Announcement no. 14/2008 To the Nasdaq OMX Nordic Exchange Copenhagen Copenhagen, August 18, 2008 Interim Report for the Period January 1 to June 30, 2008 (Unaudited and Unreviewed) Curalogic continues the process of seeking new development projects Curalogic is currently negotiating with a limited number of companies each of which has a pipeline with potentially attractive clinical development projects. Common to these companies is that they fulfill the search criteria set up and previously communicated by Curalogic and that a preliminary analysis indicates that synergies can be achieved with the potential of creating shareholder value for the shareholders of Curalogic. In parallel with these negotiations, Curalogic is continuously reviewing and analyzing biotech companies based on the Company's general search criteria. Curalogic is now about halfway through the list of companies and in the course of this process Management has held meetings or had dialogues with a significant number of companies since the search process was initiated in January 2008. Biotech companies are still finding it difficult to obtain funding, and Management believes Curalogic is well positioned to enter into an agreement before the end of 2008 which will create shareholder value in excess of the liquidation value of the Company. Concluding an agreement with respect to a new clinical development project is a complex and time consuming process which entails a number of material issues which the parties will need to agree on. As a result of the inherent risks and uncertainties associated with such process, there can be no assurance that the current expectations to reach an agreement before the end of 2008 will be fulfilled. If contrary to the Company's expectations, this is no longer deemed to be the case, the Company will seek the best solution to ensure that as much money as possible is returned to its shareholders. Financial performance during the period April 1 to June 30, 2008 Curalogic recorded an operating loss (EBIT) of DKK 1.3 million in Q2 2008 compared to an operating loss of DKK 37.4 million in Q2 2007. This operating loss was less than the Company's expectations and was due to lower-than-expected costs in connection with the termination of the Company's development activities within oral immunotherapy. The main reason for the difference in operating loss compared to Q2 2007 was the termination of the development activities within oral immunotherapy in the Company at year end 2007/beginning of 2008. The Company's cash and cash equivalents amounted to DKK 281.8 million as of June 30, 2008 compared to DKK 397.8 million as of June 30, 2007. Outlook for the financial year 2008 Curalogic expects to incur operating costs of approximately DKK 14 million in the 2008 financial year. At the same time net financial income of approximately DKK 9 million is expected. Curalogic thus expects to incur a total loss of approximately DKK 5 million in 2008. Curalogic's cash and cash equivalents as of December 31, 2008 are expected to be approximately DKK 279 million. This outlook will be affected if Curalogic engages in new development projects during the 2008 financial year. This is an improvement of the expected result for the 2008 financial year by approximately DKK 4 million since the guidance given in the interim report for Q1 2008 in May 2008. The increase in the expected result can be explained by a lower estimate on operations costs on DKK 4 million because of savings on the closure of the development projects as well as expected savings on operating costs in the company. The estimate of the Company's cash and cash equivalents is an increase of DKK 3 million. Events during the period April 1 to June 30, 2008 Reestablishing a pipeline in 2008 Curalogic is currently negotiating with a limited number of companies each of which has a pipeline with potentially attractive clinical development projects. The negotiations have not yet reached a point where Curalogic is able to give more details on their contents or evaluate the likelihood that the parties will reach an agreement. In parallel with these negotiations, Curalogic is continuously reviewing and analyzing biotech companies based on the Company's general search criteria. The development of oral immunotherapy is being closed down Curalogic closed down its clinical activities within oral immunotherapy at year end 2007/beginning of 2008 and the closing down of the activities are progressing as planned. Curalogic still expects to have all the previous development activities closed down by the end of the year. Share capital increase as a result of warrant exercise In June, Curalogic increased its share capital by a nominal value of DKK 25,666.5 corresponding to 51,333 shares with a nominal value of DKK 0.5 each as a result of the exercise by a former employee of warrants granted in 2005. The registered share capital thereafter amounts to a nominal value of DKK 28,240,074.5 divided into 56,480,149 shares of DKK 0.50 each. Key events after June 30, 2008 IPC International Plc. announced that they own 17.3% of the outstanding shares in Curalogic In mid July, 2008 IPC International Plc. announced that they own 9,760,016 shares corresponding to 17.3% of the outstanding shares in Curalogic.
Interim Report for the Period January 1 to June 30, 2008 (Unaudited and Unreviewed)
| Source: Curalogic A/S
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