Evotec Reports Positive Results Of Repositioning Clinical Trial On CNS Compound

HAMBURG, Germany and OXFORD, England, October 20 /PRNewswire-FirstCall/ -- Evotec AG announces today that the repositioning study of its CNS-active compound (see press release of 18 March 2005) has been completed with positive results.

The proof-of-principle clinical trial in healthy volunteers was intended to test the hypothesis that the compound has potential as a novel medicine for the treatment of insomnia. The preliminary results from the study demonstrate that the compound is well tolerated and has significant efficacy in both duration and quality of sleep with minimal residual effects the following morning.

Jorn Aldag, President and Chief Executive Officer at Evotec commented: "The positive results achieved in the repositioning study make us confident to proceed with the clinical development programme. Evotec holds exclusive commercial rights to the compound, called EVT 201, which now becomes an integral part of our CNS development pipeline. We are proud that we are hereby delivering on our goal to bring the first compound to clinical trials by the end of 2005. This is an important step in the implementation of our strategy to develop a sustainable pipeline focused on CNS indications and shows our ability to execute on our business model."

The compound is acting on GABA A receptors and has a differentiated pre-clinical profile compared to commonly used agents for insomnia. It was originally developed at Roche where it completed a phase I clinical trial. This is the second programme that Evotec has in-licensed from Roche.

Notes to the Editor

About insomnia

Good quality and refreshing sleep is a prerequisite for continued good health and daily functioning. Insomnia patients suffer from a) difficulty falling asleep; b) maintaining sleep due to waking up frequently during the night with difficulty returning to sleep or due to waking up at early hours and c) unrefreshing sleep. Approximately 50% of the population experience symptoms of insomnia on a regular basis. However, only a fraction of patients are diagnosed, with even fewer using a sleep aid. However, the US sleep market grew from US$ 1.4 billion in 2002 to US$ 1.7 billion in 2003 (IMS reported sales). According to a Credit Suisse First Boston survey of global sleep specialists (January 2005), the insomnia market remains under penetrated and is expected to continue to grow. Physicians highlighted that the most critical clinical drivers for an insomnia treatment are lack of next day hang-over potential, lack of potential addiction issues and the agents' ability to induce, maintain and improve the quality of sleep. They indicated that the entry of novel treatments with differentiated profiles in terms of dosage, mode of action and clinical profile is expected to accelerate growth within the market.

About Evotec AG

Evotec is a leader in the discovery and development of novel small molecule drugs. Both through its own discovery programmes and through contract research partnerships, the Company is providing highest quality research results to its partners in the pharmaceutical and biotechnology industries. In proprietary projects, Evotec specialises in finding new treatments for diseases of the central nervous system (CNS). Its lead compound, EVT 201, is in clinical phase I for the treatment of insomnia. In addition, the Company has a number of products in late stage pre-clinical development, the most advanced of which, EVT 101, a subtype selective NMDA receptor antagonist for the treatment of Alzheimer's disease, is expected to enter clinical trials later this year.

In contract research, Evotec has established itself as the partner of choice for pharmaceutical and biotechnology companies worldwide. The Company provides innovative and often integrated solutions from drug target to clinic through an unmatched range of capabilities, including early stage assay development and screening through to medicinal chemistry and drug manufacturing.

Over 600 people located in Hamburg, Germany and near Oxford and in Glasgow, UK, are committed to generating value for its partners, shareholders and employees through a sustainable strategy that balances short and long-term business opportunities.

www.evotec.com Contact: Evotec AG Anne Hennecke Director, Investor Relations & Corporate Communications Phone: +49-40-56081-286 Fax: +49-40-56081-333 E-Mail: anne.hennecke@evotec.com

CONTACT: Contact: Evotec AG, Anne Hennecke, Director, Investor Relations &Corporate Communications, Phone: +49-40-56081-286, Fax: +49-40-56081-333,E-Mail: anne.hennecke@evotec.com