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PRESS RELEASE: BRAIN AG announces Intention to Float




05.01.16 08:00
Dow Jones Newswires



PRESS RELEASE: BRAIN AG announces Intention to Float





DGAP-News: B.R.A.I.N. Biotechnology Research And Information Network AG / Key word(s): IPO
BRAIN AG announces Intention to Float

2016-01-05 / 08:00
The issuer is solely responsible for the content of this announcement.

The information contained herein is not for publication, release or distribution (directly or indirectly) in or into or
to persons in the United States of America, Canada, Japan and Australia or any other jurisdiction in which publication,
release or distribution would be unlawful.

PRESS RELEASE

BRAIN AG announces Intention to Float

- First German company from the field of Bioeconomy plans an Initial Public Offering on the Frankfurt stock exchange
with admission to the Prime Standard

- BRAIN develops bio-industrial product solutions for globally active industrial partners and for its own
commercialisation

- BRAIN promotes as key enabler the "Biologisation of Industries"

- Planned IPO will allow BRAIN to accelerate the commercialisation of its own product pipeline and to promote its
successfully initiated industrialisation strategy

- Special subscription programme for retail investors

Zwingenberg, January 05, 2016: B.R.A.I.N. Biotechnology Research and Information Network AG ("BRAIN AG", "the Company"
and together with its subsidiaries "BRAIN" or "the Group") is preparing an initial public offering ("IPO" or "the
Offer") in the Regulated Market (Prime Standard) of the Frankfurt Stock Exchange.

BRAIN AG is one of Europe's leading technology companies in the field of industrial biotechnology, the core discipline
of the Bioeconomy. Using proprietary technology platforms, the Company identifies previously untapped, efficient
enzymes, microbial producer organisms or bioactive natural substances from all that biodiversity has to offer to put
them into industrial or rather bioeconomical use. The innovative product solutions developed by the help of this
"Toolbox of Nature" are successfully applied in the chemical industry as well as in the consumer goods, cosmetics,
animal feed, and food industries. To secure its technologies and product candidates, BRAIN AG holds more than 350
patents and patent applications divided in 48 patent families.

Clearly focussed business model

BRAIN's business is based on two pillars - "BioScience" and "BioIndustrial".

The "BioScience" pillar comprises the Company's - frequently exclusive - collaboration business with selected globally
active industrial partners. Since its foundation, BRAIN AG has successfully entered into more than 100 of such
long-lasting industrial partnerships. Basically, these involve BRAIN providing research and development services aimed
at sustainably improving processes or at identifying new products and technical solutions harnessing the methods of
industrial biotechnology. To this end, the Company receives a combination of running research and development fees,
milestone payments, performance payments and license fees from the respective industrial partner. Among these
collaboration partners are companies such as BASF, Bayer, Clariant, DSM Nutritional Products, Evonik, Fuchs Europe,
Henkel, Nutrinova, RWE, Südzucker, or Symrise.

The second pillar of BRAIN's business, "BioIndustrial", comprises the development and commercialisation of its own
products and active product components. In order to promote the underlying industrialisation strategy, BRAIN AG targets
rapidly growing market segments such as enzymes, food, wound care, or BioSubstitutes (biological substituents for
chemical ingredients) as well as cosmetics and care products within the consumer goods market. For these target markets,
the Company has built an extensive product pipeline intended to contribute significantly to its future sales growth.

These products and active product components are either marketed by granting licenses to third parties or by acquiring
companies which are already active in the relevant markets. In this pillar of the business, BRAIN thus participates in
the market through own product sales, or by license payments and royalty payments linked to the licensee's final product
sales.

In fiscal year 2014/15, the Company has acquired a majority interest in a well-established manufacturing and sales
company - WeissBioTech - for the enzyme and food target markets. In earlier years, BRAIN AG had already acquired two
other industrial enterprises providing both the required manufacturing capacities and market access to end consumers
(B2B, B2C) within the market for cosmetics and care products.

Consistent growth strategy

More than 20 years of experience in the industrial collaboration business have paved the way for BRAIN AG's consistent
expansion over the past few years. During the same time period, BRAIN has established robust contacts to the industry,
the scientific and academic community and political bodies in order to be accepted and act as a key enabler in the
change towards a bio-based economy.

After the adoption of its industrialisation strategy in 2008, the Company had a special focus on investing into and
scaling up its own product pipeline. In addition, the Company was sustainably strengthened through selective corporate
acquisitions which were successfully integrated into the value chain and well positioned in attractive markets.

BRAIN's strong growth path is also reflected in the Company's financial development. The Group's operating performance
(sales revenues + changes in finished goods and work in progress + other income including R&D grants) increased by a
compound annual growth rate of 59 per cent, from EUR 10.2m to EUR 25.7m, between the 2012/13 and the 2014/15 fiscal
years. A significant portion of this growth is attributable to the "BioIndustrial" division, where the operating
performance increased by an average of 68 per cent per annum from EUR 4.8m to EUR 13.5m, over the same period.
Consequently, already today, this business pillar accounts for more than half (53 per cent in fiscal year 2014/15) of
the Group's operating performance. The Group's EBIT remained almost stable in absolute numbers, with EUR -4.4m in
2012/13 and EUR -4.6m in 2014/15, while margins improved over time. The different relations between the absolute revenue
and earnings developments is due to the significant increase of Research & Development capabilities on the one hand, and
the initial consolidation of WeissBioTech on the other hand, which does not yet include the expected earnings potential
from the use of BRAIN's product pipeline.

BRAIN AG sees future growth opportunities mainly in the expansion of its BioArchive, the so-called "Toolbox of Nature".
This is how the Company intends to secure additional rights to use and exploit biotechnology solutions. In addition, the
Company continues to pursue its "multi-product opportunity" approach, which is based on the fact that one innovative
solution developed by BRAIN may often be used and monetised in different market segments in parallel.

Finally, BRAIN AG plans to further expand its business activities in the "BioScience" division with its collaboration
partnerships. It also aims to extend its "BioIndustrial" activities on a more global scale, i.e. beyond the
German-speaking countries and Europe.

To be prepared for this next level of growth especially in view of the additional tasks in the product business, the
BRAIN management team has been strengthened and equipped with more responsibilities during the last year. The Management
Board, led by its Chairman Dr Jürgen Eck, who belongs to the group of BRAIN shareholders since 1994, was complemented by
Henricus Marks (COO), who has more than 25 years of industry experience, in particular in global sales operations and
key account management particularly in the enzyme business. In addition, Dr Georg Kellinghusen, former member of the
BRAIN Supervisory Board, was appointed CFO with effect from January 01, 2016. The experienced management team, now
consisting of ten people, is highly motivated to make a significant contribution for BRAIN and the biological
transformation of the target industries.

Offer for institutional and private investors

The planned offer primarily consists of newly issued shares from a capital increase; meaning, the Company will receive
all the proceeds from these primary shares. Besides, one existing shareholder is planning to provide shares to be used
in an over-allotment option.

ODDO Seydler Bank AG is acting as Sole Global Coordinator and Bookrunner in the transaction. Blaettchen Financial
Advisory GmbH is supporting the Company as IPO consultant.

Some 51 per cent of BRAIN AG's current equity capital is held by the family office of MP Beteiligungs GmbH and around 20
per cent is owned by MIG, a group of venture capital funds. The remaining around 29 per cent are primarily in the
possession of the Company's founders and senior management. These existing shareholders will continue to hold a
significant equity portion after the planned IPO.

The Offer will consist of initial public offerings in Germany and Austria as well as private placements in certain
jurisdictions outside of these countries and outside the United States of America. With the aim to adequately target
retail investors, BRAIN wants to reserve some 10 per cent of the offered shares for this group of investors. Plans are
being made to provide dedicated subscription channels - also via the Company itself - for this particular purpose.

"Over the past few years, we have built up an excellent reputation within the research community, political bodies and
the relevant industry players, and have realised successful collaboration projects. We have also made good progress with
our industrialisation strategy - thanks to successfully integrated acquisitions on the one hand and the expansion of our
product pipeline on the other hand. Now we are ready to increase our independence on the financing side, in order to
properly benefit from the tailwinds in our industry. The planned IPO will bring the expansion of our Company an


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