BB BIOTECH AG was founded in Switzerland in November 1993 as an investment company and invests in biotech companies globally. BB BIOTECH has meanwhile become one of the largest pure play biotech investors. BB BIOTECH shares are listed on the Swiss Stock Market, in the "TecDax" in Germany and the italian "Star-Segment".

Investment Rationale
The biotech industry is one of the most interesting growth industries at all. The increasing aging population and the many diseases that still can't be cured or treated increases the demand of new drugs. Due to the research of the biotech-industry in the last years, an increasing number of innovative substances with therapeutic potential have been developed. The growth of the biotech industry is pushed by more than 250 products in phase lll, the last phase of clinical development. Since the year 2000 more than one half of all newly approved drugs, a total of 20 to 30 per year, have been discovered by biotech companies. Total sales of biotech drugs will grow accordingly and an increasing number of biotech companies will turn profitable. BB BIOTECH offers its shareholders the oppurtunity to participate in this growth with above-average appreciation potential.

A crew with expertise
The Board of Directors, among them a Nobel Laureate, have many years of experience in the biotech and pharma industry. Molecular biologists, medical practitioners and financial specialists of Bellevue Asset Management Group perform fundamental company analyses on behalf of BB BIOTECH.

Renumeration
The renumeration for the board of directors and the asset manager is mainly shareprice- and therewith performance-related. The fixed management fee is 0.4% of the stock market capitalization p.a.

Dividend policy
No dividends were distributed until the year 2003. In 2004, the Company's dividend policy has been modified: in future, a dividend is to be paid out which will be linked to the discount of the share price to the Net Asset Value.

Reports
As a rule, the portfolio is published quarterly. Important news and developments are announced with monthly news and press releases. The Net Asset Value is published daily. The financial statements are prepared in accordance with IAS.

Share price bearer share
SWX Switzerland: www.bbbiotech.com
Bloomberg: BIO SW Equity • Datastream: S:BIO • Reuters: BIO.S • Telekurs: BIO

TecDax Germany: www.bbbiotech.com
Bloomberg: BBZ GY Equity • Datastream: D:BBZ • Reuters: BIOZ.DE

Nuovo Mercato Italy: www.bbbiotech.com
Bloomberg BBA IM Equity • Datastream: I:BBB • Reuters: BB.MI .

www.bbbiotech.ch

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Expanding Horizons
Ernst & Young helps organizations manage their business risks, form the right alliances, access funding and gain insight into the market and regulatory environment of today's dynamic Medtech Industry.

Ernst & Young provides comprehensive services and global coverage for Medtech companies. Our team delivers advice and services covering business strategy to operational support, security to due diligence backed by an in-depth understanding of your company – and the market in which you compete.

A Medtech / Life Sciences Global Network is in place to ensure that your Ernst & Young team has:
• the latest industry specific insights
• a detailed understanding of industry risks
• specialized resources around the world to address unique Medtech issues

The Market is Moving
The Medtech industry is fast moving. Current trends include:
• increased M&A activity due to the fact that companies are focusing on core competencies
• suppliers will have fewer, but more powerful customers
• sales and marketing are becoming more critical to success
• Switzerland will remain a prime location for high value production and for research and development as well as a preferred location for corporate headquarters

Our Track Record
Ernst & Young has built a strong market position and has a reputation as an innovative business advisor to many leaders in the Medtech industry. We provide cutting edge advice to the Life Sciences industry (Pharma, Medtech and Biotech industries) worldwide. In Switzerland we work with most of the leading Medtech companies.

The Team You Need
Ernst & Young Switzerland has a team of 10 professionals who focus on the Medtech industry. The Medtech Team can then, depending upon the clientÕs needs, bring in an extensive array of specialists to work with the client.

Thought Leadership
To add value for our clients Ernst & Young conducts various Medtech studies and shares the results along with Ernst & Young’s perspective with clients. In addition, newsletters and conferences are used to share information about current industry developments and accounting issues. Current studies include:

The Swiss Medtech Report 2005 – s study is the first comprehensive study about the Swiss Medtech industry, aimed primarily at foreign investors and clients. It shows that this growing industry with approx. 500 companies, 40,000 employees and R&D expenditures of over 500 Mio USD has some significant challenges ahead.

www.ey.com

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Global Life Science Ventures (GLSV) is a leading, independent venture capital fund focusing exclusively on the life sciences. GLSV is dedicated to supporting early-stage groups, originating from universities, scientific institutions or industry. The fund may also invest in selected later stage companies, including buy-outs. For this purpose, GLSV provides finance, advice and access to expertise and networks. The group currently advises and manages funds totalling more than € 200 million. With offices in Germany and Switzerland, GLSV acts as one team with a global perspective.

For more information, please see our website: www.glsv-vc.com

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Your Global Capitalization Partner
Katan Associates is a global advisory organization that provides capitalization strategies and a broad range of services to high growth, highly innovative life sciences companies, biotechnology firms and biomedical enterprises.

Based in the world’s leading centers for biotechnology and biomedicare, Katan Associates brings together specialists from a diverse range of corporate and commercial backgrounds to advise firms on long term growth and capitalization solutions.

Katan Associates focuses on five core areas of specialization in helping firms achieve their business growth.

• Strategy Formulation
• International Business Development
• Investment Banking / Venture Capital
• Government and Industry Advisory
• Mergers and Acquisitions

Katan provides businesses and management teams with the tools and the infrastructure to grow and expand their business.

To find out more, please visit our website at www.katanassociates.com

Or contact Seth Yakatan, Partner, at 323.356.6321 or seth@katanassociates.com

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Investing in innovative life sciences concepts for patient benefit creating attractive returns for entrepreneurs and investors

The Novartis Venture Fund invests in enterprises characterized by outstanding entrepreneurs and management teams developing innovative technologies with the potential of disrupting an existing or creating a new market and delivering significant patient benefits.

Our investments range from early start-up companies and Series A investment, which we intend to support through follow-on rounds, to more advanced private companies active in Life Sciences. Our key interest is in new therapeutics and platform technologies which we complement with investments in medical devices, diagnostics/ bio-markers and drug delivery technologies.

Over the existence of the Fund since 1997, it has made a total of 98 equity investments. 18 profitable exists have been realized, and 60 companies are still within the portfolio. The Novartis Venture Fund is an evergreen fund and has more than USD 500m under management.

For more information, please refer to www.venturefund.novartis.com

Contact:
Basel -Switzerland Office:
Novartis Venture Fund
Novartis International AG
WSJ 200.373
CH 4002 Basel
Switzerland
Phone: +41 61 324 32 67
Fax: +41 61 324 86 79

Cambridge -US Office:
Novartis BioVenture Fund
One Cambridge Center
Cambridge, MA 02142
USA
Phone: +1 617 871 77 80
Fax: +1 617 225 09 34

www.venturefund.novartis.com

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Europe’s leading exchange for life sciences companies
Swiss financial institutions manage more than one-quarter of the world’s offshore assets and represent the backbone of Switzerland’s strong financial marketplace. As a result, companies listed on the SWX Swiss Exchange achieve a high level of visibility within this financially potent investor community.

In Switzerland, the life sciences industry in particular has developed over the past years into an internationally recognised and strongly emphasized sectoral focal point:

1. In Europe, the SWX has grown to become the most important securities exchange in terms of the total market capitalisation of listed life sciences companies.
2. Collectively, these representatives of the industry account for roughly one-third of the overall market capitalisation of the Swiss equity market.
3. Listed companies in the life sciences field such as Novartis, Roche, Merck Serono and Actelion engender an environment that exudes global charisma.
4. Differentiated sector-specific indicators such as the SXI LIFE SCIENCES® and SXI Bio+Medtech® indices, as well as the unusually broad analyst coverage of this particular sector, ensure transparency and outstanding visibility.

With a public offering of securities in Switzerland, and thanks to the tremendous placing power afforded by the Swiss-based investment banks, life sciences companies gain access to a sectorally experienced, highly competent and broadly international circle of investors.

Moreover, the location-specific advantages of Switzerland and favourable general conditions contribute to the attractiveness of an initial public offering on the SWX:

1. The Continental European marketplace with the most pronounced international orientation
2. A leading financial centre for equity-focused institutional investors
3. A strong private banking industry with a broad investor base
4. Multilingual and multicultural investors
5. Focus on Life Science and small- and mid-caps
6. Numerous banks with established in-house research departments
7. Active bond and derivatives markets
8. An attractive, market-oriented regulatory environment thanks to self-regulation
9. Acceptance of various accounting standards (US-GAAP, IFRS, Swiss GAAP ARR and additional internationally recognised standards)
10. Low foreign exchange risk (listing in various currencies is possible)

Further information on the topic of IPOs on the SWX can be accessed at: http://www.swx.com/download/about/div_pub/swx_ipoguide_en.pdf
Should you have further questions with regard to a public offering of securities, the various stock market segments or any other exchange-related topic, please feel free to contact our Issuer & Investor Relations team.

SWX Swiss Exchange
Issuer & Investor Relations
Selnaustrasse 30, Postfach, CH-8021 Zürich
T +41(0)58 854 22 45   F +41(0)58 854 22 40
www.swx.com
E-mail: ipo@swx.com

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Yorkville Advisors, LLC is the investment manger to a dedicated private investment fund that provides innovative financing solutions to public and private companies (“Issuers”) worldwide.  Yorkville works closely with management to design custom-tailored, alternative financing structures that meet the Issuer’s capital needs and corporate goals.  Yorkville has structured transactions with numerous companies listed in the US, UK, Australia, Brazil, Singapore, Malaysia, India, Italy and Hong Kong.  Yorkville seeks to structure investments using convertible and straight debt, bridge loans, convertible or straight equity and equity lines while making investments in a broad range of transactions, including late-stage venture, growth and mature enterprises, control and non-control transaction, special situations and management or leveraged buyouts.

www.yorkvilleadvisors.com

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