Santhera Pharmaceuticals (SWX: SANN), a Swiss specialty pharmaceutical company with a focus on neuromuscular diseases, announces today that its Annual Shareholders' Meeting has approved the Annual Report, the Annual Financial Statements and the Consolidated Financial Statements for 2006, as well as the proposed appropriation of the results, use and creation of reserves. Shareholders also granted discharge to the members of the Board of Directors (Board) and Executive Management from liability. In addition, Santhera shareholders approved an amendment to the Company's Articles of Incorporation and elected Klaus Schollmeier, CEO of Santhera, as a new member of the Board. Michael Lytton, Martin Gertsch, Rudolf Gygax, George Nebgen, Timothy Rink and Bernd Seizinger were reelected as members of the Board. Finally, shareholders voted to reelect Ernst & Young as auditors and group auditor. The Annual Shareholders' Meeting was Santhera's first as a public company. A total of 56.75 % of the total share capital of the Company or 63.18 % of the shares entered into the Company's share register (with the right to vote) was represented at the shareholders meeting. Presentation to Shareholders In his presentation to shareholders, Michael Lytton, Chairman of the Board, outlined the considerable progress that Santhera has made in developing a late-stage clinical portfolio of neuromuscular drug candidates and securing funds from both private and public investors. With regard to 2006, he commented, "The results of last year reflect the progress that Santhera has made across all areas of its business, creating significant value for its shareholders. This success reflects both our sound strategy and the excellent execution by the company's management." The Company achieved some major milestones in 2006, in particular the very positive results from the collaborative study with the US National Institutes of Health for its lead program in Friedreich's Ataxia (FRDA), the start of the collaboration with Juvantia for the further clinical development of JP-1730 for Dyskinesia in Parkinson's Disease, and the successful listing on the SWX Swiss Exchange. Santhera's current pipeline continues to mature with two compounds in four Phase III and Phase II clinical development programs. The Company is preparing its first product registration filing for SNT-MC17 for FRDA in Europe for this summer. Mr Lytton added: "This milestone will mark a major step on our journey to achieving our vision of becoming a leading specialty pharmaceutical company offering therapies for a number of neuromuscular conditions with significant unmet medical need." Discharge and Board elections Santhera shareholders granted discharge to the members of the Board and to the members of the management from liability. The shareholders also approved the proposed amendment to the Company's Articles of Incorporation and elected Klaus Schollmeier, CEO of Santhera, as new member of the Board. Commenting on his election, he said: "I feel extremely honored by the shareholder's clear vote to appoint me to the Board and would like to extend them my sincere thanks for their confidence." It is not foreseen that Klaus Schollmeier will become Chairman of the Board or a member of any of its committees. Six Board members whose terms of office expired at the Shareholders' Meeting were reelected individually. In order to assure continuity in the Company's governance and experience, the shareholders accepted the introduction of staggered terms of office for Board members. As a result, Santhera's Board consists of Michael Lytton, Chairman (elected until the 2009 Shareholders' Meeting); Hans Peter Hasler, Vice-Chairman (until 2009); Martin Gertsch (until 2010); Rudolf Gygax (until 2008); Georg Nebgen (until 2008); Timothy Rink (until 2009); Klaus Schollmeier (until 2010); and Bernd Seizinger (until 2010). The Board members combine considerable experience in research, development, commercialization and financial management. These are the key skills that Santhera needs as it positions itself for the next stage of its corporate development. In its constituting meeting after the Shareholders' Meeting, the Board confirmed Michael Lytton as Chairman. The Board also decided that the memberships of its three committees remain unchanged; Martin Gertsch continues to chair the Audit Committee and Michael Lytton continues to chair the Nomination & Compensation Committee as well as the Financing Strategy & Transaction Committee. Appropriation of the results, use and creation of reserves Santhera shareholders approved to compensate the accumulated loss of CHF 12,836,478 with its capital reserves and share premium of CHF 119,088,589 and to transfer the amount of CHF 104,508,627 from capital reserves and share premium to the free reserves, resulting in net capital reserves and share premium of CHF 1,743,484. As a consequence of the transfer of CHF 104,508,627, the free reserves amount to CHF 146,000,000 as of January 1, 2007. Finally Ernst & Young was reelected as auditors and group auditors for the period of one year. * * * About Santhera Santhera Pharmaceuticals (SWX: SANN) is a Swiss specialty pharmaceutical company focusing on the discovery, development and marketing of small molecule pharmaceutical products for the treatment of severe neuromuscular diseases. Santhera's vision is to become a leading specialty pharmaceutical company offering therapies for a number of indications in this area of high unmet medical need which includes many orphan indications with no current therapy. Santhera currently has four clinical-stage development programs, three of which are investigating its lead compound SNT-MC17 (INN: idebenone) in the treatment of Friedreich's Ataxia (FRDA), Duchenne Muscular Dystrophy (DMD) and Leber's Hereditary Optic Neuropathy (LHON). The fourth clinical program is investigating JP-1730 (INN: fipamezole) for the treatment of Dyskinesia in Parkinson's Disease (DPD) in cooperation with Juvantia, the compound's owner. The most advanced program, SNT-MC17 in FRDA, is currently in preparation for Marketing Authorization Approval (MAA) filing in Europe and in Phase III clinical development in the US while the other clinical programs are in Phase II. For further information, please visit www.santhera.com. For Further Information, Contact Santhera Pharmaceuticals Klaus Schollmeier, Chief Executive Officer phone: +41 (0)61 906 89 52 [email protected] Barbara Heller, Chief Financial Officer phone: +41 (0)61 906 89 54 [email protected] Thomas Staffelbach, VP Public & Investor Relations phone: +41 (0)61 906 89 47 [email protected] Media Contacts: Citigate Dewe Rogerson David Dible phone: +44 207 638 95 71 [email protected] Disclaimer/Forward-looking Statements This news release is not and under no circumstances is to be construed as a solicitation, offer, or recommendation, to buy or sell securities issued by Santhera. Santhera makes no representation (either express or implied) that the information and opinions expressed in this news release are accurate, complete or up to date. Santhera disclaims, without limitation, all liability for any loss or damage of any kind, including any direct, indirect or consequential damages, which might be incurred in connection with the information contained in this news release. Forward-looking statements and other information contained in this release involve risks and uncertainties. Such statements reflect the current views, intentions and estimates of the Company. They are based on assumptions that may be inaccurate. Results could differ materially from those anticipated. Certain of these forward-looking statements can be identified by the use of forward-looking terminology such as "believe", "expect", "may", "are expected to", "will", "will continue", "should", "would be", "seek" or "anticipate" or by discussions of strategy, plans or intentions. Furthermore, the Company does not assume any obligation to update these forward-looking statements. --- End of Message --- Santhera Pharmaceuticals Holding AG Hammerstrasse 47 Liestal Switzerland WKN: A0LCUK; ISIN: CH0027148649; Index: SPI, SPIEX, SSCI; Listed: Main Market in SWX Swiss Exchange;