MediGene Focuses its Strategy on Oncology and Immunology

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Martinsried/Munich June 2, 2008. On the basis of convincing clinical
data with EndoTAG(TM)-1 for the treatment of pancreatic cancer, the
executive board of MediGene AG (Frankfurt, Prime Standard: MDG) has
decided, with the supervisory board's consent, to focus the company's
business area significantly. All research and development activities
as well as the planned sales and marketing activities of the company
will be focused exclusively on the two areas oncology and immunology.
For its dermatological products, MediGene intends to conclude further
partnerships, but no more sales activities of its own. In the field
of research & development MediGene will focus primarily on its major
projects EndoTAG(TM)-1 and RhuDex(TM). Some projects such as the mTCR
and HSV programs will be spun off or discontinued. It is the opinion
of MediGene's management that the excellent clinical data obtained
with EndoTAG(TM)-1 will provide an ideal basis for this focusing.
MediGene intends to retain the marketing rights to EndoTAG(TM)-1 for
specific geographical markets when licensing the product, and to
participate in the further development of the drug. MediGene expects
these measures to have a positive effect on the company's future
business results.
Dr. Peter Heinrich, Chief Executive Officer of MediGene AG, comments:
"The excellent EndoTAG(TM) data obtained in the clinical phase II
have opened up completely new opportunities to us. We are now in a
very strong position for negotiations with potential partners in such
a way that we will be able to continue participating in both the
tremendous potential of this cancer drug, and the underlying
technology. At the same time we have received interesting offers for
our dermatological products which will enable us to focus on our core
competences cancer and immune diseases. This will involve
reallocation and cost savings that will increase the financial
flexibility of our company. Through this strategic focus we will gain
a clear-cut profile: MediGene develops drugs against cancer and
immune diseases. Our planned medium-term sales activities will center
around these areas. Furthermore, the cost reduction achieved by this
focusing will enable us to push forward our key development projects,
simultaneously reducing our company's capital requirements. "

This press release contains forward-looking statements representing
the opinion of MediGene as of the date of this release. The actual
results achieved by MediGene may differ significantly from the
statements made herein. MediGene is not bound to update any of these
forward-looking statements. EndoTAG(TM) and MediGene® are trademarks
of MediGene AG, RhuDex® is a trademark of MediGene Ltd.

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MediGene AG is a publicly quoted (Frankfurt, Prime Standard: MDG)
biotechnology company located in Martinsried/Munich, Germany, with
subsidiaries in Oxford, UK and San Diego, USA. MediGene is the first
German biotech company to have drugs on the market, which are being
distributed by partner companies. Another drug candidate has just
received official recommendation for marketing authorization by the
EMEA. MediGene has several drug candidates in clinical development,
including two products which each have an annual sales potential of
more than one billion Euros per year. MediGene also has projects in
research and pre-clinical development and possesses innovative
platform technologies for the development of active ingredients.
MediGene concentrates on researching, developing and commercializing
novel drugs in three therapeutic areas: cancer, autoimmune diseases,
and skin diseases.

Contact MediGene AG
E-mail: investor@medigene.com
Fax:++49 - 89 - 85 65 - 2920
Julia Hofmann / Dr. Georg Dönges, Public Relations, Tel.: ++49 - 89 -
85 65 - 3317
Dr. Michael Nettersheim / Dr. Georg Dönges, Investor Relations, Tel.:
++49 - 89 - 85 65 - 2946

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MediGene AG
Lochhamer Strasse 11 Martinsried / München Germany

WKN:
502090; ISIN: DE0005020903 ; Index: Prime All Share, CDAX, TECH All
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