Active Biotech: Smithkline Beecham Gives Top Priority to ETEC.

LUND, Sweden--(BUSINESS WIRE)--Aug. 27, 1999--

Active Biotech's partner SmithKline Beecham (SB), the world's largest vaccine company, gives top priority to Active Biotech's ETEC-vaccine and contributes resources in a new project organisation for completion of Phase III trials in Guatemala/Mexico. The estimated launch on the first selected market in SB's marketing plan is the year 2001. SmithKline Beecham is to submit registration applications for both Europe and the USA. This was announced today in Active Biotech's Half Year Report January-June 1999. The report contained following high-lights.

-- Investing in increased production capacity for the

ETEC-vaccine

-- The cholera vaccine - international breakthrough following WHO

recommendation

-- SAIK-MS in Phase I - great market potential for this multiple

sclerosis drug

-- Focusing and integration provide savings of approx. 75 MSEK a

year

-- Pre-tax profit -74.9 MSEK, 20 MSEK better than plan

-- Shareholders' equity per share 93 SEK and available liquid

funds per share 64 SEK

-- Group equity/assets ratio 75 %

-- Available liquid funds 721 MSEK

An investment in SBL Vaccin's production plants in order to ensure adequate volumes prior to the launch of the ETEC-vaccine will start in October. The investment amounts to approx. 3.5m US$. In the existing production plant the cholera vaccine, which, in Sweden, is marketed under the Dukoral trademark, is also manufactured. Dukoral sales have increased by 125% compared with last year.

The subsidiary, SBL Vaccin, has received its first major international order for its oral vaccine against cholera. The World Health Organisation, WHO, has recommended SBL's vaccine as being the only cholera vaccine with a documented high protective effect.

Following approval by the Medical Products Agency in Sweden [Lakemedelsverket] in June, the first clinical trials with a SAIK- compound against multiple sclerosis (MS) have been successfully carried out. SAIK is Active Biotech's generic name for different substances designed to modulate the human immune defence system. During the autumn an increased number of patients are to be included in the study and the result is expected to be available during Q2 of year 2000, which means that the product can be able to enter phase II as early as Q4 of year 2000. The launch is expected to take place in the year 2005/2006.

The pre-tax result for January-June amounted to -74.9 MSEK (US$ -9.0m). The forecast for the whole of 1999 remains at -115 MSEK (US$ -13.8m), including estimated one-off costs. As with previous forecasts there is an estimated sales profit for the ongoing sale of SBL Vaccin's property in Solna. No comparative figures for the corresponding period for last year are shown due to change of operations.

Active Biotech AB is a Swedish biotechnology group focused on the research and development of pharmaceuticals and vaccines. Our core competence is knowledge of the human immune defence system. We have a high qualitative project portfolio and considerable financial resources. Largest products are the Cholera-vaccine, vaccine against tourist diarrhoea (ETEC), and innovative drugs against MS (SAIK). The turnover of Active Biotech was SEK 259 million (US$ 32m) in 1998.

For a full report, please visit our home page: www.activebiotech.com