Bachem Group increases half-year profit
Strengthens involvement in combinatorial chemistry

During the first half of 1999, consolidated sales amounted to CHF 50,7 m, 2,3 % lower than the corresponding period of 1998. Excluding currency effects, this represents a reduction of 2,0 %.

An important factor in this context is the complexity and length of the peptide manufacturing process, which can well reach or exceed a year from the order to the delivery for major projects. During the second six months of this current year, for example, significantly higher sales figures are expected at our Bubendorf headquarters, the group's biggest production site. This is in contrast to previous years, where the second six months of the year showed significantly lower turnover than the first six. In 1999, therefore, the second half-year will contribute more strongly to total sales than in earlier years, with correspondingly positive impacts on the operational results.

As part of its long-term strategy, Bachem AG is going to enter into collaboration with Polyphor AG, a company active in the field of combinatorial chemistry. To strengthen this partnership, Bachem will acquire a 31 % stake in Polyphor, which offers innovative products and services that support the chemical and pharmaceutical research industry in identifying and optimizing leads for new development compounds. The company was founded in 1997 and currently employs 13 people.

Investments to further expand the company's infrastructure and production facilities at the Bubendorf headquarters continue to progress according to schedule. The new administrative building will be completed by the end of September, while the construction of an additional production facility was begun in June.

Regarding the further development of business, the Bachem Group again expects a substantial increase in profit for the full year 1999 as compared to 1998, barring any unexpected events.

Key figures:		1. Half-year 1999 (in CHF m)		1. Half-year 1998 (in CHF m)		Difference (in CHF m)		Difference (in %)
Product sales		50.7		51.9		-1.2		-2.3
Operating results		25.0		24.6		+0.4		+1.6
Profit before taxes		28.8		25.9		+2.9		+11.2
Total shareholder's equity		221.0		189.6		+31.4		+16.6
Total liabilities and equity		247.9		229.9		+18.0		+7.8

We, Bachem, are an independent, technology-based company specializing in the development of manufacturing processes for the production of innovative biochemical and pharmaceutical compounds. With our headquarters in Switzerland and affiliates in Europe and the US, we work on a global scale and hold a leading position in our field.

For further information please contact Mr. Jörg Stumpf, chief financial officer.
Telephone +41-61-931 23 33
Fax +41-61-931 25 49