Biotage issues 5.7 million new shares to Catella Healthcare

Contact: Jeff Bork, President and CEO Tel: +46 734-22 16 60 Mikael Widell, Head of Communications, Catella Holding AB Tel: +46 703-11 99 60 Mikael.widell@invics.se Uppsala December 15, 2004. On 14 December 2004, the board of Biotage AB resolved to increase the company’s share capital by means of a new issue of 5.7 million shares to Catella Healthcare AB. The resolution was based on the authorization to the board by the extra ordinary general meeting on 20 July 2004.

By the new issue, the share capital is increased by SEK 5.7 million to SEK 64,042,108 through an issue of 5.7 million shares. The issue price is SEK 7.90 per share. The issue price corresponds to the latest price paid for the Biotage share on 14 December 2004, and exceeds the average price paid for the share during the ten latest trading days by more than 3 per cent. With deviation from the shareholders’ preemption rights, the entire new issue is subscribed by Catella Healthcare. The acquisition corresponds to 8.9 per cent of the capital and votes of Biotage following the issue. The payment for the shares amounts to approximately a total of SEK 45 million. The reason for the issue is mainly to improve the company’s financial position in order to take advantage of business possibilities and by that creating increased profitability and growth. The major shareholders of Biotage have informed the company that they recommend that Annika Espander, CEO of Catella Healthcare, will be offered a seat on the board of Biotage at the next annual general meeting. “We are impressed by the restructuring process that has been conducted under Jeff Bork’s management. It is our evaluation that the company has highly favorable prospects for establishing itself as a leading player within its core areas, medicinal chemistry and genetic analysis,” says Annika Espander. ”We view Catella Healthcare’s investment in Biotage as a sign of strength. An additional long-term owner strengthens our ownership base, while Annika Espander’s future board membership would suggest an active ownership,” says Jeff Bork, President and CEO of Biotage. Biotage has previously announced a program of measures intended to reduce the Group’s costs from SEK 600 million to less than SEK 300 million during 2004. It also announced that a positive cash flow would be achieved during the fourth quarter of the year. “The cost-reduction target was achieved during the first quarter of 2004 and we retain a realistic view that we will achieve positive cash flow during the fourth quarter of the year,” says Jeff Bork. Facts for editors: Catella Catella is a financial group focusing on capital management, corporate finance and its own investments. By contributing both knowledge and capital, Catella is able to generate unique conditions for its customers. During 2003, Catella acted as financial advisor in transactions with a combined transaction value of SEK 50 billion. Slightly less than SEK 12 billion is managed on behalf of customers. In addition, Catella is the full or partial owner of some 50 companies with a total of approximately 2,500 employees. Catella was founded in 1987 and currently has operations in eight European countries. For further information, visit our website at www.catella.se.