EANS-Adhoc: Ad hoc Announcement Pursuant to § 15 WpHG (German Securities Trading Act): Epigenomics AG Announces Restructuring of U.S. and European Operations

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ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
adhoc with the aim of a Europe-wide distribution. The issuer is solely
responsible for the content of this announcement.
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Company Information/molecular diagnostic

10.08.2011

Berlin, Germany, and Seattle, WA, U.S.A., August 10, 2011 -
Epigenomics AG (ISIN: DE000A1K0516) today released plans to
restructure its organization and heighten the focus of its activities
on the key U.S. market. Operations at the Epigenomics AG headquarters
in Berlin, Germany, as well as at its subsidiary Epigenomics Inc. in
Seattle, WA, U.S.A., are affected by the restructuring plans.
However, the development of Epigenomics' second generation blood test
for colorectal cancer ("CRC") detection, Epi proColon® 2.0, remains
on track. The launch of the product in Europe and a submission to the
U.S. Food and Drug Administration (FDA) for Premarket Approval review
are planned before year-end 2011.

Following a strategic review of the commercial opportunity presented
by Epi proColon® 2.0 in the key U.S. market, plans for developing a
commercial operation in the U.S. are being accelerated. The Company
will relocate its U.S. headquarters from Seattle, WA, to the East
Coast in 2012 and step up efforts to prepare for a commercial launch.
Research activities will be scaled down substantially and integrated
into the development department. Going forward, European
commercialization will be mainly focused on key accounts. Epigenomics
plans to reduce its total workforce by approximately 39 employees
targeting a company size of 45 employees by year end 2011.

Specifically, Epigenomics will implement the following key changes to
the organization:

* From 2012 onwards, the U.S. headquarters will be relocated to a new
business site, strategically located on the East Coast, as the
nucleus for building and growing the U.S. commercial operations while
retaining key Seattle staff in a satellite office. * Direct
commercialization in the European self-payer segment will be
de-emphasized and a key account approach for Epi proColon® and Epi
proLung® directed towards institutions such as healthcare providers,
health insurers and further large institutional customers will be
implemented to generate sustainable revenues in the mid to long term.
The European sales and marketing team will be adjusted accordingly. *
Early stage product and technology research will be discontinued and
clinical research scaled down and remaining R&D resources will be
concentrated on second generation product development and support of
existing products. * Biomarker discovery and development capabilities
will be maintained for collaborations with pharmaceutical companies
in the area of personalized medicine. * Further cost savings will be
realized through scaling down administration and management in
proportion to new company structure.

These measures are expected to be fully implemented by the end of
2011 and to be mainly reflected in the annual accounts of 2011. The
Company intends to reduce the total workforce from 84 employees at
the end of H1 2011 to approximately 45 employees by year-end 2011.
Starting in 2012, the Company expects to further grow its U.S.
commercial operations to prepare for an Epi proColon® 2.0 product
launch after the potential Premarket Approval by the FDA. Going
forward, Epigenomics expects to realize annual savings on a
comparable operational cost basis of approximately EUR 3.5-4.0
million. One-time restructuring costs are expected to be in the range
of EUR 3 million, of which approximately EUR 0.7 million will not
affect liquidity. The measures in connection with the restructuring
plan will accelerate cash outflows in 2011 and the company expects to
end the year with around EUR 13 million in liquid assets. However,
net cash outflows in 2012 will decrease accordingly. The management
estimates that the existing liquid assets will fund the Company's
operations well into 2013.

An updated guidance reflecting the effects of the restructuring and
cost saving measures will be provided at the time of the 9-Months
Financial Report.

* End of Ad hoc Release -

Further Information

Epigenomics AG today issued a press release on its 6-Months Financial
Report and its restructuring plans. The press release is available at
Epigenomics' website at:
http://www.epigenomics.com/en/news-investors.html

The 6-Months Report 2011 can be obtained from Epigenomics' website
at: http://www.epigenomics.com/en/news-investors/investors/financial-
reports.html

Conference call for press and analysts

Epigenomics' management will host a conference call at 3pm CET/9 am
EST today, Wednesday 10th August 2011. The dial-in numbers for the
conference call are:

Dial-in number (within Germany): +49 30 86871428
Dial-in number (within the UK): +44 203 3679216
Dial-in number (within the U.S.): +1 408 9169838

Participants are kindly requested to dial in 10 minutes prior to the
start of the call.

The presentation accompanying the conference call will be available
for download on the Epigenomics' website:
http://www.epigenomics.com/en/news-investors.html

A webcast of the conference call will be provided on Epigenomics'
website subsequently:
http://www.epigenomics.com/en/news-investors.html

Epigenomics legal disclaimer

This communication expressly or implicitly contains certain
forward-looking statements concerning Epigenomics 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 Epigenomics AG to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
Epigenomics 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 in this communication does not constitute
nor imply an offer to sell or transfer any product, and no product
based on this technology is currently available for sale by
Epigenomics in the United States or Canada. The analytical and
clinical performance characteristics of any Epigenomics product based
on this technology which may be sold at some future time in the U.S.
have not been established.

Further inquiry note:
Dr. Achim Plum
Sen. VP Corporate Development
Epigenomics AG
Tel: +49 30 24345 368
achim.plum@epigenomics.com

end of announcement euro adhoc
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issuer: Epigenomics AG
Kleine Präsidentenstraße 1
D-10178 Berlin
phone: +49 30 24345-0
FAX: +49 30 24345-555
mail: ir@epigenomics.com
WWW: www.epigenomics.com
sector: Biotechnology
ISIN: DE000A0BVT96, DE000A0XFWF2
indexes: Prime All Share, Technology All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, München
language: English