Genovis carries out new share issue

•New share issue of SEK 7 million with preferential rights to existing shareholdes. •Two (2) shares give right to subscribe to one (1) new share at issue price of SEK 1. •Subscription period 16-30 September. •The company anticipates issue guarantees amounting to SEK 2.5 million.

Background and motive The Genovis research and development programme has during 2008 and 2009 given priority to projects focusing on medical-technical use of nanoparticles. The projects have progressed according to plan. To strengthen the accumulated know-how concerning design of nanoparticles, and to transfer the know-how into revenues, Genovis recently signed an agreement for the acquisition of Eijdo research AB. Eijdo research is a contract research company specialized in imaging using magnetic camera; MRT (magnetic resonance tomography). Genovis needs additional capital to fully capture the opportunities generated by this acquisition. During 2008 the company attempted to divest all products and intellectual property rights related to its antibody modifying enzymes (the protein portfolio) against compensation in cash. Negotiations with interested parties were conducted throughout the year, and there has been a generally high interest. It has however, turned out to be more advantageous to Genovis to maintain and further develop the intellectual property in-house, and to place production and global sales with one or a few selected partners. The cash consideration that Genovis expected from the divestment of the protein portfolio will not be materialized, but there will instead be revenues generated over a longer period. Long-term this business model is expected to generate bigger revenues for the company. As a consequence of not having divested the protein portfolio, the company now lacks the capital needed to finance the operation and to pursue the business development plan. The fact that the company has chosen not produce and market products related to the antibody modifying enzymes means that a number of positions will disappear. As a consequence Genovis has demanded negotiations regarding staff reductions under the Swedish MBL law. Through staff reductions, Genovis expects to reduce its overall costs with approx. 37%. Against this background the Board of Directors has decided to announce an extarordinary General Meeting on 8th September 2009, and proposes a new share issue with preferential rights to existing shareholders. The liquid funds will primarily be used for the running operation and for the acquisition of Eijdo research AB. Proposed decision on new share issue The board proposes that the extraordinary General Meeting decides on a new share issue with preferential rights for existing shareholders, at which two existing shares give right to the subscription of one new share at issue price of SEK 1 per share. The decision means that the share capital can be increased with altogether SEK 2 813 293,2 through the issuing of 7 033 233 new shares. Following the completed share issue the share capital will amount to, at the maximum, SEK 8 439 879,6, and the number of shares to 21 099 699. The company receives approx. SEK 7 million before costs for the share issue. The share issue results in a dilution effect of 33%. Time plan for the share issue 8 September 2009 Extraordinary general meeting to address approval of the board’s proposal on a new share issue. 8 September 2009 Last trading day for the Genovis share day to be able to participate in the new share issue. 11 September 2009 Record day for participation in the new share issue, i.e. the shareholders registered in the Genovis shareholder’s register as on this day receive subscription rights for the new share issue. 16-30 September 2009 Subscription period. Subscription with preferential rights trough cash payment during the subscription period. Intention to subscribe can be made throughout the whole subscription period. There will be no trading in subscription rights.