Pharming Group N.V. Reports Fiscal 1999 Year-End Results.

Business Editors

LEIDEN, The Netherlands--(BUSINESS WIRE)--March 27, 2000

Pharming Group N.V. (AEX: PHAR /Easdaq: PHAR) today announced financial results for its fiscal year ended December 31, 1999.

The Company reported that revenues for the fiscal year 1999 increased 54% to EUR 12.5 million from EUR 8.1 million for the comparable period 1998. The revenues comprised payments of EUR 9.8 million from corporate partners, EUR 2.5 million from government grants, and EUR 0.2 million from patent licensing fees. Expenses increased 45% in 1999 to EUR 26.5 million from EUR 18.3 million in 1998, reflecting, amongst other factors, the continued development of human alpha-Glucosidase, human Lactoferrin, human C1 Inhibitor, and other products. The net loss from ordinary activities for 1999 was EUR 12.6 million, compared with EUR 9.1 million reported for the year ended December 31, 1998. The net loss before and after tax for 1999 amounted to EUR 12.6 million, a marked decrease from the EUR 17.4 million net loss in 1998.

As of December 31, 1999, Pharming had cash and cash equivalents of EUR 52.7 million primarily invested in term deposits. Pharmings cash position was reduced by EUR 18.6 million due to the net loss and the investments in fixed assets, most notably the investments in the manufacturing plant for rabbit milk based biopharmaceuticals in Geel, Belgium and the state-of-the-art pharmaceutical farm in DeForest, Wisconsin, USA. The Company believes that its current cash position will allow it to reach the next phase of development, and the market launch of the lead biopharmaceutical product human alpha-Glucosidase for Pompes disease, and will also suffice to execute other development programs.

Highlights 1999

1. Co-listing on Amsterdam Exchanges (AEX) 2. Continued strong financial government support 3. Collaboration with DSM 4. Further strengthening of patent portfolio 5. Pharming competition takes license on Pharming patents 6. Opening of worlds first pharmaceutical cattle farm in Wisconsin,

USA 7. Birth of worlds first female transgenic calves, generated through

nuclear transfer 8. Orphan drug designations for human C1 Inhibitor targeted at

hereditary angioedema 9. Phase II trial human alpha-Glucosidase for Pompe's disease

concluded with positive results

Pompe disease - human alpha-Glucosidase

In the fourth quarter 1999, the first-ever clinical study of human alpha-Glucosidase with Pompes disease patients at the Sophia Childrens Hospital in Rotterdam, the Netherlands, was concluded. The positive results of the Phase II trial showed survival, skeletal muscle regeneration, and overall improvement of heart and lung functions. After 36 weeks in the study the four included infantile patients reached the age range of 12 to 17 months, which is well beyond the mean age of survival in untreated infantile Pompe patients. Repeated muscle biopsies demonstrated that the transgenic recombinant enzyme is taken up by the main target tissue, skeletal muscle, reaching normal levels of alpha-

Glucosidase activities, which are comparable to healthy individuals. In the skeletal muscle tissue, the enzyme shows to be active, since on histological evaluation lysosomal glycogen storage decreased and muscle regeneration was observed.

The most prominent effect was seen on the heart. In untreated patients, the left ventricular posterior wall thickness increases over time as the disease progresses. After start of treatment, the slope of left ventricular posterior wall thickness versus time changed significantly for all four patients. This was in-line with a concomitant significant decrease of left ventricular mass index (a measure for the dimension of the left ventricle) over time, with the largest improvement to less than 30% of the original baseline value at the beginning of the study. In addition, symptoms of cardiac instability diminished in all patients. The treatment also has an effect on respiratory function. The two patients included prior to 3 months of age never became dependent on artificial ventilation and are treated as outpatients, receiving their weekly infusions on a day care basis . The development of human alpha-Glucosidase is the focus of a joint venture between Pharming and Genzyme General of Cambridge, MA, USA, to develop and commercialize worldwide the enzyme human alpha-Glucosidase as a treatment for Pompes disease, a hereditary, lethal lysosomal storage disorder.

Hereditary angioedema human C1 Inhibitor

Other important product development milestones in 1999 are the two orphan drug designations granted by the United States Food and Drug Administration for Pharmings human C1 Inhibitor for the treatment of hereditary angioedema, a grave and sometimes lethal disorder. Pharming expects to initiate a Phase I clinical trial in the course of 2000 and has recently signed an agreement with Baxter Healthcare Corporation on the co-development and marketing of human C1 Inhibitor for hereditary angioedema.

Heparin neutralization  human Lactoferrin

Pharmings Phase I trial in human volunteers with human Lactoferrin was concluded with positive results. Considering the commercial potential of human Lactoferrin for heparin neutralization after open-heart surgery, and the size of the market, Pharming is currently discussing the further development human Lactoferrin for this indication with potential partners. As a first step Pharming closed an agreement with DSM Biologics for large-scale purification of human Lactoferrin to guarantee sufficient supply for Phase II and Phase III clinical trials.

Female transgenic calves through nuclear transfer 1st pharmaceutical farm

Together with its strategic partner Infigen of DeForest, Wisconsin, Pharming achieved substantial success in its nuclear transfer program. The collaboration is well beyond the stage of proof-of-principle, and has already resulted in the generation of some 25 transgenic female calves. By mid-2000, this number will double to 50 transgenic female calves on the ground. The fact that Infigen and Pharming have the capability to routinely generate female transgenic calves, enables Pharming to shorten time-to-market by two years, since the male founder stage is no longer required. As a result of the progress in Wisconsin, Pharming has built a state-of-the-art pharmaceutical farm in DeForest, the worlds first dedicated to cattle, where the young animals are born and reared.

Patent portfolio

Pharming continued to aggressively expand its patent portfolio. In 1999, nine new patents were obtained in the principal markets where the company is active. A clear sign of Pharming's strong intellectual property position was the licensing agreement with Genzyme Transgenics that allows the latter the freedom to continue its development program of human Serum albumin. Pharming currently has a portfolio of 30 patents granted and pending.

Other financial highlights

To further improve access to its shares, Pharming obtained a co-listing on the Amsterdam Exchanges on 16 June, 1999. As expected the reaction of retail investors was enthusiastic, and the trading activity in Pharmings stock has increased substantially since. The 1999 annual report is available as of March 31, 2000.

Pharming is very pleased to have achieved several important milestones during 1999, said George J M Hersbach, President and Chief Executive Officer of Pharming Group N.V. After the positive completion of our Phase II clinical trial with human alpha-Glucosidase for Pompe's disease in Rotterdam at the end of 1999, Pharming has proceeded to expand the trial into Phase II/III. We are dedicated to the success of this potentially life-saving therapy, and expect to launch the product in 2001. At the same time Pharming achieved excellent results with its Phase I study with human Lactoferrin for heparin neutralization, and it concluded its preclinical development of human C1 Inhibitor for hereditary angioedema, which the company will take into a Phase I clinical trial in 2000, in collaboration with our partner, Baxter. In 1999, Pharming has continued to show the solid foundation and commercial potential of its broad product portfolio.

Pharming focuses on the development, production and worldwide commercialisation of human therapeutic proteins, produced at high levels in the milk of transgenic animals that have been created using the companys proprietary technology.

Statements included in this press release which are not historical in nature are intended to be, and are hereby identified as, "forward-looking statements" for purposes of the safe harbour provided by Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The company cautions readers that forward-looking statements, including without limitation those relating to the company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements. Factors that could cause actual results and future operations and business prospects to materially differ from those anticipated in these forward looking statements include, but are not limited to, clinical and scientific results and developments concerning corporate collaborations and the company's proprietary rights and other known and unknown risks including risk factors described in the prospectus relating to the company's recent initial public offering. Pharming Group N.V. cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Pharming expressly disclaims any obligation or undertaking to release publicly any updates or revisions of such statements to reflect any changes in Pharmings expectations or any change in events, conditions or circumstances on which any risk statement is based.

CONSOLIDATED STATEMENT OF OPERATIONS     1999              1998
Year ended December 31, 1999            EUR,000           EUR,000

REVENUES
Research and development contracts      9,795            3,771
Government grants                       2,510            4,220
Patent revenues                           200               85
Total Revenues                                  12,505         8,076

EXPENSES
Research and development                11,122            7,952
Operations                               6,530            3,564
Sales, general and administrative        7,538            5,799
Depreciation and amortisation            1,325              975
Total Expenses                                  26,515        18,290

Operating income / (loss)                      (14,010)      (10,214)

Result joint venture                              (347)          (40)
Financial income                                 1,734         1,200

NET RESULT from ordinary activities
   before exceptional items                    (12,623)      (9,054)
Exceptional items                                 -          (7,103)
NET RESULT from ordinary activities
   before and after income                     (12,623)     (16,157)
taxes
Extra-ordinary income /(loss)                     -          (1,263)
NET RESULT before and after income taxes       (12,623)     (17,420)
                                          =============  =============

PROFIT AND LOSS FROM OPERATIONAL ACTIVITIES PER SHARE
(excluding exceptional items)*
                                              1999             1998
Result from ordinary activities           (12,622,689)    (9,054,276)
Number of ordinary shares **               13,218,622      13,163,601
Earnings (loss) per share                       (0.95)          (0.69)
Number of ordinary share fully diluted **  15,502,962      15,418,046
Earnings (loss) per share fully diluted         (0.81)          (0.59)

PROFIT AND LOSS FROM CONTINUING
OPERATIONS PER SHARE
(including exceptional items),
   after taxes:                               1999             1998
Net income (loss) from continuing
operations before and after taxes         (12,622,689)   (16,157,298)
Net income (loss) per share                  (0.95)           (1.23)
Net income (loss) per share fully diluted    (0.81)           (1.05)

*   The calculation of earnings per share excluding exceptional items
    give the most appropriate measure of the underlying performance of
    the company

**  The earnings (loss) per share, respectively net income (loss) per
    share have been calculated using the number of shares per
    year-end.



CONSOLIDATED BALANCE SHEET
Year ended December 31, 1999
                                          1999             1998
                                        EUR,000           EUR,000
ASSETS
Fixed assets  Intangible fixed assets    2,687             2,631
              Tangible fixed assets     19,013             8,706
              Financial fixed assets        22               131

Total fixed assets                              21,722         11,468
                                               ==========    =========
Current assets
              Livestock                     15               141
              Receivables and accrued
                income                   8,558             6,271
              Cash                      52,700            71,335

Total current assets                            61,273         77,747
                                               ==========    =========

TOTAL ASSETS                                    82,995         89,215
                                               ==========    =========

GROUP EQUITY AND LIABILITIES
              Group Equity              69,817            82,614
              Long Term liabilities      2,301             1,567
              Current liabilities       10,877             5,034

TOTAL GROUP EQUITY AND LIABILITIES              82,995         89,215
                                               ==========    =========



CONSOLIDATED CASH FLOW STATEMENT
Year ended December 31, 1999
                                                 1999           1998
                                               EUR,000        EUR,000
Cash Flow from operational activities
Net loss for the year                         (14,010)       (10,214)
Depreciation and amortisation                    1,325            975
Result joint venture                              (347)           (40)
Exceptional items                                   -          (7,103)
Changes in working capital:
* Decrease (Increase) of livestock        127             92
* Decrease (Increase) of receivables   (2,287)        (3,746)
* Increase of current liabilities       5,843          1,282
                                                 3,683         (2,372)
                                                (9,349)       (18,754)

Interest received                       2,027          1,448
Interest paid                            (110)           (76)
                                                 1,917          1,372
Cash Flow from operational activities           (7,432)       (17,382)

Cash Flow from extraordinary income /              -           (1,263)
(losses)

Cash Flow from investing activities
Investments in intangible fixed assets    (292)         (731)
Investments in tangible fixed assets   (11,612)       (5,384)
Investments in financial fixed assets      109             5
Cash Flow from investing activities            (11,795)        (6,110)

Cash Flow from financing activities
Proceeds from share issue                   40         84,238
Increase/ (decrease) Long term debt        734           (645)
Cash Flow from financing activities                 774        83,593

Net cash flow                                   (18,453)       58,838
Foreign currency gains (losses)                    (182)         (274)

Increase/decrease of cash                       (18,635)       58,564
                                             =============  ==========