Topical ESBA105 Demonstrates Efficacy in the Back of the Eye to Inhibit Neovascularization

Zurich, Switzerland - March 24, 2009

Data will be presented at the 5th Annual Monoclonal Antibodies
Visiongain Conference on 25 March 2009

ESBATech AG, a leading developer of antibody fragment therapeutics,
today announced preclinical results, which demonstrate efficacy of
topical ESBA105, an anti-Tumor Necrosis Factor (TNF) single-chain
antibody fragment, in a model for choroidal neovascularization (CNV).
In wet age-related macular degeneration (wet AMD), CNV causes the
formation of new blood vessels growing behind the retina, which can
lead to bleeding, scarring and sight loss in patients. Anti-Vascular
Endothelial Growth Factor (VEGF) therapies are successfully used in
AMD; however, only 30-40% of patients benefit from an anti-VEGF
therapy with improvement in visual acuity.

ESBATech's results confirm that CNV is not exclusively driven by
VEGF, but also by inflammatory mediators such as TNF alpha. Findings
from this study show that ESBA105, when applied as eye drops, can
significantly reduce CNV. The preclinical study was designed to
evaluate the pathophysiological relevance of TNF, and the effect of
topical ESBA105 in a primate model for CNV and compare its efficacy
against an intravitreal injection of the marketed TNF antagonist,
Humira® and VEGF antagonist, Avastin®, which have both shown efficacy
in this model. The model selected for this study measures severity of
lesions in the macula, which are generated by photocoagulation using
a laser. The surrogate injury model for AMD has been proven
successful in predicting therapies that are efficacious like
Lucentis® in the treatment of AMD.

David Urech, Ph.D., Head of Research and Development of ESBATech
commented on the preclinical results, "These results confirm our
previous pharmacokinetic studies, showing that topical ESBA105
efficiently migrates to the posterior or the back segments of the
eye, and leads to therapeutically effective concentrations even in
the retina. In addition, our results suggest that TNF alpha plays an
important role in a variety of ocular neovascular disorders."

Dominik Escher, Ph.D., Chief Executive Officer of ESBATech, added,
"These exciting results show a role and potential for ESBA105 in wet
AMD. A combination therapy with an injectable VEGF inhibitor, plus
our topical TNF inhibitor might lead to better efficacy and visual
improvements than a single therapy. We have started several clinical
trials with ESBA105 including acute anterior uveitis, and we will
expand the development of ESBA105 into several attractive indications
with a high unmet medical need."

ESBATech continues to progress clinical candidates in ophthalmology
with a series of studies relating to the treatment of inflammatory
ocular diseases. In February 2009, ESBATech initiated a Phase Ia/IIb
study for cataract surgery and a Phase IIa trial for acute anterior
uveitis. Earlier this year, ESBATech initiated a Phase I/IIa study to
explore clinical activity of ESBA105 in osteoarthritis of the knee.

About Choroidal Neovascularization (CNV)
CNV is the formation of new blood vessels in the choroid layer of the
eye. CNV can occur rapidly in individuals with defects in Bruch's
membrane, the innermost layer of the choroid. It is also associated
with excessive amounts of Vascular Endothelial Growth Factor (VEGF).
CNV is a common symptom of the degenerative maculopathy wet AMD. Wet
AMD results in new blood vessels growing behind the retina, which can
cause bleeding, scarring and sight loss. Currently, the most
efficient treatment for wet AMD is inhibition of VEGF as achieved
through intravitreal injections of Lucentis® every four weeks.
Anti-VEGF treatments are designed to stop new blood vessels from
growing by acting on a protein which is released as these vessels
develop.

About ESBATech's Antibody Fragment Platform Technology
ESBATech develops highly-stable, single-chain antibody fragment
(scFv) derived from proprietary fully human antibody fragment
scaffolds. ESBATech has developed Immuna®, a novel, proprietary,
repeatable antigen-independent platform to screen, select and
optimize highly-stable, single-chain antibody fragments. Immuna® does
not exhibit any phage display. The single-chain antibody fragment can
be applied for novel therapeutic interventions, which require a high
affinity and high specificity of the drug, but not an immune effector
response. In this novel approach, ESBATech has elucidated unique
features of its proprietary fully human, drug-like, single-chain
antibody fragments. The company is advancing a pipeline of novel
antibody fragment therapeutics for topical and/or local delivery, to
ensure safe and convenient patient therapy. ESBATech is the first and
only company to date that has successfully screened and characterized
the entire human pool (1.5 million) of naturally occurring variable
immunoglobulin (VH and VL) domains. Through this process, the company
has identified a number of next generation scFv development
candidates. These novel product candidates can be modified to
generate virtually limitless products directed against numerous
targets.

About ESBATech AG
ESBATech is a Zurich, Switzerland-based, privately held, clinical
stage biotechnology company concentrating in research, development
and commercializing of its antibody fragments for therapeutic
applications via local and topical administration. ESBATech applies
its proprietary screening platform, Immuna® and its fully human
single-chain antibody frameworks to generate product candidates
against targets of clinical relevance. The company focuses on three
franchises: ophthalmology, rheumatology and respiratory. In
ophthalmology, ESBATech represents the most advanced company in
clinical development with topical delivery of an antibody fragment
via eye drops.

Current venture investors include SV Life Sciences, Clarus Ventures,
HBM BioVentures, HBM BioCapital, Novartis Venture Fund, BioMedinvest
and VI Partners. For more information about ESBATech, please visit,
http://www.esbatech.com.

# # #
Contacts:

Dr. Dominik Escher Lisa Rivero
CEO Director of Media Relations
ESBATech AG LaVoie Group
+41-44-733 49 00 +1-978-745-4200 X 106
escher@esbatech.com lrivero@lavoiegroup.com

This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
Copyright © Hugin AS 2009. All rights reserved.