KeyNeurotek Pharmaceuticals completes ¤ 8.2 million ($ 10.8 million) series C financing round

Press Release

KeyNeurotek Pharmaceuticals completes ¤ 8.2 million ($ 10.8 million)
series C financing round

Magdeburg, April 7, 2009 - KeyNeurotek Pharmaceuticals AG, a
biotechnology company focused on the development and marketing of
drugs against autoimmune diseases and degenerative disorders of the
central nervous system (CNS), today announced the successful second
closing of its Series C financing round. The total volume of the
round amounts to ¤ 8.2 million.

All existing main investors, DVC Deutsche Venture Capital (Munich),
IBG Beteiligungsgesellschaft (Magdeburg) and KfW (Bonn) have
participated in this round. DVC Deutsche Venture Capital was acting
as lead investor. Jürgen Gerlach, Managing Partner at DVC, has
replaced Dr. Alexander Asam on KeyNeurotek's Supervisory Board. Both
the company's management team and its Supervisory Board members thank
Dr. Asam for his exceptional commitment during the past years.

The funds are being used to advance KeyNeurotek's diversified
clinical product portfolio addressing major and unmet medical needs
such as traumatic brain injury (TBI) and aconuresis (urinary
incontinence). The company's lead compound KN38-7271, a dual
cannabinoid CB1/CB2 receptor agonist, is currently investigated in a
multinational Phase-IIa-Study in comatose TBI patients to prove its
clinical safety and tolerability. Furthermore, KeyNeurotek
Pharmaceuticals is hoping for therapeutic efficacy signals. Study
results are expected this summer. KN38-7271 has been granted Orphan
Drug Designation by the European authorities. For its second clinical
product candidate KN203, a µ-opioid receptor agonist with distinct
effects on bladder muscle contraction, the company is preparing for a
Phase IIa / proof-of-concept trial in 180 patients with urinary
incontinence or overactive bladder.

Jürgen Gerlach, Managing Partner of DVC, said: KeyNeurotek has
successfully executed its strategy to build a promising clinical
portfolio of CNS drugs in difficult times, and we therefore are very
committed to support the further development of the company and its
projects."

Dr Frank Striggow, CEO of KeyNeurotek Pharmaceuticals, commented: Of
course, we are extremely pleased about being able to close this
important transaction during challenging times. Based on our leading
product and technology profile, this investment will enable us to
achieve further value creating milestones."

About KeyNeurotek Pharmaceuticals AG
KeyNeurotek Pharmaceuticals, a privately held biotechnology company,
was founded in 2000 within the Magdeburg, Germany, region, one of the
leading centers of neuroscience in Europe.

The company pursues a number of drug candidates in various
preclinical and clinical stages. The most advanced compound,
KN38-7271, a cannabinoid receptor agonist, is in a Phase IIa trial in
comatose patients with traumatic brain injury. At present, there is
no targeted therapy for these patients.

KeyNeurotek Pharmaceuticals has unique functional and tissue-based
high throughput screening platforms for compatible ex vivo and in
vivo studies (TELOMICSTM). Based on its know-how, KeyNeurotek
develops innovative therapies for the treatment of various
neurodegenerative diseases of the central nervous system, such as
traumatic brain injury (TBI), stroke, Alzheimer's disease and urinary
incontinence/overactive bladder.

The company has built a strong network with renowned local and
international partners, including, among others, the Leibniz
Association, the Max Planck Society and Fraunhofer Society, Evotec,
Schwarz Pharma/UCB, Bayer Schering and Gruenenthal. KeyNeurotek
Pharmaceuticals has been awarded the Hugo-Junckers Innovation Award
of the State of Sachsen-Anhalt in 2002 and 2004 and the Innovation
Award of the German Industry in 2006.

Contact:

+-------------------------------------------------------------+
| Dr Frank Striggow | Dr Ludger Weß |
| | |
| KeyNeurotek Pharmaceuticals AG | akampion |
| ZENIT-Technologiepark | Saseler Loge 6b |
| Leipziger Str. 44 | D-22393 Hamburg |
| D-39120 Magdeburg | Germany |
| Germany | |
| | Tel. +49 40 88 16 59 64 |
| Tel.: +49 391 6117 220 | Mobile +49 160 96 65 29 58 |
| Fax: +49 391 6117 221 | ludger@akampion.com |
| frank.striggow@keyneurotek.de | www.akampion.com |
| www.keyneurotek.de | |
| | |
+-------------------------------------------------------------+

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