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SYGNIS AG

euro adhoc: LION bioscience AG
Mergers - Acquisitions - Takeovers
Ad-hoc release: LION bioscience announces the take over of the operative business of Axaron Bioscience through acquisition of the shares in SYGNIS Bioscience GmbH & Co. KG by using the

  Disclosure announcement transmitted by euro adhoc.
  The issuer is responsible for the content of this announcement.
05.07.2006
Heidelberg, July 5, 2006 - With the sale of its bioinformatics
business unit  in March this year, LION bioscience AG disposed most
of  its  operational  business and, thereby, reached a major
milestone within the restructuring  process  which has been initiated
at  the  end  of  2004.  As  a  consequence,  the  Management
examined  various  alternatives  for  the  future  orientation   and
evaluated different individual cases. Today, after approval of the
supervisory board,  LION  bioscience  AG  signed  a contract together
with two investment-companies of  the  family  of  SAP-founder
Dietmar  Hopp,  BASF  Aktiengesellschaft  as  well  as  Axaron
Bioscience   AG; according to this agreement LION bioscience AG shall
acquire all shares  of  the company SYGNIS Bioscience GmbH & Co. KG
which is owned by the other  contracting parties. Depending on the
approval of its General Meeting, Axaron Bioscience  AG shall assign
its entire operating business to SYGNIS Bioscience GmbH &  Co.  KG.
Axaron Bioscience, which was founded in 1997, develops  with  its  35
employees promising novel therapies to treat neurodegenerative
diseases. AX200, a  product for the treatment of strokes, is the most
advanced compound and currently  being tested in a phase IIa clinical
trial. Furthermore,  the  management  and  supervisory  board  of
LION  bioscience  AG resolved on July 5, 2006 to use  78.6  percent
of  its  authorized  capital  to acquire all the shares in SYGNIS
Bioscience GmbH  &  Co.  KG.  In  exchange  for these  shares  some
7.8  million  new  LION  shares  will  be  issued  to   the
shareholders of SYGNIS Bioscience GmbH & Co. KG. The new  shareholder
structure after the transaction  will  be  as  follows:  Hopp  family
20.5  percent,  Dr. Friedrich von Bohlen and Halbach (founder and
chairman of the supervisory  board of LION) 7.6 percent, BASF
Aktiengesellschaft and Bayer  AG  5.1  percent  each, today's
shareholders/freefloat of LION bioscience AG 61.7 percent.
Furthermore,  both  investment  companies  of   the   Hopp   family   and   BASF
Aktiengesellschaft committed further capital inflow  of  more  than  18  million
Euro in LION bioscience AG.
For further information, please contact:
|Peter Willinger                        |Dr. Franz-Werner Haas             |
|Chief Executive Officer                |General Counsel                   |
|Tel: +49 (0) 6221-4038 293             |Tel: +49 (0) 6221-4038 340        |
|Email:                                 |Email:                            |
|peter.willinger@lionbioscience.com     |franz.werner.haas@lionbioscience.c|
|                                       |om                                |
|                                       |                                  |
Except for the historical information contained herein, the  matters  set  forth
in this press release are forward looking. These forward-looking statements  may
include  projections,  assumptions,  estimates,  targets,  and  descriptions  of
future events. Such statements are based on currently available information  and
on LION's current expectations as to future events that  may  not  prove  to  be
accurate. These statements are not guarantees of future performance and  involve
risks and uncertainties that are difficult to predict. Many factors could  cause
the actual results,  performance  or  achievements  of  LION  to  be  materially
different from those that may be projected,  expected,  targeted,
expressed  or implied by such statements. All roll-out plans and
future dates with respect  to completion of development and market
release of LION products are  target  dates only based on the
company's current planning and may change in the  future.  Any delays
in the current product release schedule will have  a  materially
adverse effect on the company's targets for fiscal year. ###
end of announcement                               euro adhoc 05.07.2006 21:25:35

Further inquiry note:

Stephan Trautvetter
Director Finance & Accounting
Telefon: +49(0)6221 4038 476
E-Mail: stephan.trautvetter@lionbioscience.com

Branche: Biotechnology
ISIN: DE0005043509
WKN: 504350
Index: CDAX, Prime All Share, Technologie All Share
Börsen: Frankfurter Wertpapierbörse / regulated dealing/prime
standard
New York / ADR
Börse Berlin-Bremen / free trade
Hamburger Wertpapierbörse / free trade
Baden-Württembergische Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Niedersächsische Börse zu Hannover / free trade
Bayerische Börse / free trade

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