DIREVO Biotech Acquired by Bayer HealthCare

210 Million EUR (approx. $300 Million) Transaction Value

Cologne (Germany), September 16, 2008 - DIREVO Biotech AG announced
today its acquisition by Bayer HealthCare in an all cash deal at a
transaction value of ¤210 Million (approx. $300 Million). DIREVO
Industrial Biotechnology GmbH, a wholly owned subsidiary of DIREVO
Biotech AG, is not subject to this transaction and has been sold in a
separate deal to a group of financial investors.

DIREVO Biotech's unique and proprietary protein engineering platform
uses high throughput technologies for the rapid discovery and
optimization of biopharmaceuticals. The platform has already been
successfully applied to a wide range of proteins, including
therapeutic antibodies and proteases that will be added to the
preclinical pipeline of Bayer Schering Pharma.

Bayer Healthcare plans to integrate DIREVO Biotech's research and
development (R&D) personnel into Bayer Schering Pharma's global drug
discovery organization. The site in Cologne will be maintained and
integrated into Bayer Schering Pharma as a center of expertise for
biologicals alongside the global R&D centers in Germany (Berlin and
Wuppertal) and the USA (Berkeley).

"With this deal we emphasize our position as a recognized leader in
protein engineering. Bayer HealthCare is our new owner of choice not
only because of the excellent perspectives for our projects but also
due to the close geographic proximity," said Thomas von Rüden, CEO of
DIREVO Biotech AG. "We feel that this is in the best interest of our
former owners and our employees. As part of Bayer Schering Pharma we
will further develop our expertise and knowledge in biopharmaceutical
research."

"Today Bayer Schering Pharma is among the top ten biologics companies
in the world. We are committed to further strengthen our biologicals
portfolio, and DIREVO's leadership in protein engineering provides
promising opportunities for further business growth," said Arthur
Higgins, CEO of Bayer HealthCare AG.

DIREVO was advised by Mummert & Company Corporate Finance GesmbH and
Mayer Brown LLP.

-end-

About DIREVO Biotech AG

DIREVO Biotech AG generates superior bioengineered products and
processes for industrial and pharmaceutical markets by enhancing
nature's potential. The Company's portfolio includes optimized
proteins, optimized bioprocesses and other bio-molecules, to be used
in research, in commercial development and on the market. DIREVO
develops products both independently and with global leaders such as
Danisco/Genencor, Nestlé, AstraZeneca/MedImmune and Pfizer. DIREVO
Biotech is committed to a tailored approach to addressing customer
needs and market opportunities.

DIREVO's biopharmaceutical business generates improved second
generation therapeutics and discovers and optimizes novel
first-generation therapeutics in particular in the areas therapeutic
antibody and protease. The core technology is a unique and repeatedly
proven platform for discovery and optimization of a wide range of
protein therapeutics. The company announced recently the
implementation of a novel proprietary technology platform bestMab(TM)
for the optimization of therapeutic antibodies. In addition, DIREVO
is in the process of generating a 3rd generation fully human antibody
library that, as the bestMab(TM) technology, is independent from any
display technologies. Furthermore, DIREVO has successfully
established a high-throughput protein engineering technology in
mammalian cells that enables the optimization of complex proteins.

DIREVO has been financed by institutional investors, including TVM
Capital, Bankhaus Wölbern, Danisco A/S/Danisco Venture, Mulligan
BioCapital, Signet Healthcare Partners, NRW.Bank, and SKB
Kapitalbeteiligungsgesellschaft mbH, a Sparkasse KölnBonn affiliated
private equity firm as well as a number of private individuals.
Find more information at www.DIREVO.com

Contact:
DIREVO Biotech AG,
Dr. Thomas von Rüden, President & Chief Executive Officer
Telephone: + 49 221 8887-121, E-mail: pr@DIREVO.com
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