Interim report for Biotage January - June 2009

• Net sales in the second quarter increased by 10 percent to 104.4 MSEK (95.1). In the period January – June 2009 net sales increased by 11 percent to 204.0 MSEK (184.0). At comparable exchange rates sales decreased by 10 percent, in the second quarter as well as during the first six months. • The operating result amounted to 3.7 MSEK (2.7) in the second quarter and to -15,7 MSEK (3.9) in the period January - June. Before estimated restructuring costs the operating result for the first six months amounted to 5.4 MSEK (3.9). • The result after tax amounted to 5.7 MSEK (1.8) in the second quarter and to -15,9 MSEK (2.2) for the period January to June 2009. • Earnings per share amounted to 0.06 SEK (0.09) in the second quarter and to -0.18 SEK (0.24) in the period January – June. • Net cash at June 30, 2009 amounted to 334.2 MSEK. • In the second quarter dividends to shareholders were paid to the amount of 17.7 MSEK. No shares have been acquired in the previously decided share buy-back program. • The cash flow from operating activities amounted to -4.1 MSEK (-4.5) in the second quarter and to 16.8 MSEK (-2.8) in the period January - June. Comments by CEO Torben Jörgensen During the second quarter no significant trend change could be observed. The financial climate continued to affect Biotage’s operations and sales. We saw continued weak sales of instruments to the major pharma companies. However, Biotage continues to strengthen its position in the academic customer segment. The sales of consumables continued to be strong. Geographically the development in the US and Japan was good, while Europe and other parts of Asia had a weak quarter. During the quarter Biotage made the first sales of products in the new product area peptide synthesis. The implementation of the structural changes that were decided at the beginning of the year continues according to plan. The operations at the company’s plant in Charlottesville, Virginia, USA are being closed down. The production is relocated, partly to a contract manufacturer, partly to Biotage’s own plant in Cardiff, Wales. In addition to this, the operations in the UK are consolidated to one site. When these changes have been completed the company will have a much more favorable cost structure and lower capital binding. Efficiency improvements are furthermore expected in the UK-based operations. The operating result was negatively affected by a 10 percent decrease in sales volume, but positively influenced by currency effects, a higher gross margin and cost reductions. During the second quarter Biotage was sued for patent infringement. The legal process is ongoing and there is currently nothing new to report and no reason to reappraise the initial analysis of Biotage’s actual position. Biotage continues to have a very strong financial position with net cash amounting to 334 MSEK which makes it possible to expand the operations. An intensive process is carried out to further improve and develop Biotage’s offer. This work involves widening Biotage’s present product range as well as entering into new application areas and towards new customer groups. Biotage has during the quarter for the first time paid dividends to the shareholders. At the end of the quarter no own shares had yet been repurchased of the previously decided share buy-back program.