Evotec OAI Announces Preliminary Q2 Sales Significantly Improved from Q1 2004 - On Track to Meet Full-Year Guidance

Hamburg, Germany | Oxford, UK - Evotec OAI AG (Frankfurt Stock Exchange: EVT, TecDAX 30) today reported preliminary sales figures for the second quarter ended 30 June 2004.
The Company achieved second quarter revenues of EUR 17.0 million, matching the level achieved in the same period of 2003. As expected, the second quarter saw a significant improvement from the first quarter, with sales up 18%.
"As anticipated, we have seen a recovery in our industry since the beginning of 2004, particularly in the US. This resulted in a significant upturn in Discovery and Development Services revenues compared with the first quarter. We expect this momentum to continue during the second half of the year, and as a result we retain our full year revenue guidance," said Dr Dirk Ehlers, Chief Financial Officer of Evotec OAI.

The order book for 2004 continues to build positively, totalling EUR 58 million as of June. Since last time reported, the intake of new orders has accelerated compared with the same period of 2003. Consistent with previous guidance, the Company believes 2004 revenues will exceed 2003 revenues by around 3% if current exchange rates are maintained for the rest of the year. The Company expects revenues in its core business, the Discovery and Development Services division, to continue to improve in the second half of the year. As in previous years, revenue recognition in the Tools and Technologies business is subject to significant variations from quarter to quarter depending on the timing of deliveries of instruments. As the majority of revenues from Evotec Technologies will be recognised in the fourth quarter of 2004, the third quarter is expected to be relatively weak compared with a very strong Q3 2003, while Q4 is expected to deliver significant revenue growth.
About Evotec OAI AG
Evotec OAI has established itself as the partner of choice for drug discovery and development services for pharmaceutical and biotechnology companies worldwide, maintaining its leadership role through innovation and unmatched customer service.
The Company's business strategy is clearly focussed on drug discovery. It has established the most comprehensive technology platform and skills that integrate its world-class biology and chemistry capabilities. Evotec OAI leverages this discovery engine in providing assay development and screening through to compound optimisation and drug manufacturing services to a broad and well-established network of customers. In addition, the Company engages in selected discovery programmes itself to develop drug candidates for early out-licensing. Evotec OAI's instrument and technology business is now successfully handled by its affiliate, Evotec Technologies.
With over 600 people in Hamburg, Germany and Abingdon, UK, Evotec OAI is dedicated to returning value to its shareholders and employees through a sustainable business strategy that balances short-term and long-term revenue opportunities.
Forward looking statements
This press release contains forward-looking statements that involve risks and uncertainties. The forward-looking statements contained herein represent the judgement of Evotec OAI as of the date of this release. These forward-looking statements are no guarantees for future performance, and the forward-looking events discussed in this press release may not occur. Evotec OAI disclaims any intent or obligation to update any of these forward-looking statements.
Contact: Anne Hennecke, Investor Relations & Corporate Communications, Evotec OAI AG, Phone: +49-40-56081-286, anne.hennecke@evotecoai.com
Contact: Anne Hennecke, Investor Relations & Corporate Communications, Evotec OAI AG, Phone: +49-40-56081-286, anne.hennecke@evotecoai.com