MediGene Sharpens Focus through In-House Reorganization

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* Shift of employees and financial resources into clinical
development
* Positive long-term effect on cash burn rate

Martinsried/Munich, September 28, 2009. The biotech company MediGene
AG (Frankfurt, Prime Standard, TecDAX) announces that, as a result of
the firm-wide review undertaken by CEO Dr Frank Matthias, the company
is to further sharpen its focus and will achieve this through a
restructuring. "Within the scope of these measures, MediGene's
research department "Early Stage Development" will be closed, and the
employees and financial resources therein will be shifted to
strengthen the company's advanced drug development projects.
Furthermore, the clinical development and manufacturing departments
will be reinforced in this process, so these measures will involve
few redundancies. The heads of the EndoTAG(TM)-1 and RhuDex(TM)
development projects will directly report to Dr. Axel Mescheder,
MediGene's Chief Scientific Officer & Chief Development Officer.
MediGene intends to continue with the EndoTAG(TM) platform technology
as a future source of novel drug candidates.

Dr. Frank Mathias, Chief Executive Officer of MediGene AG, commented:
"MediGene's core competences are in clinical research and development
and in the regulatory processes in the fields of oncology and
immunology. Our prime near-term focus is on the liposome technology
and the drug candidate EndoTAG(TM)-1 derived from it. By
concentrating on our advanced drug candidates we will increase our
operational efficiency and utilize our know-how and cash in a more
targeted way."

Our Head of Affiliated Companies, Dr. Uwe Michaelis, previously
MediGene's Vice President Early Stage Development, will apply his
many years of expertise to manage the planned spin-off of the AAV and
HSV technologies, and to represent MediGene's interests against the
already effected spin-off of Immunocore Ltd.

This press release contains forward-looking statements representing
the opinion of MediGene as of the date of this release. The actual
results achieved by MediGene may differ significantly from the
statements made herein. MediGene is not bound to update any of these
forward-looking statements. MediGene®, EndoTAG(TM) and EndoTAG(TM)-1
are registered trademarks of MediGene AG. RhuDex(TM) is a registered
trademark of MediGene Ltd. These trademarks may be owned or licensed
in select locations only.

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MediGene AG is a publicly listed (Frankfurt, Prime Standard: MDG,
TecDAX) biotechnology company located in Martinsried/Munich, Germany,
with subsidiaries in Oxford, UK and San Diego, USA. MediGene is the
first German biotech company to have drugs on the market, which are
being distributed by partner companies. MediGene has several drug
candidates in clinical development, including EndoTAG(TM)-1, which
could offer substantial sales returns. In addition, the company has
numerous projects in research and pre-clinical development and
possesses innovative platform technologies. MediGene focuses on the
research and development of novel drugs for the treatment of cancer
and autoimmune diseases.

Contact MediGene AG
E-mail: investor@medigene.com
Fax:+49 - 89 - 85 65 - 2920
Julia Hofmann / Dr. Nadja Wolf, Public Relations, Tel.: +49 - 89 - 85
65 - 3324
Dr. Georg Dönges, Investor Relations, Tel.: +49 - 89 - 85 65 - 2946

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MediGene AG
Lochhamer Strasse 11 Martinsried / München Germany

WKN:
502090; ISIN: DE0005020903 ;
Listed: Prime Standard in Frankfurter Wertpapierbörse, Regulierter
Markt in Frankfurter Wertpapierbörse,
Freiverkehr in Börse Stuttgart, Freiverkehr in Bayerische Börse
München,
Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr
in Niedersächsische Börse zu Hannover,
Freiverkehr in Börse Düsseldorf;
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