Regensburg, Germany, May 2006 - The leading German biotech company Profos AG continues to achieve momentum: today the company announced that Bayern Kapital and KfW have entered into a participation agreement with the Company which provides for an investment of EUR 1 million each within the second closing of the Company's current financing round, supplementing the EUR 5 million first closing investments from Bio Fund Management Ltd., Helsinki, Danisco Venture A/S, Copenhagen and Capital Stage AG, Hamburg in July 2005.

Profos will use the raised capital to continue the commercialisation process, to expand its production plant and to accelerate the development of its cutting edge technologies in bacteria detection and endotoxin removal with its proprietary phage technology. The Company's focus for the next years is on the one hand the Food Safety Testing where the patented technology is the basis for the fast and reliable testing of several different foods as meat or cheese. The second immediate application of the Company's technology is the detection and removal of endotoxins (with its already successful Product EndoTrap®) which are known to a broad public as the major cause for human sepsis.

"The competence and experience of our investors is helping us to reach major successes in our business development and we feel that the value of our industry position is greatly enhanced by the support of our investors and board of directors", commented Dr. Wolfgang Mutter, CEO of Profos.

Oliver Glück, CFO, emphasised the importance of this second closing: "We highly appreciate the investment decisions of our new investors in the current unfavourable environment for Biotech companies since they demonstrate the confidence in the Company's further prospects and equity story. With this solid financial base Profos is able to reach its business goals. The strong demand and increasing inquiries of potential customers and industrial partners underline the outstanding chances for a successful commercialisation."

Bayern Kapital Risikokapitalbeteiligungs GmbH (Landshut, Germany) is a Bavarian venture capital company with the objective to finance research and market introduction of innovative products mainly in the fields of life Science, software and information/communication technology. Bayern Kapital is an essential driver of financing innovation projects in Bavaria. Since its foundation in 1995 the company has co-financed over 130 promising Bavarian start-ups, many of which have been able to achieve good market positions with excellent prospects.

KfW (Frankfurt, Germany) is a bank supported by the German government that offers loans, mezzanine, financing, equity capital and consulting services to e.g. small and medium sized enterprises. As a source of impulses it is furthermore the task of KfW to support companies that are working on new, promising technologies, not only with financing but also in their search for venture capital.

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For further information please contact:

Profos AG. www.profos.de Dr. Wolfgang Mutter, CEO Tel +49 - (0)941 - 942 62 24. E-Mail: [email protected]

Bayern Kapital Risikokapitalbeteiligungs GmbH. www.bayernkapital.de Monika Steger, Senior Investmentmanager Tel +49 - (0)871-923 25 19 E-Mail: [email protected]

KfW. www.kfw-mittelstandsbank.de Markus Danhausen, Senior Investmentmanager Tel +49 - (0)228 831 - 7905 E-Mail: [email protected]

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