EANS-News: Sygnis Pharma AG proposes reduction of share capital to improve flexibility on capital markets

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Annual & Special Corporate Meetings

Heidelberg (euro adhoc) - Press Release

Heidelberg, October 20, 2010 - SYGNIS Pharma AG (Frankfurt:
LIO; ISIN DE0005043509; Prime Standard), a clinical stage
biotech company developing innovative CNS treatments, invited
shareholders to its Annual General Meeting for financial year 2009
/ 2010 on November 30, 2010. At the meeting the Board will propose
a reduction of the Company´s share capital according to §§ 222 ff.
German Stock Corporation Act (AktG).

This reduction will be combined with a consolidation of the shares
in a 3:1 ratio. As a result, the share capital will be reduced from
EUR 41,258,643 to EUR 13,752,881, allocated to 13,752,881 shares
outstanding.

The purpose of this process is primarily to improve the Company´s
abilities to interact on the capital markets. The planned measure is
based on the fact that the Company´s share price has been below the
nominal value of EUR 1 for a longer period. Following the capital
reduction and consolidation of shares, the share price is expected
to increase significantly to a level above the nominal value.

The SYGNIS share will thus comply with the relevant requirements and
will be more attractive for investors. Furthermore, the planned
measure will improve the flexibility of the company for future
capital measures and the development of financing alternatives. The
released capital will be used for the reduction of losses.

As of June 30, 2010 the liquidity of the company was EUR13.1 million.

About SYGNIS Pharma SYGNIS Pharma AG, headquartered in Heidelberg, is
a biopharmaceutical company listed on the Prime Standard of the
German stock exchange. The Company is focused on the research,
development and marketing of innovative therapies for the treatment
of disorders of the Central Nervous System. These include stroke
and various forms of dementia. These disorders are characterized by
an acute or gradual loss of nerve cells, which for the patients
always means a decline of functional abilities. Although there
is great medical demand, there are currently no or only
inadequate treatment options available.

One of the central elements in the Company´s value-creation
chain is the continued development of the existing product
pipeline. This is achieved by

testing the Company´s proprietary compounds, which are already under
development in a number of further CNS indications. Within specific R&D
programs at SYGNIS, new pre-clinical drug candidates are identified and
evaluated as well as early-stage projects are initiated for the purpose of
partnering.

###

Disclaimer Some statements included in this press release,
relating neither to proven financial results nor other historical
data, should be viewed as forward- looking, i.e. not definite.
Such statements are mainly predictions of future results, trends,
plans or goals. These statements should not be considered to be
total guarantees since given their very nature they are subject to
known and unknown risks and imponderability and can be affected by
other factors as a consequence of which the actual results, plans
and goals of SYGNIS Pharma AG may deviate greatly from the
established conclusions or implied predictions contained in such
statements. SYGNIS does not undertake to publicly update or revise
these statements in the light of new information or future results
or for any other reason. ###

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

Further inquiry note:

For further information please contact:

SYGNIS Pharma AG:

Dr. Franz-Werner Haas

Vice President Operations

+49 (0) 6221 454 812

franz-werner.haas@sygnis.de

Media-Contact:

Julia Phillips

Financial Dynamics

Tel.: +44 (0) 20 7269 7187

Branche: Biotechnology
ISIN: DE0005043509
WKN: 504350
Index: CDAX, Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
Hannover / free trade
München / free trade