Evotec Announces First Quarter Results and Corporate Development Update

Corporate news announcement processed and transmitted by Hugin AS.
The issuer is solely responsible for the content of this
announcement.
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Hamburg, Germany - Evotec AG (Frankfurt Stock Exchange: EVT; NASDAQ:
EVTC) today reported results and corporate development updates for
the first quarter ended March 31, 2009.

Highlights:
o Strong operational performance driven by successful
Discovery Alliance Business
o Major set-backs in clinical development programs, especially
failure of EVT 302 in smoking cessation (after period-end)
o Restructuring program "Evotec 2012 - Action Plan to Focus
and Grow" implemented; drug discovery and development operations
re-engineered (after period-end)
o New strategic partnership with Roche in treatment-resistant
depression initiated
o Acquisition of Zebrafish Technology to further strengthen
Discovery Alliance Business (after period-end)
o Changes in Top Management and Organization

Strong operational performance driven by Discovery Alliance Business
(DAB)
Evotec's revenues for the first quarter 2009 were EUR 8.2 million, up
13% from last year's level (2008: EUR 7.3 million). This is mainly
the result of strong underlying revenues from our discovery alliances
business, higher income from licenses as well as a portion of the
upfront payment from Roche (EUR 0.2 million), of which the
recognition will be spread over the expected duration of the Phase II
study with EVT 101. Gross margin improved to 36.2 %.
Evotec's operating loss increased to EUR 20.2 million primarily due
to an impairment charge in the amount of EUR 6.6 million and
restructuring expenses of EUR 1.4 million recognized in the first
quarter. Operating loss before those extraordinary items improved by
15% to EUR 12.2 million as a result of a higher gross profit and
lower R&D expenses.
Liquidity, which includes cash and cash equivalents (EUR 42.2
million), short-term investments (EUR 27.3 million) and auction rate
securities (EUR 9.5 million), at the end of March 2009 continued to
be strong and amounted to EUR 79.0 million (December 31, 2008: EUR
92.4 million). This amount does not include the upfront payment from
Roche in the amount of $10 million (approximately EUR 8 million)
which was paid in April to Evotec for the option to buy back the EVT
100 compound family.
Net loss amounted to EUR 21.8 million (2008: EUR 13.8 million). The
negative impact on the net loss below the operating line resulted
mainly from two non-cash items: the valuation of the put option for
auction rate securities (EUR 0.6 million) and a foreign exchange loss
of EUR 1.6 million as a result of the repayment of share capital
related to the investment in Evotec (UK) Ltd, which was previously
recorded as a component of equity and reclassified into the Company's
Statement of Operations in Q1 2009.

Evotec confirms its financial targets for the fiscal year 2009
published on March 27, 2009.

Two major milestones missed with EVT 201 and EVT 302, P2X7
progressing according to plan, delay in VR1
During the first four months of 2009, Evotec announced that it had
missed two major milestones with its lead development candidates.
Evotec did not achieve its partnering goal for the insomnia drug
candidate EVT 201. In addition, the results from the Company's Phase
II proof-of-concept study investigating the potential of EVT 302 as
an aid to smoking cessation showed no improvement in the quit rate
compared to placebo.
Phase I clinical studies with Evotec's small molecule P2X7 receptor
antagonist, EVT 401, for the treatment of rheumatoid arthritis and
other inflammatory conditions is progressing according to plans.
Evotec expects to release results in mid 2009.
In the first quarter of 2009, Evotec's partner on the VR1
collaboration, Pfizer, disclosed that the first small molecule VR1
(vanilloid receptor 1) antagonist that was in Phase I testing to
treat pain did not yet meet the optimally required target profile.
Pfizer will continue the collaboration and develop a follow-on
antagonist that is in late-stage discovery. This means a delay for
this program resulting in an impairment of EUR 6.6 million.

Restructuring Program "Evotec 2012 - Action Plan to Focus and Grow"
implemented - drug discovery and development operations re-engineered
- cash reach extended beyond 2012
Evotec conducted a thorough strategic business review which led to
the implementation of the "Evotec 2012 - Action Plan to Focus and
Grow" in March of this year. The core elements of this plan include:

1. Strengthen the discovery alliances business
2. Refocus the pipeline on most valuable assets
3. Build strategic alliances on more projects available
4. Significant reduction of operating expenses and strategic
risks

Consequently, strict cost containment measures were implemented
throughout the organization which will materialize starting in the
second quarter 2009. Headcount in administrative functions was
reduced by 20% with immediate effect. In addition, the setback in the
progress of Evotec's clinical pipeline has resulted in a
re-organization of the clinical development group. Evotec has reduced
headcount in this team by approximately 50%, but kept a fully
functioning clinical development group to support all priority
projects.
On May 5, 2009 Evotec announced that it had decided to re-engineer
its drug discovery and development operations. The continuing
strength of a successful Discovery Alliances Business gives Evotec
the unique opportunity to more efficiently leverage its research and
development infrastructure. As a consequence, all Evotec proprietary
programs will be managed through its European operations. This will
lead to a headcount reduction in research by more than 50% and an
expected minimum of additional EUR 10 million annual cost savings
from 2010 onwards. As a consequence, the US operations in South San
Francisco, California will be wound down with immediate effect.
As a result of these measures, the Company expects its annual cash
burn rate to be reduced by a minimum of 30% and its cash reach to be
extended beyond 2012.

High value strategic partnership with Roche to develop EVT 101 - deal
value exceeding $300 million
In March 2009, Evotec signed a partnership with Roche for the
development of the EVT 100 compound family with a total potential
deal value exceeding $300 million. In April, Roche has paid Evotec an
upfront payment of $10 million and will fund the Phase II clinical
study for EVT 101 in treatment-resistant depression and a Phase I
program for EVT 103. Roche has an option to buy back the entire EVT
100 compound family after completion of the Phase II trial on EVT
101. If Roche exercises this option, Evotec will receive a $65
million payment from Roche plus substantial milestones and
double-digit commercial payments. The Phase II study is expected to
start in the second half of 2009.

Acquisition of zebrafish technology to further strengthen Evotec's
world-class leadership role in discovery alliances
On May 7, 2009, Evotec announced that it will acquire the zebrafish
screening operations of Summit Corporation plc for £ 0.5 million in
cash. This capability is valuable to drug discovery as it provides
important whole organism data about the safety and toxicity of
drug-like molecules at an early stage of lead optimization. Through
this small acquisition, which is expected to add approximately £1.5
million revenues in 2010, Evotec is enhancing its world-class drug
discovery platform in multiple areas.

Changes in Top Management and Supervisory Board
Dr Werner Lanthaler was appointed as new Chief Executive Officer; Dr
Walter Wenninger has been nominated for election as New Supervisory
Board member; and certain Top Management functions have been
reorganized.

Conference Call
Evotec will hold a conference call today at 09.30 am CEST to discuss
the financial results as well as progress of the first quarter of
2009. Dr Werner Lanthaler, Chief Executive Officer, will lead the
call.

Conference call details:
Date: Tuesday, May 12, 2009
Time: 09.30 a.m. CEST
08.30 a.m. BST
03.30 a.m. US time (East Coast)

From Europe: +49.(0)69.5007 1308 (Germany)
+44.(0)20.7806 1955 (UK)
From the US: +1.718.354 1388
Access Code: 8354186

A simultaneous slide presentation for participants dialing in via
phone is available at www.equitystory.com, password: evotec0509.

Webcast details
To join the audio webcast and to access the presentation slides you
will find a link on our home page www.evotec.com shortly before the
event.

A replay of the conference call will be available for 24 hours and
can be accessed in Europe by dialing +49.(0)69.22222 0418 (Germany)
or +44.(0)20.7806 1970 (UK) and in the US by +1.718.354 1112. The
access code is 8354186#. The on-demand version of the webcast will be
available on our website: www.evotec.com - Investors - Financial
Reports.

Forward-Looking Statements
Information set forth in this press release contains forward-looking
statements, which involve a number of risks and uncertainties. Such
forward-looking statements include, but are not limited to,
statements about our expectations and assumptions concerning
regulatory, clinical and business strategies, the progress of our
clinical development programs and timing of the results of our
clinical trials, strategic collaborations and management's plans,
objectives and strategies. These statements are neither promises nor
guarantees, but are subject to a variety of risks and uncertainties,
many of which are beyond our control, and which could cause actual
results to differ materially from those contemplated in these
forward-looking statements. In particular, the risks and
uncertainties include, among other things: risks that the Company may
be unable to reduce its cash burn through recent restructuring and
cost containment measures; risks that product candidates may fail in
the clinic or may not be successfully marketed or manufactured; risks
relating to our ability to advance the development of product
candidates currently in the pipeline or in clinical trials; our
inability to further identify, develop and achieve commercial success
for new products and technologies; the risk that competing products
may be more successful; our inability to interest potential partners
in our technologies and products; our inability to achieve commercial
success for our products and technologies; our inability to protect
our intellectual property and the cost of enforcing or defending our
intellectual property rights; our failure to comply with regulations
relating to our products and product candidates, including FDA
requirements; the risk that the FDA may interpret the results of our
studies differently than we have; the risk that clinical trials may
not result in marketable products; the risk that we may be unable to
successfully secure regulatory approval of and market our drug
candidates; and risks of new, changing and competitive technologies
and regulations in the U.S. and internationally.
The list of risks above is not exhaustive. Our most recent Annual
Report on Form 20-F, filed with the Securities and Exchange
Commission, and other documents filed with, or furnished to the
Securities and Exchange Commission, contain additional factors that
could impact our businesses and financial performance. We expressly
disclaim any obligation or undertaking to release publicly any
updates or revisions to any such statements to reflect any change in
our expectations or any change in events, conditions or circumstances
on which any such statement is based.

Contact: Dr Werner Lanthaler, Chief Executive Officer,
Evotec AG, Tel.: +49.(0)40.56081-242, werner.lanthaler@evotec.com

Contact: Anne Hennecke, Senior Vice President, Investor Relations &
Corporate Communications, Evotec AG, Phone: +49.(0)40.56081-286,
anne.hennecke@evotec.com

First Quarter Report 2009

Key Figures of Consolidated Interim Statements of Operations
Evotec AG and Subsidiaries

Euro in thousands except share data and per share data

+-------------------------------------------------------------------+
| | Three months ended March 31, | Change |
| | | in % |
|---------------------------+------------------------------+--------|
| | 2009 | 2008 | |
|---------------------------+---------------+--------------+--------|
| | | | |
|---------------------------+---------------+--------------+--------|
| Revenue | 8,238 | 7,313 | 12.6 |
|---------------------------+---------------+--------------+--------|
| Gross margin in % | 36.2 | 29.4 | |
|---------------------------+---------------+--------------+--------|
| | | | |
|---------------------------+---------------+--------------+--------|
| Research and development | 10,319 | 12,810 | (19.4) |
| expenses | | | |
|---------------------------+---------------+--------------+--------|
| Selling, general and | 4,793 | 3,345 | 43.3 |
| administrative expenses | | | |
|---------------------------+---------------+--------------+--------|
| Amortization and | 6,708 | 301 | - |
| impairment | | | |
|---------------------------+---------------+--------------+--------|
| Restructuring expenses | 1,444 | 116 | - |
|---------------------------+---------------+--------------+--------|
| Other operating income | 220 | 422 | (47.9) |
|---------------------------+---------------+--------------+--------|
| Other operating expenses | 184 | 380 | (51.6) |
|---------------------------+---------------+--------------+--------|
| | | | |
|---------------------------+---------------+--------------+--------|
| Operating result | (20,249) | (14,378) | (40.8) |
|---------------------------+---------------+--------------+--------|
| Operating result* | (12,175) | (14,262) | 14.6 |
|---------------------------+---------------+--------------+--------|
| | | | |
|---------------------------+---------------+--------------+--------|
| Net result | (21,847) | (13,840) | (57.9) |
|---------------------------+---------------+--------------+--------|
| | | | |
|---------------------------+---------------+--------------+--------|
| Weighted average shares | 106,564,331 | 73,868,447 | |
| outstanding | | | |
|---------------------------+---------------+--------------+--------|
| Net loss per share (basic | (0.21) | (0.19) | |
| and diluted) | | | |
+-------------------------------------------------------------------+

*Before impairment and restructuring expenses.

Key Figures of Consolidated Interim Balance Sheets
Evotec AG and Subsidiaries

Euro in thousands

+-------------------------------------------------------------------+
| | Mar 31, 2009 | Dec 31, 2008 | Change |
| | | | in % |
|----------------------------+--------------+--------------+--------|
| | | | |
|----------------------------+--------------+--------------+--------|
| Liquidity | 78,977* | 92,401* | (14.5) |
|----------------------------+--------------+--------------+--------|
| Working capital | (5,537) | (9,911) | 44.1 |
|----------------------------+--------------+--------------+--------|
| Current and non-current | | | |
| portion of loans and | 10,512 | 11,328 | (7.2) |
| finance lease obligations | | | |
|----------------------------+--------------+--------------+--------|
| Stockholders' equity | 135,901 | 149,859 | (9.3) |
|----------------------------+--------------+--------------+--------|
| | | | |
|----------------------------+--------------+--------------+--------|
| Total assets | 175,343 | 182,900 | (4.1) |
+-------------------------------------------------------------------+

*Including auction rate securities.

--- End of Message ---

Evotec AG
Schnackenburgallee 114 Hamburg Germany

WKN: 566480; ISIN:
DE0005664809 ; Index: Prime All Share, CDAX, HDAX, MIDCAP, TECH All
Share;
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