Evotec OAI's Preliminary Results 2002: Q4 Results Exceeding Expectations

Hamburg, Germany | Abingdon, UK - Evotec OAI AG (Deutsche Börse: EVT, Prime Standard), a partner for integrated high-value-added drug discovery services to the pharmaceutical and biotechnology industries, today reported preliminary financial results for the year 2002.

Revenues of the Evotec OAI Group increased by 10% to EUR 69.5m (2001: EUR 63.2m), in line with previous company guidance of EUR 68 to 72m (see press release of October 23, 2002). 
Based on the October revenue assumptions, Evotec OAI anticipated to reach earnings before interest, taxes, depreciation and amortisation (EBITDA) between EUR -3 and -6m (2001: EUR -1.0m). Preliminary results suggest that EBITBA will be significantly better than previously guided.
At 31 December 2002, Evotec OAI's cash position amounted to EUR 21.3m, up from EUR 14.9m at the end of Q3. As a result of cost containment and successful working capital management as well as the financing of capital expenditures amounting to EUR 0.7m, cash reserves exceeded expectations by EUR 7m.
"Despite a challenging market environment we once again demonstrated continuing solid growth. We exceeded our revised expectations, achieved positive EBITDA in Q4 and ended the year with EUR 21 million in the bank," commented Dr Dirk Ehlers, Chief Financial Officer of Evotec OAI. "We were extremely successful in closing new deals in Q4. Today's announcements with Dynogen and Psychiatric Genomics demonstrate that we build on this momentum with continued positive deal flow. With our strong order situation and professional cost management the company is now on track to reach its growth target of 10-15% and positive EBITDA in 2003."
As of January, the order book for 2003 amounted to EUR 45m covering almost 60% of current revenue expectations for 2003 (analyst consensus: EUR 78m). This compares favourably to contracted revenues of EUR 33 at the same time in 2002.
All numbers reported today are unaudited and preliminary. Evotec OAI will disclose its audited financial statements on 25 March 2003.
About Evotec OAI AG

Evotec OAI offers a comprehensive range of high-value added services and products required to increase the efficiency and at the same time reduce the risk in the identification of new drugs. By integrating proprietary state-of-the-art technologies and processes in biology, chemistry and screening, the Company has established a unique position for all the critical elements in the drug discovery and development process - from target to clinical development. Due to its extensive know how and experience Evotec OAI is the ideal partner for pharma and biotech companies world-wide. To date, Evotec OAI has completed over 1,200 projects with 150 companies, including all of the top 20 global pharmaceutical companies and major biotechs. The Company employs more than 600 people, primarily at its two main sites at Hamburg in Germany and Abingdon in the UK. Subsidiaries are located in Europe and North America.