Thursday, Jun 7, 2001

Schwarz Pharma's Rights to Growth Hormone Products Reacquired by Genentech

Schwarz Pharma to focus on Central Nervous System and Urology

South San Francisco, Calif. and Monheim, Germany -- June 7, 2001 --

Schwarz Pharma AG and Genentech, Inc. announced today that they have signed an agreement for Genentech to reacquire the rights from a 1999 development and distribution agreement with Schwarz Pharma for two of its human growth hormone products.

Under the agreement, Schwarz Pharma will return to Genentech exclusive development and marketing rights in Europe and certain other countries outside the United States, Canada, China and Japan for Nutropin AQ® (somatropin, rDNA origin) and Nutropin Depot™ [somatropin (rDNA origin) for depot suspension] for the treatment of growth hormone deficiencies in children and adults. Terms of the agreement were not disclosed.

"We have had a good relationship with Schwarz Pharma for the past two years and based on business decisions, we both agreed that Genentech would reacquire the rights to our human growth hormone products," said Joseph S. McCracken, DVM, MS, vice president, Business and Commercial Development at Genentech, Inc. "Genentech is committed to seeking a new ex-U.S. partner for both Nutropin Depot and Nutropin AQ."

"As we concentrate on our main focus, namely, the development of drugs in the fields of the Central Nervous System and Urology, this agreement no longer worked within Schwarz Pharma's business plan. Therefore this agreement will not have a negative impact on our sales and earnings growth," said Patrick Schwarz-Schuette, CEO, Schwarz Pharma AG. "Schwarz Pharma submitted the European centralized registration documents and received the approval for Nutropin AQ® in January 2001. These products are now reacquired by Genentech, the leading company in the U.S. growth hormone market."

Schwarz Pharma AG (headquartered in Monheim, Germany) develops and markets innovative drugs for unmet medical needs with focus on CNS, urology and cardiovascular diseases. In 2000 the company achieved global sales of | 736 million, thereof 68% on international markets outside Germany. Expenses for research & development amounted to |.91.5 million. The company is investing in development projects targeting diseases such as Parkinson's, Epilepsy, neuropathic Pain and Incontinence. The company has a strong international presence with subsidiaries in Europe, USA and Asia. The international pharmaceutical specialist employs more than 3,300 people worldwide. Shares of SCHWARZ PHARMA AG are traded on the Frankfurt and Duesseldorf stock exchanges.

Genentech, Inc., is a leading biotechnology company that discovers, develops, manufactures and markets human pharmaceuticals for significant unmet medical needs. Fourteen of the currently approved products of biotechnology stem from Genentech science. Genentech markets nine products directly in the United States. The company has headquarters in South San Francisco, California and is traded on the New York Stock Exchange under the symbol DNA.

This press release contains forward-looking statements. These forward-looking statements are subject to various risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such forward-looking statements. Risks and uncertainties that could cause a material difference in future results include changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings and the availability of financing. The Company does not undertake any responsibility to update the forward-looking statements contained in this press release.

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