DGAP-Adhoc: 4SC AG decides on an increase in share capital

4SC AG / Capital Increase 02.05.2007 Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. =-------------------------------------------------------------------------- Planegg-Martinsried, Germany, 2 May 2007 - Today, the Management Board of the Martinsried-based drug discovery and development company 4SC AG (Frankfurt, Prime Standard: VSC), with the approval of the Supervisory Board, decided to increase the equity capital from 11,461,365 euros to up to 17,192,047 euros, by issuing up to 5,730,682 ordinary shares from authorised capital with no face value, in the name of the owner. The proceeds are to be used for further development of the existing project pipeline, and to add new projects. The subscription rights of shareholders are protected, and the Federal Office for Financial Services Supervision (BaFin) today approved the prospectus. Existing shareholders can obtain the new shares, with dividend rights from 1 January 2007, in a ratio of 2:1, from 3 May until probably 16 May 2007. Any not obtained shares will be offered to institutional investors in Germany for acquisition in a public offer process, and to institutional investors in other European countries by a private placement process. The final issue price for the new shares will be set by the company most likely on 10 May 2007. Further details of the increase in share capital can be found in the pre-emptive rights offering which is expected to be published in the electronic version of the Federal Gazette on 3 May 2007. =-------------------------------------------------------------------------- Information and Explaination of the Issuer to this News: With this proposed increase in share capital, 4SC AG intends not only to further develop the existing project pipeline, but also to include more projects in the development pipeline which have additional value creation potential and also ensure more risk diversification in the project portfolio. Current research work by 4SC AG has shown that certain development candidates could act as a platform for more than one project involving different indications. This is particularly true of the clinical development substance SC12267, which is currently undergoing Phase IIa testing in patients with active rheumatoid arthritis, and which has been granted a US patent. Here, there are new opportunities for testing the product in the treatment of other conditions such as atopic dermatitis and psoriasis, chronic inflammatory intestinal diseases and multiple sclerosis, thereby opening up additional market potential. In these areas, because of previous experience with SC12267, clinical development can be achieved at a relatively moderate cost and in a relatively short time. About 4SC AG: 4SC AG (ISIN DE0005753818) has been listed in the Prime Standard of Frankfurt Stock Exchange since 15 December 2005. Founded in 1997 and now with a staff of 59, the company develops novel drug candidates for inflammatory diseases and cancer using a cheminformatics based technology platform. Traditional high throughput screening of therapeutic agents has been transferred from the lab to the computer. Thus, the company offers substantial cost and time advantages as well as increased success rates in drug development. 4SC AG uses its patented technology platform to create a sustainable product pipeline for active agents that are developed in early clinical phases ('proof of concept') and subsequently result in upfront and milestone payments as well as participation in sales generated by out-licensed products to the pharmaceutical industry. There are currently six projects in the pipeline. The first project on the treatment of rheumatoid arthritis is currently undergoing clinical phase IIa. Four other product candidates are in preclinical development and another project is in the research stage. Furthermore, the company has its technology platform in co-operation projects with biotech and pharma companies and is already generating initial revenues. Legal Note This document may contain projections or estimates relating to plans and objectives relating to our future operations, products, or services; future financial results; or assumptions underlying or relating to any such statements; each of which constitutes a forward-looking statement subject to risks and uncertainties, many of which are beyond our control. Actual results could differ materially, depending on a number of factors. DGAP 02.05.2007 =-------------------------------------------------------------------------- Language: English Issuer: 4SC AG Am Klopferspitz 19a 82152 Martinsried Deutschland Phone: +49 (0)89 7007 63-0 Fax: +49 (0)89 7007 63-29 E-mail: public@4sc.com www: www.4sc.de ISIN: DE0005753818 WKN: 575381 Indices: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Düsseldorf, München, Stuttgart End of News DGAP News-Service =-------------------------------------------------------------------------- (END) Dow Jones Newswires

   May 02, 2007 14:32 ET (18:32 GMT)- - 02 32 PM EDT 05-02-07