermore, the World Health
Organization reports that the number of avian flu cases in humans has
reached more than 370 cases in 14 countries. In November 2005, the US
government announced a USD 7.1 billion initiative to prevent and
prepare for a pandemic influenza outbreak. In January 2007, Iomai
entered into a contract with the US government, potentially worth up
to USD 128 million over five years, to develop a dose-sparing patch
for use with a pandemic influenza vaccine.

end of announcement euro adhoc
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ots Originaltext: Intercell AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Intercell AG

Lucia Malfent

Head of Communications

Tel. +43 1 20620-303

lmalfent@intercell.com

Branche: Biotechnology
ISIN: AT0000612601
WKN: A0D8HW
Index: ATX Prime, ATX
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