Santhera Raises CHF 15.9 Million in Private Placement with Strategic Investor Ares Life Sciences

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Santhera Pharmaceuticals (SIX: SANN), a Swiss specialty
pharmaceutical company focused on neuromuscular diseases, announced
today that it has raised gross proceeds of CHF 15.9 million in a
private placement with Ares Life Sciences, an investment vehicle
established by the Bertarelli family. Santhera sold 370,082 new
registered common shares at a price of CHF 43.00 per share
representing a premium of 3.7% over the volume-weighted average share
price of the last five trading days. The transaction strengthens
Santhera's financial flexibility and represents a positive strategic
endorsement by a major global biotech investor.

The transaction was executed on November 5, 2008 after the close of
trading on the SIX Swiss Exchange. The capital increase will be
effected today. The new shares with a par value of CHF 1.00 each will
be issued from the Company's authorized share capital and will
represent 10.6% of the outstanding share capital after the
transaction. The subscription rights of existing shareholders have
been excluded in accordance with Santhera's articles of
incorporation. The new shares will be listed on SIX Swiss Exchange
with the first day of trading on November 7, 2008. Ares has agreed to
a lock-up with regard to the new shares for a period of 12 months
following the share issuance.

"We are delighted to have Ares invest in Santhera as a new, long term
and strategic shareholder", said Klaus Schollmeier, Chief Executive
Officer of Santhera. "Ares represents long-standing and successful
first-hand experience in the biotechnology sector. Their investment
is a significant validation of our business model in orphan diseases,
our product portfolio and our growth prospects." Commenting on the
funding, Barbara Heller, Chief Financial Officer of Santhera said:
"The new funds we raise provide the Company with additional financial
flexibility to ensure the timely progress of our next product
candidates and to support the development of our specialist marketing
organization for the North American markets. This capital increase
further secures Santhera's cash position well beyond the planned
launch of our lead product, CATENA®, for the treatment of
Friedreich's Ataxia in the United States."

"Santhera is our first investment in the biotech sector since the
initiation of the fund earlier this year. In our view, Santhera is
one of the best-positioned young biopharmaceutical companies in
Europe", said Jacques Theurillat, Chief Executive Officer of Ares
Life Sciences. "We are extremely pleased to have been given the
opportunity to invest in Santhera and strongly believe in the high
quality nature of its product pipeline and the excellence of its
management team."

The financial advisors for this transaction were Merrill Lynch
International, London, and Bank Vontobel, Zurich, for Santhera and
Piper Jaffray, London, for Ares Life Sciences.

* * *

Conference call / Webcast: At 15:00 CET / 14:00 UKT / 9:00 EST today
November 6, 2008, Santhera will host a conference call webcasted on
www.santhera.com/webcasts. Anyone interested in participating may
join the conference using the dial-in +41 (0)44 580 73 89.
About Santhera
Santhera Pharmaceuticals (SIX: SANN) is a Swiss specialty
pharmaceutical company focused on the discovery, development and
commercialization of small-molecule pharmaceutical products for the
treatment of severe neuromuscular diseases, an area of high unmet
medical need which includes many orphan indications with no current
therapy. Santhera currently investigates three compounds in five
clinical-stage development programs. The Company's first product,
SNT-MC17 (INN: idebenone), has received a marketing approval with
conditions from Health Canada to treat Friedreich's Ataxia and is
marketed under its brand name CATENA®. The product is also under
review by health authorities in the EU and in Switzerland, while in
the United States, a pivotal Phase III trial is recruiting patients.
The compound has also shown efficacy in a phase II clinical trial as
a potential treatment for Duchenne Muscular Dystrophy. For further
information, please visit the Company's website www.santhera.com.

CATENA® is a trademark of Santhera Pharmaceuticals, registered in
Canada and the United States.

About Ares Life Sciences
Ares Life Sciences is a private equity fund established in 2008 whose
lead investor is the Bertarelli family. Its objective is to build a
portfolio of revenue generating, late-stage innovative companies in
life sciences. The Fund is focused on five specific sectors:
pharmaceuticals, biotechnology, diagnostics, medical technology and
healthcare services. Its first investment, in June 2008, was in
Euromedic, a pan European provider of dialysis and diagnostic imaging
services with 170 centers in 15 countries.

Ares Life Sciences aims to add value to its portfolio companies
through a management team that provides extensive sector experience,
investment expertise, scientific knowledge and industry networks. The
team has a unique balance of industry and investment professionals
and is led by Jacques Theurillat, previously Deputy CEO of Serono,
while the investment committee is chaired by Ernesto Bertarelli.

For further information, contact
Santhera Pharmaceuticals:
Klaus Schollmeier, Chief Executive Officer
Phone: +41 (0)61 906 89 52
klaus.schollmeier@santhera.com

Barbara Heller, Chief Financial Officer
Phone: +41 (0)61 906 89 54
barbara.heller@santhera.com

Thomas Staffelbach, Head Public & Investor Relations
Phone: +41 (0)61 906 89 47
thomas.staffelbach@santhera.com

Ares Life Sciences:
Paco Latorre
Phone: +41 (0)79 5716207
media@areslifesciences.com

Nick Miles, Bell Pottinger Switzerland
Phone: +41 (0)79 6787626
nmiles@bellpottinger.ch

Disclaimer/Forward-looking statements
THIS NEWS RELEASE CONSTITUTES NEITHER AN UNDERWRITING PROSPECTUS
WITHIN THE MEANING OF ARTICLE 652a OF THE SWISS CODE OF OBLIGATIONS
NOR A LISTING PROSPECTUS WITHIN THE MEANING OF THE LISTING RULES OF
SIX SWISS EXCHANGE. This NEWS RELEASE does not constitute an offer or
invitation to subscribe for or purchase any securities of Santhera
Pharmaceuticals Holding AG. THE SECURITIES HAVE ALREADY BEEN SOLD.
THIS NEWS RELEASE IS NOT BEING ISSUED IN THE UNITED STATES OF AMERICA
AND MUST NOT BE DISTRIBUTED TO U.S. PERSONS OR PUBLICATIONS WITH A
GENERAL CIRCULATION IN THE UNITED STATES. THIS NEWS RELEASE DOES NOT
CONSTITUTE AN OFFER OR INVITATION TO PURCHASE ANY SECURITIES IN THE
UNITED STATES. THE SECURITIES OF SANTHERA PHARMACEUTICALS HOLDING AG
HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES LAWS AND
MAY NOT BE OFFERED, SOLD OR DELIVERED WITHIN THE UNITED STATES OR TO
U.S. PERSONS ABSENT FROM REGISTRATION UNDER OR AN APPLICABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE UNITED STATES
SECURITIES LAWS. This publication may contain certain forward-looking
statements concerning the Company and its business. Such statements
involve certain risks, uncertainties and other factors which could
cause the actual results, financial condition, performance or
achievements of the Company to be materially different from those
expressed or implied by such statements. Readers should therefore not
place undue reliance on these statements, particularly not in
connection with any contract or investment decision. The Company
disclaims any obligation to update these forward-looking statements.

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Santhera Pharmaceuticals Holding AG
Hammerstrasse 47 Liestal
Switzerland

WKN: A0LCUK; ISIN: CH0027148649; Index: SPI, SPIEX, SSCI;
Listed:
Main Market in SWX Swiss Exchange;
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