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Sekunjalo - Joint Press Statement Sekunjalo Investments Limited (Incorporated in the Republic of South Africa) (Registration number 1996/006093/06) Share code: SKJ & ISIN: ZAE000017893 ("Sekunjalo" or "the group") Date: 15 November 2006 Boost for SA Biotech Industry Cape Town - The South African biotech industry took another significant leap onto the world stage with the announcement today that Solidago AG, a Swiss based company that develops and licenses strains of micro-organisms and cell lines, has concluded a G-CSF licensing and technology transfer agreement with local company Bioclones (Pty) Ltd. Bioclones is owned 49,9 % by African Biotechnology Medical Innovation Investments Limited (ABMI) a wholly owned subsidiary of JSE- listed Sekunjalo Investments Limited. The conclusion of this Agreement was made possible by a US $ 5.3 million investment by BioPAD a biotechnology Regional Innovation Centre established by the Department of Science and Technology to promote the development of the Biotechnology industry in South Africa into Ribotech Pty Ltd, a subsidiary of Bioclones. The agreement and others will enable Bioclones to manufacture locally advanced recombinant biotechnology products for world markets. The product expressed by the licensed cell line, recombinant human granulocyte colony stimulating factor, is a companion product to recombinant human erythropoietin which since 1998 has been produced and sold in South Africa by Bioclones. Recombinant human granulocyte colony stimulating factor (r-HuG-CSF) stimulates bone marrow to produce mainly neutrophil granulocytes, a class of white blood cells. G-CSF is widely used in oncology to combat the effects of chemotherapy on the bone marrow. The Minister of Science and Technology, Minister Mosibudi Mangena heralded BioPAD"s investment and the license agreement between Solidago AG and Bioclones and said; "To achieve success in biotechnology a country requires a government agency to champion biotechnology, to build human resources proactively, and to develop scientific and technological capabilities. "Successful commercialisation of public sector supported research and development requires strong linkages between institutions and a vibrant culture of innovation and entrepreneurship," Minister Mangena said. Butana Mboniswa, CEO of BioPAD said; "We at BioPAD are committed to support technology transfer activities, which is a clear mandate of our organisation. We believe that through local technology development and international technology transfer, we will be able to grow the South African Biotech sector." Bioclones is the leading South African Biotechnology company developing modern biotechnology products for human pharmaceutical use. Dr Cyril Donninger, Bioclones Chief Executive Officer, described the agreement as a major development which will enable a South African biotechnology company to become a player in the world biotechnology industry. "We are immensely proud to have concluded this licensing agreement with Solidago. This is the first time Solidago has given such rights to a company in the developing world which makes it a first for South Africa and a first for Africa", Dr Donninger said. He said Bioclones was able to conclude this agreement because of its track record in producing and taking recombinant human erythropoietin to the market in South Africa. Dr Iqbal Surve, Sekunjalo Chairman and Chief Executive Officer said: "The support of the Department of Science and Technology and BioPAD played a vital role in the closure of this agreement. This opportunity to enter the global biotechnology industry is made possible by the foresight of Minister Mangena and the recognition of the investment opportunity by BioPAD. Their unequivocal support made this happen". Dr Surve said he hoped the rationale for Sekunjalo investing in the biotechnology sector was starting to become apparent to the market. "The product which will be produced as a result of this agreement together with our current product portfolio has the potential to generate hundreds of millions of dollars revenue for South Africa and retain our best talent. "We said at the time there was substantial value to be unlocked in Bioclones and the ability of Bioclones to conclude agreements like this one demonstrates this", he said. ENDS Prepared by: Bruce Hetherington Beachhead Media & Investor Relations 082 458 2199 Contact details: Sekunjalo Zenariah Barends
Mobile: 082 441 0433 Bioclones Dr C Donninger CEO
Tel: (011) 656 9700 Mobile: 083 226 2666 Department of Science and Technology Nelvis Qekema
Mobile: 082 571 2571 BioPAD Dumisane Mangwane Tel: (012) 844 0417
Mobile: 083 387 3596 Date: 16/11/2006 03:50:08 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department
