GTC Biotherapeutics (fka GTCB)

[DB9]

The LFB Group and MAbgene Sign a Major Agreement.

http://www.medadnews.com/News/Index.cfm?articleid=471717

LES ULIS (France), September 4th 2007--The agreement covers the incorporation of a new company (controlled by LFB BIOTECHNOLOGIES, a subsidiary of LFB S.A.) which will host the industrial and commercial activities currently performed at MAbgène's manufacturing site at Alès (southern France), all MAbgène staff and, lastly, the MAbgène brand name.

For LFB and MAbgène, the stated objective is to scale up their activities in the biomanufacturing sector by expanding the Alès site (which features a pilot development unit and an existing GMP clinical batch production facility) in order to achieve a truly industrial dimension and manufacture commercial batches of biomolecules.

The agreement stipulates that LFB BIOTECHNOLOGIES will acquire 41% of the stock capital and 51% of the voting rights in the new company and will provide MAbgène with the funds needed to develop its activities, build new operating facilities and recruit additional personnel.

This integration is part of LFB's biotech development strategy and follows on from 2006's creation of a dedicated subsidiary - LFB Biotechnologies. LFB's long-term objective is to acquire all the shares in the newly formed company.

According to Christian Béchon (Chairman of the LFB group), integration of MAbgène and the investments made in the ‘Languedoc Roussillon’ region on the Alès site "correspond to an true industrial logic and are fully in line with our commitment to growing the group in the biomanufacturing sector. This operation will also enable us to become more autonomous in developing our own monoclonal antibodies."

According to Patrick Henno (Founder & Chairman of MAbgène and CEO of the new company), "partnering with a pharmaceutical group like LFB had become a decisive milestone for MAbgène, in view of our need to achieve a critical mass and respond to our customer's requirements in a setting which reconciles economic considerations with compliance with good manufacturing practice."

"We decided to commit the resources needed to develop MAbgène's business activities and meet the requirements of the company's customers" added Evelyne Nguyen (LFB's Director of Financial Affairs), who will assume the chairmanship of the new company.