Biotage issues 10 million new shares and intends to execute a rights issue

On September 7, 2005 the board of Biotage AB decided to increase the company’s share capital by means of a new issue of 10 million shares. The shares are subscribed by Carnegie Investment Bank for resale to a limited number of institutional investors in Sweden and abroad. The decision was based on the authorization to the board by the extraordinary shareholders’ meeting held on August 30, 2005. By the new issue, the share capital is increased by SEK 10 million to SEK 80,442,108. The issue price amounts to SEK 9.70 per share, corresponding to approximately 95 percent of the average volume weighted price paid for the Biotage share on September 7, 2005, and approximately 98 percent of the average volume weighted price paid for the share during the ten latest trading days (August 25 – September 7 2005). In order to efficiently execute the issue, the Company’s three largest shareholders, HealthCap, Investor Growth Capital and Catella Healthcare, will lend shares in connection with the issue. The new shares correspond to approximately 12 percent of the capital and votes of Biotage following the issue. After deduction of costs, the new share issue brings the company new capital amounting to approximately SEK 94 million. The motive for the issue and the deviation from the shareholders’ preemption rights is to promptly and efficiently refinance part of the debt financing, amouting to SEK 140 million, regarding the acquisition of Argonaut’s business. In order to refinance remaining part of the above-metioned debt financing, the board intends to resolve upon a rights issue, based on the above-mentioned authorization from the extraordinary shareholders’ meeting. The terms of the rights issue is intended to be communicated within short. Contact: Jeff Bork, President and CEO Tel: +46 734 22 16 60, jeff.bork@biotage.se Biotage AB (publ) The Board of Directors