First six months of 2009 compared to first six months of 2008

Revenues decreased 97% to EUR 0.1 million for the six months ended June 30, 2009, compared to EUR 3.0 million for the same period in 2008. The decrease in revenues is due to the termination of the co-development and license agreement for satraplatin with Celgene Corporation effective September 2008. Research and development (R&D) expenses decreased 76% to EUR 2.5 million for the first six months of 2009 compared to EUR 10.3 million for the same period in 2008. The decrease in R&D expenses is primarily due to staff reductions as a result of the restructuring plans implemented in the first quarter of 2008 and 2009, a decrease in clinical trial costs due to reduced clinical trial volumes and a credit to compensation cost totalling EUR (1.5) million as a result of the forfeiture of convertible bonds and stock options. In the first half of 2009, administrative expenses decreased 14% to EUR 6.4 million compared to EUR 7.4 million for the same period in 2008. The decrease in administrative expenses is primarily due to staff reductions and other associated activities as a result of restructuring plans. The total decrease of EUR (1) million is net of a credit to compensation cost totaling EUR (1.8) million as a result of the forfeiture of convertible bonds and stock options, as well as an increase of approximately EUR 3 million in one-time costs relating to banking fees, legal services, severance and other restructuring costs due to the planned merger. Net loss for the first six months of 2009 improved 46% to EUR (8.5) million compared to EUR (15.8) million for the first six months of 2008. Basic and diluted loss per share was EUR (0.23) for the first six months of 2009 compared to EUR (0.43) for the same period in 2008.

Second quarter of 2009 compared to second quarter of 2008

Revenues for the three months ended June 30, 2009 decreased 93% to EUR 0.1 million compared to EUR 1.5 million for the same period in 2008. R&D expenses decreased 69% to EUR 1.4 million for the second quarter of 2009 compared to EUR 4.5 million for the same period in 2008. Administrative expenses for the second quarter of 2009 decreased 38% to EUR 2.4 million compared to EUR 3.9 million for the second quarter of 2008. The Company's net loss was EUR (4.2) million in the second quarter of 2009 compared to EUR (8.7) million for the same period in 2008. Basic and diluted loss per share was EUR (0.11) for the second quarter of 2009 compared to EUR (0.24) for the same period in 2008.

Quarter over quarter results: second quarter 2009 compared to first quarter 2009

Revenues for the second quarter of 2009 were EUR 0.1 million compared to no revenues for the previous quarter. R&D expenses increased 27% to EUR 1.4 million for the second quarter of 2009, compared to EUR 1.1 million in the first quarter of 2009. Administrative expenses for the second quarter of 2009 decreased 38% to EUR 2.4 million compared to EUR 3.9 million for the previous quarter. The Company's net loss was EUR (4.2) million in the second quarter of 2009, compared to EUR (4.3) million for the previous quarter. Basic and diluted loss per share was EUR (0.11) for the second quarter of 2009 compared to EUR (0.12) the previous quarter.

Cash position and net cash burn

As of June 30, 2009, cash, cash equivalents, and available-for-sale investments totaled EUR 5.6 million (December 31, 2008: EUR 32.0 million), including EUR 0.2 million in restricted cash. As previously reported, in connection with the planned merger, GPC Biotech made a loan to Agennix in the first quarter of 2009 in the amount of $20 million in the form of a senior secured convertible promissory note.

Net cash burn for the first six months of 2009 was EUR 11.4 million, with net cash burn of EUR 4.9 million in the first quarter and EUR 6.5 in the second quarter of 2009. The increase in net cash burn for the second quarter compared to the previous quarter was due to payments of merger-related expenses of approximately EUR 2.7 million which had been accounted for but not paid out in the first quarter of 2009. Net cash burn is derived by adding net cash used in operating activities and purchases of property, equipment and intangible assets. The figures used to calculate net cash burn are contained in the Company's interim consolidated cash flow statement for the respective periods.

Financing update

The Company also announced that it has received a loan in the amount of EUR 3 million from diagennix GmbH, which is the new company onto which GPC Biotech will be merged after diagennix has been changed to a stock corporation and renamed "Agennix AG." The loan, which bears 12% interest per annum and has a term of one year, is secured by an assignment of a portion of the $20 million note in Agennix in the amount of $4.8 million. This loan is between the two merger partners and so will not impact the overall cash position of the future combined company. The new company resulting from the merger is expected to have sufficient cash, as previously announced, into the second quarter of 2010.

Dr. Torsten Hombeck, Chief Financial Officer, said: "With the approval of the proposed merger by our shareholders in June, we are working to finalize the transaction, the closing of which we continue to expect to occur by the end of this year.