BIOTEC – Raises NOK 40 million in a private placement

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART DIRECTLY OR INDIRECTLY, IN AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES

Tromsø, Norway, 11 January 2013

Biotec Pharmacon ASA ("Biotec" or the "Company", ticker "BIOTEC") today announces that the Company has raised NOK 40 million in gross proceeds through a private placement of 9,500,000 new shares, each with a par value of NOK 1.00 at a price of NOK 4.25 per share (the "Private Placement"). The new shares represent approximately 33.3% of the current issued shares in the Company.

The Private Placement took place through an accelerated bookbuilding process and was managed by Carnegie AS (the “Manager”).

The net proceeds from the private placement will primarily be used to fund the launch and commercialization of Woulgan® Biogel, the company’s proprietary beta-glucan product for advanced wound healing. A limited amount will be spent on measures to enable positive cash flow generation in the company’s other subsidiary, ArcticZymes AS.

The completion of the Private Placement is conditional upon all necessary corporate resolutions being validly made, including without limitation approval by the Extraordinary General Meeting of the Company expected to be held on or about 1 February 2013. After the completion of the Private Placement, the Company will have 38,052,816 shares outstanding, each with a par value of NOK 1.00.

Notification of conditional allotment and payment instructions for the Private Placement will be sent to the applicants on or about 11 January 2013 through a notification to be issued by the Manager. Payment date is set to 4 February 2013 and delivery of the shares to be issued in connection with the Private Placement is expected to occur on or about 7 February 2013.

The Board of Directors has decided to propose to the EGM a subsequent offering of up to 2,500,000 new shares with an issue price NOK 4.25 (the "Subsequent Offering"). The Company's shareholders as of 10 January 2013 (as documented by the shareholder register in the VPS as of 15 January 2013) who did not participate in the Private Placement, and who are not resident in a jurisdiction where such offering would be unlawful, or would (in jurisdictions other than Norway) require any prospectus filing, registration or similar action, will receive non-transferable subscription rights based on their shareholding as of that date.

Contacts:
Svein Lien
Chief Executive Officer
+47 92 28 93 23
svein.lien@biotec.no

About Biotec Pharmacon:

Biotec Pharmacon is a biopharmaceutical company that develops and manufactures new immunomodulatory products and cold adapted marine enzymes. The wholly owned Biotec BetaGlucans AS focuses on identifying, developing and commercializing innovative products to meet unmet medical needs in wound treatment, cancer and gastroenterology. The company's technology is protected by a large patent portfolio covering amongst others applications of yeast beta-glucans as adjuvants in conjunction with monoclonal antibodies. The subsidiary ArcticZymes AS aspires to become a leading supplier of novel enzymes for diagnostics and genetic research.

More information, visit www.biotec.no

Important information

The release is not for publication or distribution, in whole or in part directly or indirectly, in or into Australia, Canada, Japan or the United States (including its territories and possessions, any state of the United States and the District of Columbia).

This release is an announcement issued pursuant to legal information obligations, and is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. It is issued for information purposes only, and does not constitute or form part of any offer or solicitation to purchase or subscribe for securities, in the United States or in any other jurisdiction. The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "Securities Act"). The securities may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act. The Company does not intend to register any portion of the offering of the securities in the United States or to conduct a public offering of the securities in the United States. Copies of this announcement are not being made and may not be distributed or sent into Australia, Canada, Japan or the United States. The issue, exercise, purchase or sale of subscription rights and the subscription or purchase of shares in the Company are subject to specific legal or regulatory restrictions in certain jurisdictions. Neither the Company nor the Manager assumes any responsibility in the event there is a violation by any person of such restrictions.

The distribution of this release may in certain jurisdictions be restricted by law. Persons into whose possession this release comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. Carnegie is acting for the Company and no one else in connection with the Private Placement and will not be responsible to anyone other than the Company for providing the protections afforded to their respective clients or for providing advice in relation to the rights issue and/or any other matter referred to in this release.

Forward-looking statements:

This release and any materials distributed in connection with this release may contain certain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they reflect the Company's current expectations and assumptions as to future events and circumstances that may not prove accurate. A number of material factors could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.