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Sekunjalo acquires significant interest in top rated Biotechnology Company Sekunjalo Investments Limited (Incorporated in the Republic of South Africa) (Registration number 1996/006093/06) Share code: SKJ & ISIN: ZAE000017893 ("Sekunjalo" or "the company") Press Release Date: 15 June 2006 Sekunjalo acquires significant interest in top rated Biotechnology Company JSE-listed Sekunjalo Investments Limited today announced it has subscribed for just under fifty percent of the equity of Bioclones (Pty) Limited, a leading South African Biotechnology company. The purchase consideration payable is R19 932 447 to be settled through the issue of 16 610 373 new Sekunjalo shares to Bioclones. Sekunjalo considers its investment to be considerably discounted since Bioclones has built a significant presence in the Biotech sector. Bioclones has 22 registered patents and further 12 pending registration, and is an established Biotech company operating in a $12Billion world-wide market. Dr Surve, Sekunjalo"s chief executive is to be appointed chairman of Bioclones and Dr Cyril Donninger will remain as an executive director. Further board appointments will be announced in the near future. Bioclones develops and manufactures biotechnology products for human pharmaceutical use. It has been successful in developing, manufacturing and registering formulations of recombinant human erythropoietin, the world"s leading biotechnology product based on sales value. Recombinant human erythropoietin today commands a worldwide market of over US$ 12,0 billion. Bioclones has an interesting pipeline of development products, protected by international patents, which focus on new approaches for the treatment of diseases due to the failure of cellular immune response, which includes infectious diseases, cancer and auto immune diseases. Norman Noland, deputy chief executive officer of Sekunjalo, said "this investment is an opportunity for Sekunjalo to combine its growing interests in the healthcare sector and in so doing to facilitate the unlocking of significant value contained therein." "Bioclones is among the few biotechnology companies with a track record of generating revenue from its developed products. It is a world-class company. There is no doubt that global investors are cognisant of the value inherent in leading biotech companies." Dr Donninger said Bioclones had been severely hampered in the development of its business by the shortage of capital. "With the refinancing of Bioclones via the Sekunjalo subscription, the management of Bioclones will be in a better position to deliver the undoubted potential of the company." "Listed biotechnology companies with only products under development and no product sales have values of between US $ 100 million to a few billion dollars." Sekunjalo"s biotech subsidiary African Biotechnology and Medical Innovation Investments will be structured to incorporate all the group"s biotech investments. Dr Surve, Sekunjalo Chief Executive, said that the Bioclones investment is an opportunity for Sekunjalo to build a significant presence in the biotech sector by further investment and / or acquisitions. Ends: On behalf of: Sekunjalo Investments Limited Contact: Norman Noland Deputy CEO Sekunjalo 083 626 4135
Ryland Fisher CEO Sekunjalo Media 082 800 5326
Date: 15/06/2006 02:54:05 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department
